The official beginning of summer this year is a busy time for federal and state policy and advocacy. Here are some updates on Virginia and federal news that has implications for Virginia communities:

Virginia News

2026 Primary Elections

Early voting has begun for the Virginia congressional primaries on Tuesday, August 4. You can register to vote or update your existing registration online using the Virginia Department of Election’s Citizen Portal. Early voting locations are now open throughout the Commonwealth.

VA State Budget begins July 1

On Monday, Virginia legislators passed a $205 billion budget proposal to fund the state for the next two years. The tax and spending proposal came after months of disagreement and finally a compromise was reached. Key budget priorities include an energy consumption tax for data centers, funding for health care and social services, including ways to keep eligible people on Medicaid and the Supplemental Nutrition Assistance Program (SNAP), increases for K-12 education, housing, child care, transportation, and a launch of the retail cannabis marketplace in July 2027. The Commonwealth Institute (TCI) released its side-by-side comparison of the various budget proposals and how they compared to the current budget. In addition, the Broad Street Group (BSG), the government relations firm VFN works with, provided this budget compromise and summary.

Upon passage of the proposal, Governor Spanberger said: “There is a lot to be proud of in this budget. It delivers raises for our teachers and public employees, makes new investments in our schools, includes a RGGI credit for residential customers and small businesses, and takes other tangible steps to make Virginia more affordable — all while protecting families from the devastating cuts in the so-called ‘One Big Beautiful Bill.’ Importantly, this budget positions the Commonwealth to be a national leader on data centers.”

Governor Spanberger has requested some technical changes and the legislature will return to Richmond on June 29. She has until Monday night to sign the bill into law. 

Federal News

CMS Request for Information on Essential Health Benefits

On June 15, the Centers for Medicare & Medicaid Services (CMS) issued a Request for Information (RFI) to solicit public comment on a variety of topics related to Essential Health Benefits (EHB), including the regulatory framework and the statutory requirement under section 1302(b)(2)(A) of the Affordable Care Act (ACA) that the scope of EHB be equal to the scope of benefits provided under a typical employer plan. This RFI is intended to gather feedback on how the current EHB framework operates in practice, including considerations related to affordability, access to services, coverage gaps, and changes in medical evidence and scientific advancement. To view the RFI and how to respond, please visit: https://public-inspection.federalregister.gov/2026-11994.pdf. Comments must be received within 30 days of the notice in the Federal Register.

Proposed Federal Grants Rule

On May 29th, the Office of Management and Budget (OMB) released a proposed rule that would make sweeping changes to the Uniform Guidance governing federal financial assistance across all agencies. If adopted, this rule could reshape how federal grants are awarded, overseen, and terminated, with significant implications for nonprofits, sector partners, and communities. United Philanthropy Forum (UPF) developed this Resource Page for more information on the proposed rule and how the social sector is responding. For example, the National Council on Nonprofits has released a sign-on letter for nonprofits to use before the July 13 deadline.