Virginia sees continued revenue growth in January with budget surplus on the rise

Richmond, Virginia – Virginia’s financial position remains strong as Governor Glenn Youngkin announced a 2.4 percent increase in total general fund revenues for January 2025 compared to the same month last year. This translates to an additional $66 million in revenue, contributing to a 5.9 percent increase ($958.1 million) in year-over-year revenue for the first seven months of Fiscal Year 2025.

The growth follows a December revenue reforecast, which projected a $2.1 billion surplus beyond the budget adopted last May. With total year-to-date revenues now exceeding expectations by $114.9 million, Virginia is poised for yet another year of strong financial performance.

Economic Growth and Investment Drive Surplus

Governor Youngkin credited the steady financial momentum to job growth, business investment, and economic policies that aim to lower costs and increase opportunity across the Commonwealth.

“Virginia continues to maintain a strong financial position, and our prudent budget forecast remains on track. The record job growth and record business investment drive record state revenue growth, fueling the projected budget surplus for our fourth year running in the Commonwealth,” said Governor Youngkin. “Our agenda of providing tax relief, lowering the cost of living, streamlining regulations, attracting business investment, and enabling a great quality of life is yielding real results for Virginians.”

January Revenue Highlights

January is a crucial month for Virginia’s revenue collections, as it includes estimated individual nonwithholding tax payments, along with withholding and sales tax revenue generated from the holiday shopping season. Secretary of Finance Steve Cummings confirmed that revenue figures aligned with expectations, keeping the Commonwealth on pace to meet its fiscal projections.

“Results were consistent with expectations and, as a result, year-to-date revenues are 5.9 percent ahead of prior year, meaning that rest of year revenues need only grow by 1.8% to achieve the Fiscal Year 2025 forecast,” said Cummings.

The next five months will include key tax revenue periods, particularly from nonwithholding payments and refunds. Given the stable economic environment and conservative forecasting approach, state officials remain confident that Virginia will meet its full-year revenue target.

Maintaining Fiscal Stability

The continued revenue growth reinforces Virginia’s position as a financially stable state, allowing for ongoing investment in economic development, infrastructure, and essential public services. The strong fiscal outlook also supports Governor Youngkin’s commitment to tax relief and regulatory reform, positioning Virginia as an attractive destination for businesses and families alike.

The full revenue report for January 2025 is available for public review.