End of Session Update:

Some Good News....But No Budget☹️

The 2026 Virginia General Assembly Session ended last Saturday, March 14th. But, without an agreement on the biennial state budget (FY27-28), legislators will return to the Capitol on April 23rd for a special session to complete work on the budget. Read on for end-of-session updates and more about the budget debate.

LEGISLATION SENT TO GOVERNOR SPANBERGER

Two of VBCF's 2026 Legislative Priorities are now officially on their way to Governor Spanberger's desk! She has until April 13 to sign the bills into law, propose amendments, or veto them. If no action is taken, the bills become law without a signature. Stay tuned for future calls to action regarding securing the Governor's signature, if needed!

• Paid Family and Medical Leave

Bills to establish a Paid Family and Medical Leave program officially cleared both chambers of the General Assembly and will now go to Governor Spanberger, who has expressed her support. If signed, Virginia would become the 14th state in the nation to guarantee paid leave.

Roughly 3.4 million Virginia workers do not have access to paid leave. HB1207 (Del. Sewell) and SB2 (Sen. Boysko) will ensure that Virginia workers are able to take up to 12 weeks of paid leave each year to address serious illness or injury or care for a new baby or their loved ones. Workers will receive 80% wage replacement and protection of their health care coverage. Learn more about the specifics of the program HERE.

• Consumer Choice for Predictable Prescription Drug Costs

Legislation to provide patients with transparent and affordable out-of-pocket costs for prescription drugs, is also headed to the Governor. VBCF was involved in negotiations to work out differences between the two bills, HB625, (Del. Henson) and SB161 (Sen. Perry).

The final version of this legislation requires health insurance carriers to offer at least one plan in each metal level with a predictable, co-pay-only prescription drug benefit option. Any covered medication within that plan could not exceed: $150 per prescription per month in Platinum plans; $200 per month in Gold Plans; $250 per month in Silver plans; and $300 per prescription per month in Bronze level plans.  

BUDGET IN LIMBO

As you may know, one of the main sticking points with the state budget this year is the proposed elimination of tax breaks for the data center industry. It is estimated that these tax breaks saved the data center industry between $1.6 billion and $1.9 billion in taxes in fiscal year 2025. If the tax break is eliminated, Virginia would have more revenue to invest in other areas. Access to affordable health care is one of those key areas.

VBCF supports state funding to replace the federal enhanced tax credits that expired on 12/31/25. These tax credits helped many Virginians afford health insurance plans purchased through the Virginia Marketplace (ACA plans). It is estimated that 100,000 Virginians have benefited from these tax credits, and we are already seeing the impact of their expiration. This year, 19,000 fewer Virginians signed up for health care plans through the Marketplace compared to last year.  VBCF was glad to see that both the House and Senate budget bills include state funds to replace the tax credits, with slight differences between the two. We are hopeful a compromise can be reached.

More details about the proposed House and Senate budgets can be found HERE (Page 3: Health Care related items)

Thank you for your advocacy efforts so far—please stay tuned for any actions needed as the state legislative season winds down!



Questions? Contact Kirsta Millar

kirsta@vbcf.org or 804-285-1200 ext. 203.