In this week’s Advocacy Roundup, Virginia’s Governor prepares for economic uncertainty, Maryland Governor Wes Moore may face a primary challenger, and the implications of a recent federal court decision involving fund transfers.

• Virginia Governor Glenn Youngkin announced plans to exercise his line-item veto power to eliminate approximately $900 million from the newly approved state budget. The move is intended to build up financial reserves as a safeguard against potential economic challenges stemming from federal workforce reductions, spending cuts, and increased tariffs.

• Meanwhile, in Maryland, Ed Hale, owner of the Baltimore Blast indoor soccer team and retired banker has announced his intention to challenge Governor Wes Moore in the 2026 Democratic primary.

• On the legal front, the U.S. Court of Appeals for the Fourth Circuit issued a unanimous 3-0 ruling with significant implications for the banking industry. The panel held that financial institutions are not liable for fund transfers where the beneficiary name does not match the account number, unless the financial institution was aware of the discrepancy at the time. The decision came in a case involving 1st Advantage Federal Credit Union. You can read more from the ABA Banking Journal.