Richmond, VA — Today, House Democrats released their proposed biennial budget for Fiscal Years 2026–2028 — a responsible, balanced plan focused on responding to federal cuts, lowering costs, strengthening healthcare, expanding childcare, and supporting working families across Virginia.
House Appropriations Chair Torian delivered the following remarks:
“Over the past year, federal actions have created real gaps – gaps in healthcare funding, in workforce programs, in education support, and in the safety nets that families rely on. Virginians should not be collateral damage of decisions made in Washington. This budget backfills those holes, not out of politics, but out of prudence […]
“But this budget is not just about filling gaps. At its core, this budget is about affordability – and about whether Virginia is doing everything it can to help families not just survive, but build stable, secure lives. It is about confronting the affordability crisis that touches nearly every household in Virginia […]
“Governing is not about choosing between compassion and responsibility – it is about delivering both.”
House Democrats’ Affordable Virginia Budget
Lowering Housing Costs and Expanding Supply
- $187.5 million for the Virginia Housing Trust Fund
- $25 million to create a revolving loan fund for mixed-income housing
- $17.6 million to support rapid rehousing efforts amid federal cuts
- $17 million for eviction prevention assistance
Expanding Access to Quality, Affordable Childcare
- $137.6 million increase in childcare subsidy funding — bringing total support to $577 million over the biennium; these slots serve families making up to 85% of the state median income
- $25 million to establish a pilot program for private employers to provide childcare benefits to their employees
Protecting and Expanding Affordable Healthcare
- Fully funds Medicaid and CHIP forecasts with a net $2.4 billion GF investment
- $79.1 million in premium assistance for Virginians losing federal tax credits
- $63.1 million to partially restore Medicaid and CHIP reductions
- Fully restores prenatal and postpartum coverage for immigrant women
- $45 million to protect core public health services
- $10 million for Virginia’s free clinics
- $11.1 million for sickle cell disease services
Supporting Working Families
- Supports increase in minimum wage to $13.75/hour in 2027 and $15/hour in 2028
- Strengthens and expands the Commonwealth’s paid sick leave policy for workers
- $20 million to implement collective bargaining for state employees and home healthcare workers
- Authorizes Treasury loan for Paid Family Medical Leave Program
- $15.3 million to strengthen labor law enforcement
Other Major Investments Across the Commonwealth
Public Education
- 2% raises in each fiscal year for teachers and staff ($382.9 million)
- $400.4 million in flexible funding for school divisions
- $148.4 million to expand special education support
- $347 million for school construction through casino revenue
Higher Education
- Continued tuition moderation and affordability
- Increased support for workforce credentials (18,000 additional credentials)
- Expanded tuition assistance grants and targeted HBCU and HSI support
Public Safety & Veterans
- $81.1 million for State Police for operational and administrative costs
- $12 million to support Sexual Assault and Domestic Violence agencies
- $10 million annually increase to expand the Safer Communities Program ($40 million over the biennium)
Federal Uncertainty Protection
- $200 million deposit into a new Federal Unanticipated Contingency Fund
Employee Compensation
- 2% salary increases in each fiscal year for state and state-supported local employees
- $323.5 million to stabilize the State Employee Health Insurance Fund
- $235.1 million for employee bonuses signed into law earlier this year
Natural Resources & Infrastructure
- Over $600 million for water quality and environmental improvements
- $2 billion in capital investments focused primarily on improving existing facilities
The House of Delegates will vote on the reported budget bill on Thursday, February 26th.
###