POLITICS

Virginia Assembly Approves Budget Including Data Center Tax

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Richmond, Va. — On Monday, June 22, Virginia's General Assembly approved a two-year state budget that imposes a temporary electricity consumption tax on qualifying data centers, establishes a framework for regulated adult-use cannabis sales, and advances funding for education and healthcare; the conference report passed both chambers and now goes to Gov. Abigail Spanberger. The measure passed the House (reported 71-22) and the Senate (reported 23-16) and is estimated to generate nearly $600 million for the general fund while preserving some sales tax exemptions; legislator salaries will increase effective January 13 with about $2.1 million allocated in FY2028, and the governor has signaled she will act before the June 30 deadline.

Prepared by Lauren Mitchell and reviewed by editorial team.

Timeline of Events

Historical: Virginia offered long-standing tax incentives that grew the data center industry.
Weeks before June 22: Lawmakers debated data center tax breaks and budget trade-offs.
June 22, 2026: House and Senate approved the two-year budget and HB 30 conference report.
Late June 2026: The budget was transmitted to Gov. Abigail Spanberger, who pledged action by June 30.
January 13, 2027 and July 1, 2026: Legislator salary increases take effect Jan. 13; fiscal year funding begins July 1.

Why This Matters to You

This new budget could affect your wallet. The data center tax might trickle down to consumers as companies offset costs. If you use cannabis, regulated sales could mean safer products. More funding for education and healthcare could improve local services.

The Bottom Line

Virginia's budget aims to generate $600 million for the state while maintaining some tax breaks. It's a balancing act between revenue and growth. Keep an eye on how these changes impact your daily life. Worth forwarding if you know someone in Virginia.