Virginia's New $141 billion budget

Last Friday (October 16th), the General Assembly passed a new $141 billion budget prioritizing COVID-19 relief, capping a special session that began two months prior. The denouement of the marathon session wasn’t without a catch, however. The session was recessed - not adjourned - until voters decide on a referendum appearing on November’s ballot asking whether or not a constitutional amendment establishing a bipartisan commission for political redistricting should be established. The referendum has splintered the Democratic bloc, and in response, lawmakers have agreed to keep the budget open, buying time in the interim for Governor Ralph Northam (D) to submit redistricting language to the budget if the amendment passes, thus requiring legislators to briefly reconvene to vote on its final passage. 


The biennial state budget, which projects how much money the state expects to earn in a two-year timeline and subsequently how every governmental program in Virginia is funded, had most recently been agreed to earlier this year to the tune of $135 billion before the coronavirus pandemic swept Virginia into economic and social uncertainty. Like most other states, Virginia faced dramatic decreases in revenue due to the pandemic, triggering Governor Northam to call for delays in the enactment of signature Democratic accomplishments made in the previous Regular Session, like increasing the minimum wage, and eventually an invocation for a special session in mid-August to revamp the damaged budget. 


During the course of this unorthodox special session, lawmakers also narrowed in on police brutality and racial injustice following a dramatic summer of protest, sending a slate of criminal justice reform bills to the Governor’s desk for signatures. The updated budget includes new funding for these reforms and other priority areas related to the pandemic, like child care, housing, and hazard pay, as well as plans to spend the remaining federal CARES funds before the December 30 deadline, when any unspent money must be returned to the federal government. Here are the revisions to the budget you need to know about:


  • $12 million to fund the new criminal justice and police reform measures, as well as $11 million to supply all law enforcement officers with a one-time $500 bonus;
  • A universal moratorium on evictions for residential properties to the end of the year;
  • A 60-day extension of the utility disconnection moratorium, to take effect after the end of the declared state of emergency or until economic or public health conditions improve, including the establishment of a repayment plan program for customers who owe money during the moratorium;
  • $72 million in hazard pay (additional pay for performing work in hazardous conditions) for personal care attendants risking their lives caring for elderly Virginians or Virginians with disabilities;
  • $76 million to support child care;
  • $85 million for broadband expansion, with an additional $30 million allocated from CARES funding;
  • $120 million for colleges and universities to help defray the costs of responding to COVID-19 and the adoption of online learning, including $220 million in relief funds for K-12 schools struggling with reopening;
  • $210 million for unemployment assistance;
  • $60 million for additional hospital reimbursements under Medicaid;
  • and $25 million to retain providers of day support services (programming alternatives for individuals with developmental disabilities on Medicaid who are less interested in employment or who may require more therapeutic interventions in order to have a meaningful day), among myriad other line items



Overall, net new spending would increase by roughly $240 million, paid for with a blend of savings and nearly $187 million in cash the Northam administration had left unassigned to hedge against economic uncertainty. The issuance of these reforms and desperately-needed pandemic relief, however, hangs at a standstill. Virginians will have to wait until they decide the fate of the redistricting amendment on November 3rd before the new budget becomes law.


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