Glenn Youngkin’s Master Class in the Benefits of Pro-Growth, Free-Market Policies

In Thursday’s address to Virginia’s Joint Money Committees, Gov. Glenn Youngkin delivered a clear message: Virginia’s economy is stronger than ever because of pro-growth, free-market policy choices. 

His speech is a master class in good governance and sound economic policy. We must not stray from the course he has set.

Here are some key points from the speech.

A Record of Growth and Fiscal Strength

Virginia closed fiscal year 2025 with nearly $2.7 billion in revenue above forecast and enters fiscal year 2026 with a $1.7 billion cash cushion. The Rainy Day Fund stands at $4.7 billion, debt remains conservative, and the commonwealth retains its AAA bond rating (even as neighboring jurisdictions have been downgraded). Over the past three and a half years, the state has run surplus after surplus, totaling $10 billion in excess revenue.

Economic development is also booming, with $125 billion in capital commitments, more than 265,000 new jobs, and a reversal of the decade-long trend of out-migration. Virginia’s business-friendly approach of protecting right-to-work, cutting regulations by 25%, and ensuring shovel-ready sites has made it a magnet for investment.

Tax Relief and Competitive Advantage

All of the excess revenue has allowed the governor to deliver $9 billion in tax relief during his administration. This competitive tax climate keeps Virginia in line with neighboring growth states and ensures families and businesses keep more of what they earn. By coupling tax relief with strategic investments in workforce and infrastructure, Virginia has ignited a virtuous cycle of growth: more businesses, more workers, more taxpayers, and stronger revenues.

A Warning on the Failure of the Virginia Clean Economy Act

Youngkin was candid about the looming threat posed by the Virginia Clean Economy Act. He warned that the act is driving up energy costs, increasing dependence on out-of-state power imports, and imposing $5.5 billion in compliance costs over the next decade, all while creating a reliability crisis due to insufficient baseload generation.

The governor called for a full unwinding of the act to ensure affordable, reliable, and abundant energy for Virginia’s growing economy, all in line with the views and writings of the Thomas Jefferson Institute. We need an energy policy that rejects costly and unworkable mandates in favor of market-driven solutions.

Truth About Medicaid

Youngkin also boldly pushed back on the “sky is falling” mentality of those claiming 40,000 Virginians will lose Medicaid. He rightly noted that no one is “losing access” to Medicaid or getting kicked off. 

Medicaid was never meant to be a lifetime benefit for healthy adults—and a part-time work requirement that allows for recipients to work, go to school, or volunteer is hardly “kicking them off” Medicaid. And as was noted during the questions and answers portion of his speech, the medical centers in Virginia are flowing with money and can handle the changes. 

In the long term, fighting dependency and increasing agency is sound policy. 

Conclusion

Virginia’s economic performance proves what the Thomas Jefferson Institute has been preaching since we were founded: Low taxes and limited regulation, on a foundation of reliable energy, are the pillars of prosperity.

The commonwealth’s enviable fiscal health and job growth are not accidents. Our fiscal health is the result of intentional, free-market policy choices that make the economy strong enough to face whatever challenges may come—from federal job cuts to increased tariffs.

To sustain this momentum, Virginia must resist anti-business mandates, protect right-to-work, continue tax relief, and reform its failing energy mandates to keep power prices low and the lights on. 

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