For a spreadsheet of 2025 investments in Economic Security budget priorities across each step of the budget process, click here.

In August 2024, former U.S. Surgeon General Dr. Vivek Murthy issued an advisory on the mental health and well-being of parents, citing the critical link between parental mental health and children’s health and long-term well-being. One in four U.S. parents said there have been times in the past year where they did not have enough money for basic needs. And according to the most recent Census Pulse Data, 66% of families with children in Virginia have reported having at least a little difficulty keeping up with everyday expenses in the past week. 

Families should not have to make the impossible choice of figuring out what they must forgo to make ends meet for their children. Family economic security programs like SNAP, WIC, and other nutrition assistance, paid leave, and family-friendly tax credits are proven policies and strategies to get the next generation out of poverty. This is demonstrated by the national child poverty rate, as measured by the Supplemental Poverty Measure (SPM), which is up to 13.7%, a far cry from its historic low of 5.2% in 2021, when the pandemic’s expansion of federal and state programs demonstrated that there are established solutions that can lift families out of financial insecurity. 

A state’s policy choices do not function in silos; instead, they intersect to create a system of support for families. Virginia lawmakers have an opportunity this legislative session to break away from the status quo and make bold choices to invest in and prioritize economic security and tax fairness with Virginia’s budget surplus. The budget amendments introduced by the House and Senate this past “Budget Sunday” are a critical step in laying the foundation for Virginia’s families to thrive.  

Tax Fairness

When it comes to improving the lives of hardworking Virginians, we need tax policies that are targeted to help families with low and moderate incomes. Research finds that the state Earned Income Tax Credit (EITC) is the most effective anti-poverty policy for children in the US, and a 2022 report from the Joint Legislative Audit and Review Commission (JLARC) found that creating Virginia’s state refundable EITC option helped make our tax code more progressive and fair. We are glad to see a significant win for families in both budgets to increase the refundable EITC option to 20%, putting more money in the pockets of low-income households. 

• Expanding the state refundable EITC to 20% of the federal credit | Included in House and Senate budgets 

• Increasing the Standard Deduction ($8,750 single filers/$17,500 joint filers) | Included in House and Senate budgets 

• One-Time Non-Refundable Tax Rebate ($200 single filers/$400 joint filers) | Included in House and Senate budgets 

• Child Tax Credit | Not included in either budget 

Family Income and Work Supports

Our families need meaningful, lasting support—support that will lift them from the margins and remove barriers to earning a living wage. Virginia’s current minimum wage of $12.41 per hour is far below a living wage for even a single adult in Virginia. Families must have financial resources and time to care for themselves and their loved ones, yet 73% of Virginians do not have access to paid family and medical leave, forcing them to choose between their income and their family’s needs. We are glad to see momentum in the House and Senate budgets on common-sense policies that uplift working families. 

• Increase the Minimum Wage to $13.50/hr. effective Jan. 1, 2026 and to $15 in 2027 | Included in the House budget 

• State-Administered Paid Family & Medical Leave Program | Included in the House budget 

• Paid Sick Days Standard | Not included in either budget

ICYMI: My personal testimony on the impact of not having access to Paid Family and Medical Leave  

Food and Nutrition Access

In Virginia, 1 in 7 children (13.6%) live in food-insecure households. Their families struggle with the ability to provide their children with healthy meals that fuel their minds and bodies. Lack of nutrient rich food impacts child development, overall health outcomes, mental and behavioral health, and academic achievement, performance, and participation. Unfortunately, the House and Senate budgets do not make significant investments in food security this year, and do not go nearly far enough to lessen the burdens of hunger and food insecurity for Virginia’s families. 

• Summer EBT Program Administration | Both House and Senate budgets retained the funding from the Governor’s introduced budget  

• Technical Update to School Breakfast Incentive Fund | Included in House and Senate budgets 
  • This is not to be interpreted as a “new” investment – this fixes the omission in the Governor’s introduced budget of funding for school breakfast reimbursement increases that passed in 2024 session, which increased the reimbursement from $0.22 to $0.28 per breakfast. 

• Hunger-Free Campus Food Pantry Grant Program | Included in the Senate budget 

• School Breakfast for All Students | Not included in either budget 

• Virginia Fresh Match Program | Not included in either budget 

Next Steps 

The House and Senate budgets make strides to address the inequities in our upside-down tax code and ensure hardworking families are financially secure and able to provide a heathy life for their children. But as we know, the work continues to ensure that public policies are made with the unique needs of families and children at the center.  

Virginia’s budget conferees must ensure that as they craft the conference budget, which will be released at the end of February, they align their priorities to fund programs that are essential to lifting families out of poverty. Investing in the economic stability of families and children should be the number one priority moving forward for Virginia lawmakers. Family-focused policies impact every aspect of child well–being and by intentionally removing barriers to thriving through social supports and adequate financial resources, we can ensure the healthy development of all of Virginia’s young people.  

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