Updated June 12, 2026 at 4:57 PM EDT
Budget leaders in the Virginia House of Delegates announced a new roughly $74 billion spending plan during a Friday morning press conference in Richmond. It includes $2 billion more in expenses than the House approved in March.
Most of the new funding is dedicated to public education while preserving the sales tax exemption for data centers, which the Senate proposed nixing.
House Speaker Don Scott (D–Portsmouth) told VPM News that's because an updated revenue forecast Gov. Abigail Spanberger's office announced earlier this month projects an increase in 2026 revenues.
Members of the House will be back in Richmond next Thursday, June 18 to vote on the proposal — though it's unclear how the Senate feels about it. (The Senate will meet on Monday, June 22).
"It's time to deliver," Scott told reporters Friday. "It's our responsibility."
The two-year budget includes funding for a number of state Senate priorities, according to a summary document:
- a 3% teacher raise
- funding for additional school construction projects
- grants to localities with critical drinking water projects
- money for local dam repairs and improvements
The proposal includes nearly $350 million in increased funding for higher education, and nearly $140 million in new funding for subsidized childcare. It also includes over $76 million in new funding for affordable housing.
"The cost of living is squeezing people, and we're fighting back," Scott said.
Instead of removing the tax exemption for data centers, the House wants to create a data center accountability commission to study and make recommendations about "the future of data center development" in Virginia.
"We get to look under the hood, see what's going on in a responsible, thoughtful, sober-minded way," Scott said.
The spending plan, which would last from July 1, 2026 through June 30, 2028, also includes a "line of credit" for a retail cannabis market, which the administration has been negotiating with the House and Senate since Spanberger vetoed the yearslong-awaited legislation in May.
It also includes a $225 million buffer in case of additional federal cuts to Medicaid and other programs.
During Friday's press conference, House Appropriations Chair Luke Torian (D–Prince William) said "this is a budget that we're proud of," adding that "it is my great hope that the Senate will take a look at the work that we've done and we can partner to get this done for Virginia."
In a statement, Senate Majority Leader Scott Surovell (D–Fairfax) said the proposal "is a good first step, but we have a ways to go and we look forward to continuing the dialogue with them to ensure we have a budget to put on the governor's desk by June 22."
In a statement Friday afternoon, Senate Finance Chair Louise Lucas (D–Portsmouth) called the House releasing a proposal in concert with Gov. Abigail Spanberger's office "an unprecedented step" and asserting that the Senate conferees had been close to an agreement with Torian.
"The House and Governor insist on studying the impact of data centers when the issue has already been studied by the legislature," Lucas said. "Virginians are dealing with the negative consequences of data centers today. They expect action now rather than waiting another year and want us to protect their interests rather than those of wealthy corporations."
Del. Terry Austin (R–Botetourt) called it a "good document."
"We're excited to be at this point in time with the budget," Austin said. "We know we should have been here sooner, but we didn't get there, but we're here now."
In a Friday statement, Spanberger said she's "proud to support" the House proposal.
"Looking forward, I am confident that the General Assembly will send a budget to my desk that I can review and sign — on time," the governor said. "Because there is no other option."
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