No agreements on Va. budget reached yet, as Democrats continue to spar over data center tax break

Name: No agreements on Va. budget reached yet, as Democrats continue to spar over data center tax break
Uploaded: 2026-04-09T12:41:24.000Z
Duration: 2 min
Description: Virginia Democrats are in a deadlock over the state budget, with a special session approaching. A key point of contention is whether to phase out a $1.9 billion sales tax exemption for data centers. The Senate version of the budget eliminates the tax break, while the House and Governor Spanberger are hesitant to remove it, citing concerns for Virginia's business reputation.

News Clip2:0029News - WVIR Charlottesville, VA·VA·4/9/2026

Virginia Democrats are in a deadlock over the state budget, with a special session approaching. A key point of contention is whether to phase out a $1.9 billion sales tax exemption for data centers. The Senate version of the budget eliminates the tax break, while the House and Governor Spanberger are hesitant to remove it, citing concerns for Virginia's business reputation.

government

Gov: Virginia Democrats, House, Senate, Governor Abigail Spanberger, Senator Creigh Deeds, Piedmont Environmental Council

Virginia Democrats are facing mounting pressure and frustration as they remain in a deadlock over the state budget ahead of a special session in late April. The central issue causing the stalemate is a proposed sales tax exemption for data centers.

Senator Creigh Deeds stated that no common ground has been reached among Democrats, noting, "There's been nothing that has moved the needle enough to get people going." Political analyst Jeff Schapiro commented that even in a single-party system, policy differences persist, and the party becomes the arena for sorting them out. The Senate's budget proposal removes the $1.9 billion data center sales tax exemption, but the House version retains it. Governor Abigail Spanberger is also reportedly hesitant to eliminate the exemption, fearing it could damage Virginia's business reputation.

Senator Deeds revealed that negotiations have involved a few senators, delegates, and representatives from the data center industry, but he considers all industry proposals to date to be "inadequate." Chris Miller, President of the Piedmont Environmental Council, highlighted the call for more transparency from those advocating to eliminate the tax break.