Virginia General Assembly finalizes two-year state budget one day ahead of deadline

Virginia has a new two-year state budget in place ahead of the July 1 deadline following months of negotiations in Richmond.

On JMonday, the Virginia General Assembly accepted all 14 budget amendments proposed by Gov. Abigail Spanberger. The action means the budget bill approved by the House and Senate on June 22 will become law with the governor’s changes included.

The budget covers the next two fiscal years and includes 4% pay raises for teachers and 3.5% raises for state employees in each year of the biennium.

A key part of the spending plan is a new electricity consumption fee on data centers. Supporters say the fee will generate significant new revenue and help fund state priorities, including larger pay increases for teachers and state workers.

The Governor’s amendments also include funding for Atlantic menhaden research. The budget provides $1 million in each of the next two fiscal years to the Virginia Institute of Marine Science to establish an Atlantic Menhaden Research Fund and report. The research is intended to help guide a scientifically defensible and ecologically meaningful Chesapeake Bay harvest cap for Atlantic menhaden.

The work is to be conducted by VIMS in collaboration with the Virginia Marine Resources Commission and stakeholders, including recreational anglers, reduction and bait fishery sectors, and non-governmental organizations. The research may examine menhaden abundance in the Chesapeake Bay, movement between the Atlantic coast and the Bay, predator demand from species such as striped bass and osprey, commercial fishing patterns, and the possibility of localized depletion.

Republican lawmakers said they support pay raises but raised concerns that some parts of the budget could increase costs for Virginia residents. They also noted that the extended budget process created uncertainty for local governments, many of which had to finalize their own budgets without knowing the full amount of state funding they would receive.

Spanberger said finalizing the budget puts Virginia on a path toward a stronger, more secure, and more affordable future.