On Monday, January 13, 2025, Governor Glenn Youngkin’s final State of the Commonwealth address painted a portrait of Virginia as a resurgent economic powerhouse, while simultaneously revealing the deep political fault lines that may challenge his ambitious agenda in his administration’s final year. Speaking to a joint session of the General Assembly delayed by Richmond’s water crisis, Youngkin presented his vision of a “winning” Virginia, though the reception from the Democratic-controlled legislature suggests a complex path ahead for his proposals.
The governor’s narrative of economic transformation was backed by impressive statistics. Virginia has witnessed a remarkable turnaround, moving from 41st to 9th in net population movement nationally, with more people moving to Virginia from other states than leaving – a first in over a decade. The state’s economy has added 257,000 jobs since January 2022, with $90 billion in new investment commitments from companies like LEGO, LS Cable, and Micron. This economic renaissance has been paired with significant tax relief, including the elimination of the state grocery tax and nearly doubling the standard deduction, totaling $5 billion in tax cuts.
The administration’s approach to education reflects both ambitious investment and strategic reform. With an unprecedented $7 billion increase in education funding, including an 18% raise for teachers, the commitment to educational excellence is clear. However, Youngkin’s vision extends beyond mere funding increases. The introduction of Virginia Opportunity Scholarships, providing $5,000 to 10,000 low-income families, represents a significant shift in educational policy.
Perhaps the most pressing challenge facing Virginia is its power infrastructure. The Virginia Clean Economy Act of 2020 has proven problematic, with the state now importing 40% of its power needs compared to 18% in 2020. This situation is particularly critical given Virginia’s position as a technology hub – data centers alone support 74,000 jobs and contribute $9.1 billion to the state’s GDP.
The administration’s approach to public safety shows measurable progress, with violent crime declining significantly. The Commonwealth has launched what Youngkin describes as “the most aggressive drug interdiction campaign in history,” resulting in the seizure of 16,000 pounds of illicit opioids. More importantly, Virginia has achieved a 23% reduction in overdose deaths, outpacing the national decline by 9 percentage points.
To maintain Virginia’s competitive position, Youngkin outlines several critical initiatives. The proposed Car Tax Credit for Working Class Families would provide up to $300 for joint filers earning under $100,000 annually and will be funded by $1.1 billion from the state’s projected surplus.
2025 State of the Commonwealth presents Virginia at a crossroads of opportunity and challenge. While the economic indicators show remarkable progress – from job growth to population gains – significant hurdles remain in energy infrastructure, education reform, and maintaining competitive advantages. As Youngkin notes, “Virginia is growing. Virginia is competing. Virginia is winning.”
Governor’s 2025 Address is available online at https://www.governor.virginia.gov/newsroom/news-releases/2025/january/name-1038956-en.html