Virginia Lawmakers Return to Vote on State Budget
The plan keeps the sales tax exemption and adds a temporary electricity tax expected to raise $600 million a year from data centers.
- On Monday, Virginia lawmakers approved a two-year state budget totaling more than $200 billion, ending months of negotiations ahead of the July 1 fiscal year start.
- Negotiations stalled for months over data center tax exemptions, with Senate Democrats seeking to recoup revenue while the House aimed to preserve existing breaks.
- Operators will pay 1.1 cents per kilowatt-hour of electricity consumed, with annual collections capped at $600 million; lawmakers directed the Joint Subcommittee on Tax Policy to study the industry's economic impact.
- Beyond the tax, the budget establishes a regulatory framework for an adult-use cannabis market and funds a $25 million Employee Child Care Assistance Pilot Program despite criticism from some lawmakers.
- Provisions include funding for General Assembly salary increases of $50,000 annually and new clean energy directives beginning in 2028, with the spending plan due to Governor Spanberger before July 1.
25 Articles
25 Articles
The Daily Progress
Update: General Assembly approves budget deal
After months of impasse, and firm lines drawn in sand, a much-delayed state budget agreement sailed through the General Assembly with a compromise on data center taxation suggested months ago by Gov. Abigail Spanberger
Virginia Mercury
Virginia legislators advance $205 billion budget including new tax on data centers
Members of Virginia's Senate Finance and Appropriations Committee speak with the press in the Capitol Rotunda on June 22, 2026. The legislature advanced a $205 billion, two-year spending plan the same day. (Photo by Charlotte Rene Woods/Virignia Mercury)On Monday, Virginia legislators approved a two-year, $205 billion budget proposal to fund healthcare and public education, provide 4% teacher raises and a 3.5% pay bump to state employees, establ…
Virginia lawmakers have a state budget, and raises greater than 175%
(The Center Square) – Virginia lawmakers approved a two-year state budget Monday that includes a temporary tax on data centers, creates the framework for a regulated adult-use cannabis market and makes policy changes affecting energy, childcare and state government.
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