housing, minimum wage, taxes, and attracting business to the state

Background:

Our economy connects us to each other in innumerable ways. It’s difficult to conceptualize, but one person’s success can positively impact the economy as a whole, and thus its other participants. Why is it so important to have a thriving economy? A productive economy with productive citizens stimulates innovation, creates stability, and reduces crime. While the economy exists independent of our government, the government is constantly deciding how to involve itself in a way to create more positive outcomes. Some important issues the Virginia state government is currently dealing with are housing, the minimum wage, taxes, and attracting business to the state.

 

Looking Back at 2019:

Despite the fact that it was an odd-numbered year in which the state’s budget was not to be discussed, several extenuating circumstances made the economy a focal point of 2019. After recent changes to the federal tax code, which led to an excess of tax funds, Virginia had to decide whether to use the extra tax money for statewide projects or return the money to citizens. The General Assembly came to a mostly bipartisan agreement, with HB2529 and SB1372, to conform the state tax code to the federal code and give the money back to Virginians.


In addition to its tax conformity, Virginia signed bipartisan legislation to carry out its promises to Amazon. The company, which chose to locate one of its newest $2.5 billion facilities in the Crystal City area of Arlington County, was promised $750 million in cash incentives four years after their creation of 37,850 new jobs. The deal was generally heralded as a major success for the Virginian economy.


The General Assembly also took serious action this year to address issues in Virginia’s hous­ing policies. A Princeton University study, released in 2018, showed that Richmond had the nation’s second-highest eviction rate, followed closely by Hampton, Newport News, Norfolk, and Chesapeake. The report, which was greeted with alarm all across Virginia, led to calls by the Governor and local mayors to remedy the situation. In response, the General Assembly passed seven bills - all based on recommendations from the Virginia Housing Commission - to address the issue. These measures, which passed nearly unanimously, will give tenants more time to pay all amounts owed before eviction, limit the actions a landlord can take to remove a tenant, and require landlords to provide tenants with a lease agreement.


Despite successes in several other economic areas, the General Assembly dodged efforts to increase the minimum wage in this year’s session. Virginia’s current minimum wage stands at $7.25 per hour, which amounts to an annual salary of $15,080 for a person working 40 hours each week for 52 weeks of the year. To remedy this situation and ensure that all working Virginians can support a family, several bills were proposed to increase the minimum wage. All were rejected.


What to Expect in 2020: 

With the outright failure of any efforts to increase the minimum wage, incrementally or otherwise, the 2020 session is sure to see numerous proposals. The proposals vary from gradual to immediate increases and from $10.10 per hour all the way up to $15.00 per hour. Some proposals include a stipulation to index the minimum wage, which means automatically adjusting it to keep pace with the rising cost of living so that minimum wage workers do not lose purchasing power each year. Thirty other states have now raised the minimum wage beyond the federal minimum of $7.25 per hour. Virginia is falling behind and should seriously consider the passage of minimum wage reform during the 2020 General Assembly Session. 


Additionally, affordable housing will continue to be at the top of the docket in 2020. Despite the passage of landlord-tenant reforms, Virginia still has an inadequate supply of affordable housing. Especially as costs rise and wages stagnate, affordable housing is incredibly important for the stability of families and their ability to spend money on other necessities like healthcare and food. Virginia took a step in the right direction addressing issues in rental housing but needs to take a look at other issues in housing in this upcoming 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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