Virginia lawmakers return Monday to weigh Spanberger budget amendments before fiscal deadline
Virginia's General Assembly is meeting to consider Governor Abigail Spanberger's 14 proposed amendments to the state's two-year, $205 billion budget, which must be finalized before the fiscal year begins on July 1. Key amendments related to data centers include new water-conservation requirements for future facilities in groundwater-strained areas and technical revisions to the recently approved data center electricity consumption tax. These proposals aim to lower costs for Virginians and strengthen state services.
The Virginia General Assembly is reconvening in Richmond to consider Governor Abigail Spanberger's 14 proposed amendments to the state's $205 billion two-year budget, which was passed just last week. The legislature faces a Monday deadline to approve the changes before the new fiscal year starts on July 1, with the Governor needing to sign the finalized budget by Tuesday night.
The budget approval followed a months-long dispute over tax incentives for the data center industry, which ultimately resulted in preserving the existing sales tax exemption while introducing a temporary energy consumption tax for large data centers. Governor Spanberger's new amendments include significant revisions impacting the data center sector, specifically proposing new water-conservation requirements for future facilities in parts of the state experiencing groundwater strain. Additionally, she suggested technical revisions to the recently approved electricity consumption tax on data centers.
Other amendments focus on healthcare, public safety, and public services, such as accelerating pay raises for home-care workers and creating a firefighter cancer screening grant program. The budget also includes funding for a new state digital services team and support for Atlantic menhaden research, alongside authorization for a proposed state park in Loudoun County. The protracted budget negotiations saw key roles played by House Speaker Don Scott, House Appropriations Chair Luke Torian, and Senate Finance Chair Louise Lucas.