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Youngkin cuts $900 million from amended Virginia budget ahead of economic uncertainty

  • Governor Glenn Youngkin cut $900 million from Virginia's two-year budget on May 2, 2025, mainly affecting capital projects and state operations.
  • Youngkin made these cuts due to economic uncertainty linked to potential declines in tax revenue from federal spending reductions and tariffs.
  • Most savings come from eliminating $691 million in capital project funding for 10 higher education initiatives, postponed projects, and $200 million from government operations including Medicaid reimbursements.
  • Youngkin described the cuts as a 'hedge' against future losses and noted the preserved teacher bonuses and some education funding remain intact despite rejected amendment proposals.
  • The cuts create a financial buffer as Virginia faces risks from federal job losses and trade disruptions, while Democrats acknowledge compromises in the final budget.
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Roanoke Times broke the news in on Friday, May 2, 2025.
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