On Feb. 4, 2025, Virginia Speaker of the House Don Scott announced the creation of short-term emergency committee to address federal program cuts and layoffs. On March 8, 2025, Senate Finance and Appropriations Chairwoman Louise Lucas announced a similar Senate subcommittee. With a federal workforce exceeding 300,000 and over $20 billion in federal funding at stake, Virginia is poised for a major impact. Legislators in Virginia are bracing for the trickle-down effects of federal changes, which could strain the state’s budget and funding models.
The Trump administration announced sweeping reforms through a newly formed Department of Government Efficiency (DOGE). To downsize the overall size of the federal government and reduce government spending, DOGE began layoffs of federal personnel throughout varying offices and agencies. President Trump also announced potential reductions in budgets for several programs affecting funding for Supplemental Nutrition Assistance Program (SNAP), Medicaid, transportation and defense among others. DOGE warned any agencies that did not cut diversity, equity and inclusion (DEI) or Green New Deal related grants and programs could face potential funding consequences as well.
The House committee met once at the end of the regular legislative session. The committee’s objective is to analyze potential impacts that reduced federal funding has on Virginia’s budget, engage with stakeholders and produce policy recommendations on how to combat any negative effects. State stakeholders include the Department of Planning and Budget and Virginia Employment Commission among others.
The Senate subcommittee will have its first meeting on April 2, 2025, the morning of the legislature’s reconvened session. The House committee will meet again on April 8, 2025, in northern Virginia. The Weldon Cooper Center at the University of Virginia will release its next economic outlook for the commonwealth in April, which will show any signification economic changes that may need to be addressed by the legislature.
