Virginia Lawmakers Strike a Budget Deal
Negotiators reached a two-year spending plan that sets aside the dispute for now, after Democrats split over how data centers should be taxed and regulated.
- Virginia lawmakers reached a $185 billion biennial budget agreement headed to Governor Abigail Spanberger's desk, resolving a monthslong dispute over data center taxes through a $0.011/kWh electricity consumption fee effective July 1.
- Senate Finance and Appropriations Chair Louise Lucas initially proposed eliminating data center sales tax exemptions to generate around $1.6 billion, but the House and Spanberger resisted, favoring a consumption fee instead.
- To mitigate federal cuts, the budget provides $519 million for school construction and reserves $350 million in a Medicaid contingency fund, plus $150 million for health insurance premium assistance.
- Lawmakers also agreed to create a retail cannabis market with 350 licenses launching July 1 of next year, with the legislature scheduled to return to Richmond on Monday to vote.
- Committee chairs Lucas and Del. Luke Torian said the agreement reflects a shared commitment to making Virginia more affordable, aiming to lower costs and maintain the Commonwealth's fiscal foundation.
11 Articles
11 Articles
Va. budget deal emerges with energy tax on data centers
Virginia budget negotiators have a deal for a new two-year spending plan on July 1 that resolves — at least temporarily — an increasingly bitter debate between Democratic leaders about how the state should tax and regulate data centers.
Va. budget deal emerges with energy consumption tax on data centers
Virginia budget negotiators have a deal for a new two-year spending plan on July 1 that resolves - at least temporarily - an increasingly bitter debate about Democratic leaders about how the state should tax and regulate data centers.
The Virginian Pilot
Virginia lawmakers strike a budget deal
With just days to go before the commonwealth's current budget expires, the Virginia House and Senate have reached a $185 billion budget deal that would take effect July 1. The deal includes an energy consumption fee for data centers.
15 things to know about the budget deal Virginia lawmakers just reached
Virginia has a budget deal. It’s late in the sense that the expectation had been the General Assembly would work this out before it adjourned back in March. However, it comes 12 days before the state starts a new budget year, so lawmakers will apparently not be taking things to the brink. The legislature reconvenes Monday to take up the spending plan that House and Senate negotiators released Friday night. The exact details (which will be volumi…
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