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West Virginia Approves $5.3 Billion Budget for 2026

Lawmakers at the West Virginia State Capitol during the budget approval session for fiscal year 2026.

News Summary

The West Virginia Legislature has finalized a budget of $5.3 billion for the fiscal year 2026, addressing key issues while balancing proposed cuts. While the House of Delegates proposed a budget of $5.1 billion, lawmakers have allocated funds to crucial areas such as rehabilitation and human services. Despite a forecasted budget gap, state officials maintain a strategy to address financial challenges. With a total budget potentially reaching $5.8 billion, officials emphasize responsible fiscal planning for the state’s immediate and future needs.

West Virginia Legislature Gives Green Light to $5.3 Billion Budget for Fiscal Year 2026

Charleston, WV – Just in the nick of time, the West Virginia Legislature has officially approved a hefty budget of $5.3 billion for the upcoming fiscal year 2026. With the deadline looming just hours away, it seems that lawmakers were determined to wrap things up without a hitch! The clock struck midnight on April 12, 2025, and thanks to a flurry of activity in both the House of Delegates and the Senate, the state’s budget is in the bag!

The House Goes to Work

The West Virginia House of Delegates passed their own budget bill, known as House Bill 2026, just before the deadline on April 11, 2025. This proposed budget stopped short at $5.1 billion, with a promising surplus of $128.75 million. While that’s a good amount of cushion to have, it’s worth noting that this figure is $210 million less than what the governor originally suggested in February. Instead of taking the governor’s proposal into account, the House opted to base their budget on what worked in Fiscal Year 2025.

Taking a Closer Look

Looking closely, the House’s new budget does increase general revenue spending by $117.45 million compared to last year. A key item on the minds of lawmakers was factoring in some forthcoming increases for the West Virginia Public Employees Insurance Agency; this is expected to add a cost of about $40 million to the budget. Some areas had to face a 2% cut in personal services due to several job vacancies.

Meeting Real Needs

In good news for the Department of Rehabilitation and Corrections, there’s an added boost of $30 million — a reflection of the ongoing support for rehabilitation efforts. Similarly, the Department of Human Services celebrates an increase of $90 million in funding, suggesting that lawmakers are keen on addressing pressing social issues.

A Senate Proposal in the Mix

Meanwhile, on the Senate side, Senate Bill 300 emerged with a proposed budget of $5.321 billion—almost a mirror image of the governor’s $5.322 billion recommendation. Despite previous concerns from the governor’s office about a structural deficit estimated at $400 million, the Revenue Department has opted to call this a budget gap rather than a true deficit. The projected budget gap is $397 million but state officials clarified that this figure is more of a budgeting strategy than a monetary shortfall.

Big Picture Budgeting

All in all, if we consider lottery and other funds, the total budget is set to reach approximately $5.8 billion. Revenue Secretary Eric Nelson sees an estimated revenue growth of just over 1% for FY 2026 compared to the previous year. With sweeping tax cuts amounting to $1 billion in the past few years, the impact on state revenues has certainly been significant.

Strategic Funding Allocation

As part of the new budget, allocations include $125 million for the Division of Highways, $75 million for the Economic Development Project Fund, and $10 million for the Water Development Authority, but only if year-end revenues hold up nicely. On the flip side, child care funding is coming in lower at a mere $8 million, a drop from previous years’ $17 million. Advocates are bound to raise an eyebrow at this decrease.

Final Touches and Looking Ahead

Additionally, a notable restoration of $15 million in funding to West Virginia University is a step in the right direction. However, some cuts are still expected in the Jobs & Hope program, which aims to support those transitioning back into the workforce from recovery. In a bit of a relief, the latest budget reduces the cuts proposed to state agencies that experience job vacancies, ensuring they can continue their important work.

With the final touches being debated up until that last minute before the deadline, West Virginia’s Legislature has shown resilience and commitment to shaping a budget that tackles the state’s immediate needs without losing sight of the future.