This story was reported and written by VPM News.
Virginians have a clearer answer on how Democrats elected last fall plan to answer the affordability crisis, after lawmakers' legislative agenda narrowed due to budget realities and a reticence to raise taxes.
General Assembly Democrats came into the 2026 session with a budget squeezed by increasing health care costs and federal funding cuts, after a historic election defined by the theme of affordability. Gov. Abigail Spanberger also threw her support behind a few dozen bills, dubbed the Affordable Virginia Agenda.
To meet that, Democrats proposed ambitious pieces of marquee legislation: Paid family and medical leave. Collective bargaining rights for public employees. Paid sick leave. Bills to shore up child care. Bills to help pay for new homeowners. Tax credits for low-income individuals. Legislation eliminating the longtime grocery tax.
Bills like paid family and medical leave, collective bargaining and new utility regulations are on their way through the process after Tuesday's legislative deadline, but many of lawmakers' proposals also saw their scope narrowed or their implementation delayed. Other legislation met its end altogether.
What is left are two parallel and generally collaborative approaches from the House of Delegates and Virginia Senate, although they are sometimes in conflict. Overall, both chambers have put together an approach without major immediate fiscal impacts, which House Speaker Don Scott said in a press conference Wednesday showed "restraint."
"While others were busy yelling in the microphones and holding folks accountable for ideas that were introduced, we were busy delivering for Virginians," said Scott (D–Portsmouth).
That could change soon though: State budget proposals are rolling out on Sunday.
When asked why Democrats did not seek new or increased taxes on the wealthy to pay for a more ambitious package, Scott answered around the question.
"Any package that we bring together that comes out of this General Assembly, we're going to do it as a team with the Senate and the governor," said Scott. "We've been so focused on the grown-up, adult issues that Virginia told us to focus on that we don't have time to get into a lot of battles."
Lawmakers had whittled the legislative field down over the last month, especially in the committees responsible for the state's finances and often due to cost — as legislative leadership signaled they would late last year.
Legislation that hasn't passed one chamber by now can no longer be considered, so (barring extraordinary measures) the state budget is the last remaining avenue for resurrecting bills this session.
Consideration of a bill to give first-time homebuyers a tax credit was kicked to next year's legislative session, as was a proposal to provide universal school breakfast.
The committee amended legislation to expand collective bargaining to delay implementation until 2028. It also excluded home health care workers and removed health benefits as a mandatory subject in union contracts.
Meanwhile, legislators have advanced bills that are revenue-neutral, or that wouldn't have a major revenue impact until years later. Broadly, the Legislature's approach — one endorsed by Spanberger — has been to loosen regulations in some places and tighten them in others, to push the market in the directions they want.
Spanberger's legislative affordability agenda of bills is backed up with minimal funding in the state budget, according to fiscal impact statements.
SB490, one of two bills that would require significant funding, was limited to a two-year pilot program in meetings last week.
When asked how the state budget is backing up the governor's affordability agenda, and to address doubts that policies without money behind them will make life meaningfully more affordable for Virginians, spokesperson Jack Bledsoe replied with an emailed statement.
"As she made clear on the campaign trail, Governor Spanberger knows the affordability crisis can't be solved overnight, and she looks forward to continuing to work with her partners in the General Assembly to make life less expensive for Virginians," Bledsoe said.
Greg Acs, vice president at the Urban Institute for tax and income supports, said there were risks about thinking about affordability and solutions in a zero-sum context, where you shift around the burdens of who pays for a policy.
"I think it's much more constructive to think about affordability and moving towards affordability in the context of growth. So in the short term, for example, if you offer increased child care subsidies or free child care, like they're doing in some places like New Mexico, that is a cost that is not short-term," he said.
"If that allows more parents to work to build their skills, that's an increasing supply of skilled workers for employers. It will grow the economy."
Still, Virginia's state legislators have avoided new tax policies that would pay for long-term, ongoing revenue impacts.
In the House, the finance committee punted major tax reform bills by recommending them for next year's legislative session. The bills broadly attempted to replace tax cuts for lower income Virginians with tax hikes for the wealthiest, or lower the sales tax rate while making it apply to most purchases.
Legislation to make a tax credit for low-income people permanent was delayed to 2027, as were new sales taxes to pay for transit in Northern Virginia.
Virginia has a surplus, but…
The commonwealth is seeing competing signals about its fiscal health. State coffers have what's essentially a billion-plus-dollar surplus; before leaving office, Republican Gov. Glenn Youngkin recommended using some of those funds for tax relief mirroring tax cuts from President Donald Trump's tax bill.
But there are also considerable risks to the state's economy due to federal policy, as well as rising health care and education costs.
Meanwhile, Spanberger's newly-emboldened Democratic administration, fresh off a 15-point victory, has an affordability platform they want to implement.
Lawmakers have an extra $1.2 billion to allocate, but relying on surpluses to pay for ongoing expenses is not considered best practice.
"You don't make long-term changes with the assumption that you're going to keep those surpluses flowing," said Del. Vivian Watts (D–Fairfax) in an interview earlier this month.
Democrats also point to inflation as a major driver of state revenues. According to a spokesperson from Virginia Tax, year-over-year Virginia's revenues grew 8.6% fiscal-year-to-date but only 4.2% when adjusting for inflation as of December.
Republicans are not holding their breath that the tax legislation is dead this legislative cycle, confident that Democrats will resurrect the proposed tax increases. Sen. Mark Obenshain (R–Rockingham) said Virginia's revenues are strong enough to not require new taxes.
"Democrats seem to be of one mind with respect to increasing the revenue, notwithstanding the fact that we've got cash roaring in. … It is flowing at a high rate, notwithstanding the efforts of some in the administration and some on the podium to suggest that we're approaching some kind of fiscal cliff," he told reporters Wednesday.
"We may see some of these tax increases reflected in the budget. So we're going to see them one way or another."
On Sunday, lawmakers will reveal the Senate and House two-year budget proposals, which run from July 1, 2026 through June 30, 2028. They will likely contain elements of bills that have been tabled until next year.
"All we want people to do is just be a little bit patient. We're only three weeks at this, and we've done a whole lot in three short weeks," said Sen. Louise Lucas (D–Portsmouth), who chairs the Senate Finance committee. "If you all would just take a breath, give us a minute, and you will begin to see some of the affordability, the production of what we're putting forward."
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