As the West Virginia Legislature’s 2025 session nears its conclusion, the future of pending bills remains uncertain. However, the budget bill seems on track for a swift compromise between the House of Delegates and the Senate.
The Senate made significant progress Wednesday afternoon when it passed House Bill 2026, the budget bill for fiscal year 2026, with a unanimous 34-0 vote. The bill was amended to reflect Senate Bill 300 before it was sent back to the House for further negotiation.
House Bill 2026 serves as the vehicle for the state’s general revenue budget for the upcoming fiscal year, which begins in July. After being amended, the bill now heads back to the House, where lawmakers are expected to present a compromise amendment that will set the final budget ahead of the session’s end on Saturday.
The Senate’s amended version, Senate Bill 300, sets the fiscal year 2026 budget at $5.321 billion. This figure is only slightly less than Governor Patrick Morrisey’s proposed $5.322 billion budget, based on an updated revenue estimate.
The Senate’s version represents a 4% increase over the House’s budget proposal of $5.113 billion, and it is also 1.1% higher than the current fiscal year’s budget of $5.265 billion, which ends on June 30.
“This budget is responsible, it’s strategic, and it reflects a clear belief in the future of West Virginia,” said state Sen. Ben Queen, R-Harrison. “We chose to build, we chose to lead, and we chose to put the future first.”
The road to the final budget wasn’t without its challenges. Early in the session, state officials from the Department of Revenue revealed a $397 million shortfall for fiscal year 2026 as of January 13, stemming from previous budget decisions made by former Governor Jim Justice.
Both the Senate and House versions of the budget address this gap by ensuring balanced budgets, as required by the state’s constitution. Morrisey’s budget proposal also avoided using one-time funding sources, which is a key difference from the House and Senate versions.
“I walked into this building at the start of session, and I heard that we had a $400 million gap to close,” Queen explained. “That kind of news could have set the tone for this session as a defensive, short-term budget, but this body chose a different path. We chose to build, we chose to lead, and we chose to put the future first.”
Both the Senate and House versions of the budget contain provisions for surplus appropriations in the event of excess tax revenues at the end of the current fiscal year.
The Senate’s budget includes two primary surplus items: a $50 million directed transfer for the state’s soon-to-be-renamed Division of Economic Development and a $50 million directed transfer for the Department of Transportation. These funds would be allocated based on available surplus revenue after June 30.
A lawmaker familiar with the budget negotiations said that discussions between the Senate and House have been productive. A compromise is expected that will likely result in a budget that falls between the House’s proposal and the more substantial figures in both the Senate and Governor Morrisey’s proposals. This compromise is also expected to include a limited surplus section.
The 2025 legislative session began on February 12 and is set to conclude at midnight Saturday, marking the 60th and final day of the session. As lawmakers prepare to adjourn, attention will turn to finalizing the state’s budget, with hopes for a smooth compromise that addresses the state’s immediate needs while positioning West Virginia for future growth.
With the clock ticking down, it remains to be seen how much more the budget will change before the final version is presented. However, lawmakers on both sides of the aisle are optimistic that they can find common ground in the coming days.
