Overview

• The Virginia Senate and House of Delegates have passed competing versions of the state budget, both rejecting Governor Youngkin's proposed tax changes.
• Both chambers agreed to expand the sales tax to digital services but dismissed Youngkin's suggestions to lower income tax rates and raise the state's sales tax.
• The budgets propose increased general fund spending, including larger pay raises for teachers and public workers, and higher K-12 education allocations than Youngkin envisioned.
• A Youngkin-backed proposal to move the NHL's Washington Capitals and NBA's Washington Wizards to Alexandria faces uncertainty, with the Senate and House having differing stances.
• The House budget includes language to rejoin the Regional Greenhouse Gas Initiative, a move opposed by Youngkin and some Republicans.