Governor Spanberger Outlines Fiscal Strategy and Cost-of-Living Priorities to Joint Money Panels

RICHMOND, VA — Governor Abigail Spanberger delivered her administration’s mid-year fiscal address Wednesday to the Joint Money Committees of the Virginia General Assembly, laying out a budget roadmap focused on cost-of-living mitigation and conservative revenue forecasting.

Budget Surpluses and Reserve Maintenance

Addressing the House Appropriations, House Finance, and Senate Finance and Appropriations Committees at the State Capitol, Governor Spanberger confirmed that the Commonwealth concluded the prior fiscal year with a $1.1 billion general fund surplus. The governor proposed allocating $450 million directly to the Revenue Stabilization Fund and the Water Quality Improvement Fund, preserving Virginia's coveted AAA bond rating.

The address emphasized targeted affordability measures, including statutory oversight of electric utility rate base expansions driven by hyperscale data center grid interconnections across Northern Virginia.

Housing and Early Childhood Education Grants

Spanberger highlighted proposals to dedicate $200 million in surplus balances toward the Virginia Housing Trust Fund to seed revolving low-interest construction loans for attainable workforce housing in the Richmond and Hampton Roads metro regions. The administration also proposed expanding child care stabilization grants to lower household child care costs for working families.

Legislative leaders from both parties commended the focus on structural reserve preservation while signaling debate ahead regarding corporate tax adjustments and transit funding formulas.

Upcoming Executive Budget Release

The Department of Planning and Budget will present the formal executive budget amendments to lawmakers ahead of the January 2027 legislative convening.