Outgoing Gov. Glenn Youngkin announced last week that Virginia’s general fund revenues grew 21.0 percent ($641.9 million) in December compared with the same month last year, exceeding projections by 10.7 percent and marking one of the strongest monthly revenue performances of the fiscal year, reinforcing the Commonwealth’s position of fiscal strength entering the second half of Fiscal Year 2026.
Through the first six months of the fiscal year, general fund revenues are up 8.6 percent ($1.2 billion)
and now stand 2.6 percent ($395.4 million) ahead of the official forecast which was increased by $822.5 million in the Governor’s December budget submission, driven primarily by year-over-year growth in individual income tax nonwithholding payments of 62.7 percent ($399.6 million) and an increase in withholding payments of 11.3 percent ($170.9 million).
“The strong year-over-year increase is not noise, it is real. It reflects strong job creation, rising incomes, healthy consumer activity, and disciplined fiscal stewardship,” said Youngkin. “Because of this performance, revenues could decline by 1.6 percent over the rest of the year, and we would still meet our forecast. That is the strength of the Commonwealth’s financial position under our commonsense agenda – more jobs and lower tax burdens yield strong revenues.”
“With half the fiscal year complete, Virginia’s revenue performance is not only strong, but also resilient,” said Secretary of Finance Stephen E. Cummings. “Collections are growing nearly three times faster than the 3.0 percent growth assumed in the forecast, giving the Commonwealth a substantial cushion against future economic uncertainty. Even with moderating national job growth and mixed macroeconomic signals, Virginia’s core revenue streams—income and sales taxes—continue to perform at levels that position us well to exceed spending priorities in the 2026–28 Biennial Budget.”
