This story was reported and written by our media partner the Virginia Mercury.
Gov. Abigail Spanberger on Thursday signed legislation to gradually raise Virginia’s minimum wage to $15 an hour by 2028, delivering on a top Democratic priority and setting in motion a series of wage increases that will affect workers, businesses and the state budget for years to come.
“Today, we are putting more money in the pockets of Virginia workers,” Spanberger said in a statement. “If you work full time in Virginia, you should be able to afford to live in Virginia. You should be able to keep up with your rent or mortgage, fill your medications, and save for your kids’ futures.”
The measure, carried by Del. Jeion Ward, D-Hampton, and Sen. Louise Lucas, D-Portsmouth, codifies the state’s current minimum wage of $12.77 per hour, which took effect Jan. 1, and sets a path for future increases.
Under the law, the wage will rise to $13.75 per hour on Jan. 1, 2027, and then to $15 per hour on Jan. 1, 2028. Beginning in 2029, the wage will be adjusted annually to reflect changes in the consumer price index.
Spanberger said the legislation reflects a broader effort to support workers across industries, including agriculture, noting the administration worked with the Virginia Farm Bureau “to strike a balance to protect farm workers and our vital farming industry.”
The governor also signed related legislation requiring that farm workers be paid the state minimum wage, extending protections to a sector that has historically been treated differently under labor laws.
Democrats tout wage gains as Republicans warn of costs
House Democrats, who made the wage increase a centerpiece of their 2026 agenda, praised the move as a long-overdue step toward economic stability.
“Working Virginians have been long overdue for a raise,” said Speaker Don Scott, D-Portsmouth, adding that voters “elected us to make an Affordable Virginia.”
Majority Leader Charniele Herring, D-Alexandria, said rising costs have outpaced wages.
“The reality is that inflation and tariffs have driven up prices, and wages have fallen behind — this law is a key component of rectifying that divide,” she said.
Ward, the House patron of the bill, said the measure ensures that “no one who works full-time in Virginia struggles to afford to live in Virginia.”
Public opinion has largely aligned with that push. A January survey by Christopher Newport University’s Wason Center found that 78% of Virginians support or strongly support raising the minimum wage to $15 an hour by 2028.
Still, the policy carries a measurable fiscal impact for the state.
According to the Department of Planning and Budget, general fund spending tied to the increase is expected to rise modestly at first — about $546,761 in fiscal year 2027 — before climbing sharply to roughly $14 million in fiscal year 2028.
Costs are projected to continue growing, reaching about $33.8 million by fiscal year 2029 and more than $38 million by fiscal year 2031.
Non-general fund spending follows a similar trajectory, with total combined costs expected to exceed $70 million annually by the end of the forecast period. A significant portion of those long-term costs is tied to Medicaid, particularly higher wages for personal care attendants.
The Department of Medical Assistance Services estimates those costs alone could reach $23.7 million statewide in fiscal year 2028 and approach $60 million annually in subsequent years.
Additional expenses include higher payroll obligations for state and local positions and increased funding for labor law enforcement, including new staffing needs at the Department of Labor and Industry.
The fiscal impact statement also points to broader, harder-to-quantify effects, such as increased contract costs and potential pressure on wages in publicly funded sectors like education.
Republicans raised concerns about how those costs will be absorbed, particularly as lawmakers continue to negotiate a state budget.
Del. Mike Cherry, a former Colonial Heights city councilor, said local governments are being asked to prepare for higher wage obligations without clear guidance on future state funding levels.
“Here we are again, the governor is mandating that localities pay their employees more, and yet the government won’t tell them how much money they’re going to have to budget with,” Cherry said during a Zoom call with reporters.
He added that local officials are already in the midst of budget planning and need clearer signals from Richmond. “As long as I’ve been there, it’s been a point of frustration,” he said.
New laws target workforce growth, job training across industries
Beyond the wage legislation, Spanberger on Thursday approved a slate of workforce and economic development bills aimed at expanding job opportunities and strengthening key industries.
Among them is legislation designed to grow Virginia’s offshore wind workforce, a measure that drew bipartisan support and reflects the state’s continued investment in renewable energy.
Another bill will allow more high school students to begin apprenticeships in fields such as culinary arts and information technology, creating earlier pathways into skilled trades.
Lawmakers also advanced an effort to bolster the health care workforce by establishing a new program to help high school students train as certified nurse aides, a measure that passed unanimously.
Additional legislation gives localities flexibility to support furloughed federal workers during government shutdowns, including by extending deadlines for personal property tax payments, and seeks to connect federal employees affected by recent job cuts with opportunities in state government.
Other measures include the creation of a state internship coordinator to promote public service careers and expanded authority for local workforce development boards to invest in regional job training initiatives.
Combined, the package reflects what Spanberger described as a broader strategy to invest in Virginia’s workforce while ensuring that economic growth reaches more residents.
“Investing in our workforce is a win for families, a win for local communities, and importantly, a win for the businesses that call Virginia home,” she said.