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 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.
By VOW Ops December 19, 2025
Governor-elect Spanberger has released details on how her administration will work with the General Assembly to address affordability issues for Virginians regarding health care, energy, and housing. Democrats in the General Assembly argue the proposals are needed to mitigate the effects of President Trump’s tariff policies and reduction of the Affordable Care Act (ACA) subsidies. Some of the solutions being proposed are legislation from the previous session that were vetoed by Republican Governor Glenn Youngkin. In health care, Spanberger and Virginia Democrats will tackle pharmacy benefit managers’ ability to compel patients toward using affiliated-only pharmacies. The incoming administration also wants to limit the number of times insurance companies can request approvals from patients receiving certain cancer cares and medicines for chronic conditions. Democrats are also reviving legislation that would prohibit insurance companies from charging tobacco smokers higher premiums. Further, Spanberger supports implementing a pilot program to help Virginians who will face unaffordable insurance premiums resulting from the expiration of the ACA enhanced tax credits. In energy, Spanberger called to make it easier for Virginians to utilize small-scale solar panels which don’t require hard labor to install. She also wants the previously vetoed legislation that would set energy storage standards for utility companies brought back to her desk (Governor Youngkin vetoed it because of his belief that the Virginia Clean Economy Act associated with it was ineffective). In housing, Spanberger and Democrats are reviving legislation from 2025 that would extend the grace period tenants have before being evicted for missing rent payments. They are also proposing changes that would give local governments priority in acquiring affordable multi-family units supported by tax credits when the owner wants to sell or convert them. Further, Democrats are reintroducing a bill which would allow all localities to change their zoning ordinances to create dense and affordable housing (currently, only the counties of Albemarle and Loudoun and the cities of Alexandria, Charlottesville, and Fairfax are granted such provisions). Read more here.
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