Virginia’s Surprise $400 Tax Rebates: Windfall for Families or Election‑Year Gimmick?
Background: Virginia’s Revenue Boom Virginia’s 2025 tax rebates emerged from an extraordinary run of budget surpluses. Four consecutive years of higher‑than‑expected tax receipts and underspending produced about $10 billion in surplus revenue, according to the July 2025 revenue report governor.virginia.gov. General fund revenues for fiscal 2025 exceeded official forecasts by US$572 million thanks largely to strong income‑tax collections governor.virginia.gov. Governor Glenn Youngkin, a Republican, said the surpluses allowed the state to provide $9 billion in tax relief over his term and invest in education, law enforcement and mental health governor.virginia.gov. He framed the rebates as giving taxpayers back their own money, declaring that the surplus “is