RICHMOND, Va. — A bipartisan effort by the Virginia General Assembly on the new state budget could be putting money back in your pocket.
Among the top-level proposals in both versions of the budget is providing over $1 billion in tax relief through a one time rebate for all Virginians.
The rebate would be $200 for individual income tax filers and $400 for joint filers.
The Democrat-led chambers opting for this instead of Republican Gov. Glenn Youngkin's plan with more targeted relief through his no tax on tips and car tax rebate proposals.
House Appropriations Chair Delegate Luke Torian (D-Prince William) says it was an issue of timing.
"We expect rebate checks to go out by Oct. 15, 2025. If we had gone with the recommendation of the governor on car tax relief, that would have taken much longer," Torian said.
Republican Senator Ryan McDougle (R-Hanover) says while his party would still like to see action on those ideas -- the end result is the same.
"So, that's very positive. We were all rowing in the same direction trying to get money back to Virginians. So we're excited that the Senate budget has that provision in place," McDougle said.
The proposals also seek to increase the standard deduction by $250 ($8,750 total) for individuals and $500 for joint filers ($17,500 total).
Working with a surplus in the billions, both chambers are also proposing bonuses for teachers and state workers. Teachers would receive $1,000 and state workers would receive a one to one and a half percent bonus.
"Giving that those one time compensation levels up and above the salaries that we'd already programmed in seemed to make sense with the type of money that was coming in the budget," McDougle said.
The budgets also got rid of some Youngkin's proposals entirely -- including withholding funding from localities that don't cooperate with Immigration and Customs Enforcement and a private school scholarship program.
At the more local level, both budgets maintain the $50 million for ongoing work Richmond's Combined Sewer Overflow.
The House version also contains over $650,000 to help Richmond with the costs from the water treatment plant shutdown last month.
McDougle says the Senate version also contains land transfers from the state to Hanover County to help with economic development.
"Also working some additional items to take land that is surplus and move it into parks in the area. So, trying to do some things to make life in the region better," McDougle said.
Once approved by their respective chambers, the House and Senate will appoint members to work out any differences between what was passed. Torian says there won't be many.
"Senator Lucas and I have been meeting throughout the session to discuss some of these issues that we believe may present a challenge for us and we feel like we're probably about 90% in agreement right now," Torian said.
Once the budget is approved by the General Assembly, it goes back to Youngkin for approval, changes, or vetoes. In a statement, the governor thanked the committees for their work. He added while there are areas they've agreed and disagreed on, the end goal is to deliver for Virginians.
CBS 6 is committed to sharing community voices on this important topic. Email your thoughts to the CBS 6 Newsroom.
📲: CONNECT WITH US
Blue Sky| Facebook| Instagram| X| Threads| TikTok| YouTube
