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Gov. Terry McAuliffe has vetoed part of a roughly $96 billion two-year budget that is aimed ensuring the Democratic governor cannot expand Medicaid without legislative approval.
McAuliffe announced his plans during a news conference Friday at the Capitol.
Lawmakers passed a two-year budget last week that did not include expanding Medicaid eligibility. McAuliffe and most Democratic lawmakers support expanding Medicaid, while most Republicans oppose it.
The battle over Medicaid expansion led to a months-long impasse over the budget that threatened a potential state government shutdown. The impasse was broken when a Democratic state senator abruptly resigned, giving Republicans control of both chambers in the General Assembly.
McAuliffe also said he will continue to look for ways to expand Medicaid.
The General Assembly can vote to override the governor's veto.