Crumbling tax revenues have led Virginia into a new $800 million budget hole, but an even larger infusion of federal stimulus cash will prevent deeper cuts in the state budget, Gov. Tim Kaine said Monday.

Virginia can expect to see about $800 million in Medicaid funding and an additional $216 million in discretionary money under the stimulus plan that passed Congress on Friday, Kaine wrote in a letter to the heads of the legislature’s budget committees.