Virginia lawmakers fail to reach budget agreement due to data center dispute
VENN
RICHMOND, Va. (WRIC) -- Virginia lawmakers have failed to reach a budget agreement as of Thursday, meaning it's possible they won't be able to pass one at all before the current General Assembly session ends.
On Thursday, March 12, Del. Luke Torain (D-Prince William County), the head of the House Appropriations committee, said that the House of Delegates and the Senate have failed to find a consensus on the state's budget for the next two fiscal years.
This means that, as things stand, it's unlikely that the General Assembly will be able to pass a budget before the scheduled end of the 2026 Regular Session on Saturday, March 14.
According to Torain, a major sticking point between the two legislative bodies is data centers.
The Senate wants to do away with a sales tax exemption that, in recent years, has saved data center developers billions of dollars.
“They can keep building 'em, they just need to pay their fair share of taxes, that’s all,” Sen. L Louise Lucas (D-Portsmouth) previously told 8News.
However, Torian said the House will not agree to ending the exemption, citing how data centers support 74,000 jobs in Virginia and generate more than $2 million in local tax revenue.
Lawmakers race against the clock to reach agreements on key legislation
"Virginia does not strengthen its future by breaking its word to employers who invested here in good faith," Torain said.
