Virginia Viewpoint: Session in Full Swing

Session in Full Swing

In its second week, the 2026 General Assembly session moved fully into motion, following inauguration activities, committee appointments, and other procedural actions that dominated the first week and were necessary to organize the legislature.

Committees have convened with full dockets, major policy proposals have already been considered, and the pace at the Capitol has accelerated as legislators confront a workload that includes thousands of bills.

As a reminder, the links below provide additional information on newly elected legislators and Governor Spanberger’s appointments to her administration.

• New Legislator Profiles
• Spanberger Administration Appointments

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Governor Spanberger Outlines Priorities in Address to General Assembly

Last Monday, Governor Abigail Spanberger addressed a joint session of the House and Senate to outline her priorities. In her first address to the General Assembly as governor, she emphasized affordability as a central theme, focusing on housing, healthcare, energy costs, and broader cost-of-living pressures on Virginians.

Delegate Hillary Pugh Kent and Senator Glen Sturtevant delivered the Republican responses for their respective caucuses, underscoring the importance of affordability while raising concerns regarding the scope and fiscal impact of the governor’s agenda.

Marijuana Retail Market Legislation Advances in Committee

Legislation to establish a regulated adult-use marijuana retail market advanced this week in both chambers. A Senate committee approved a retail sales bill on a party-line vote, while a House subcommittee unanimously advanced a similar measure with bipartisan support.

The proposals would create a statewide regulatory framework for the cultivation and sale of cannabis, with retail sales anticipated to begin in late 2026 or early 2027 if legislation is ultimately enacted. The bills will continue moving through the committee process in the coming weeks and are more likely to be signed into law this year with Governor Spanberger at the helm for final approval.

Expansive Tax on Services Legislation Introduced

One of the broadest new tax proposals this session was introduced with HB 978, which would significantly expand Virginia’s sales and use tax to cover a wide range of services and digital products. The bill awaits consideration in the House Finance Committee.

Under the proposal, the sales tax would be applied to many new service categories, including personal and recreational services, home repair and maintenance, landscaping and cleaning services, vehicle and equipment repair, storage services, shipping services, event and travel planning, and a wide range of other services.

The bill would also extend the tax to digital services such as software applications, website hosting, data storage, and digital subscriptions.

Standard Deduction, Minimum Wage, and Paid Family Leave Proposals Move in Different Directions

Last week saw contrasting action on several high-profile bills. A proposal to make Virginia’s current standard deduction permanent — preserving higher deduction amounts for single and joint filers — was effectively defeated in the Senate Finance and Appropriations Committee along party lines.

Meanwhile, the House Labor and Commerce Committee advanced a $15 minimum wage proposal to the House Appropriations Committee. If enacted, the minimum wage increase would phase in over several years to reach $15 per hour by January 1, 2028.

On paid family leave, Democratic patrons filed companion bills in both chambers to create a state-administered paid family medical leave program. The proposal would offer up to 12 weeks of partial wage replacement, funded through payroll contributions from employers and employees, with benefits anticipated to begin in 2029 if the program is enacted.

Democrats Push Forward on Plan to Rejoin RGGI

Democratic lawmakers and the Spanberger administration have doubled down on efforts to return Virginia to the Regional Greenhouse Gas Initiative (RGGI), a multi-state program that caps carbon emissions from power plants and reinvests proceeds into energy efficiency and resilience programs.

Legislation and budget amendments have been introduced this session that would authorize Virginia’s reentry into RGGI. Proponents have pointed to prior revenue generated for energy efficiency and flood mitigation, while opponents have raised concerns about potential impacts on rising energy costs.

Looking Ahead

The crossover deadline is February 17, when bills must pass out of their chamber of origin in order to receive further consideration in the opposite chamber. Budget negotiations will ramp up over the next month and into early March. Once both chambers agree on a unified budget, it will be sent to Governor Spanberger for her input.

Budget amendments requested by members of the General Assembly are now publicly available and can be viewed here.

We will continue tracking legislative and budget developments as the 2026 session progresses.

Full text of Spanberger’s address to the General Assembly (and the Republican response)

By Cardinal Staff, Cardinal News

Spanberger, Democratic lawmakers are pressing for Virginia to rejoin RGGI. Here’s how it would work.

By Shannon Heckt, Virginia Mercury

A bill to extend standard deduction fails, Democrats and Republicans sound off on paid family medical leave, $15 minimum wage moves forward

By Elizabeth Beyer, Cardinal News

Marijuana legislation advances in Senate committee

By Joe Dashiell, WDBJ7 News

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