Will Virginia’s new two-year budget go into effect on July 1, 2026?

Will Virginia’s new two-year budget go into effect on July 1, 2026?

The new $205 billion two-year state budget is set to go into effect on July 1, 2026. In fact, the state budget has been sent to Governor Abigail Spanberger’s desk for approval. Members in the Virginia Senate approved the plan in a 23-16 vote, while House of Delegate members followed with a 71-22 vote. The biennial spending plan includes a new electricity consumption tax on data centers that could generate 600 million dollars in annual revenue for the state, 4% raises for teachers, 3.5% pay bumps for state employees and expands standard deductions for taxpayers. Spanberger has told lawmakers that they may have to return to Richmond next week to vote on any amendments she decides to make.