Virginia State Budget Update

The Virginia House of Delegates and Senate reconvened on Monday, June 29 to consider Governor Spanberger’s 14 amendments to Virginia’s spending plan, proposing a mix of technical changes, new spending initiatives, and policy revisions. Lawmakers in both the House and Senate voted to accept the Governor’s proposed changes to the state’s two-year spending plan, ending months of budget debate. The $207 billion budget will take effect July 1. Among the key provisions of the budget include 4% raises for teachers, 3.5% raises for state employees, higher standard deductions for taxpayers, and a new energy consumption fee on data centers expected to generate roughly $600 million/year. The amendments also add funding for firefighter cancer screenings, home care workers, the Virginia Department of Elections, and a new digital services team.

New Virginia Laws go into effect starting July 1

Beginning July 1st, many of the laws passed during the General Assembly’s 2026 Session will take effect, bringing with them a series of changes aimed at making some costs more affordable for Virginians. The measures, most of which were passed during the 2026 General Assembly session, follow Virginia’s standard legislative procedure, which mandates that newly enacted laws become active on the first day of July unless a bill explicitly specifies otherwise.

Healthcare
Healthcare costs remain one of the biggest financial challenges facing many Virginia families, particularly those managing chronic conditions. Beginning July 1, Virginia is lowering the monthly cap on insulin cost-sharing from $50 to $35 and extending that same $35 cap to many diabetes supplies and equipment, including items like continuous glucose monitors and insulin pump supplies. Lawmakers also approved reforms aimed at reducing insurance company red tape that can delay medically necessary treatment and increase costs for patients.

Beginning July 1st of this year, all Virginians will have an explicit right to access contraceptive care, set out in the Code of Virginia. Additionally, anyone who threatens, intimidates, or physically obstructs someone from entering a reproductive healthcare clinic will face a Class 1 misdemeanor. This will make it easier for patients seeking abortion care and other health services at facilities that provide abortions to access their appointments.

Housing
Housing costs continue to be one of the biggest challenges facing families throughout Virginia, and several new laws are designed to provide greater stability for renters while establishing clearer rules for landlords. Among the most significant changes, tenants who fall behind on rent will now receive 14 days’ notice before a landlord may terminate the lease for nonpayment, replacing Virginia’s previous 5-day notice period.

The General Assembly also adopted new rules governing rent payments, requiring landlords to accept checks and money orders and to continue offering at least one payment option that does not impose additional fees on the tenant. These changes will help families avoid eviction over short-term financial setbacks and prevent unnecessary fees from adding to already high housing costs.

Labor & Employment
The Commonwealth will resume its previously approved path toward a $15 minimum wage, with the statewide minimum wage increasing from $12.41 to $13.50 per hour. For a full-time worker, that translates to more than $2,200 in additional annual earnings before taxes.

Virginia is also implementing new pay transparency requirements that will require employers to disclose salary ranges for open positions, giving job seekers more information and greater leverage during the hiring process. This reflects a broader effort to ensure that hard work provides a pathway to economic security.

While the new Paid Family and Medical Leave program officially becomes law on July 1st, the benefits themselves will be phased in over the next several years. Once fully implemented, the program will allow eligible workers to take paid time off to welcome a new child, care for a seriously ill family member, recover from their own serious medical condition, address certain military family needs, or seek assistance related to domestic violence. This program will make Virginia the first state in the South to guarantee paid family and medical leave.

Criminal Justice

The “clean slate law,” which supporters have argued will give people with some types of criminal convictions a second chance, was approved by the General Assembly last year. According to the Virginia State Crime Commission, the law will automatically seal all misdemeanor convictions for petit larceny, shoplifting, trespassing, instigating trespass, trespass on posted property, distribution and possession of marijuana, and disorderly conduct. All traffic infractions and all past misdemeanor cases ending without a conviction will also be covered. Virginia joins 12 other states with this extensive of a “clean slate” law.

Education
Virginia’s public colleges and universities will be required to establish reasonable accommodations for religious beliefs and practices regarding admissions, class attendance, and exam schedules.

Virginia public schools will be able to start as early as 14 days before September 1st and no later than 14 days after. Before, the date was set based on Labor Day. If you live near a school zone, be aware that local governments can now increase school crossing zone times from 30 minutes to up to 60 minutes before and after regular school hours.

Check out a full accounting of bills that will become law online!