State of the State: 2025 vs 2026
Patrick Morrisey (2025) to Patrick Morrisey (2026)
Governor Morrisey's second State of the State address in 2026 represents a marked shift from diagnosing problems to claiming tangible results, while also broadening the policy agenda well beyond the energy-and-budget framework that dominated his 2025 speech. In 2025, Morrisey spent significant time outlining the dire fiscal situation he inherited — a projected $400M deficit for FY2026, growing to $550M-$600M annually — and proposed department consolidations, 2% general revenue budget reductions, and a new Chief Financial Officer to root out waste. By 2026, the budgetary alarm bells are largely absent, replaced by announcements of $4.5 billion in new private sector investment and a projected 4,200 jobs, along with specific spending proposals totaling well over $200 million across infrastructure, parks, foster care, flood detection, and education.
The energy-and-technology vision articulated in 2025 has matured into concrete policy in 2026. The 2025 speech centered on the grand announcement of the West Virginia POWER Tech Center and an aspiration to attract data centers and cryptocurrency facilities. In 2026, Morrisey points to the passage of a comprehensive microgrids law as a signature achievement, claiming it could attract "tens of billions of dollars" in investment. The rhetorical framing shifted from competing with China in an AI energy race to highlighting specific infrastructure investments like $74 million for water and sewer projects and a proposed $100 million supplemental investment in road and bridge repair.
Healthcare policy evolved dramatically between the two years. In 2025, Morrisey focused almost exclusively on repealing Certificate of Need laws as a free-market solution to healthcare access. By 2026, the agenda expanded to include a $199 million federal grant from the Trump Administration for healthcare outcomes, a Rural Healthcare Transformation initiative emphasizing prevention, wellness, nutrition education, and the reinstatement of the Presidential Fitness test. The tone shifted from deregulation to a broader public health transformation agenda.
Several entirely new priorities emerged in 2026, including the Bring Them Home Fund — a $6 million initiative to repatriate foster children placed out of state — the SENTRY flood detection pilot at $10 million, a $20 million investment in state parks and tourism infrastructure, full baseline funding of the HOPE Scholarship, and the adoption of the LETRS science-of-reading program for K-12 education. These represent a significant broadening of Morrisey's agenda from the relatively narrow 2025 focus on energy, fiscal austerity, and deregulation into areas like child welfare, public safety, tourism, and education quality.
The overall tone shifted from urgency and austerity to optimism and investment. The 2025 address was fundamentally a warning speech — West Virginia ranked last in multiple categories, faced a structural deficit, and needed painful cuts. The 2026 address reads as a progress report, with Morrisey claiming the state is "getting stronger" and proposing substantial new spending across multiple domains, suggesting either improved fiscal conditions or a strategic pivot toward a more expansive governing vision.
New Priorities in 2026
- +The Bring Them Home Fund — a $6 million proposal to rehabilitate state facilities and repatriate foster children currently placed out of state, projected to save tens of millions of dollars.
- +The SENTRY flood detection pilot program, requesting $10 million to deploy expanded sensors and predictive models capable of forecasting flood risk 1-6 hours in advance with 90% target accuracy.
- +$20 million investment in state parks improvements including better lodging, more campsites, and improved roadways, tied to a tourism industry now generating $9 billion in annual economic impact.
- +$100 million supplemental investment in road and bridge repair beyond the existing road fund.
- +Full baseline funding of the HOPE Scholarship, pre-paying all of next year's scholarships so funding is no longer dependent on surpluses.
- +Implementation of LETRS (Language Essentials for Teachers of Reading and Spelling) science-of-reading program for K-12 education, modeled on Mississippi's successful adoption.
- +Digital literacy expansion in K-12 schools and state colleges to personalize instruction and provide tutoring through modern technology tools.
- +Rural Healthcare Transformation initiative leveraging a $199 million federal grant, emphasizing nutrition education in medical schools, new dietary guidelines, and reinstatement of the Presidential Fitness test.
- +The Workforce Readiness & Opportunity Act promoting micro-credentialing, portable benefits for independent workers, and accelerated military-to-civilian workforce transitions.
- +Highlighting a nearly 40% decline in drug overdose deaths between June 2024 and May 2025, with continued emphasis on enforcement strategies and partnerships with the Trump Administration.
Dropped from 2025
- −The detailed fiscal crisis narrative — the $400M projected deficit for FY2026, the warnings about the $1.3B rainy day fund, and the framing of inherited structural deficits — is entirely absent from the 2026 address.
- −The Mountain State Comeback Budget and the 2%+ general revenue budget reductions are not mentioned in 2026.
- −Department consolidation plans (merging Homeland Security with the Adjutant General's Office, Tourism with Arts and Culture, and Commerce with Economic Development) are not referenced.
- −The hiring of a Chief Financial Officer to manage audits and performance reviews across government receives no mention.
- −Repeal of Certificate of Need laws, a centerpiece of the 2025 healthcare agenda, is not specifically discussed in 2026.
- −Universal licensing reciprocity to allow out-of-state professionals to work immediately in West Virginia is not mentioned.
- −The one-stop-shop permitting system with an online dashboard and fee refund guarantees for government-caused delays is not referenced.
- −The economic 'Backyard Brawl' framing of competition with neighboring states and the call to have the lowest income tax among bordering states are absent.
- −The PEIA (Public Employees Insurance Agency) crisis — including the $45 million budget increase and the 14.4% employee premium increase — is not addressed.
- −Broadband deployment and coordination with the Trump Administration on federal broadband dollars receives no mention.
- −The cryptocurrency facility attraction strategy mentioned alongside data centers in 2025 is not repeated.
Shifted Emphasis
- ↔Energy and data center strategy shifted from the aspirational 2025 announcement of the POWER Tech Center to claiming concrete results in 2026, including passage of a comprehensive microgrids law and $4.5 billion in private sector investment commitments.
- ↔Workforce development evolved from a general call for a 'dynamic jobs portal' and vo-tech renaissance in 2025 to specific 2026 proposals including the Workforce Readiness & Opportunity Act, micro-credentialing, a projection of needing 15,000-20,000 new construction workers, and increased higher education funding.
- ↔Healthcare policy broadened from a narrow focus on Certificate of Need repeal and free-market access in 2025 to a comprehensive Rural Healthcare Transformation agenda in 2026 emphasizing prevention, wellness, nutrition education, and a nearly $1 billion five-year federal investment.
- ↔The relationship with the Trump Administration shifted from general alignment on energy policy in 2025 to citing specific federal deliverables in 2026, including the $199 million healthcare grant and partnerships on drug enforcement.
- ↔Infrastructure investment moved from a 2025 emphasis on site selection and permitting reform to 2026's specific dollar commitments — $74 million for water and sewer projects and $100 million for road and bridge repair.
- ↔Education shifted from a 2025 focus primarily on vocational training tied to the energy sector to a 2026 agenda encompassing the LETRS reading program, digital literacy, HOPE Scholarship full funding, and broader K-12 improvement.
- ↔The overall governing tone shifted from austerity, inherited problems, and belt-tightening in 2025 to optimism, new spending proposals, and claiming measurable progress in 2026.
Policy Topics Addressed
Affordability
Governor Morrisey focused on economic development as the path to affordability, announcing $4.5 billion in private sector investment and a comprehensive microgrids law to attract energy-intensive industries. He proposed $100 million for road and bridge repair, $20 million for state park improvements, and emphasized rural healthcare transformation with $199 million in federal funding. He highlighted the HOPE scholarship for education choice and workforce development through micro-credentialing and portable benefits.
Agriculture
Governor Morrisey emphasized healthcare transformation for rural communities and noted investments in water and sewer infrastructure that support agricultural communities. The rural health plan includes educating the public about dietary guidelines and physician nutrition training.
Economy & Jobs
Governor Morrisey announced more than $4.5 billion in new private sector investment and a projected 4,200 jobs in recent months. He highlighted the microgrids law as a major economic development driver attracting nationwide interest, with potential investments totaling tens of billions. He proposed the Workforce Readiness & Opportunity Act for micro-credentialing and portable benefits, and emphasized tourism surpassing $9 billion in annual economic impact.
Education
Governor Morrisey highlighted implementing LETRS (Language Essentials for Teachers of Reading and Spelling) grounded in the Science of Reading, citing Mississippi's dramatic improvement as a model. He called for expanding digital literacy in K-12 and colleges, fully funded the HOPE scholarship by building it into the baseline budget, and requested increased funding for higher education institutions to train the estimated 15,000-20,000 new construction workers needed.
Environment & Energy
Governor Morrisey celebrated West Virginia's passage of a comprehensive microgrids law, calling it potentially "one of the single biggest economic development drivers in our history" with investments that "could total tens of billions of dollars." He emphasized the state's energy development opportunities and infrastructure investments while noting companies across the country are expressing deep interest.
Government Reform
Governor Morrisey proposed the Workforce Readiness & Opportunity Act to encourage micro-credentialing and portable benefits, and called for investing $100 million to supplement road and bridge repair. He launched the SENTRY flood detection pilot initiative requesting $10 million for modernized predictive flood warning systems, and emphasized fiscal responsibility by fully funding the HOPE scholarship in the baseline budget.
Healthcare
Governor Morrisey announced West Virginia received $199 million from the Rural Health Transformation Program, with nearly $1 billion expected over five years — the highest per-capita award among surrounding states. He called for prevention-focused legislation including physician nutrition education, new dietary guidelines, and reinstating the Presidential Fitness test. He also reported a nearly 40% decline in drug overdose deaths and proposed the 'Bring Them Home Fund' with $6 million to return foster children from out-of-state care facilities.
Housing
Governor Morrisey addressed housing indirectly through infrastructure investments, noting $74 million directed toward water and sewer infrastructure projects and emphasizing that clean water and functional infrastructure propel economic growth. He also discussed tourism-related investments including $20 million for state park improvements.
Infrastructure
Governor Morrisey emphasized developing business-ready sites and investing $74 million in water and sewer infrastructure projects, plus $100 million to supplement road and bridge repair. He proposed $20 million to improve state parks, launched the SENTRY flood detection pilot program with $10 million in funding, and highlighted receiving $199 million in federal rural health transformation funding for healthcare infrastructure.
Public Safety
Governor Morrisey highlighted a nearly 40% decline in drug overdose deaths between June 2024 and May 2025, crediting enforcement strategies and partnerships with the Trump administration. He referenced his work as attorney general holding drug companies accountable and bringing over $1 billion in settlement monies to the state. He also announced the SENTRY pilot initiative with $10 million in requested funding for modernized flood detection and warning systems.
Social Services
Governor Morrisey highlighted $199 million in federal Rural Health Transformation funding and proposed the 'Bring Them Home Fund' with $6 million to rehabilitate state facilities for foster children currently placed out of state, projecting tens of millions in savings. He noted a nearly 40% decline in drug overdose deaths and emphasized the HOPE scholarship as fully funded in the baseline budget.
Tax & Budget
Governor Morrisey emphasized fiscal responsibility while requesting $100 million for road and bridge repair beyond the current road fund, $20 million for state park improvements, and fully funding the HOPE scholarship in the baseline budget rather than depending on surpluses. He highlighted $4.5 billion in new private sector investment and proposed workforce development legislation while noting tourism generated over $1 billion in tax revenue.
Technology
Governor Morrisey highlighted West Virginia's comprehensive microgrids law as attracting deep interest from companies nationwide, calling it potentially "one of the single biggest economic development drivers in our history." He also emphasized digital literacy expansion in K-12 schools and called for using modern technology tools to personalize instruction and provide extra tutoring. He launched the SENTRY flood prediction initiative using expanded sensors and predictive models.
Veterans & Military
Governor Morrisey highlighted West Virginia's $199 million federal Rural Health Transformation award, which will improve healthcare access including for veterans. He noted a nearly 40% decline in drug overdose deaths, benefiting veteran communities disproportionately affected by the opioid epidemic. He also emphasized workforce development through the Workforce Readiness & Opportunity Act, which accelerates military personnel's ability to enter the civilian workforce.