In a development for state-level AI policy, Virginia Governor Glenn Youngkin has vetoed the "High-Risk Artificial Intelligence Developer and Deployer Act" (HB 2094). The bill, which narrowly passed both chambers of the Virginia Legislature in February 2025, would have established regulatory frameworks for AI systems making consequential decisions in education, employment, financial services, health care, and legal services.

In his March 24th veto statement, Governor Youngkin cited concerns that the bill would create "a burdensome artificial intelligence regulatory framework" that could undermine growth. "The regulatory framework called for by HB 2094 would undermine this progress, and risks turning back the clock on Virginia's economic growth, stifling the AI industry as it is taking off," Youngkin stated.

The vetoed legislation would have required developers of high-risk AI systems to disclose risks, limitations, and intended purposes, along with performance evaluation summaries and measures to mitigate algorithmic discrimination. Deployers would have been required to exercise a "reasonable duty of care" and implement risk management policies, with violations potentially carrying civil penalties between $1,000 and $10,000.

Governor Youngkin noted that his administration has already established AI governance measures through Executive Order 30 (2024), which implemented "safeguards and oversight for AI use" in the Executive Branch and created "a highly skilled task force comprised of industry leading experts." He further argued that "HB 2094's rigid framework fails to account for the rapidly evolving and fast-moving nature of the AI industry and puts an especially onerous burden on smaller firms and startups that lack large legal compliance departments."

The Democratic-controlled Virginia General Assembly now has the option to override the Governor's veto with a two-thirds vote in both houses.