For previous blogs on Economic Security during the 2024 legislative session, click here and here.

Economic stability is the strongest predictor of a thriving and healthy childhood. But far too many Virginia families are working hard and still struggling to afford nutritious food, comprehensive health care, safe housing, and quality child care. According to the 2024 KIDS COUNT Data Book, Virginia’s national ranking for child economic well-being dropped from 12 to 17. This sadly does not come as a surprise, as Virginia has a 13.6% child food insecurity rate and roughly . ALICE stands for Asset Limited, Income Constrained, Employed and represents the number of households that earn above the federal poverty level but cannot afford the basic cost of living in their locality.  

Families should not have to make the impossible choice of figuring out what they must forgo to make ends meet for their children. Yet, we hear directly from families that they are still feeling the impacts of rising costs and the elimination of pandemic-era supports such as the expanded federal Child Tax Credit and expanded SNAP benefits. In the most recent Census Household Pulse Survey, Virginia families with children in the household reported:  

• 78% felt very stressed or moderately stressed by the increase in prices in the last two months  
• 59% experienced some level of difficulty paying for their usual household expenses in the past week 

The choice to maintain this status quo is part of a systemic failure to support working families, and young people are collateral damage. This legislative session, lawmakers had a chance to prioritize family economic security and advance tax fairness in our upside-down tax code. The Governor’s veto power proved to be the biggest barrier to enacting pro-family policies like Paid Family & Medical Leave and increasing the minimum wage. 

2024 Budget Outcomes

Economic Security Investments:

• Two Family/Whole Generation Pilot: $1.125 million in FY26 from the TANF Block Grant to continue the Two Family/Whole Generation pilot program, which was removed from the Governor’s proposed budget.  

• Paid Family and Medical Leave (PFML) Study: $200,000 in FY25 transferred from Economic Development Incentive Payments to the VEC to update the study they completed in 2021 to include budgetary impacts of PFML for state employees, state-support local employees, and local school divisions. A report of findings and recommendations will be due to the General Assembly by December 1, 2024.  

Food and Nutrition Access Investments:

• Summer EBT Program: Retains the Governor’s proposed funding of $5.4 million over the biennium to fund the administration of the Summer EBT program, “SUN Bucks”. Under this program, families whose children qualify for free- and reduced-price lunch will receive a lump sum of $120 to purchase additional food in the summer. 

• Virginia Commission to End Hunger: $51,296 across the biennium for member payments and reimbursements for their participation in the Virginia Commission to End Hunger (HB 607, Del. Price).  

• Increased Reimbursements for School Breakfast: $5.075 million over the biennium to increase the state’s share of reimbursement for school breakfast from $0.22 to $0.28.  
  • The governor recommended reducing funding by $2.5 million over the biennium to increase the reimbursement share to $0.25 in his budget amendments, but the funding from the conference budget was retained. 

• Study of Student Food Insecurity: Directs the State Council of Higher Education (SCHEV) to review the status of programs that address food insecurity at colleges and universities. A report of findings and recommendations will be due to the General Assembly by November 1, 2024.  

Tax Fairness: 

• Study of Virginia’s Tax Code: Directs the Joint Subcommittee on Tax Policy to explore efforts to modernize the Commonwealth’s income and sales and use taxes, including evaluating efforts to increase the progressivity of the income tax and long-term revenue growth to maintain core government services. 
  • Unlike other studies and reports, this line item does not specify a date that findings and recommendations would be due to the General Assembly.  

• Virginia CASH Campaign: $900,000 over the biennium from the TANF Block Grant for the Virginia Community Action Partnership contract to manage the statewide “Virginia CASH Campaign”, the state supported Volunteer Income Tax Assistance program providing outreach, education, and tax preparation services for Virginians who may be eligible for both the federal and new state Earned Income Tax Credit (EITC). This amendment increases the annual funding to $635,725/year.  

The Path Forward

Child poverty is a policy choice, and if we learned only one thing from the COVID-19 pandemic, it’s the reality that there are proven solutions that can lift families out of poverty and help them provide for their families—such as having family-focused tax credits and access to paid leave benefits.  

During the 2025 legislative session, Voices will continue leading the efforts alongside our partners at The Commonwealth Institute to establish a state-level Child Tax Credit (CTC) and expand the refundable state-level Earned Income Tax Credit (EITC) to 20% of the federal credit. We know that when families are given direct cash resources and financial support, it supports them in making ends meet, saving for emergencies, paying off debt, and investing in their child’s future.  

We will also continue supporting the efforts of the Paid Family & Medical Leave Coalition, convened by our partners at Freedom Virginia, to create a state-administered paid family and medical leave program. A family’s ability to be healthy depends upon their economic stability, and vice versa. Working families need well-paying jobs to afford health care, yet without paid family and medical leave, they risk losing income while trying to seek care for themselves and their families. 

And lastly, we will continue fighting for healthy school meals at no cost for all students. Virginia has made significant strides in expanding access to no-cost school meals through the Community Eligibility Provision (CEP), but there is still work to be done to ensure that children are not slipping through the cracks in more affluent communities. 

Investing in the economic stability of families and children should be the number one priority moving forward for Virginia lawmakers and the governor. 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 children and youth. 

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