Child Welfare
Family Economic Security
Rethinking Child Abuse Prevention in Virginia
April 29, 2026
Blog
2026 SESSION RECAP: ECONOMIC SECURITY
- Economic Security
- Family Economic Security
- Recap Blog
WHERE WE ARE NOW
The Moment
Virginia’s economy has grown in recent years, but that growth hasn’t reached every family. Too many working parents are earning wages that don’t keep pace with the cost of groceries, childcare, and rent. Too many children are growing up in households where work still isn’t enough to make ends meet.
The data tells a clear story. Child poverty remains concentrated among families of color, families with young children, and families in rural communities. While Virginia has tools like a state Earned Income Tax Credit (EITC) and a standard deduction, they have not kept pace with inflation or the scale of need.
At the same time, the federal landscape is shifting. H.R.1, signed into law on July 4, 2025, includes nearly $200 billion in cuts to the Supplemental Nutrition Assistance Program (SNAP) over the next decade, the largest cuts in the program’s history. These are no longer proposed changes. They are permanent shifts that are already reshaping what families can rely on and shifting more responsibility to states like Virginia.
WHAT WE’RE SEEING
Key Takeaways
The 2026 General Assembly brought both meaningful progress and unfinished priorities for Virginia’s working families.
Legislators advanced the most significant increase to the state minimum wage in Virginia’s history, a hard-fought victory for low-wage workers and the advocates who have championed it for years.
At the same time, key proposals did not advance:
- A state Child Tax Credit (CTC)
- Expansion of the Earned Income Tax Credit (EITC)
- New revenue through tax reform
- An increase to the standard deduction
These remain some of the most effective tools available to reduce child poverty and strengthen economic stability for families.
This session also unfolded in the shadow of federal SNAP cuts. Lawmakers began responding at the state level, particularly through budget amendments, but much of that work remains unresolved.
At a Glance
- Historic minimum wage increase passed
- CTC and EITC expansion did not advance
- SNAP cuts are reshaping state-level responsibility
- Major economic security tools remain unfinished
POLICY SNAPSHOT
2026 Legislative Outcomes
Some of the most high-profile economic security proposals this session centered on wages, tax relief, and investments that could help families better meet rising costs.
The session resulted in one major win, alongside several missed opportunities that remain on the table for future action.
Passed Legislation
Minimum Wage Increase
Virginia’s minimum wage will rise incrementally to $15.00 per hour by January 1, 2028. HB 1 passed the House 64–34 and the Senate 21–19. SB 1 passed the Senate 20–19 and the House 62–34.
This marks a meaningful step toward economic dignity for hundreds of thousands of Virginia workers, many of whom are parents supporting children.
Minimum Wage Timeline
2025
$12.00
2026
$13.50
2027
$14.50
2028
$15.00
Did Not Advance
Child Tax Credit (CTC)
These bills would have established or expanded a Virginia Child Tax Credit. Both were laid on the table or continued to the 2027 session, leaving a major opportunity to reduce child poverty on the table.
- Cut child poverty nearly in half in 2021
- Child poverty doubled after expiration
- Direct cash support to families
- Reaches lowest-income households
Earned Income Tax Credit Expansion (EITC)
This bill would have strengthened Virginia’s EITC, one of the most well-researched anti-poverty tools available. It was continued to the 2027 session.
- Increases employment among working parents
- Improves birth outcomes
- Boosts children’s academic performance
- Strengthens long-term earnings
Net Investment Income Tax
This bill would have applied a tax to net investment income to generate new revenue for investments in children and families. It was laid on the table in subcommittee.
WHY IT MATTERS
Impact
At Voices, we believe economic security is foundational to child well-being. When families have stable income and access to essential supports, children are more likely to thrive in school, in health, and in life.
Raising the minimum wage is a meaningful step forward. Research consistently shows that increased family income in early childhood is associated with:
At the same time, the policies that did not advance represent missed opportunities. A refundable Child Tax Credit is one of the most direct ways to reduce child poverty. It puts resources directly into the hands of families and reaches those with the lowest incomes, including those who may not benefit from non-refundable tax credits.
The Earned Income Tax Credit complements this by supporting working families, increasing employment, and strengthening long-term economic mobility.
Earned Income Tax Credit
- Supports working families
- Encourages employment
- Improves birth outcomes
- Boosts long-term earnings
Child Tax Credit
- Supports families with children
- Reaches lowest-income households
- Provides direct cash support
- Reduces child poverty
Together, these tools create a stronger, more stable foundation for families than either does alone.
One policy alone does not complete Virginia’s economic security agenda.
WHAT COMES NEXT
Looking Ahead
Budget decisions remain unfinished.
Both chambers proposed investments in working families in response to SNAP cuts but key differences still need to be resolved. The House proposed $211 million in FY28 for SNAP benefit allotments, while the Senate proposed $135 million and created a Task Force on the SNAP Error Rate.
Notably, neither proposal included a refundable Child Tax Credit, despite strong advocacy from Voices and its partners.
Virginia is still awaiting a final state budget. Legislators will reconvene on April 23rd to finalize the spending plan, and the governor has until April 13th to act on legislation passed this session.
Voices is actively engaging with lawmakers and partners to push for the strongest possible investments in family economic security.
STAY WITH US
What’s Still at Stake
The passage of a $15 minimum wage is a meaningful milestone. But one policy alone does not complete Virginia’s economic security agenda.
Without a Child Tax Credit, a strengthened Earned Income Tax Credit, or new revenue mechanisms, too many families will continue to face rising costs without the support they need.
Virginia has the tools to do more. And the work continues.
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