Virginia Lawmakers Propose Major Health Spending to Offset Federal Cuts

Democratic legislators in Virginia propose budget amendments to backfill federal health cuts and expand Medicaid services, including prenatal care and disability support.

By: AXL Media

Published: Feb 25, 2026, 8:52 AM EST

Source: Information for this report was sourced from the Daily Press

Virginia Legislative Budgets Seek to Preserve Healthcare Safety Net

The Virginia General Assembly introduced comprehensive spending proposals this week aimed at protecting residents from rising healthcare costs and declining federal support. Legislative money committees in both the House and Senate are working to alter the original budget introduced by former Republican Governor Glenn Youngkin by backfilling cuts to essential federal health programs and expanding coverage for vulnerable populations. These amendments represent a significant effort to maintain the state's healthcare infrastructure during a period of transition and economic uncertainty.

Sustaining Insurance Affordability and Medicaid Expansion

One of the most critical challenges addressed in the proposed budgets is the expiration of federal tax credits that previously helped thousands of Virginians afford health insurance through the Affordable Care Act (ACA) marketplace. The Senate proposal allocates 200 million dollars to backfill these premiums to prevent an estimated 100,000 residents from losing access to coverage. Additionally the Senate has recommended a 90 million dollar reserve to manage increasing costs for Cardinal Care which is Virginia’s Medicaid and Children’s Health Insurance Program that currently serves nearly one in four people in the commonwealth. The House version offers a more targeted 79.1 million dollars specifically for those between 138 percent and 200 percent of the federal poverty level.

Restoring Specialized Care and Maternity Services

Lawmakers in both chambers have moved to restore funding for specialized health services that were previously removed or ignored in earlier budget drafts. A total of 29.5 million dollars has been reinstated to provide emergency maternity care for women who would qualify for Medicaid except for their citizenship status. Both the House and Senate budgets also restore language that allows Virginia Medicaid to fund abortions in specific cases of severe fetal diagnoses. Furthermore the Senate version includes 22.5 million dollars to increase rates for developmental disability services such as skilled nursing and personal assistance which advocates claim is necessary to meet federal court requirements for the treatment of people with disabilities.