2026 Virginia Session Recap

 

July 2, 2026, As another session of Virginia's General Assembly ends, we wanted to share with you the outcomes of our combined advocacy. Overall, we had several significant wins, and we're grateful for the part you played in supporting and contributing to the work. While Session is over, we've already launched into a season of tours and relationship-building with members of the General Assembly ahead of next year.


PRIORITY LEGISLATION OUTCOMES
Career and technical training review (SB 592). VMA supported this effort that establishes a biennial review of career and technical training courses to keep workforce-development programs aligned with employer needs. PASSED

Paid sick leave (HB 5 / SB 199). VMA secured an amendment to carve out employers whose employees are covered by the Longshore and Harbor Workers’ Compensation Act and party to an existing collective bargaining agreement. This bill requires one hour of paid sick leave for every 30 hours worked for employees. PASSED WITH AMENDMENT

Warehouse Workers Protection Act (SB 120). VMA opposed this bill that would have duplicated existing worker protections while adding vague standards, private-right-of-action exposure, and regulatory uncertainty that could deter logistics investment. DEFEATED

Warehouse Workers Protection Act (HB 1451). VMA opposed this bill that would have treated routine performance standards as quotas and expanded disclosure, recordkeeping, and retaliation-liability exposure for employers. CONTINUED TO 2027

Collective bargaining for public employees (HB 1263 / SB 378). VMA secured an exemption for Virginia Port Authority employees to guard against higher operating costs and reduced competitiveness. VETOED BY GOVERNOR

Nondegree program accreditation (HB 551). VMA supported this effort to broaden the workforce credentials Virginia recognizes for in-demand jobs. CONTINUED TO 2027

Marine Resources Commission; powers and duties, impacts on wetlands, report (HB 521). This bill introduces a stakeholder work group convened by the Secretary of Natural and Historic Resources to address mitigation requirements for tidal non-vegetated wetlands. Noting the absence of designated industry representation, VMA was named to the workgroup.

FY27 budget outcomes.

• $20 million to study a second inland port
• $10 million in additional Business Ready Sites funding
• $3 million for Virginia Economic Development Partnership (VEDP) lead generation and marketing
• $2 million HR STRONG request was not funded. This maritime training program sought to connect jobseekers to career coaching, skilled trades training, and supportive services.

 
BUDGET WRAP-UP
The General Assembly approved Governor Abigail Spanberger’s amendments to the biennial budget for 2026-28 on June 29, just in time for the start of the July 1 fiscal year. The General Assembly’s action marks the end of a longer-than-usual budget process.

The three-month budget delay was over the sales and use tax exemption for data centers that is not set to expire until 2035. The Senate’s February budget proposal included a repeal of the exemption effective January 1, 2027, and incorporated the new revenue from the repeal. The House and the Spanberger Administration opposed the repeal without further study.

House and Senate budget conferees reached an agreement and released a budget conference report on June 19 that does not include a repeal of the sales and use tax exemption. It does, however, include a new energy consumption tax for data centers that is expected to generate $1.2 billion in additional revenue over the biennium. The conference report is also boosted by $1.5 billion in new revenue as a result of a recent reforecasting.

On June 22, the House of Delegates voted to approve the budget conference report by a vote of 71-22, and the Senate agreed to it 23-16. Governor Spanberger proposed 14 to the budget that were approved by the General Assembly.