Virginia sees strong start to fiscal year as revenues surpass projections by over 500 million
Richmond, Virginia – Virginia’s economy continues to show strong momentum as Governor Glenn Youngkin announced that the state’s general fund revenues have grown significantly in the first quarter of Fiscal Year 2026. Revenues rose by 5.1 percent, which amounts to a $374.4 million increase compared to the same period last year. In the month of September alone, Virginia collected $87.6 million more than it did during the same month in 2024—an increase of 2.7 percent.
Even more notable is that the Commonwealth’s revenue collections have outpaced projections. For September, collections were 9.8 percent higher than expected, exceeding forecasts by $294.4 million. Year-to-date, revenues are ahead by 7.9 percent or $560.9 million. These numbers reflect what state leaders are calling a “strong start” to the fiscal year.
A Financial Boost for Virginia’s Future
“Three months into this fiscal year, Virginia is in an incredibly strong financial position, with increased revenues from job growth and record capital investment,” said Governor Glenn Youngkin. He emphasized that this financial strength allows the state to focus on major public priorities. “As we begin the process of developing the next biennial budget that I will introduce in December, the Commonwealth continues to exceed projections. The financial strength of the Commonwealth underpins our ability to invest in key priorities like education, health care and law enforcement all while lowering costs for families and providing Virginians with historic tax relief like the rebate checks this month.”
Governor Youngkin also pointed to the state’s business-friendly environment, which has helped attract large capital investments and create job opportunities. “Virginia is a world-class destination for companies to create jobs and families to create a future, with over $140 billion in capital investment commitments since January 2022 from companies expanding in the Commonwealth, and more than 220,000 open and available jobs on top of the 277,000 jobs created since our term began,” he stated.
Secretary of Finance Stephen E. Cummings echoed the Governor’s positive outlook. “Through the first three months of the fiscal year, Virginia continues to see revenue collections outperforming our expectations,” he said. “Led by strong performance in both withholding and sales tax collections, the Commonwealth is well-positioned to withstand any short-term revenue risks as we begin the budget development process.”
The September 2025 revenue report is available here.
