RICHMOND, Va. — Strong collections of income and sales taxes helped Virginia’s revenue streams exceed expectations in the first quarter of the fiscal year, officials announced Tuesday.

General fund revenues increased 5.1% in the first three months of Fiscal Year 2026 (June-September) compared to the same period last year. In September alone, revenues were up 2.7% over last year.

“It’s underpinned by strong job growth, and that strong job growth is translating into strong revenues for the commonwealth,” said Gov. Glenn Youngkin in an interview with 13News Now. "It's driven by the huge investment by businesses over the commonwealth."

He said the total financial cushion entering the next budget cycle is about $2.2 billion.

“That will allow us to meet the needs of the commonwealth but also

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