Last month, the Virginia Legislature wrapped up its first legislative session in 2026. The session left without a budgetary approval, but approved provisions to cannabis and gun control laws.
The House and Senate left deadlocked over the issue of ending data center sales-tax exemptions early. Leaders in both legislatures asked the governor to call lawmakers back for a special session on April 23. The Senate argued the state should bring in more revenue from the data center industry and remove the incentive. However, House leadership opposed the quick turnaround of business tax regulations and its effect on the reputation of Virginia and private businesses.
“The other body [The Senate] has taken the position that a budget cannot be finalized, at least in their view, without eliminating the data center sales tax incentive,” said Luke Torrian, Chairman of the Appropriations Committee. “This is not a position the House can or should agree to.” (RELATED: Student Loan Management Shifted to Treasury as Education Department Gets Dismantled)
Senate leadership says Virginia is missing out on about $1 billion in tax revenue from these data centers. Even with the proposed $1 billion in revenue being lost, Governor Spanberger and the House still support keeping the tax incentives in. Proponents of the incentives argue that tax incentives like these have helped make Virginia one of the largest data center hubs in the country.
However, the legislature could find time to pass legislation on Cannabis and gun control restrictions. Before the session ended, Governor Spanberger received legislation that legalized the ability for retail selling of marijuana and cannabis products. Similar bills that were vetoed by Former Governor Youngkin, have passed both legislatures and are expected to be signed by Spanberger as she has indicated her support of legislation like this.
About two weeks ago, the Democrats sent a bill to Spanberger’s desk that provides a sweeping ban of guns. The bill introduced by Sen. Saddam Salim (D-Dunn Loring), would ban a wide range of firearms and attachments/features. Including semi-automatic center-fire pistols with magazines exceeding 15 rounds, rifles with detachable magazines and weapons with certain features such as collapsible or thumbhole stocks and threaded barrels. Spanberger is also expected to sign this, as she has indicated her support of gun control legislation in the past.