House lawmakers, Governor band together to push Virginia budget impasse

RICHMOND, Va. (WWBT) - A state budget impasse could be coming to an end.

Friday, democrats and republicans in the house of delegates banded together to say the time is now to pass a budget.

“Virginia needs a budget. Families are waiting for a budget, teachers are waiting for raises, law enforcement is waiting on raises, firefighters, state troopers, public safety workers across the commonwealth they are all waiting,” said Del. Don Scott, (D) Speaker of The House of Delegates.

Some of the highlights include $1.8 billion in state support for public education.

It also sets aside money for childcare subsidies, housing programs as well as a minimum wage increase, paid sick leave and a paid family medical leave program.

The proposal includes $3.1 billion in health and human services increases to offset cuts at the federal level.

“It my great hope that the senate will take a look at the work that we’ve done, that we can partner together to get this done for Virginia. This is critically important for us,” said Del. Luc Torian, (D) 24th District.

Governor Abigail Spanberger saying in a statement in part, “Looking forward, I am confident that the General Assembly will send a budget to my desk that I can review and sign — on time. Because there is no other option.”

The tax exemptions for data centers remain in the house budget, but lawmakers will study the impacts of data centers in future years through a blue-ribbon commission.

“Which we all know will be staffed by members of the data center industry and lobbyists and it’s not actually going to accomplish anything,” said State Sen. Glen Sturtevant, (R) 12th District.

State Senator Glen Sturtevant also says the budget calls for a 150% increase in lawmakers’ salaries.

Marijuana makes a return too.

The budget calls for a retail marketplace for sales starting July 1, 2027.

“It’s bad policy. It’s something that the governor herself said was a no go just about a week or 10 days ago and now she appears to have flip flopped on that,” said State Sen. Sturtevant.

Meanwhile house republicans are on board with the budget plan.

“I think we have a good document. I’m with the speaker and the chairman that the senate looks at this very seriously. It’s a great proposal,” said Del. Terry Austin, (R) 37th District.

The house comes back on June 18 to take up the budget, The senate will come back on June 22.

“Today, the House of Delegates put forward a substantive, specific budget proposal to deliver on so many priorities Virginians share,” Gov. Abigail Spanberger said Friday. “I appreciate Speaker Don Scott, Appropriations Chairman Luke Torian, and the members of the House who came to the table in good faith to make it happen. It is a proposal I am proud to support.”

Highlights of the proposal include:

Balanced budget with no new tax revenue

The proposal says it funds mandated activities and legislative priorities across the biennium without relying on new tax revenue, while keeping the budget structurally balanced.

Data center accountability

It calls for a commission to study the direct and indirect impacts of Virginia’s data center industry, including costs and benefits tied to energy, local revenue, air, water, noise and ratepayer impacts.

Major public education funding

The plan adds $1.8 billion in state support for public education for 2026-2028, including money for rebenchmarking, 3% raises, special education, at-risk students, school meals and school construction.

Affordability and workforce investments

The budget includes money for childcare subsidies, higher education affordability, housing programs, a minimum wage increase, paid sick leave and a paid family medical leave program.

Health and human services boost

The proposal includes $3.1 billion in health and human services increases, including major funding for Medicaid/CHIP, SNAP costs, ACA premium assistance, Developmental Disability Waiver rates, public health services and safety net clinics.

Lawmakers also said Friday that they have come to an agreement to address marijuana legislation. An announcement is expected on that on Tuesday.

“This is a balanced and purposeful budget proposal that will be impactful in investing in our public schools, our infrastructure, our localities, and Virginia’s economic growth,” Spanberger said.

Lawmakers have remained at an impasse since the regular 2026 General Assembly session ended without a budget, despite Democrats controlling both chambers of the legislature. A special session in April also ended without a deal.

“Looking forward, I am confident that the General Assembly will send a budget to my desk that I can review and sign — on time,“ Spanberger said Friday. ”Because there is no other option.”

The House of Delegates will open a special session on June 18. The Senate will return June 22.

The General Assembly must pass a budget before July 1 to avoid a shutdown of the Virginia government.