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.


[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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