The Virginia General Assembly accepted all of Gov. Abigail Spanberger’s proposed amendments to the state’s two-year budget on Monday, officially ending the long debate between the House of Delegates, Senate and governor over funding for the commonwealth.
The final budget represents the first major spending agreement under Spanberger, with a Democratic legislature that disagreed until the last minute on certain details – particularly the tax breaks data centers receive.
The Senate, with Sen. Louise Lucas, D-Portsmouth, leading the charge, wanted to eliminate the sales and use tax that data centers are set to receive through 2035.
The House and the governor wanted to honor the state’s commitments to the data center industry and maintain the tax breaks.
The two sides, in the final weeks before funding would have run out on June 30, finally reached an agreement to charge data centers an energy consumption tax expected to generate $600 million annually over the next two years.
“Today, by finalizing our budget, Virginia is charting a path toward a stronger, more secure, and more affordable future for every family who calls our Commonwealth home,” Spanberger said in a statement following the vote.
Senate Majority Leader Scott Surovell, D-Fairfax, the top Democrat in the Senate, which was at odds with Spanberger and the House through most of the process, said he is excited about the final budget.
“I think we went through a lot to get here, but at the end of the day, data centers are going to contribute about $1.2 billion over the biennium to help fund our government,” he said.
Senate Majority Leader Scott Surovell after the Senate accepted all of the governor’s amendments. pic.twitter.com/YGlg6QqxNt
— Brandon Jarvis (@Jaaavis) June 29, 2026
House Republican Leader Terry Kilgore, R-Scott, said he does not like many parts of this budget, but he did support a few things, such as pay raises for teachers.
Overall, he was most critical of the conflict that caused the drawn-out process of reaching a deal and its impact on localities.
“We should have been able to do this sooner, quicker, so that our localities or folks out there could count and be able to pass their budgets and move forward,” Kilgore said. “This isn’t a way we need to do the budget from now on. We just need to come together. We don’t want to be like Washington.”
House Republicans after the House voted to approve all of Gov. Spanberger’s budget amendments pic.twitter.com/PlqaHP0dNF
— Brandon Jarvis (@Jaaavis) June 29, 2026
Kilgore, operating from the minority, however, did not have much control over the negotiations.
Speaker of the House Don Scott, D-Portsmouth, did, and he praised the final product, thanking both the chair of his finance committee, Del. Luke Torian, D-Prince William, and Lucas, who attacked Scott on social media multiple times throughout the process.
“This budget keeps Virginia the best place in the nation to do business while making sure working families share in that success,” Scott said. “It delivers meaningful tax relief, the largest investment in public education in Virginia history, raises teacher pay, increases the minimum wage, lowers healthcare costs and provides funding for affordable housing.”
Because both chambers of the General Assembly approved all of the governor’s amendments, the budget will become law without Spanberger needing to sign it or take additional action. It will go into effect on July 1.