State Policy · VA
Virginia Reports $2.1 Billion Revenue Increase Despite Federal Job Losses and Medicaid Cuts
Virginia Governor Abigail Spanberger reported a $2.1 billion general revenue fund increase for fiscal year 2026, driven by wage growth and a new data center energy tax projected to generate $600 million annually. The state lost 43,600 jobs, primarily from federal workforce reductions, but withholding revenues remained stable due to wage increases and early retirement patterns. Spanberger warned that federal healthcare cuts put 300,000 Virginians at risk of losing Medicaid coverage, threatening hospitals, clinics, and healthcare access statewide.
Why it mattersVirginia faces pressure to manage Medicaid coverage for 300,000 residents at risk of disenrollment due to federal policy changes, with direct implications for state budget planning, provider reimbursement, and safety net capacity.