General Assembly To Consider American Rescue Plan Allocations During Special Session

Members of the General Assembly will be meeting in Richmond starting Monday, Aug. 2 after Governor Ralph Northam called in June for a special session. The purpose of the special session is limited in scope; members will be tasked with allocating over $4.3 billion granted to the state via the American Rescue Plan and filling judicial vacancies. Signed into law by President Joe Biden this past March, the American Rescue Plan is a $1.9 trillion economic stimulus package designed to support economic recovery in light of the COVID-19 pandemic. The plan allocates $350 billion in funding for state, local, territorial and Tribal governments.


The federal allocations come at a time when Virginia seems to be making great economic strides. The state is currently running a nearly $2 billion revenue surplus, maintaining a low unemployment rate, and was recently once again ranked as the top state in the country to do business. These favorable economic indicators give the General Assembly room to use the federal funds to invest in a number of proposals that will directly impact the lives of Virginians in positive ways.


Of the $4.3 billion in funding Virginia has received, the state has already distributed $304.5 million in funds to certain localities. That’s in addition to the $2.3 billion Virginia localities already received directly from the federal government through the American Rescue Plan. 


One of the proposals the General Assembly will be considering during the upcoming special session seeks to invest $500 million to improve ventilation and air quality in public schools. Under the proposal, the state will allocate $250 million for these upgrades, which is to be matched by localities using funds already distributed. Ventilation upgrades will help to mitigate the threat of airborne illnesses like COVID-19 in schools, which is important considering a law passed earlier this year mandates that all school divisions make in-person learning available during the upcoming school year. 


The General Assembly will also be considering a proposal to allocate $411.5 million in American Rescue Plan funds to reduce water pollution, expand access to clean water, and develop infrastructure to prepare for storm water. A portion of these funds will be used for sewer overflow projects in Richmond, Alexandria, and Lynchburg, three localities that frequently see sewer flooding during and after rain. Clean water is vital not only for health reasons, but also for economic reasons; clean water is necessary for agriculture, and clean water used for outdoor recreation can help boost Virginia’s tourism industry. 


The newly established Virginia Food Access Investment Fund could see its first round of funding through another American Rescue Plan funding proposal. The VFAIF, approved by the General Assembly in 2020, invests in new and expanding food retailers operating in communities that lack reliable access to food. If approved, the proposal would distribute $620,000 to food security projects across the state.


Other priorities the General Assembly will be considering during the special session include expanding access to broadband, providing economic support to essential workers, and addressing economic needs of households and small businesses impacted by the COVID-19 pandemic.


The public can keep up with the special session by tracking meetings and tuning into live-streamed videos of the proceedings, which are available through Virginia’s Legislative Information System. LIS also allows for users to read through the text of legislation and track the progress of individual bills as they progress through the session.

[Virginia Public Media] New Virginia Law Will Expand Zoning for Manufactured Homes

By VOW Ops • April 23, 2026
Manufactured homes are constructed in a factory and then transported to a land plot instead of traditional homes which are built on site. Despite the cost-savings constructors and prospective homeowners earn from manufactured homes, outdated stigma prevents them from being located anywhere other than agricultural zones. As part of her Affordability Agenda, Governor Spanberger has signed legislation which will expand where manufactured homes can be located. Under HB 655 and SB 346, starting July 1st Manufactured homes can now be located within any residential zone intended for traditional homes (with exceptions for historic districts). Further, localities will not be permitted to place different rules or any additional restrictions on manufactured homes that would not be imposed on single-family homes. Both bills passed the General Assembly with near-unanimous support. Executive Director of the Virginia Manufactured and Modular Housing Association Randy Grumbine says the new laws “could be very significant” in removing barriers that have been in place for decades. In 2020, a single-section manufactured home cost 35% the price of a similar-sized traditional home. Virginians have been facing affordability challenges when looking for housing – especially over the last several years – and they continue to experience a housing shortage which only exacerbates the problem. Del. Maldonado and Sen. VanValkenburg have noted that the strong bipartisan support they received for their respective bills is because Virginia’s housing crisis affects everyone regardless of partisan affiliation. Beyond the expansion of locations for manufactured homes, Governor Spanberger also signed HB 1227, which increases the amount of state funding toward affordable housing. She also signed HB 4, which gives localities the authority to require property owners to give the local government or developer the first chance to purchase property to build affordable housing. You can read the full article here for more details.

[Virginia Mercury] Virginia Lawmakers Recess Special Session Without Budget Deal

By VOW Ops • April 23, 2026
[Virginia Mercury] Virginia Lawmakers Recess Special Session Without Budget Deal

[Virginia Mercury] Data Center Bills Dominated This Year’s General Assembly. Here’s What Happened

By VOW Ops • March 19, 2026
Virginia’s growing data center economy was the center of attention for this year’s General Assembly session, with lawmakers balancing the industry’s benefits against its costs to communities. Of the many bills that were proposed to regulate data centers, some passed both the House and Senate and now head to Governor Spanberger’s desk for either her signature or veto. SB 253 (Sen. Louise Lucas, D-Portsmouth) would extend a program Dominion Energy and Appalachian Power Company offer low-income customers to reduce their monthly energy bills by weatherproofing their houses. The bill also gives the State Corporation Commission (SCC) the liberty to determine if more of the cost of generating electricity for data centers should fall onto them and large manufacturers instead of homeowners. SB 553 (Sen. Srinivasan, D-Loudoun) would direct water utilities to provide monthly or quarterly reports on how much water they are providing to data centers. Currently, data centers can withhold their water usage as an industry secret. SB 94 (Sen. Roem, D-Manassas) and HB 153 (Del. Thomas, D-Prince William) would require applicants who request localities to rezone for “high-load users” to submit site assessment reports. Localities would then be able to use the information from said reports to determine if the application conforms with their zoning requirements. HB 507 (Del. McAuliff, D-Loudoun) would mandate the Department of Environmental Quality to deny air permits for data center generators after July 2026 unless they meet stricter environmental regulations. Currently, data centers are allowed limited use of backup generators that run on diesel fuel, which have resulted in next-door neighbors complaining of noxious fumes spilling into their communities. HB 323 (Del. Sullivan, D-Fairfax) directs the Department of Energy to study how to best utilize waste heat generated by data centers to meet heating demands from neighboring buildings. One of the most robust debates involving data centers revolved around the sales tax exemption given to them on their server equipment and software. The Senate budget bill would end the exemption, hoping to recover the $1.6 billion they argue the state loses annually as a result. The House budget bill would keep the exemption but stipulate additional requirements for data centers to remain in compliance with receiving the exemption. The data center industry has rebutted the proposals to end the tax exemption, arguing that it has brought billions of dollars in investment into Virginia. Furthermore, the issue does not fall along clear, partisan lines, with both Democrats and Republicans arguing for against ending the exemption. The issue has ultimately ground Virginia’s budget approval process to a halt, with neither chamber coming to a consensus on the state’s biennial budget. Governor Spanberger has called for a special session beginning April 23rd so that the General Assembly can resolve the dispute. You can read the full article here for more details.
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