Governor Spanberger Celebrates Record Education, Healthcare, & Housing Investments in Final Budget

RICHMOND, VA - Governor Abigail Spanberger today released the following statement after the General Assembly accepted all the Governor's amendments to the Commonwealth's budget. Virginia's 2026-2028 biennium budget will now be law - and includes investments to strengthen public education, contend with federal cuts, make sure data centers pay their fair share for the energy they use, and lower housing, healthcare, and energy costs for Virginia families.

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"Today, by finalizing our budget, Virginia is charting a path toward a stronger, more secure, and more affordable future for every family who calls our Commonwealth home.

"This budget reflects our shared commitment to strengthening Virginia schools, expanding economic opportunity, and addressing the affordability crisis created by reckless policies out of Washington - all while contending with President Trump's disastrous cuts to healthcare. With historic investments in education, four percent raises for our teachers, and landmark funding to help families manage the rising cost of childcare, we are making real strides to uplift every student, listen to parents, support educators, and prepare communities for long-term success.

"Additionally, we are investing more than $100 million to make housing more affordable, lower energy costs, and make sure every Virginian can build a stable future without being crushed by rising costs. These investments will not only save Virginia families money, but they will keep Virginia's workforce and businesses competitive for decades to come.

"This budget also positions Virginia to be a national leader on data centers. I'm proud that we got a budget across the finish line that includes the first-of-its-kind statewide energy consumption tax on data centers I proposed this spring. Virginia has a responsibility to make sure the data center industry is paying their fair share for the energy they use. But this is only the beginning.

"Finally, I am grateful to the General Assembly for accepting my amendments to provide lifesaving cancer screenings for Virginia firefighters, make sure customers served by rural electric cooperatives can receive RGGI energy credits, and provide earlier salary increases for home care workers. I am also excited that this budget includes my proposal to create a dedicated digital services team to deliver services more efficiently to Virginia families, stand up new systems, and make government work.

"This budget proves that no matter the challenges we face, Virginians always come together to find a responsible, bipartisan path forward to better our Commonwealth."

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The General Assembly accepted Governor Spanberger's 14 budget amendments, including:

• Firefighter Cancer Screenings: Investing $2 million each year to establish a new grant program to support localities in providing cancer screenings for career firefighters.
• Home Care Workers Salary Increases: Increasing salaries for home care workers earlier than the 2028 date in the enrolled budget passed by the General Assembly.
• Direct RGGI Credit for Co-Op Customers: Making explicit that customers served by rural electric cooperatives are eligible for a direct credit from the RGGI program.
• Virginia Digital Service: Funding for start-up costs for a digital services team that will assist agencies in solving urgent technical needs, fixing persistent, long-unresolved technical challenges, and addressing systemic challenges to delivering services.
• Atlantic Menhaden Research: Supporting scientifically sound research of the Atlantic menhaden population.

Read below for additional investments included in Virginia's 2026-2028 biennium budget:

HISTORIC INVESTMENTS IN EDUCATION:

• $2 billion in new education funding - the largest investment in public education in Virginia history.
• 4 percent raises for teachers and school support staff, and 3.5 percent raises for state employees in each year.
• $577 million for childcare and early childhood education to help working families and strengthen Virginia's workforce.
• $349.7 million for higher education funding - including $82.5 million to bring down tuition costs, $65 million in new financial aid, and $50 million to support HBCUs.

LOWERING HOUSING, ENERGY, & CHILDCARE COSTS:

• $60 million in funding for a new mixed-income housing pilot and support for the Housing Trust Fund, $14 million to expand homelessness services, and nearly $12 million in assistance that helps families stay in their homes when financial hardship strikes.
• $137.6 million funding increase to expand childcare assistance for families.
• $25 million in energy efficiency and weatherization programs to help households lower monthly energy costs.
• Direct RGGI credit to residential customers and small businesses to address rising utility costs.

MAKING SURE DATA CENTERS PAY THEIR FAIR SHARE:

• First-of-its-kind energy consumption tax on data centers to generate $600 million in new revenue annually.

PROTECTING VIRGINIANS FROM FEDERAL HEALTHCARE CUTS:

• $150 million in ACA Premium Assistance to lower costs for Virginians that purchase coverage through the health insurance marketplace.
• $350 million Medicaid Reserve Fund to help Virginia prepare for potential federal Medicaid cuts and protect access to care for the hundreds of thousands of Virginians who rely on the program.
• $225 million in a new Federal Contingency Fund to help Virginia respond to federal funding reductions and protect critical services if additional cuts are enacted in Washington.

PRIORITIZING PUBLIC SAFETY:

• $75 million for the Virginia State Police to make sure the department has the resources to recruit and retain troopers, strengthen operations, and meet growing public safety demands.
• $16 million for the Safer Communities Program - including expanding the program to Danville, Hampton, Hopewell, Newport News, and Petersburg.

CREATING AN ADULT-USE RETAIL CANNABIS MARKET:

• Creates a safe, legal, and well-regulated adult-use retail cannabis market that strengthens protections for kids and teenagers, expands safeguards for consumers, and offers greater flexibility for entrepreneurs while prioritizing responsible market development.

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