The Overview

If you live in Virginia, the state's new two-year budget reaches your kid's classroom, your tax bill and the data centers that now have to pay for the power they use. Virginia's Budget Bill provides appropriations and revenues for the two fiscal years ending June 30, 2027 and June 30, 2028. Delegate Luke E. Torian sponsored the measure, which the governor approved June 29, 2026, as Chapter 1, taking effect July 1, 2026.

Virginia Mercury reported the final budget totals roughly $205 billion over two years. A central dispute involved data centers: the budget preserved their sales-and-use-tax exemption but imposed a new tax on their electricity consumption, with revenues capped and excess collections returned to data centers.

Lawmakers pointed to four percent teacher pay raises, tax rebates, and what one official described as "the largest investment in public education in Virginia history." The full bill text sets out appropriations line by line; the governor's 14 amendments, all adopted June 29, adjusted those figures before final enactment. Agencies may spend only what the General Assembly has authorized.

The Demo

Virginia has about 8.7 million residents across roughly 3.37 million households. The median household income is $93,170, but about one in 10 residents lives below the poverty line, and about 12.5 percent have a disability. About 42 percent of adults hold a bachelor's degree or higher, giving the state a strong stake in the education funding the budget addresses.

The Debate

The conference report cleared both chambers June 22: the Senate adopted it 23 to 16, and the House adopted it 71 to 22. All 14 of the governor's amendments then passed June 29, with the closest margins in the Senate reportedly at 20 to 18.

Senate Majority Leader Scott Surovell defended the deal, saying it secured additional revenue from the data-center industry and that lawmakers deliberately held back hundreds of millions in reserves because of uncertainty over federal policy. The Commonwealth Institute, a Virginia policy organization, called the electricity tax "a meaningful win" but argued it would raise only a fraction of what ending the exemption entirely could have produced.

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