Virginia General Assembly 2026: Budget Pressure Builds as Key Issues Take Shape
February 06, 2026
As the General Assembly session moves deeper into February and crossover approaches, the gravitational pull of the budget is becoming impossible to ignore. Even for bills that don’t directly appropriate funds, fiscal impact is increasingly shaping which proposals advance, pause, or change form. This dynamic helps explain why some priorities are moving steadily while others appear to slow — support may still be there, but the budget lens is now front and center.
Follow key legislative developments through our online Bill Tracker and monitor our Voter Voice landing page for opportunities to engage when CPA voices are needed.
Tax conformity: Encouraging signs, open questions
There has been movement on tax conformity in the House, including action on HB 977, signaling continued bipartisan recognition of the need to align Virginia’s tax code with recent federal changes. However, the path forward is not yet settled. Despite the introduction of SB 664 the Senate has not fully engaged, and concerns about the fiscal impact of several federal provisions are clearly influencing the conversation. For now, conformity remains a priority — but one that will require sustained attention as budget negotiations intensify. Tell your legislators to support HB 977 by sending a quick message in VoterVoice!
PTET permanence: A quiet but critical issue
As broader tax debates dominate headlines, the push to make the pass-through entity tax (PTET) permanent continues largely behind the scenes. HB 977 includes provisions to make PTET permanent, an important step toward long-term certainty for pass-through entities. This issue remains vital for thousands of Virginia businesses, offering predictability, parity with federal corporate tax benefits, and meaningful federal tax relief for Virginia taxpayers — without creating a state revenue loss.
CPA-focused legislation continues to advance
Legislation impacting the CPA profession is moving with strong bipartisan support. HB 870, along with its Senate cognate SB 605, modernizes CPA licensure and creates CPA, Emeritus status. SB 605 passed unanimously in Senate General Laws this week, sending both bills to their respective chamber floors with strong support. Member-legislators continue to lead on these issues, reinforcing the value of CPA engagement at the Capitol.
Business policy watch: Labor and workplace proposals
In addition to tax issues, lawmakers are advancing a range of business and workforce-related proposals, including minimum wage adjustments, paid leave concepts, and other workplace standards. While many of these measures face fiscal and implementation questions, they remain part of the broader policy conversation — particularly as legislators weigh impacts on small businesses, employers, and overall competitiveness. Check out the Business Policy section of our Bill Tracker for a list of specific bills.
Looking ahead
The next few weeks will be pivotal. Budget amendments, substitute bills, and behind-the-scenes negotiations will increasingly shape outcomes. Stay tuned for calls to action in the coming weeks as key decisions approach and advocacy opportunities emerge.