eNews – February 20, 2026
Legislators get ready to "show us the money", Local Workshop added to Small Towns Conference, Legislation reports...and more!
Friday, February 20, 2026/Categories: eNews
This edition of eNews is sponsored by Moseley Architects, one of the most trusted architectural and engineering firms serving the public sector in the Mid-Atlantic, known for exceptional experience and service to municipal governments. Learn more >
VML’s 2026 General Assembly resources can be found on our website here >.
In this issue:
VML News
Budget & Finance
Senate Agriculture, Conservation and Natural Resources Committee
Senate Commerce and Labor Committee
Senate Courts of Justice Committee
Senate Finance and Appropriations Committee
Senate Rehabilitation and Social Services Committee
Senate Transportation Committee
House General Laws Committee
House Human Services Committee
House Privileges and Elections Committee
House Public Safety Committee
Opportunities
VML News
Small Towns Conference: Pre-Conference “Local Workshop” and reception added for May 13
The Small Towns Conference provides an overview of topics related to local government management specifically geared towards small town issues. This conference invites elected officials, including council members and mayors, town managers, and leadership staff to learn, network, and share resources and ideas.
This year the Small Towns Conference will be held May 14-15 at the Chincoteague Center.
Lodging options, registration, and more information about the 2026 Small Town’s Conference is available on VML’s website here.
Pre-Conference Offering – May 13
We know that Chincoteague is a bit of a drive for many of our members, so for those arriving early there will be a special afternoon of programming on May 13 beginning at 1:00pm followed by a reception that evening. Please join us if you are able!
Local Workshop: Tools & Materials for Building Communities
What are the tools and materials used for building and revitalizing communities? How can you make informed decisions that positively affect the growth of your community? This interactive workshop will provide a better understanding of the many components of community building, such as zoning & land use, transportation, historic preservation, placemaking & open space planning, and economic development.
VML Contact: Rob Bullington, rbullington@vml.org
“If I Were Mayor” essay contest open to 7th and 8th graders
Deadline to submit entries is March 23
The Virginia Municipal League (VML) invites all eligible Virginia 7th and 8th Graders to join its “If I were Mayor” essay contest.
Regional winners selected from around the state will each receive a $150 gift card and a plaque. One statewide winner chosen from the regional winners will receive a $250 gift card and a plaque. The runner-up from the region that receives the statewide award will become that region’s winner.
Winning essays will be featured in the May/June issue of VML’s magazine Virginia Town & City.
Learn more about the contest and how to submit entries here >.
VML Contact: Manuel Timbreza, mtimbreza@vml.org
Budget & Finance
“Show me the money!” This Sunday the House and Senate reveal their budget plans
We have reached the Jerry McGuire moment for the budget. Movie fans will recall that while Tom Cruise’s eponymous character is being provoked by his client, the client begins to scream “Show me the money!”
This Sunday, Virginia’s lawmakers must show us the money; or, better said, how they plan to allocate money for the 2026-28 biennium. There are several important questions in play.
Will they endorse initiatives from former Governor Youngkin’s outgoing budget? Probably. Especially those recommendations that are considered mandatory.
What about the 2% salary increases in each year of the biennium for teachers and support positions but also state employees and state-supported local staff? It comes with a hefty general fund price tag of nearly $800 million for the biennium. Yep. That’s probably a given. The General Assembly doesn’t like to be one-upped by the Governor on salary increases.
What about the remaining discretionary funds on the table?
Will House and Senate budgeteers backfill holes that were left in the SNAP program (i.e., food stamps)?
Will the money committees accept unpalatable reductions to inflationary adjustments for hospitals and nursing homes, mobile crisis services, treatment for autism, or dental care? Or will they find monies to reduce or eliminate those budget saving initiatives?
What about transit funding for northern Virginia that the Senate indicated will likely be funded even as bills to do so were continued until 2027?
All these questions (and many more) will begin to be answered when the House Appropriations (HAC) and Senate Finance and Appropriations (SFAC) Committees “show us the money” this weekend. It’s exciting and nerve-wracking.
As a reminder, we will receive an incomplete picture of the money committee’s budget recommendations when they’re rolled out on Sunday. To be sure, the members and staff will provide high-level overviews of their budgets through their committee reports and staff presentations. But the “half-sheets”, the documents that detail each amendment to the budget, will likely not be available until noon on Tuesday, February 24. That’s when we’ll know a bit more about what the House and Senate intend to do with their monies. When they are ready, you’ll be able to find those amendments at this website, under HB 30 and SB 30
Later in the week, on Thursday, February 26, the House and Senate will pass their budgets on cue, as amended, and a few days later, the budget conferees will be appointed.
Then the real fun begins! Pencils will be sharpened, highlighters made available, and rulers will be ready, as budget conferees settle in for hard-fought negotiations on the Commonwealth’s fiscal plans for the 2026-28 biennium.
VML will follow the action and report on budget deliberations as they evolve.
VML Contact: Joe Flores, jflores@vml.org
Finance-related bills have largely disappeared from the legislative landscape
It’s a good time to assess where we are on finance-related bills as the General Assembly moves past the 2026 Session’s mid-point, commonly referred to as crossover.
Most of the bills we were concerned about at the beginning of the 2026 Session have fallen off the table. That list includes bills that eliminated the grocery tax, proposals that phased out the car tax, and legislation that expanded out of state deductions for businesses that also operate in the Commonwealth.
For example, HB13 (McNamara) and SB9 (Suetterlein) proposed to eliminate the remaining one percent local sales and use tax on groceries with a promise to reimburse localities for the lost revenue did not advance out of committee. Delegate Tata proposed HB703 a similar measure but not until July 1, 2027. That bill also failed.
HB978 (Watts) included a repeal of the grocery tax as part of a larger package of tax policy changes that would have raised monies to reimburse localities for this lost funding. Delegate Watts’ bill was carried over until 2027, but rumors continue to circulate that this repeal could rise again as part of the House or Senate budget bills that will be rolled out this Sunday. That’s something to keep an eye on.
Regarding the car tax, HB566 (McNamara) proposed to exempt from taxation, beginning January 1, 2027, the first $5,000 in assessed value of qualifying vehicles. Each tax year thereafter, the amount of personal property (or car tax) relief would grow by an additional $5,000 if revenues in a county, city, or town grow by five percent or more. The amount of the exemption would be capped at $20,000.
Senator Durant, on the other hand, offered up SB799 which would have eliminated the car tax beginning in tax year 2027 and lifted the cap on state reimbursement, requiring the Commonwealth to absorb in excess of $3.0 billion annually to replace lost local revenue. Neither bill passed out of committee in either chamber.
The only remaining proposal related to the car tax is HJ34 (Franklin) that advocates for a review of the impact on localities of repealing the car tax. That resolution faces an uncertain fate in the Senate, where the Senate Finance and Appropriations Committee has already carried over SR6 (Marsden).
Delegate Watts’ HB956 (Watts) proposed to expand the Business, Professional, Occupational, Licensing (BPOL) tax deduction for businesses operating in multiple states. That bill ran into opposition in House Finance Subcommittee #2 and failed to report. The bill would have increased local administrative requirements at the same time draining revenues from local coffers related to BPOL.
HB 960 (Watts) modifies the way some personal property is taxed, by changing the criteria from original cost to original cost to the taxpayer. It’s a subtle change that has an unknown but likely negative impact on local revenues. Because of concerns raised about the potential impact, the patron recommended that a reenactment clause be attached to the bill, requiring the bill to be passed again during the 2027 Session of the General Assembly to become effective. This change allows time to assess the change more closely and its impact on local governments.
VML Contact: Joe Flores, jflores@vml.org
Senate Agriculture, Conservation and Natural Resources Committee
Biosolids legislation compromise reached; language coming soon
HB1443 (Lopez) / SB386 (Stuart) Owners of sewage treatment works; land application, marketing, or distribution of sewage sludge; perfluoroalkyl and polyfluoroalkyl substances; testing requirements. A compromise has been reached that will continue to allow for the land application of municipal biosolids provided levels of PFAS and PFOA remain below newly established levels in repeated tests that meet existing testing standards established by the EPA and DEQ. This compromise is expected to limit new costs significantly for municipal wastewater facilities and operators in contrast to alternative proposals which would have increased wastewater operator costs significantly.
HB1443 and SB386 will be conformed to include the compromise language which is still being drafted. These bills will establish concentration limits for land applied biosolids of PFAS and PFOA that have been agreed to by the patrons of the legislation, the environmental advocacy community, the municipal wastewater and biosolids industry representatives.
Key compromise elements to be included in the bills:
- Require regular testing for PFAS and PFOA and use the achievable HB1143 concentration tiers in lieu of unachievable alternative proposals.
- Apply concentration limits for PFOS and PFOA individually until 7/1/2029 and combined thereafter.
- Determine compliance using annual average calculation.
- Replace the unworkable limits on spreading rate for a more achievable rate.
- Allow blending of biosolids from multiple facilities is to comply with the concentration limits.
- Have a DEQ work group study a number of details (no preordained outcomes) and make future recommendations.
VML Contact: Mitchell Smiley, msmiley@vml.org
Senate Commerce and Labor Committee
Real property conveyance hearings and law-enforcement duty to render aid bills advance
SB334 (Roem) Conveyances of interests in real property; public hearing required. Requires that a public hearing be held whenever a locality is planning to sell land or convey a permanent easement or right-of-way for 1. major transmission lines over 69 kilovolts, 2. data center power lines over 69 kilovolts, and 3. power lines over 69 kilovolts for any commercial or industrial facility. The bill prescribes that the advertising and hearing be done in accordance with the rules for land use actions (two ads). The Senator worked with VML and others to improve it. It has passed the Senate.
HB273 (Helmer) Law-enforcement officers; duty to render aid upon danger to life or limb; civil immunity. Provides that a law-enforcement officer, while engaged in the performance of his duties, has a duty to render aid to any person that he observes suffering from a serious bodily injury or life-threatening condition as circumstances objectively permit. The bill provides immunity for such officers from civil liability for any acts or omissions that are not due to gross negligence or willful misconduct resulting from the rendering of such aid. The House passed the bill which will now be considered by the Senate Courts Committee.
VML Contact: Mark Flynn, markkflynn@gmail.com
Senate Courts of Justice Committee
Collective bargaining by public employees and vested rights bills pass the Senate
SB378 (Surovell) / HB1263 (Tran) Collective bargaining by public employees; individual home care providers; Virginia Home Care Authority established; Public Employee Relations Board established; exclusive bargaining representatives. Repeal the existing prohibition on collective bargaining by public employees. The bills require public employers and employee organizations that are exclusive bargaining representatives to meet at reasonable times to negotiate in good faith with respect to wages, hours, and other terms and conditions of employment. They provide for binding arbitration. Each passed the house of origin. The fiscal impact is shown to reach hundreds of millions of dollars. VML opposes the bills, due to the enormous cost for many localities.
SB504 (Deeds) Vested rights; rulings or orders of the local circuit court. Redefines vested rights in certain situations by adding a rule that a court order concerning the rezoning of more than 25 parcels would affect the rights of a landowner, the landowner’s rights remain vested, so long as it is pursuing a project in a manner that otherwise establishes that the owner’s rights are vested. The bill passed the Senate.
VML Contact: Mark Flynn, markkflynn@gmail.com
Senate Finance and Appropriations Committee
Plastic bag tax distribution to towns bill has passed both chambers
HB341 (Martinez) Plastic bag tax; distribution to towns. Requires that any town located within a county that has imposed a disposable plastic bag tax receive a distribution of revenues collected by the county based on the local sales tax distribution formula for appropriations to towns. The bill restricts a town's use of such revenues to the same purposes allowable for a county or city.
HB341 passed the Senate 22 to 16 and is now awaiting signatures before being sent to the Governor.
VML Contacts: Josette Bulova, jbulova@vml.org; Michelle Gowdy, mgowdy@vml.org
Senate Rehabilitation and Social Services Committee
Marcus Alert and public assistance programs bills reported from committee
The House bill to fully implement a Marcus Alert Evaluation Task Force (HB225 – Hope) was reported from Senate Rehabilitation and Social Services on February 20. This bill updates the membership of the task force and requires the Department of Behavioral Health and Developmental Services to convene the task force to assist in determining the effectiveness of the Marcus Alert system, which is being implemented by region across the state. Marcus Alert is the program that implements a comprehensive crisis response system for mental health emergencies, including the use of community crisis or co-response teams and other supports to assist individuals experiencing a mental health crisis without a full public safety response unless necessary.
The Senate version (SB514 – Deed), was reported from House Health and Human Resources on February 19. These bills were recommended by the Behavioral Health Commission, which has been monitoring the implementation of the Marcus Alert program. VML is monitoring the bill.
The Committee also reported a bill to require state website posting of large-scale information requests regarding public assistance programs (HB879 – Shin). Specifically, it requires the Commissioner of Social Services to post a public notice on the Department’s website within 10 days of receiving a request for information/records concerning 25 or more applicants for or recipients of public assistance or child support for a purpose not directly connected to the administration of such programs. As introduced, the bill would have required local department of social services to publicly post such requests. As amended, the bills states that these offices must notify state DSS of such requests. The bill requires such notice to be made available regardless of (i) whether such information has previously been shared; (ii) the identity of the requestor, unless such request is permitted under existing law; and (iii) even when a request is made in compliance with state and federal law and regulation. VML is monitoring the bill.
VML Contact: Janet Areson, jareson@vml.org
Senate Transportation Committee
Thank patrons for protecting local photo speed programs
HB1220 (Delaney), HB1330 (Seibold), and HB994 (Seibold) were amended on the House floor this week to remove language that would have created significant liability for any locality operating a photo speed enforcement program.
In particular, members are encouraged to thank Delegate Delaney’s office directly for agreeing to remove language that would have otherwise compromised programs that are an important component of many local safety programs and have a demonstrated record of slowing traffic in school and work zones.
VML Contact: Mitchell Smiley, msmiley@vml.org
House General Laws Committee
Local government lobbying bill to be heard by committee
SB50 (Rouse) Lobbying; registration; local governments; penalty. Expands the definition of "lobbying" to include influencing or attempting to influence local government. The Senate approved the bill. It will next be heard by the House General Laws Committee.
VML Contact: Mark Flynn, markkflynn@gmail.com
House Human Services Committee
ECO/TDO bill clears committee
The House Health and Human Services Committee conformed and reported the Senate bill addressing use of retired law enforcement for the emergency custody/temporary detention (ECO/TDO) process (SB75 – Lucas). The Committee conformed the Senate bill to the House bill that came through the committee and is now before the Senate Committee on Rehabilitation and Social Services (HB681 – Hayes). VML supports these bills.
VML Contact: Janet Areson, jareson@vml.org
House Privileges and Elections Committee
Ranked choice voting bill passes full committee
SB176 (VanValkenburg) Elections; conduct of election; ranked choice voting; locally elected offices; report would expand the option to use ranked choice voting from only elections for county board of supervisors and city councils to any local governing body – which now includes Towns. This is permissive.
SB176 reported from the full House Privileges and Elections Committee 14 to 6.
VML Contacts: Josette Bulova, jbulova@vml.org; Michelle Gowdy, mgowdy@vml.org
House Public Safety Committee
Firearm Give-Back Program bill headed to Senate
HB702 (Cole) Virginia Firearm Give-Back Program and Fund established. This bill requires all local law enforcement agencies to adopt a gun buy-back program, with exceptions for weapons that are evidence in a criminal prosecution. This was asked for by the City of Fredericksburg. The bill passed in the House and will be heard next in the Senate Courts of Justice Committee.
VML Contact: Mark Flynn, markkflynn@gmail.com
Opportunities
Registration now open: Salute to Service honors Virginia Veterans at Virginia War Memorial, March 21
When: Saturday, March 21, 2026 10:00 a.m. to 6:00 p.m.
Where: Virginia War Memorial (621 South Belvidere Street | Richmond, VA 23220)
Registration is now open for all Virginia Veterans and those who support them for the inaugural “Salute to Service Reunion Celebration” a day-long program of remembrance, honor, and reconnection.
Highlights of the event include the premiere of Decisive Victory: Operation Desert Storm, a new documentary produced in partnership with Blue Ridge PBS, a wreath-laying ceremony honoring the seven Virginians killed in action in this conflict, unit rally points, musical performances by the West Point Alumni Glee Club, and a panel discussion offering firsthand perspectives on the Operation Desert Storm conflict and its lasting legacy.
Panelists include:
- James Henry Binford “Binnie” Peay III, General, USA (Ret.)
- John P. Jumper, General, USAF (Ret).
- Barry R. McCaffrey, General, USA (Ret.)
- Robert B. Flowers, Lieutenant General, USA (Ret.)
- Michelle Rose, Major General, USA (Ret.)
- Moderated by Michael S. Bell, Colonel, USA (Ret.), Executive Director of the Institute for the Study of War and Democracy at the National WWII Museum.
The 2026 gathering marks the first veteran reunion of its kind hosted at the Virginia War Memorial and launches the Salute to Service Reunion series, a multi-year program with future reunions planned for Vietnam War veterans in 2027, Global War on Terrorism veterans in 2028, and Cold War–Fall of the Berlin Wall veterans in 2029.
The event is free to attend for Operations Desert Shield and Desert Storm Veterans and a guest. Additional guests and supporters are $25 to attend. Advance registration is required as space is limited.
MORE INFO AND REGISTRATION HERE >
All program fees support the Salute to Service Reunion Celebration.
Contact: info@vawarmemorial.org
Complete the 2025 Local Residential Construction Fees Survey
The link to the 2025 Local Residential Construction Fees Survey is live and available here: 2025 Local Residential Construction Fees Survey.
Section 15.2-2209.3 of the Code of Virginia requires localities with populations greater than 3,500 to provide information on fees for processing, reviewing, and permitting of applications for residential land development and construction activities, including fees connected to individual residential developments for the 2025 calendar year (January 1, 2025 – December 31, 2025).
The Department of Housing and Community Development (DHCD) and the Commission on Local Government (CLG) are asking the chief administrative officers or designee in each affected county, city, and town to provide essential information about the fee collection policies in the locality. The 2025 survey remains largely unchanged from the 2024 survey. Definitions and additional points of clarification have been added to assist with the completion of the survey. Submitted survey responses will be made available to the public on the DHCD website. The deadline for completing the survey is March 1, 2026.
Please contact DHCD as soon as possible if your locality anticipates difficulties with complying with the March 1 deadline.
DHCD Contact: Joseph Dennie, joseph.dennie@dhcd.virginia.gov
Virginia Housing's Community Impact Sessions begin February 24
Virginia Housing is back on the road for another Community Impact Session series in 2026!
In February and March, Virginia Housing will offer six opportunities to join an in-person overview of Virginia Housing’s programs and how they support communities in developing affordable and workforce housing.
These sessions will feature presentations from Virginia Housing staff and other partners, along with a chance for you to offer feedback and input about your needs and the challenges your region faces.
Registration is required to attend, and capacity is limited. Dates, locations and registration links for each Community Impact Session are as follows:
- Feb. 24 - Kilmarnock, 10 a.m. - noon (Register here)
- Feb. 25 - Chesapeake, 10 a.m. - noon (Register here)
- Feb. 26 - Warrenton, 1 - 3 p.m. (Register here)
- March 3 - Lexington, 10 a.m. - noon (Register here)
- March 4 - St. Paul, 10 a.m. - noon (Register here)
- March 5 - South Boston, 10 a.m. - noon (Register here)
Those interested in receiving regular updates from Virginia Housing can sign up for the Strategic Housing Newsletter for updates and announcements.
Virginia Housing Contact: Luke Tate, Luke.Tate@VirginiaHousing.com
Deadline to apply for National Civic League’s Virginia 2026 All-America City Award extended to March 4
To help accommodate the many competing priorities communities are navigating, the National Civic League (NCL) has extended the application deadline for the 2026 All-America City Award to March 5, 2026. This additional time is intended to give communities more flexibility to refine their applications and fully tell their civic story.
Open Office Hours
To further support applicants, the program is hosting three informal open office hours to answer questions about the application process. These sessions are designed to be flexible; participants are welcome to join for a few minutes or stay for the full hour and may attend one or all sessions.
Office Hours Schedule:
- February 13 at 1:00 PM ET
- February 20 at 1:00 PM ET
Register here: AAC Open Office Hours
If none of these times work for you, applicants are encouraged to email Rebecca Trout to schedule a one-on-one conversation.
These opportunities are intended to help communities feel confident, prepared, and supported as they complete their applications.
About the All-America City Award:
The theme for 2026 is “America at 250: Strengthening Civic Health and Building Trust.” NCL is seeking communities that are bringing our founding ideals to life by ensuring that people have the power and opportunity to shape their collective future.
Apply here >.
VML Executive Director Michelle Gowdy, who was recently appointed to the NCL board, encourages all VML member localities to apply to join the 21 communities from Virginia that have previously won the All-America City Award!
You can view the full list of past recipients here.
NCL Contact: Rebecca Trout, rebeccat@ncl.org