How has the Virginia budget fared amidst a pandemic?

When the General Assembly adjourned on March 12th, they had agreed upon a $135 billion budget that would apply to Virginia for the next two years and affect nearly every Virginian. The budget, which funds every governmental program in the Commonwealth, is based upon projections of the state’s expected revenue. In the simplest terms, the state determines how much money it expects to earn in a two-year timeline and then allocates those funds through the budget. Those estimations, however, along with Virginia’s current budget, are now in jeopardy due to the economic and social fallout of the COVID-19 crisis. The Commonwealth, like most others, is now facing dramatic decreases in revenue that are likely to last for at least several months. This year’s proposed budget is therefore likely larger than what Virginia can actually afford over the next two years and currently includes funding that may need to be cut.


This conversation is likely to come to a head on April 22nd, when lawmakers will enter the annual veto session where they traditionally act on the Governor’s budget recommendations, proposed amendments to legislation, along with vetoed legislation. Everything that happened at the General Assembly will have to be reassessed and possibly reallocated. Senator Steve Newman has estimated that the COVID-19 crisis could cost the Commonwealth between $1.5 and $3 billion. However, Virginia is in a better position than some states because it currently has $2 billion in financial reserves. Additionally, the recently approved federal stimulus package will provide Virginia with $1.5 billion in aid, which can be used to replenish costs the state will incur to fight COVID-19. The conversation will likely continue to evolve in the coming days and we will keep you informed.


Paid Family and Medical Leave:


Earned paid sick leave came close to passing in Virginia at this year’s General Assembly session but was ultimately killed just before the end of session. SB 481 passed both the House and the Senate but was adjusted before the end of session. The House approved the new version while the Senate Finance Committee left the bill behind due to budget concerns. This all came about right as Virginia saw its first coronavirus cases, which could negatively impact those who are or will be out of work due to the pervasive illness.



However, there has been some relief on the federal level, coming in the form of the Families First Coronavirus Response Act. Employers with fewer than 500 employees will now be required to provide employees with up to 10 weeks of paid family and medical leave. For more details on this program, click here.


Local Government:


Many local governments are concerned about the fiscal impact of the coronavirus and are imploring the state government to place a stay on some of the policies that passed the 2020 General Assembly Session and would otherwise go into effect on July 1, 2020. The localities’ primary concerns are the minimum wage increase, the new ability for local government employees to collectively bargain, and expanded workers’ compensation. They are asking for a delay until July 1, 2021, but the state government has yet to comment on its willingness to do so.


By VOW Ops March 9, 2026
Power bills are going up in America and the people are angry. They know whom to blame—the bosses of technology firms thirsting for more juice to fuel artificial-intelligence data centres. Ashburn, a town of 45,000 in a featureless part of Virginia that has earned the nickname “Data Centre Alley”, has some 150 of these. They consume roughly as much electricity as Philadelphia, a city of 1.6m. On March 4th Donald Trump convened tech leaders to sign a pledge to “build, bring or buy their own power supply…ensuring that Americans’ electricity bills will not increase”. Their solemn pledges notwithstanding, the chief executives can do little to contain prices. That is not, though, because AI is unstoppable. It is because the AI boom is not chiefly to blame for the rising costs. In the past few years retail electricity prices have indeed outpaced overall inflation (see chart 1). And data centres are gobbling up more power. Goldman Sachs, a bank, reckons that they will account for nearly half of the overall demand growth in America in the coming years. Yet even bullish forecasts put data centres’ share of total demand at only a fifth in 2030. Today it is less than a tenth. A study last year by the Lawrence Berkeley National Laboratory showed that data-centre load was not the main cause of the rate rises in the five years to 2024. It fingered grid upgrades and rising costs of power-generating equipment and raw materials such as copper. Wood Mackenzie, a research firm, estimates that last year demand for distribution transformers outstripped supply by 10%. For power transformers the gap was 30%. Manufacturers report waiting lists for essential grid-related kit stretching to 120 weeks or more, up from 50 weeks in 2021. Many prices started going up in early 2021, nearly two years before the launch of ChatGPT ignited the AI boom. They are likely to keep rising for non-AI reasons. The Edison Electric Institute, which represents private-sector utilities, predicts its members’ cumulative capital spending will reach $1.1trn between 2025 and 2029, up from $765bn in the previous five years. More than half the sum for distribution and transmission infrastructure will go on replacing ageing equipment and hardening it against extreme weather made likelier by climate change. Between 2019 and 2023 big Californian utilities spent $27bn just on mitigating wildfire risk. These investments have been neglected for years. Now, says an industry bigwig, AI provides a pretext to help win approval from regulators to pass the cost on to consumers. And these are not the only non-AI cost pressures. Even before the war in Iran caused natural-gas prices to rise, analysts were predicting that domestic buyers would be increasingly competing with foreign ones as more export terminals for liquefied natural gas come online. Mr Trump, an inveterate renewables sceptic, has not helped by impeding the growth of solar and wind capacity. Peter Fox-Penner of the Brattle Group, a consultancy, notes that as a result prices are rising needlessly for the cheapest forms of new power generation. AI may even be lowering prices. The tech giants are already investing in their own capacity (mostly, whisper it, in the clean variety). Microsoft has signed a long-term deal to restart a nuclear reactor at Three Mile Island to supply its data centres. Meta has backed a handful of nuclear startups. In December Google’s corporate parent, Alphabet, paid $5bn for Intersect Power, a developer of utility-scale solar power and battery storage. A data centre in Ashburn belonging to Equinix, a big operator, is experimenting with fuel cells. Besides adding its own supply, big tech is making existing capacity more flexible. Google has agreed to novel tariff arrangements with Indiana Michigan Power, a midwestern utility, whereby its data centres can reduce their consumption when other demand is high. Microsoft is going further. In one of its Irish data centres it uses backup batteries as a “grid stabiliser” that can push power back into the network or draw excess power from it at times of stress. Since grids often run well below full capacity, adding a large, flexible customer can bring in lots of revenue for utilities without requiring costly expansion. This lets the utilities lower rates for households while preserving their margins. The Electric Power Research Institute, a think-tank, found that some states with high load growth between 2019 and 2024 reported price declines, after adjusting for inflation (see chart 2). The World Resources Institute, another think-tank, notes that in North Dakota rising demand from oil and gas extraction, cryptocurrency miners, data-centre operators and food-processors led to large price reductions for local electricity users. PG&E, a big Californian utility, estimates that adding a gigawatt of load could lower bills by up to 2%. If Americans want lower electricity bills, they should be shouting for more AI, not less. Original article can be found here .
By VOW Ops January 21, 2026
The second year of results from Virginia’s recently established Quality Establishment and Improvement System (VQB5) for early childhood education found that 99% of childcare providers receiving state funding meet or exceed quality expectations. As of early December 2025, over 154,000 views have been recorded on the system’s website since its October 2024 debut, revealing the many parents and families who appreciate the information that VQB5 offers them. None of these wonderful results would even be available to admire without the support and success we had in passing HB 1012 and SB 578 back in 2020! The data focuses on classroom interactions between children and caregivers and notes how said interactions encourage kids to express themselves at a young age. The state has also enacted categories of excellence for providers who score in the top 10%, exceed quality expectations, or even show significant improvement from an evaluation the year before. On top of that, a new data system called VAConnects helps integrate information on students over the years to track their learning progress. The Department of Education wishes to sustain the program and has requested $735,000 to do so. Overall, Virginia is serving as a model for other states to use in establishing best practices for their early childhood programs. Read more here .
By VOW Ops January 21, 2026
An August survey reveals that large majorities of Virginians want state lawmakers to address the rising cost of housing. The survey was conducted by Housing Opportunities Made Equal of Virginia and Freedom Virginia. More than 8 in 10 Virginians said the General Assembly needs to act. More than 3 in 4 Virginians want lawmakers to prevent landlords from raising rents each year by more than 7%. Many Virginians also supported the idea of the state incentivizing localities to build more housing and providing developers with an ability to appeal rejected housing projects. Many proposals that were made to address all these public concerns were struck down during the 2025 legislative session. One of the main reasons why all the mentioned proposals failed to pass the General Assembly is because of the large influence the local government lobbies have in Richmond in protecting what little authority they are granted by the state. However, 6 in 10 Virginians indicated that they are more concerned with providing more housing than protecting local government authority. Read more here.
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