Virginia Political Newsletter

Spanberger to propose technical amendments to budget

Brandon Jarvis — Tue, 23 Jun 2026 18:18:48 GMT

Gov. Abigail Spanberger speaking at DOC HQ in Richmond.

Spanberger will have technical amendments to budget agreement

During a press conference in Richmond on Tuesday morning, Gov. Abigail Spanberger said she will be proposing some technical amendments to the budget agreement that the General Assembly sent on Monday night.

“I will be putting forth some amendments, and importantly, some of those are technical amendments actually requested by patrons related to some of the implementation language,” Spanberger said.

Spanberger has until Monday night to take action on the legislation.

Funding for the state government runs out Tuesday, June 30, at 11:59 p.m.

Senate Majority Leader Scott Surovell, D-Fairfax, confirmed to Virginia Scope that the Senate will meet on Monday.

Sources tell Virginia Scope that the House of Delegates will likely return Monday, as well.

Spanberger, aware of the contention over finalizing this budget, wanted to make it clear to party leaders in both chambers that some of her amendments were requested by legislators.

“I’ve also been asking to make sure that they advise leadership in the House and Senate that some of those amendments are coming from them,” she said of the legislators making the requests.

Stay tuned for more updates.

Senate passes budget agreement

Brandon Jarvis — Mon, 22 Jun 2026 17:25:57 GMT

Senate passes budget agreement

The Senate passed the budget conference report 23-16, with Republicans Richard Stuart and Todd Pillion voting with Democrats.

The House gavels in at 2 p.m.

Still no word from Gov. Abigail Spanberger on the deal.

Stay tuned for more coverage.

Talking conference report

Brandon Jarvis — Sat, 20 Jun 2026 10:01:16 GMT

ICYMI: General Assembly budget proposal expected to generate $600 million a year in revenue from data centers

Virginia lawmakers are moving to tax data centers’ electricity use under a budget conference report unveiled this week, a measure expected to generate $1.2 billion over the two-year state budget cycle.

The provision, included in the conference report just released by the House and Senate, would charge data centers $0.011 per kilowatt-hour of electricity consumed each month. Collections would be capped at $600 million annually; any amount collected above that cap would be refunded to data center operators on a prorated basis after the fiscal year ends. The definition of “data center” used in the bill is written to exclude telecommunications companies.

The fee is projected to bring in $600 million in fiscal year 2027 and another $600 million in fiscal year 2028.

The measure comes as Virginia, home to the world’s largest concentration of data centers, faces growing scrutiny over the industry’s strain on the electric grid and water supplies, particularly in Northern Virginia’s “Data Center Alley” in Loudoun County.

As a result, the debate over forcing data centers to contribute more money to the commonwealth has been the main topic of all budget negotiations.

The Senate wanted to eliminate the sales and use tax break that data centers are set to receive through 2035. The House and the governor did not want to go back on that commitment.

That tax break remains, but the Senate did get its pound of flesh with the energy consumption fee.

Va. budget deal emerges with energy consumption tax on data centers - RTD

by Michael Martz and Dave Ress

irginia budget negotiators have a deal for a new two-year spending plan on July 1 that resolves — at least temporarily — an increasingly bitter debate between Democratic leaders about how the state should tax and regulate data centers.

The budget compromise emerged late Friday with a proposal to impose a new version of an existing tax on energy consumption for data centers, which have become a big part of Virginia’s economy while rousing intense opposition in communities over the electricity and water they consume, as well as uneasiness with the artificial intelligence revolution they make possible. It also includes raises of 4% each year for teachers and 3.5% for state employees and state-supported local employees.

Campaign finance audits survive House-Senate budget - Poole Report

by David Poole

State audits of the campaign finance reports filed by 2025 political candidates, including Gov. Abigail Spanberger and House Speaker Don Scott, will continue as planned.

A House-Senate compromise budget released Friday evening removed language that sought to abolish a 2022 law that authorizes the Department of Elections to verify the accuracy of campaign finance disclosures.

The conference report is out

Brandon Jarvis — Sat, 20 Jun 2026 01:13:59 GMT

Senate Pro Tempore Louise Lucas presiding over the chamber.

General Assembly budget would generate $600 million a year in revenue from data centers

House needs to see budget by tomorrow afternoon

Brandon Jarvis — Fri, 19 Jun 2026 15:45:04 GMT

The latest on the budget.

House and Senate to meet on Monday

Brandon Jarvis — Fri, 19 Jun 2026 02:38:42 GMT

House to meet on Monday

The House of Delegates will be meeting for a special election on Monday. The Senate was set to meet on Monday.

The House requires 48 hours between when delegates have a budget on their desks and when they vote on it.

This is likely a sign that an agreement has been reached on the budget.

Judge rules against injunction on assault weapon ban

A circuit court judge in Spotsylvania County declined to allow a preliminary injunction request against the new assault weapon ban in Virginia.

The plaintiffs, including former Attorney General Ken Cuccinelli, sought a preliminary injunction, arguing the laws violate the Virginia Constitution’s right to bear arms provision, specifically Article I, Section 13. They argued that the provision protects an individual right for members of Virginia’s “unorganized militia” to possess military-style firearms, including AR-15-style rifles and certain handguns.

The defendants, including Virginia State Police Superintendent Jeffrey Katz, argued that the militia clause is a structural provision that gives the government authority to organize and regulate the militia, not an individual right to own military-style weapons.

The judge ruled against the injunction, saying the plaintiffs had not convinced him they could win on the merits.

The ruling does not decide the ultimate constitutionality of the firearm restrictions. It only denies the preliminary injunction request. The lawsuit will continue, meaning the plaintiffs can still argue that the laws violate the Virginia Constitution and seek a final ruling.

“The Court’s decision today in Curtis v. Katz is an important step in ensuring that Virginia’s assault weapons ban will go into effect on July 1,” said Attorney General Jay Jones. “The Commonwealth will defend against any appeal in this case and will continue to defend the assault weapons ban in every case to keep Virginians safe.”

The Virginia Supreme Court recently convened a panel to determine whether several other lawsuits challenging the assault weapons ban should be consolidated into a single case.

Data center compromise details

Brandon Jarvis — Thu, 18 Jun 2026 18:08:16 GMT

Data center compromise details

It appears that we may have white smoke soon.

The Richmond Times-Dispatch reported that Finance chairs, Del. Luke Torian and Sen. Louise Lucas, plan to announce a budget agreement on Friday. (tomorrow)

They told the RTD that they have a deal in principle, but have not really provided any clarification on what that means.

Sources have told Virginia Scope some details about data centers, however, which has been the biggest sticking point in negotiations.

Video: talking budget

Brandon Jarvis — Thu, 18 Jun 2026 16:20:11 GMT

The latest on the budget negotiations in Virginia.

Lucas and Torian met on Wednesday night and seem optimistic

Brandon Jarvis — Thu, 18 Jun 2026 14:16:44 GMT

Lucas and Torian met on Wednesday night … still no deal

Legislators are optimistic, but there is still no official deal between the House and Senate on a new budget for Virginia. Funding runs out on June 30 at 11:59 p.m.

House Appropriations Chair Luke Torian, D-Prince William, and Senate Appropriations Chair Louise Lucas, D-Portsmouth, met for more than two hours Wednesday night in the Senate finance office at the General Assembly Building.

They did not speak to reporters after the meeting, but Lucas texted Virginia Scope and said they are making good progress.

Lucas told reporters on Thursday morning that she hopes to have a deal either by today or tomorrow.

Taylor announces accountability agenda

Henrico County Commonwealth’s Attorney Shannon Taylor, a Democratic candidate for Congress in Virginia’s First Congressional District, unveiled an ethics and accountability agenda she says would curb corruption in Washington and prevent elected officials from using public office for personal gain.

Taylor’s “Serve the People First” agenda calls for banning members of Congress from trading individual stocks, restricting the movement of lawmakers into lobbying jobs after leaving office, increasing transparency around political spending and creating consequences for officials who violate public trust.

“I became a prosecutor to keep people safe,” Taylor said in a statement announcing the plan. “As I see what is happening to our community and our country, it has become clear to me that corrupt politicians in Congress must be held accountable.”

Taylor, who has served as Henrico’s commonwealth’s attorney for 14 years, is seeking the nomination to run against Republican U.S. Rep. Rob Wittman for Virginia’s 1st Congressional District seat. She criticized Wittman and other members of Congress over what she described as a culture of self-enrichment in Washington.

“Politicians like Rob Wittman are profiting off the suffering of Virginians, while voting to make themselves richer,” Taylor said. “They must be held accountable not just for the corruption, but for what that corruption costs us every single day.”

Taylor’s campaign highlighted several proposals as part of the agenda, including support for congressional term limits, ending corporate influence in Washington, overturning the U.S. Supreme Court’s Citizens United decision on campaign spending and increasing enforcement against companies she says drive up costs for families.

The campaign also accused Wittman of benefiting financially while serving in Congress, citing his stock trades and changes in his reported net worth. Taylor’s campaign said Wittman has “turned a public office meant to serve the people into personal wealth.”

Taylor was joined at the announcement by Henrico County Sheriff Alisa Gregory, one of several law enforcement officials who have endorsed her campaign.

“Shannon has had the backs of law enforcement,” Gregory said. “She has never backed down from a tough fight, and she has never put herself ahead of the people she serves.”

Taylor said her experience as a prosecutor shaped her approach to public service and that she would bring that same focus on accountability to Congress.

“I am putting Washington on trial and am ready to prosecute the case against anyone who has betrayed Virginia,” Taylor said.

Watch: Protesters confront Gov. Spanberger in Loudoun

Brandon Jarvis — Wed, 17 Jun 2026 18:30:26 GMT

Protesters confront Spanberger over data centers

Protesters confronted Gov. Abigail Spanberger at the conclusion of an event in Loudoun County today.

The protesters are pleading for the governor to take the Senate side in the debate over data center tax breaks.

Watch the video, which was filmed by Mia Amado, at the top of this newsletter.

Listen to Spanberger's gun violence prevention speech

Brandon Jarvis — Wed, 17 Jun 2026 15:34:31 GMT

Yesterday, at a ceremonial signing of gun violence prevention legislation, Gov. Abigail Spanberger scrapped her prepared speech on the stage to give a passionate speech about why she got into politics.

Listen to it at the top of this newsletter.

A deal today? It is possible.

Brandon Jarvis — Wed, 17 Jun 2026 14:47:51 GMT

A deal today? It is possible.

House cancels special session

Brandon Jarvis — Tue, 16 Jun 2026 20:26:10 GMT

The House of Delegates will no longer be meeting on Thursday because there is no budget deal.

Data center debate spills over into Spanberger bill signing

Brandon Jarvis — Tue, 16 Jun 2026 20:03:46 GMT

Data center debate spills over into Spanberger bill signing

Multiple sources with knowledge of the situation tell Virginia Scope that state Sens. Mike Jones, D-Chesterfield, and Russet Perry, D-Fairfax, left a ceremonial bill signing with Gov. Abigail Spanberger on Tuesday afternoon. Spanberger was conducting a ceremonial signing of gun-violence-prevention legislation.

According to multiple sources, a member of Spanberger’s staff approached Perry and Jones, who were seated in seats with their name placards, and asked to speak with them in the hallway.

Senate Finance and Approps is meeting

Brandon Jarvis — Tue, 16 Jun 2026 14:12:54 GMT

Senate Finance and Approps is meeting

The Senate Finance and Appropriations Committee is meeting right now.

Chair Louise Lucas, D-Portsmouth, started the meeting by addressing the data center debate.

"Contrary to what has been said publicly by others, the Senate conferees and I have been working towards a compromise with our House counterparts,” she said. “We've also listened to the governor's input. However, let me be clear, I have found that the House and governor have focused their attention on protecting the data centers rather than being focused on what our citizens are asking us to do on this issue."

Lucas said that budget conferees are meeting after this finance meeting, and she expects to have a budget before July 1.

The committee presentation also shows the Senate plan for data centers.

Spanberger, Krizek, Aird announce recreational marijuana market

Brandon Jarvis — Tue, 16 Jun 2026 13:49:41 GMT

Spanberger, Krizek, Aird announce recreational marijuana market

Lucas responds to House budget; Spanberger responds to Lucas

Brandon Jarvis — Fri, 12 Jun 2026 21:06:15 GMT

Lucas responds to House budget, Spanberger responds to Lucas’ response

Senate Appropriations Chair Louise Lucas, D-Portsmouth, responded to the release of the House of Delegates’ budget proposal. Gov. Abigail Spanberger then quickly responded to Lucas’ social media post in a press call.

Rural hospitals fight to stay open and a new ad from Freedom Virginia

Brandon Jarvis — Fri, 12 Jun 2026 18:48:58 GMT

New ad from Freedom Virginia

Freedom Virginia launched a new ad buy urging lawmakers to “reject special corporate interests, specifically the interests of Big Pharma, in the 2027-2028 budget.”

ICYMI: Rural hospitals stay open by offering fewer services

by Brandon Jarvis

Virginia’s rural hospitals are increasingly remaining open by offering fewer services, a trend that lawmakers warned could leave residents with diminished access to health care even if their local hospital never closes.

A report recently presented to the General Assembly’s Joint Commission on Health Care found that while rural hospital closures have remained relatively rare in Virginia, many hospitals have steadily reduced inpatient care, eliminated labor and delivery services and become increasingly reliant on outpatient treatment as financial pressures mount.

“The key issue is therefore not only whether hospitals stay open, but how the composition of services changes within them,” commission staff stated in the report. “This shift towards outpatient care prevents closures, but narrows access to services.”

The study examined the financial and operational conditions of Virginia’s 36 rural hospitals after lawmakers directed commission staff last year to investigate growing concerns about rural health care access.

Researchers identified several rural hospitals in Virginia facing the highest risk of financial distress or closure.

A combination of challenges

Rural hospitals face a combination of challenges, according to multiple experts in the field. Those include lower patient volumes compared to locations in higher populated areas, growing labor costs, workforce shortages and a payer mix dominated by Medicare and Medicaid, which often reimburse providers at rates below the cost of care.

While larger hospital systems can offset losses through high-volume specialty services, many rural hospitals lack the patient base and negotiating leverage needed to generate similar revenue.

Since 2005, more than 100 rural hospitals have closed nationwide. Virginia has lost two rural hospitals during that period, while another closed and later reopened under a more limited service model.

Researchers found that service reductions have become more common than outright closures.

Among the seven highest-risk hospitals in Virginia, patient days declined between roughly 34% and 60% over the past decade while staffed beds were reduced and obstetric services largely disappeared, according to the report. Some hospitals eliminated surgical services entirely, while emergency department utilization remained stable or increased.

Across Virginia’s entire rural hospital system, inpatient utilization fell about 13% between 2015 and 2024. Labor and delivery volumes declined approximately 40%, while surgical volumes dropped 16%.

“They’re feeling these huge financial pressures,” said Del. Rodney Willett, D-Henrico, of rural hospitals during an interview with Virginia Scope.

Willett chairs the House Select Committee on Rural Healthcare Access.

“They want to stay open to avoid the ultimate bad solution, which is closure – yes – they’re cutting back on the inpatient services in response to that,” Willett said.

Outpatient care has become the dominant source of revenue. The report found that outpatient services accounted for nearly 75% of total gross revenue among Virginia’s rural hospitals in 2024.

The findings prompted concern among lawmakers, who said the loss of services can be just as consequential as a hospital closure.

“I think we got so hung up on which facilities are going to close, we didn’t address the fact that just contraction of these inpatient services removes an ability for someone who may be experiencing a heart attack to drive to their nearby hospital and access care,” said Joint Health Commission Chair Sen. Barbara Favola, D-Arlington, during the meeting earlier this month.

Patients in communities that lose services often must travel farther for emergency care, childbirth and specialty treatment, creating additional burdens for rural residents and potentially worsening health outcomes.

Thirteen rural hospitals in Virginia are considered at immediate or at risk of closure, according to the Center for Healthcare Quality and Payment Reform, while 12 rank in the highest or mid-highest categories of the Financial Distress Index.

Hospitals affiliated with larger health systems are more likely to continue operating because they have greater financial support and shared resources.

Two hospitals on both lists, Tappahanock Hospital and Community Memorial Hospital, are both part of the VCU Health System.

“We continue to see growth in both those markets and are continuing to invest heavily so that patients who depend on CMH and Tappahannock have access to the highest quality care,” said VCU Health CEO Marlon Levy.

Levy says VCU Health has not cut any services at either location.

Federal changes

The report also warned that pending federal policy changes could create additional financial strain.

Republicans in Congress passed and President Donald Trump signed H.R. 1 in 2025, which will cut nearly $1 trillion in Medicaid funding over the next 10 years.

Willett, who said his select committee identified many of these issues in 2024, fears they are getting worse, not better, after the passage of H.R. 1.

“When you start affecting the Medicaid formula, which is what’s happening under the big bill, you’re getting into multi-billion dollar impacts that hurt everybody,” Willett said.

Willett noted that if the larger healthcare systems are feeling the pain of funding cuts, the impacts are even worse for smaller systems in Southside and Southwest Virginia.

“Margins on a good day are razor thin,” he said for the smaller healthcare systems. “And now with the cutbacks that they’re facing, yeah, it’s just daunting, it’s overwhelming.”

According to Julian Walker, the Vice President of Communications for the Virginia Hospital & Healthcare Association, H.R. 1 reduces the effectiveness of two financing mechanisms that hospitals rely on: provider assessments and state-directed Medicaid payments that help offset low Medicaid reimbursement rates.

VHHA estimates those changes could eventually reduce funding to Virginia hospitals by more than $2 billion annually. Hospitals participating in the affected programs could see an average loss of about 16% of net revenue, with some rural hospitals facing losses exceeding 20%, 25%, or even 30% of revenue.

“In general, rural hospitals rely heavily on Medicare and Medicaid due to the populations they serve,” Levy said. “These governmental programs make up a substantial share of our reimbursements but are not designed to fully offset rising healthcare costs in every case.”

Levy continued to say that Medicare and Medicaid are “critical programs” for rural healthcare, but often reimburse below the cost of care.

At CMH, 61% of patients are on Medicare and 20% on Medicaid, and at Tappahannock, 69% of patients are on Medicare and 15% on Medicaid, according to Levy.

With additional requirements for Medicaid eligibility being implemented, the likelihood that hospitals will provide care to uninsured individuals will increase, worsening the financial distress in the health care system.

“Beginning in 2027, Medicaid work requirements, followed by reductions in supplemental payments in 2028, are expected to create additional financial pressure for many hospitals, not just rural hospitals,” Levy said, who noted that VCU Health is taking proactive measures in anticipation.

Not a new problem

While H.R. 1 is making the situation worse, Willett says the problems started long before its passage.

One of the first services hospitals cut is labor and delivery.

“The fundamental challenge is volume,” Willett said. “You basically need to be delivering several hundred babies per year, or the math just doesn’t work.”

“If you’re not there, you’re not there,” he continued.

Staffing shortages have also long plagued rural hospitals, where recruiting physicians, nurses and other healthcare workers can be difficult.

“A lot of times, doctors have spouses, the spouse needs to work, and maybe the spouse’s job is 50 miles away. Well, that’s not practical,” Willett, who grew up in Farmville, said. “So, the practicalities of being in a smaller area, it works for some, but a lot of folks, it’s just a hurdle that’s too much.”

Levy said CMH and Tappahannock are addressing this by “investing in workforce development, through nursing residency programs, a new ACGME-accredited Family Medicine Residency Program within the VCU School of Medicine, and partnerships with local and regional colleges that provide education, externships, and shadowing opportunities.”

Caution and preparedness

The rural healthcare crisis is often portrayed as one in which hospitals are on the brink of closing, but Walker cautioned against framing the current situation as an imminent closure crisis. Instead, he said the focus should be on the operational and financial pressures that may gradually erode access to care.

And for Levy, who oversees one of the largest healthcare systems in Virginia, addressing the long-term problems while preparing for the new changes is key.

“We are adapting to the evolving healthcare landscape with a clear focus on the health and well-being of all Virginians,” he said. “As the largest safety-net provider in the Commonwealth, we have a responsibility to ensure access to high-quality care for every patient, no matter where they live.”   

House Democrats release budget proposal

Brandon Jarvis — Fri, 12 Jun 2026 17:24:10 GMT

House Democrats release budget proposal

Spanberger backs House on budget

Brandon Jarvis — Fri, 12 Jun 2026 01:43:54 GMT