On Saturday, February 22, the Virginia General Assembly adjourned the “short session” which lasted 46 days. During this time the General Assembly introduced 1,236 house bills and 758 senate bills, with 917 bills passing both chambers.
Here’s what you may have missed:
Data Centers
On December 9, 2024, the Joint Legislative Audit and Review Commission released a report detailing the impacts of data centers on energy, water, and land use. The report issued specific legislative proposals to reduce consumption while continuing data center growth to drive economic development.
The General Assembly considered this report and introduced a bipartisan package of legislation. Senator Adam Ebbin (D) introduced SB 1449 which requires a high-energy use facility applicant to submit a site assessment detailing sound profile, land-use effects, and energy use. Senator Danica Roem (D) introduced SB 1047 which requires utilities to create a demand response program for customers with a demand of 25 megawatts or more. Delegate Irene Shin (D) introduced HB 2048 which requires the Corporation Commission to ensure rate reviews contain reasonable customer classifications. These three bills currently await the governor’s signature or veto.
The General Assembly is not the only legislative body worried about the growth and impacts of data centers. Legislators in California, Maryland, Texas, Utah, Georgia, Minnesota, Connecticut, Maine, Oregon, and Arizona have introduced legislation to study, impose requirements, or modify ratemaking for data centers.
It remains to be seen if Governor Glenn Youngkin (R) will sign these bills. During his 2025 State of the Commonwealth address, he stated that data centers provide Virginia jobs and economic development, and decisions regarding the facilities should be left to local communities.
Prescription Drug Affordability Board (PDAB)
Despite Governor Youngkin’s veto of measures in 2024, the General Assembly took another swing at creating a PDAB. Delegate Karrie Delaney (D) introduced HB 1724, establishing a PDAB, providing specific drug pricing requirements, and creating an upper payment limit. The bill passed the General Assembly on February 19 and awaits the governor’s signature or veto.
Similar bills have been introduced in Illinois, Wisconsin, West Virginia, Iowa, Kansas, and Pennsylvania.
Historically, Governor Youngkin’s concerns with creating a PDAB have lay in potentially higher costs due to implementation and upper limits. While the governor’s office has not commented on his intended action, if precedent is any indication then HB 1724’s outlook is not promising.
Budget
The General Assembly is required to pass a two-year budget. The 2025-2026 budget was passed in 2024, and the General Assembly amended the biennial budget this year. Amendments include bonuses for state employees, standard deduction increases, increases to per-pupil spending, and exempting cash tips from the state income tax starting in 2026.
The budget was considered bipartisan as Democrats and Republicans rejected Governor Youngkin’s budget request. It passed the Senate by a vote of 38-2 and the House of Delegates by a vote of 79-18.
While the budget may have been a bipartisan effort, it remains to be seen if Governor Youngkin will sign, line-item veto, or veto the budget. Many of Governor Youngkin’s initial requests for the budget were removed and replaced by Democrats.
Looking Ahead
Governor Youngkin has until March 24 to sign or veto all bills sent to him. The legislature will reconvene on April 2 for a session to deliberate on any bills the Governor vetoes.
Virginia is the only state where a governor is limited to a single consecutive four-year term. Gubernatorial, state house, lieutenant governor, and attorney general elections will be held on November 4.
With Governor Youngkin unable to run in 2025, current frontrunners for head of state include former Congresswoman Abigail Spanberger (D) and current Lieutenant Governor Winsome Earle-Sears (R). A gubernatorial primary will occur on June 17: Earle-Sears faces three Republican challengers, while Spanberger, as of this publishing, has cleared the field. (The filing deadline is April 3.) Polling from late February shows Spanberger up 15 points to Earle-Sears, however, 32% of voters in that poll were undecided.
Elections for the house are expected to be contentious as Democrats hold a narrow two-seat lead over Republicans.
If Democrats win the governorship and maintain control of the house, they will secure their first governing trifecta since 2019.