The General Assembly has ended its three-month standoff and passed a two-year budget without Medicaid expansion. At the insistence of a group conservative Republican members, the legislature inserted an amendment into the budget prohibiting Governor McAuliffe from taking executive action on Medicaid without the approval of the legislature. Governor McAuliffe says he will be evaluating the budget carefully and will take actions he deems necessary. Though population and the need for state services has grown, state spending will remain essentially flat. New spending for core services introduced in former Governor McDonnell’s outgoing budget was largely gutted after recent state revenue reports revealed a $1.55 billion shortfall, though new dollars for mental health services and domestic violence prevention remain.