Virginia lawmakers return to vote on state budget

RICHMOND, Va. - Virginia lawmakers are back at the Statehouse Monday, prepared to take a final vote on the state’s budget after months of internal disagreements. 

The deadline to get an approved spending plan to the governor’s desk is June 30, now just over a week away.

Senate Majority Leader Scott Surovell said the negotiations took longer than usual but reflected the stakes of big, costly issues, including the fight over data center tax policy.

What we know:

The proposed budget sends new revenue directly to the general fund, which supports key services and helps close the gap created by Congress not funding Affordable Care Act subsidies. 

Surovell said that shift is also what allows for a 4% raise for public school teachers.

The central dispute involved tax breaks for data centers. 

The Senate pushed to eliminate a major tax exemption and recoup billions in revenue, while the House wanted to keep the exemption but require strict clean‑energy standards. The final agreement keeps the tax break and increases taxes in other areas.

The budget also includes provisions on housing affordability and establishing a legal recreational cannabis market. One item not included was the car tax, a proposal Surovell said would require billions in local K‑12 funding to replace.

Lawmakers will vote Monday on the two‑year budget, which totals more than $200 billion. Surovell said data center incentives will remain a multi‑year debate and expects the issue to resurface when the next round of budget cuts arrives.

NewsVirginiaPolitics