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Dear Friend,
This week’s newsletter highlights the presentations made during the recent Senate Finance and Appropriations Committee (SFAC) Retreat, spotlights select community engagements from this past week, and shares well wishes for constituents this Thanksgiving. Thank you for taking the time to read this newsletter and for staying informed.
Senate Finance and Appropriations Annual Meeting
This past week, the Senate Finance and Appropriations Committee (SFAC) convened at Radford University for our annual retreat. SFAC staff, economists, and researchers provided presentations on Virgina’s budget and current economic forecast in light of the uncertainty and instability resulting from the Trump Administration’s policies.
The upcoming session that begins in January 2026 also includes the critical work of crafting the next two-year, or biennium, budget. Members of the General Assembly will be amending the outgoing Governor’s budget after it is presented to the House and the Senate; the incoming administration of Governor-elect Abigail Spanberger will also be providing its recommendations.
Virginia’s General Assembly is mandated to present a balanced budget, and this next biennium budget faces considerable challenges because of the impacts of H.R. 1 [[link removed]] , the unfortunately-named “One Big Beautiful Bill Act,” that has dramatic and ugly consequences for all states. Virginia is already grappling with the cuts to Medicaid funding, the shuttering of rural hospitals, and the increased costs for programs such as the Supplemental Nutrition Assistance Program (SNAP) which helps to address hunger concerns for our elderly, individuals with disabilities, and children in poverty.
My primary and immediate focus is on Medicaid which serves over 1.8 million Virginians, including over 700,000 children [[link removed]] . Federal funds deliver nearly 63% of all Virginia Medicaid spending, but changes to the program as outlined in H.R.1 significantly impact not only Virginia’s share of federal funding, but also the Commonwealth’s ability to supplement Medicaid. Of immediate concern is the way in which the Congressional bill restricts and scales down the provider tax paid by our hospitals and which Virginia uses to finance the state’s 10% share of Medicaid Expansion. As a result of the changes and cuts, Virginia will lose $48 billion in Medicaid funding, including both state and federal dollars, over the next decade. These billions of dollars in losses impact all of our hospital and healthcare system, affecting each of us.
The Medicaid forecast for Virginia is requiring an additional $410.3 million of spending in 2026, and $2.8 billion in funding over the course of this next biennium (2026-2028). The Commonwealth, as well as other states across the nation, simply does not have the revenue streams that can cover these costs. The disaster that is H.R.1 is deliberately crafted to destroy the Affordable Care Act [[link removed]] , increase healthcare disparities, and harm Americans’ access to essential medical services. Additionally, we will see even further reductions in our hospital and healthcare staffing, including primary care and specialized physicians, nurses, and other key healthcare professionals.
As we look at the increasing concerns for food insecurity and hungry communities, the cuts to food assistance programs are devastating. SNAP is the largest federal food assistance program. Over 850,000 Virginians are enrolled in SNAP [[link removed]] , including more than 300,000 children. Trump and GOP-led changes to SNAP’s eligibility, work requirements, and state cost-share include the following:
* H.R.1 removes SNAP eligibility for several categories of lawfully-present immigrants who are not Lawful Permanent Residents (Green Card holders), including those who have been granted humanitarian protections, refugees, asylees, and certain survivors of domestic violence, human trafficking, or other identified humanitarian protections.
* New work requirements in H.R.1 remove previous exemptions for specific groups, including for veterans, individuals who are homeless, and foster care youth who have aged out of foster care (18 - 24 years old). Able-Bodied Adults Without Dependents (ABAWDs) will have additional work requirements. Benefits for ABAWDs are limited to 3 months in a 36-month period unless individuals work, volunteer, or train for at least 80 hours per month. Many within this population are parents of infants and toddlers who are also unable to afford childcare or are caregivers of disabled loved ones.
* H.R.1 increases the share of SNAP administrative costs that states must pay and shifts SNAP benefit costs to states for the first time in the program’s history. The Virginia Department of Social Services has shared that the federal actions increase the potential annual cost to Virginia for SNAP by approximately $360 million, in addition to increases in administrative expenses. These forecasts were echoed by SFAC staff during our retreat.
These new costs, in addition to programs already under jurisdiction of the Secretary of Health and Human Resources, are projected to require at least an additional $3.5 billion over the 2026-2028 Biennium. Mandatory budget pressures outpace revenue growth for the state by nearly $420.6 million beginning in 2027 [[link removed]] . As we begin the work of crafting the next budget, we will need to evaluate the steps that Virginia will take to respond to the crisis generated by Trump’s H.R.1, the impacts of the DOGE attacks on Virginia’s federal workforce, and the recent economic hardships created by the longest federal shutdown in history.
Presentation materials [[link removed]] on these topics, as well as the briefings on the U.S. [[link removed]] and Virginia [[link removed]] economic trends, K-12 [[link removed]] and higher education [[link removed]] funding, and the state of public safety funding [[link removed]] in Virginia, are available. On December 17, the joint meeting of Senate Finance and Appropriations, House Appropriations, and House Finance will occur in Richmond; at this joint meeting, the current Governor will deliver his proposed budget to legislators.
Select Community Engagements
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On Tuesday, I provided reflective remarks about my colleague, Senator Barbara Favola, on her recognition as the recipient of the William L. Winston Award, the Arlington County Bar Foundation's highest honor. This esteemed award highlights Senator Favola’s commitment to public service and her efforts to improve the lives of her constituents and all Virginians across our Commonwealth.
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Additionally, on Tuesday afternoon, I delivered the keynote address at the Chesapeake Solar and Storage Association's annual conference in Arlington. Highlighting Virginia's leadership in clean energy, I emphasized how our collective futures depend on innovative solutions. Virginia will continue to lead the way through a collective approach to regulatory, legislative, and market-driven solutions.
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Throughout this past week, my Legislative Assistant, Gerardo, took part in the multi-day Staff Academy for Governmental Excellence (SAGE) program organized by the Council of State Governments – Southern Office in Oklahoma City. The 2025 SAGE cohort included 27 staff members from 15 Southern states; these staffers engaged in a four-day program focused on building interpersonal and leadership skills to elevate public service delivery during an historically critical time for our states.
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While at Radford University (RU) for the Senate Finance and Appropriations Committee retreat, we were graciously hosted by President Bret Danilowicz and the RU team of students, staff, and administrators. During the host university’s reception President Danilowicz highlighted how the university is contributing to the Commonwealth’s health sciences sector, supporting first-generation college students, and the university’s plans for growth in the coming years. I also had the opportunity to connect with Radford University’s student ambassadors; these inspiring students are leaders both within the university and the broader community.
Happy Thanksgiving
My office team and I wish everyone a safe and happy Thanksgiving holiday. I know that this holiday season is particularly challenging for communities across our Commonwealth, with individuals and families struggling to put food on the table. Individuals across Virginia can find their closest food pantry using Feed More’s Agency Locator [[link removed]] or by visiting Virginia 2-1-1 [[link removed]] .
I wish you a holiday filled with the special joy of time spent with family and friends.
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Updated: Connecting With My Office
My office contact information has changed to reflect my position as Virginia’s Lieutenant Governor-elect. Constituents can reach my team using the included contact information:
Email: [email protected]
Phone: 804.698.7515 or 804.593.2897
— Ghazala
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