The 2026 Virginia General Assembly has adjourned sine die. Governor Spanberger will now review and act on the over 1,000 bills heading to her desk (excluding resolutions). Her Excellency has 30 days from adjournment to take action. The General Assembly will reconvene on April 22, 2026, in response to actions taken by the Governor. Additionally, there will be a Special Session to pass a budget the following day.
Appropriations
The General Assembly adjourned without a budget in place. The singular issue in question is what to do about the Data Center Retail Sales and Use Tax Exemption. A decision worth over $1.6 billion. In the House’s proposed budget, they incorporated language from HB 897 (Sullivan), which would require a project to meet environmental standards to retain its tax-exempt status. The Senate budget seeks to eliminate the tax exemption entirely starting January 1, 2027, well before its original expiration date of 2035. The budget will now be handled through a Special Session on April 23, 2026.
Data Centers
HB897 (Sullivan): This legislation requires data center operators to meet certain requirements to maintain tax exemptions. These requirements include (1) not using co-located generating facilities that emit carbon, other than backup generators, (2) contract for renewable energy certificates to offset usage, (3) utilize only non-carbon dioxide-emitting backup power sources, such as energy storage resources (4), demonstrate investment in environmental management and energy efficiency. Status: This legislation was defeated by the Virginia Senate Finance and Appropriations Committee, but was included in the House budget and is part of the ongoing budget negotiations.
HB284/SB371 (Feggans/McPike): Directs electric utilities to petition the SCC to implement voluntary demand flexibility programs for high energy demand customers. These programs will reduce the load on the electric grid during peak times. Status: Both bills have passed and are on their way to the Governor’s desk.
HB153/SB94 (Thomas/Roem): Prior to approval application for a “high energy use facility” a locality must require the applicant to provide the effect of the facility on (1) ground and surface water, (2) agricultural resources, (3) parks, (4) registered historic sites, (5) forestland, and (6) sound of nearby schools and residential properties. This legislation passed the General Assembly in the 2025 Session, but was vetoed by Governor Youngkin. Status: The bills were put into conference, and the conference report was agreed to. They are now on their way to the Governor’s desk.
Energy
HB711/SB347 (Herring/VanValkenburg): This legislation establishes model ordinances for localities to adopt for solar. Similar legislation was introduced in the 2025 Session, but only passed the House. Status: HB711 passed the House 63-33 and the Senate 22-18. SB347 passed the Senate 21-17. It was later conformed to the House version and passed the House 63-35. They are awaiting action from the Governor.
HB895/SB448 (Sullivan/Bagby): Similar legislation passed the 2025 Session, before being vetoed by the Governor. These bills set ordinance standards and deployment goals for energy storage. Status: The legislation passed both chambers and is heading to the Governor’s Desk. She has previously stated her support for the bills.
HB590/SB382 (Hernandez/Surovell): Creates the Smart Solar Permitting Platform. This platform would streamline rooftop solar permitting through a state-run website. Status: The bills were put into conference, and the conference report was agreed to by both chambers. The bills are heading to the Governor’s desk.
HB395/SB250 (Krizek/Surovell): Governor Spanberger has voiced her support for these bills. They will allow balcony solar to operate in the Commonwealth. These are small plug-in solar panels designed to offset the energy use of a large home appliance. The legislation will exempt them from interconnection requirements and prevent landlords from prohibiting their installation. Status: Both bills passed and are heading to the Governor’s desk. Virginia will become the second state to permit balcony solar.
Technology
HB635/SB796 (Maldonado/Durant): HB 635 creates the Artificial Intelligence Chatbots Act, which prohibits an operator from making a companion chatbot that would encourage self-harm, offer mental health therapy, engage minors in sexually explicit interactions, or encourage minors to participate in illegal activities. SB796 creates the Artificial Intelligence Chatbots and Minors Act, which seeks to accomplish similar legislative goals through a different process. Status: HB635 was continued to the 2027 Session. SB796 passed the Senate 39-1, but was later continued to the 2027 Session.
HB757/SB237 (Runion/Head): Require an app store provider to verify the age of an account holder, obtain verifiable parental consent for a minor account holder, and share such age category and consent information with the developer of an app. These bills allow the Attorney General and any minor or parent of a minor who suffers harm by reason of a violation of this bill to initiate legal action. Status: Both bills have been continued to the 2027 Session with a letter to the Joint Commission on Science and Technology to study in the interim.
HB293/SB782(Helmer/Salim): Creates the Limited Liability Decentralized Autonomous Organization (LLD) Act, which establishes requirements for an LLD, defined as a distinct legal entity that operates through decentralized governance using blockchain technology and smart contracts that execute decentralized decision-making mechanisms. Similar legislation was passed in the 2025 Session, but was vetoed by Governor Younkgin. Status: SB782 was continued to the 2027 Session. HB293 passed the House 59-37, but was later passed by indefinitely by the Senate Committee on Commerce and Labor.
HB665/SB489 (Maldonado/Salim): Establishes requirements for the operation of virtual currency, including a requirement that a virtual currency kiosk operator obtain licensure with the State Corporation Commission. Additionally, these bills set limits on fees and require consumer protections, such as ID verification and holds. Status: The bills passed both chambers and are heading to the Governor’s desk.
SB557 (Reeves): Establishes the Commonwealth Strategic Cryptocurrency Reserve Fund in the Department of the Treasury for the purpose of investing in bitcoin or other cryptocurrency. Status: Passed by Indefinitely by the General Laws Committee 13-2.
Healthcare
HB483/SB271 (Deleany/Deeds): Similar bills have been before the General Assembly in recent years. The 2025 Session legislation was vetoed by Governor Younkgin. The bill establishes a Prescription Drug Affordability Board to review and take action to limit prescription cost increases. Status: The bills have passed the General Assembly and are heading to the Governor’s desk.
HB886/SB359 (Hope/Boysko): Allows an adult diagnosed with a terminal disease to request and an attending health care provider to prescribe a self-administered controlled substance for the purpose of ending the patient’s life and establishes regulatory safeguards. Status: HB886 was continued to the 2027 Session. SB359 failed to report from the Senate Committee on Education and Health on a 7-8 vote.
HB1147/SB22 (Hayes/Locke): Directs the Board of Medicine and Board of Nursing to require certain licensees to complete continuing learning activities on implicit and explicit bias reduction in health care as part of their continuing education and continuing competency requirements for licensure. Status: Both bills passed the General Assembly and are heading to the Governor’s desk.
Housing
HB816/SB454 (Helmer/VanValkenburg): These bills make multifamily and mixed-use residential development a by-right use in not less than 75 percent of the aggregate land area in all zoning district classifications that permit commercial or business uses as by-right uses. Status: Both bills passed their chamber of origination but ultimately failed as final language could not be agreed upon.
HB655/SB346 (Maldonado/VanValkenburg): With these bills, manufactured and modular homes will be permitted in all locations zoned residential, just as site-built homes. Status: Both bills passed the General Assembly and are heading to the Governor’s desk.
HB278/HB1177/SB355 (Clark/N. Cole/Boysko): These bills allow any locality by ordinance to adopt anti-rent gouging provisions to limit rent increases within a certain threshold. Status: HB278 and SB355 were continued to the 2027 Session with a letter to the Virginia Housing Commission to study in the interim. HB1177 was stricken from the docket.
Gaming
HB271/SB195/SB558/SB609 (Krizek/Aird/Reeves/Lucas); Forming a Gaming Commission: With growth in the diversity of gaming in recent years, there have been lengthy discussions and studies to examine the creation of a new Gaming Commission to oversee all aspects of gaming in the Commonwealth. Status: HB271 was continued to the 2027 Session. SB195 and SB558 were incorporated into SB 609. SB 609 was put into conference, but failed to generate a report.
SB756 (Surovell): Adds Fairfax County to the list of localities eligible to host a casino in the Commonwealth. Status: The legislation was passed, but in a significantly altered state, including making the casino temporary for five years before a permanent referendum decides its fate. The temporary site is set to be approved by the state’s MEI Commission.
HB1272/SB661 (Hayes/Rouse): Creates the legal framework for skill games to legally operate. Status: The bills were put into conference, and a report was agreed upon. The bills are now heading to the Governor’s desk.
HB161/SB118 (Simon/Locke): Authorizes internet gaming with live dealers in the Commonwealth to be regulated by the Virginia Lottery Board. Status: The bills were put into conference, but left there without a report being released.
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