Senate President Pro Tempore L. Louise Lucas, D–Portsmouth, leaves the Virginia State Capitol after the Senate adjourned following a special session of the General Assembly on Thursday, April 23, 2026 in Richmond.
The General Assembly was unable to vote on a budget in a session called for that purpose Thursday, because there was no budget agreement to vote on. The two chief negotiators each indicated the ball is in the other's court.
The budget negotiations center around the budget running from July 1, 2026 to June 30, 2028. (Legislators passed — and Gov. Abigail Spanberger signed — the "caboose" budget, which runs until June 30, 2026.) The main point of negotiation is the Senate's proposal to end a billion-plus-dollar tax exemption for data centers, currently set to expire in 2035, in 2027.
The two proposed budgets are largely similar, with the key difference being the Senate using the additional dollars towards cash tax rebates to be sent out in October, and additional money for Affordable Care Act subsidies. The House of Delegates' budget does not end the data center exemption early, saying it keeps Virginia's competitive and ending it would hurt Virginia's business reputation.
Del. Luke Torian (D–Prince William), chair of the House Appropriations Committee, said budget conferees on his side were waiting for the Senate to come to them with a proposal.
"We are awaiting some communication from the Senate to let us know that we are ready to sit down and do our side-by-sides on the budget," Torian said Thursday. "So when they are positioned and ready to do so we'll get started."
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VPM News
House Appropriations Chair Luke Torian, D–Prince William, chats with Del. Mark Downey, D–Newport News, during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
Sen. Louise Lucas (D–Portsmouth), chair of the Senate Finance Committee, said she was waiting for the House.
"Right now, I think the House leadership is talking to [data center industry reps]," Lucas told VPM Thursday. "Since they know we've got to have a budget, and I'm just cemented in on my position, the data center folks are going to have to come to our position."
Lucas said she was confident in her bargaining position. Spanberger vetoed a bill to legalize skill games, cutting off a potential source of new revenue, and the amount of the data center tax exemption has grown each year. Lucas is asking for $1.6 billion in revenue, while the amount of the exemption was $1.9 billion last year, according to a state Department of Taxation report.
Lucas said on Wednesday that the data center industry offered $1.1 billion in revenue, but didn't explain the mechanism.
In a statement, Josh Levi, president of the Data Center Coalition, confirmed that that amount was offered to legislators, saying that it would also have "hundreds of millions in recurring revenue in the out years."
"The data center industry remains open to working with Governor Spanberger and members of the House and Senate on an approach that advances their respective goals, keeps Virginia competitive for investment, and allows the Commonwealth to honor the commitments that produced $80 billion of investment and $5 billion in tax revenue in just the last two years," said Levi.
Shaban Athuman / VPM News
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VPM News
State Sens. (from left) Mamie Locke, D–Hampton; Jeremy McPike, D–Prince William; L. Louise Lucas, D–Portsmouth; and Scott Surovell, D–Fairfax, converse during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
"That's not working for me," Lucas said Wednesday. She said that amount wouldn't cover core services in the budget. "The devil is in the details, and we're going to work it out. And guess what? They're going to come to the table."
"This has to be ongoing," she told VPM Thursday. "It's not going to be just a one-time thing."
Asked about what mechanism he was considering to make data centers "pay their fair share" — a commonly-referenced goal of budget negotiators — Torian reiterated that he believed Virginia should stick by its prior commitments to the industry.
Ultimately, he said, "the data center industry will have to have that conversation with the Senate."
Torian said he is very confident Virginia will have a budget by the July 1 deadline.
Sen. Mark Peake (R–Lynchburg) said it was disappointing that Democrats could not produce a budget by the time the General Assembly's regular session ended on March 14, despite holding a trifecta in state government.
"More disappointing is we hear that the conferees are not conferring — that there really haven't been any conversations about the budget, certainly not for the public," he said. "Maybe some people are meeting with data center representatives behind closed doors."
In a statement at the conclusion of Thursday's reconvened session, Spanberger said, "In the coming weeks, my priority will be to help facilitate getting a budget to my desk."
Both Lucas and Sen. Mamie Locke (D–Hampton) said they didn't know about the governor's involvement.
"To my knowledge, the governor's not involved," said Lucas.
A spokesperson for Spanberger didn't reply by deadline.
Copyright 2026 VPM
1 of 19 — Sen. Obenshain arrives at the Capitol
State Sen. Mark Obenshain, R–Rockingham, arrives for a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
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2 of 19 — Sen. Stuart arrives at the capitol
State Sen. Rich Stuart, R–Stafford, arrives for a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
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3 of 19 — Sen. Peake hands a pen to Sen. Durant
State Sen. Mark Peake, R–Lynchburg, hands a pen to state Sen. Tara Durant, R–Fredericksburg, during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
Shaban Athuman / VPM News
4 of 19 — Sen. Obenshain reads from a paper
State Sen. Mark Obenshain, R–Rockingham, reads back comments from Senate Majority Leader Scott Surovell, D–Fairfax, during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
Shaban Athuman / VPM News
5 of 19 — Sen. Suetterlein gives remarks
State Sen. David Suetterlein, R–Roanoke County, gives remarks during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
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6 of 19 — Sen. Lucas laughs
State Sen. L. Louise Lucas, D–Portsmouth, laughs at comments on the Senate floor during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
Shaban Athuman / VPM News
7 of 19 — Sen. Jordan listens
State Sen. Emily Jordan, R–Isle of Wight, listens during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
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8 of 19 — Sen. Stanley and Sen. Reeves laugh
State Sens. Bill Stanley Jr. (left), R–Franklin County, and Bryce Reeves, R–Spotsylvania, laugh as they listen to comments on the Senate floor during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
Shaban Athuman / VPM News
9 of 19 — Sen. Obenshain listens
State Sen. Mark Obenshain, R–Rockingham, listens during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
Shaban Athuman / VPM News
10 of 19 — Sen. Deeds gives remarks on the floor
State Sen. Creigh Deeds, D–Charlottesville, gives remarks during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
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11 of 19 — Sen. Favola gives remarks
State Sen. Barbara Favola, D–Arlington, gives remarks during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
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12 of 19 — Senators huddle as they chat amongst themselves
State Sens. (from left) Mamie Locke, D–Hampton; Jeremy McPike, D–Prince William; L. Louise Lucas, D–Portsmouth; and Scott Surovell, D–Fairfax, converse during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
Shaban Athuman / VPM News
13 of 19 — Lt. Gov. Hashmi chats with Att. Gen. Jones with his staff
Lt. Gov. Ghazala Hashmi chats with Attorney General Jay Jones and his staff during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
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14 of 19 — Del. Tran chats with Del. McQuinn and Del. Ward
Del. Kathy Tran, D–Fairfax, smiles during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
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15 of 19 — Del. Cohen chats with Del. McGuire
Dels. Laura Jane Cohen and Garrett McGuire, both D–Fairfax, chat during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
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16 of 19 — Del. Torian chats with Del. Downey
House Appropriations Chair Luke Torian, D–Prince William, chats with Del. Mark Downey, D–Newport News, during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
Shaban Athuman / VPM News
17 of 19 — Sen. Lucas leaves the capitol
Senate President Pro Tempore L. Louise Lucas, D–Portsmouth, leaves the Virginia State Capitol after the Senate adjourned following a special session of the General Assembly on Thursday, April 23, 2026 in Richmond.
Shaban Athuman / VPM News
18 of 19 — Del. Kilgore chats with the media
House Minority Leader Terry Kilgore, R–Gate City, talks to reporters during a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
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19 of 19 — Del. Downey blows bubbles
Del. Elizabeth Guzman, D–Prince William, watches Del. Mark Downey, D–Newport News, blows bubbles as the House adjourns following a special session of the General Assembly on Thursday, April 23, 2026 at the Virginia State Capitol in Richmond.
