the legislature still has not approved a budget for the next two years

Lawmakers returned to Richmond late last month to consider vetoes and amendments proposed by Gov. Glenn Youngkin. After the General Assembly concluded its regular session in the middle of March, Youngkin vetoed 26 bills — 25 of which passed along bipartisan lines — and issued over 100 amendments to bills passed by the legislature. None of Youngkin’s vetoes were successfully overridden, and most of his amendments were approved. And in the wake of record-breaking gas prices, Youngkin’s proposal to temporarily suspend Virginia’s gas tax was ultimately defeated in the state Senate during the veto session. 


But even after what ended up being a busy special session, there is still unfinished business before the General Assembly. 


Notably, the legislature still has not approved a budget for the next two years. While the Republican majority in the House of Delegates, the Democratic majority in the Senate, and Youngkin all agree spending needs to be increased for public education, public health, and police departments around the state, there are disagreements over exactly how much more to spend in the 2023 and 2024 fiscal years. Fueling these disagreements is a $3 billion gap in how much each party is expecting to raise in revenue; while Republicans are pushing for tax cuts, Democrats are seeking to conduct a study over the course of the next year on how tax cuts will impact revenue. The General Assembly needs to agree on a budget by June 30, when the current budget expires. 


The delays in approving a state budget are reminiscent of the 2014 General Assembly, which did not finalize a budget until late June. The governor at the time, Democrat Terry McAuliffe, was engaged in a lengthy standoff with General Assembly Republicans over whether to expand Medicaid to 400,000 Virginians through the Affordable Care Act. In approving a budget, albeit one without the Medicaid expansion, the General Assembly staved off what would have been an unprecedented state government shutdown.


The General Assembly also needs to confirm two new justices to the state Supreme Court. Within the last year, Chief Justice Donald Lemons and Justice William Mims both announced their retirements. The vacancies have been a subject of discussion amongst legislators since the regular session convened in January, but there has been little progress on account of the politically split House and Senate. There are seven seats on the state Supreme Court, where justices serve 12-year terms. 


The General Assembly’s inability to complete its work during the regular session has prompted calls from some to reform how often the body meets. Virginia’s legislature was initially designed to meet during the winter months in order to accommodate farmers; but today, Virginia is much more complex than the agrarian society it was during the 19th century. A longer session may allow for more time to adequately consider complex legislation, but would limit members’ ability to live and work in their districts for most of the year under the laws they’ve passed. But with so much essential work for the General Assembly to complete within the next few weeks, it’s unlikely there will be any serious talk of reform amongst legislators any time soon.

[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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