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Article Icon 1Budget Standoff Threatens Commonwealth Shutdown

Virginia’s budget fight over data center tax breaks is pushing the Commonwealth toward what could be its first-ever partial state government shutdown.

Senate Finance and Appropriations Chair Louise Lucas has proposed eliminating the sales and use tax exemption that data centers currently enjoy—a move that has become a major sticking point in budget negotiations.

The stakes are especially high for Southside Virginia, where officials say major proposed data center investments could be jeopardized if the exemption is eliminated. Critics of Lucas’ proposal warn that axing the tax break could drive future projects and jobs out of the Commonwealth.

Virginia revenues are running hundreds of millions ahead of forecast, even as lawmakers warn about economic uncertainty and slowing job growth. If a deal isn’t struck before June 30, Virginia faces a partial shutdown.

Article Icon 1Spanberger Vetoes Marijuana Retail Marketplace

Gov. Abigail Spanberger has vetoed the bill that would have created a regulated retail marijuana marketplace in Virginia.

The veto does not change Virginia’s existing marijuana laws. Adult possession and limited home cultivation remain legal. The veto blocks the framework for licensed dispensaries and retail stores where Virginians could legally buy cannabis. She said the bill lacked sufficient oversight and enforcement mechanisms, but critics argue the veto contradicts her past campaign support for a legal retail cannabis market.

Democratic lawmakers who helped send her the bill sharply criticized the veto, arguing Spanberger had campaigned on supporting a legal retail cannabis market and then rejected the framework lawmakers sent her.

For now, Virginia remains in an unusual position: you can legally possess marijuana, but you still can’t legally buy recreational cannabis from a retail store. Expect the fight to continue when the General Assembly reconvenes.

Article Icon 1Virginia Sues over Student Loan Caps

Virginia Attorney General Jay Jones joined a multistate coalition this week to sue the U.S. Department of Education over a rule he says unlawfully restricts federal student loan access for Virginians pursuing professional degrees.

The lawsuit challenges a Trump administration rule tied to the One Big Beautiful Bill Act that narrows the federal definition of “professional degree”—the designation that determines which graduate students can borrow up to $200,000 in federal loans.

Jones and dozens of fellow state AGs, including Maryland’s Anthony Brown, argue the Department added restrictions Congress never authorized, potentially limiting access for students in some healthcare and other critical workforce fields. “Cutting off access to federal student loans cuts off access to career opportunities for Virginians,” Jones said.

The coalition argues the rule could worsen workforce shortages in critical professions, particularly healthcare fields where states already face ongoing staffing challenges.

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Around Virginia

➤ Statewide: Gov. Abigail Spanberger signed a package of school-focused bills aimed at addressing teacher shortages, improving school construction processes, and expanding parent involvement in course selection across Virginia. (More)

Chesterfield County: Google’s proposed second data center campus could impact nearby wetlands, adding another environmental concern to Virginia’s fast-growing data center industry. (More)

Henrico County: Residents in eastern Henrico County are pushing back on Quality Technology Services’ plan to add 17 new data center buildings near White Oak Technology Park, citing concerns about noise, traffic, and strain on local infrastructure. (More)

Richmond: Transit officials extended the region’s fare-free bus program for another year, saying free fares are now part of the system’s long-term approach. (More)

Stafford County: Antisemitic graffiti found in bathrooms at Stafford High School prompted an increased police presence as authorities investigate the incident, though officials say there is no credible threat to the school community. (More)

Petersburg: Parts of the city are under a boil water advisory after a waterline break caused road closures and reduced water pressure, with officials urging residents to use boiled or bottled water until testing is complete. (More)


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Virginia Sports

➤ Washington Nationals outfielder James Wood hit the MLB’s first inside-the-park grand slam since 2022—a base-clearing shot that sparked a comeback win over the Mets. (More)

UVA senior Ben James shot an 8-under 63 at the NCAA Winston-Salem Regional, tying the second-lowest round in program history. (More)

The Washington Spirit sold out their May 30 match against Seattle Reign FC a full 11 days before kickoff, the earliest sellout in club history. The game will tie the franchise’s single-season sellout record, with 10 home matches still left to play. (More)

➤ Yesterday’s Results: NBA | NHL | MLB | NCAAB | Soccer | WNBA

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Virginia Business

Amherst County plans to redevelop the former Central Virginia Training Center into a mixed-use neighborhood, with some buildings demolished and a new access road to attract developers. (More)

Roanoke-based Virginia Transformer will build a new 600,000‑square‑foot manufacturing plant in Muscle Shoals, Alabama, expected to create 1,100 jobs as demand grows for power-grid equipment. (See Details)

Virginia is tightening emissions standards for data center backup generators starting July 1, 2026, as regulators and lawmakers respond to growing concerns over air quality and the expanding diesel fleets tied to AI-driven data center growth. (More)

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Et Cetera

Chesapeake Bay blue crabs are making a comeback, with the population rising 46% from last year to an estimated 349 million crabs. Scientists are encouraged by a sharp increase in juvenile crabs but say declining female crab numbers remain a long-term concern. (More)

Burke just claimed the top spot on U.S. News & World Report’s Best Places to Live in Virginia for 2026–2027, landing 108th nationally—a well-earned honor for the Fairfax County community. (More)

No Kid Hungry Virginia highlights summer programs helping families feed kids, including $120 per student from Virginia Sun Bucks and meals from the Summer Food Service program. (More)

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The Poll

As Memorial Day weekend arrives, what’s your favorite Virginia summer tradition?

  1. Day at Virginia Beach
  2. Hiking the Blue Ridge or Shenandoah
  3. Visiting a Civil War battlefield
  4. A Virginia winery visit

Wednesday’s Results:

If you’ve named a kid or grandkid, which best describes the name you chose?

  1. Family/classic name: 44%
  2. Something unique: 21%
  3. Haven’t named any kids: 21%
  4. Picked something popular: 14%
Virginia Trivia

Virginia is called the “Mother of Presidents.” How many U.S. presidents were born in Virginia?

Show me the answer

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