Unlocking Hampton Roads | The Capitol Crossroads Edition
In This Edition
Feature | 2026 General Assembly End-of-Session Review & Special Session Outlook
Here & Now | Port of Virginia now the East Coast's deepest harbor
Word in the ‘Roads | Digest of significant press releases and investment announcements from over 40 of the region’s economic development authorities, alliances, chambers, incubators, and local governments
Willcox Savage Business Solutions Series | Strategic Health Care Design: Navigating self-insurance
Regional RFPs | Opportunities to buy, build, and service regional municipalities
2026 General Assembly End-of-Session Review & Special Session Outlook
The 2026 General Assembly Session – Virginia’s 407th – adjourned Saturday, March 14, without a budget, leaving many critical policy decisions yet unresolved. Deliberations centered primarily around energy, labor reform, tax policy, and infrastructure funding, many of which remain ongoing through budget negotiations.
Of the 3,637 bills filed, less than half survived the legislative gamut and are awaiting the Governor’s review. With a proposed biennial budget and Governor’s actions still pending, Willcox Savage Consulting will continue to stay engaged through the April 22nd Reconvene or “Veto” Session, where the legislature may ratify or overturn the Governor’s legislative amendments and vetoes, and the April 23rd Special Session, when the General Assembly is slated to approve its budget.
I. Tax Policy
Sales and Use Tax Expansion & Exemptions HB978 and SB730 aimed to apply the sales and use tax, which is typically only applied on goods, on an array of services, including digital personal property, software application services, computer-related services, website hosting, digital subscriptions, entertainment, delivery, consulting, and dry-cleaning services. Both bills failed during the 2026 General Assembly Session, but the conversation surrounding sales tax for services is still ongoing through the budget negotiations.
The most consequential tax policy debate, one that ultimately stalled the biennial budget, centered on the existing Retail Sales and Use Tax exemption for data center equipment. Under current law, data centers that meet specific investment and job creation thresholds are exempt from the state's 5.3% sales tax on computer equipment and software. The Senate is seeking to repeal the $1.9 billion/year sales and use tax exemption provided to data centers to balance the budget.
Budget conferees must first determine the Commonwealth's anticipated revenues before they can begin the process of divvying up available resources to fund state employee raises, transportation funding, and other critical priorities.
II. Labor & Benefits
Collective Bargaining Speculation as to whether Governor Abigail Spanberger and Virginia’s Democrat trifecta would repeal Right-to-Work were of paramount concern to Virginia’s business community until she dispelled the rumor by stating publicly that she would veto a full repeal of Virginia’s Right-to-Work statute. But, what about labor-friendly legislation that falls short of a full repeal of Right-to-Work?
The first shot across the bow was the introduction of SB32, which sought to fully repeal Right-to-Work in Virginia. The bill was never docketed for a hearing, which we refer to as a “pocket veto” and is indicative of caucus leadership’s desire to disappear a bill without drawing attention to the matter.
Democrat leadership, however, did prioritize the creation of a mandatory collective bargaining framework for state and local employees and, to that end, passed HB1263 and SB378 on party-line votes. (Collective bargaining for local employees has been permissive since 2021.) Governor Spanberger has indicated that she is likely to sign the legislation into law, but it remains to be seen whether this will embolden labor advocates to pursue a full repeal of Right-to-Work next year.
Paid Family and Medical Leave (PFML) (HB1207 / SB2) establishes a state-run program funded by a mandatory payroll tax on employers and employees. The benefit amount must be 80 percent of the employees average weekly wage, not to exceed 100 percent of the statewide average weekly wage, and caps the duration of paid leave at 12 weeks in any application year. Employers can offer paid family medical leave in their benefits options and are not required to participate in the state-run program unless the benefits offered are not on par with the requirements of the legislation.
Paid Sick Leave Expansions An expansion of the state's paid sick leave framework to cover all employees of private employers and state and local governments passed and is headed to the Governor for signature. HB5 and SB199 mandate that employees accrue a minimum of one hour of paid sick leave for every 30 hours worked, capped at 40 hours per year unless an employer chooses a higher limit. The permitted uses for this leave include an employee's own or a family member's mental or physical illness, injury, or preventive care, as well as for absences related to domestic violence, sexual assault, or stalking to obtain medical care, counseling, or legal services.
The legislation allows employers who already offer paid sick leave or general paid time off (PTO) policies that meet or exceed the bill's minimum requirements to maintain their existing programs without having to adopt a new, separate accrual system. Crucially, it creates a private right of action allowing aggrieved employees to sue for double the amount of any unpaid sick leave plus actual damages.
Heat Illness Prevention Standards HB1092 and SB288 were advanced directing the Virginia Safety and Health Codes Board to adopt a standard to protect employees from occupational exposure to excessive heat in both indoor and outdoor environments.
Notably, Willcox Savage Consulting directly lobbied on this issue, successfully advocating to shift the initially proposed 80-degree threshold to a more practical standard to be determined by the Department of Labor and Industry (DOLI). Businesses in construction, agriculture, warehousing, and manufacturing will be subject to new requirements for hydration, shade, acclimatization protocols, and mandatory rest breaks based on these forthcoming DOLI metrics.
III. Technology, Data & Infrastructure
Data Center Grid Costs & Zoning Virginia's data center industry faced legislative scrutiny, focusing on energy consumption and infrastructure costs. Attempts to override local zoning authority and implement statewide siting requirements for data centers largely stalled, leaving land-use decisions with localities. However, SB253 emerged as a critical bill which will shift the costs of grid transmission and capacity upgrades required for data centers away from residential ratepayers and directly onto the data center operators.
Artificial Intelligence & Data Broker Regulation HB638 would have imposed registration requirements for data brokers, mandated comprehensive information security programs, and prohibited acquiring data for discriminatory or fraudulent purposes. This legislation was continued to 2027. Concurrently, HB635 and HB713 establishing the Artificial Intelligence Chatbots Act and the FAIR AI Act, did not make the Governor’s desk, marking another year of inaction on Artificial Intelligence regulation.
IV. Real Estate
Housing & Tenant Rights The House advanced a tenant-protection agenda, highlighted by HB4 (Right of First Refusal), which grants localities the authority to purchase publicly supported housing to maintain affordability. Commercial real estate developers and property management groups must navigate a more regulated environment regarding lease terminations, eviction diversions, and property dispositions.
V. Civil Litigation & Liability Exposure
Class Action Suits Historically, Virginia was one of only two states that prohibited state-level class actions, but, legislation that passed this session, HB449 and SB229, establishes a procedural framework for one or more members of a class to bring a civil action on behalf of all members, provided the class is numerous and shares common questions of law or fact, effective January 1, 2027.
Medical Malpractice Medical malpractice liability faced sustained legislative attention this session, culminating in a data collection mandate that will inform future debates over damages caps. Initial proposals, such as an amended version of SB536, sought to increase the state's medical malpractice damages cap from its current level of $2.7 million to $6 million.
SB536, as passed, requires insurers and self-insured healthcare systems to report detailed data on malpractice premiums, claims payouts, and the frequency with which jury verdicts approach or exceed the current statutory limitation.
VI. Strategic Outlook: April 22nd Reconvene Session and April 23rd Special Session
The regular session may have adjourned, but key decisions remain unresolved. The General Assembly will gavel back in on April 22nd for the 2026 Reconvene Session. The Governor will deliver the amendments, or vetoes, which will be voted on by the full body. The body needs 2/3rds vote to override any vetoes, and a simple majority to approve line item amendments. With the legislature operating in a Democratic Trifecta, any veto overrides would come as a surprise.
The April 23rd Special Session will be driven by the decisions made by Chairman Luke Torian, Speaker Don Scott, Senator Louise Lucas, and the other budget conferees. The budget is the ultimate policy vehicle. Issues that stalled in committee, such as transit taxes and data center cost-shifting, could be resurrected as budget amendments, requiring us to monitor the conference negotiations closely.
Article written by Carter T. Whitelow, MBA, Dylan Bishop and Peyton Lyons with Willcox Savage Consulting, a Virginia-first public affairs and lobbying firm dedicated to providing strategic guidance and advocacy to clients navigating the complex landscape of state and federal government.
Port of Virginia: Now the East Coast's Deepest Harbor
The Port of Virginia reached a historic milestone in late February 2026, completing the deepening of Norfolk Harbor to 55 feet and becoming the only U.S. East Coast port capable of handling fully‑laden ultra‑large container vessels (ULCVs) without tidal restrictions. The dredging work was finished on February 28, marking the culmination of a multi-year effort to deepen and widen the commercial shipping channels as part of the port's $1.4 billion Gateway Investment Program.
Post-dredge surveys are now underway to verify the new depths and channel width, after which maritime charts will be updated to reflect the port's extended capacity. All verification and charting work is scheduled to finish by late Spring.
With deeper, wider, restriction-free channels, international carriers can move heavier loads, turn vessels faster, and connect seamlessly to inland rail, strengthening the reliability and efficiency of global supply chains through Virginia.
PORT OF VIRGINIA, MARCH 18, 2026
Full press release here.
Word in the 'Roads
Recent press releases regarding regional economic development.
New $355 Million VA Outpatient Clinic Coming to Virginia Beach
The City of Virginia Beach has confirmed a new $355 million U.S. Department of Veteran Affairs outpatient clinic to be developed in the Lake Wright area. The 180,000-square-foot facility, secured through a 20-year federal lease, is expected to create 600 new jobs and generate significant demand for additional medical office development. Funding for the project was secured through the PACT Act, which was approved by Congress in 2022 to expand healthcare and benefits for veterans. The facility is projected to open in 2029. Full press release here.
Hampton Roads Bridge-Tunnel Expansion Reaches Major Construction Milestone
The Hampton Roads Bridge-Tunnel expansion project reached a major milestone this March as "Mary," the tunnel-boring machine responsible for excavating the two new tunnels beneath the harbor, completed her work and is being removed from the site. This marks the completion of a key step in the region's $4 billion effort to improve mobility, support port operations, and enhance access across the region's most critical transportation corridor. With tunnel outfitting now underway and completion expected in Spring of 2027, the project promises to ease congestion and strengthen economic connectivity for businesses, commuters, and military installations throughout Hampton Roads.
Full press release here.
Radian Forge Announces $10.5 Million Expansion in Portsmouth
Governor Abigail Spanberger has announced a $10.5 million investment in Radian Forge, a wire arc additive manufacturing startup specializing in large-scale maritime components. The expansion reflects the continued growth of Hampton Roads' "Maritime Industrial Base," supporting advanced manufacturing capacity in Portsmouth and strengthening the region's position in shipbuilding, defense and logistics. "Virginia continues to be a leader in investing in technologies that help keep our country safe," said Governor Spanberger. "Radian Forge's decision to expand in Hampton Roads highlights the region's competitiveness, deep industry expertise, and long-standing role in supporting our national security."
Full press release here.
Regional RFPs
Opportunities to buy, build, and service regional municipalities.
City of Virginia Beach: Professional IT & AI Managed Services
The City of Virginia Beach is accepting proposals from qualified firms to provide professional IT and artificial intelligence (AI) services supporting a portfolio of enterprise, educational, and emerging technology applications. The City intends to secure multiple contractors capable of delivering managed services, technical expertise, and professional staffing to support daily operations, modernization priorities, and AI‑driven initiatives across departments.
VIEW RFP | Deadline: 1:00 p.m. on March 26, 2026
Virginia Port Authority: Ship-to-Shore Crane Realignment (VIG)
The Virginia Port Authority (VPA) is soliciting proposals from qualified contractors for the realignment and repositioning of four ship‑to‑shore (STS) cranes at the Virginia International Gateway terminal in Portsmouth. The scope includes the full planning and execution of relocating Cranes #1–4 to the south side of existing Cranes #9–12, with an expectation that all four cranes be moved within a single day or, if not feasible, a detailed schedule outlining the required duration.
The contractor will have access to the cranes beginning July 3, 2026, to conduct all preparatory work, including test lifts and system checks, ahead of the scheduled relocation start date of July 4, 2026.
VIEW RFP | Deadline: 12:00 a.m. on April 15, 2026
Willcox Savage Business Solutions Series
Our lunch-and-learn speaker series delivers timely and operation-critical information to businesses operating in Hampton Roads.
Strategic Health Plan Design: Navigating Self‑Insurance, Pharmacy Benefit Managers, and Employer Fiduciary Duties | Hosted in Partnership with USI Insurance Services
In-Person or Virtual | May 12, 2026
Willcox Savage, Norfolk | 12:00 - 2:00 PM | Lunch Sponsored by USI Insurance Services
Virtual | Zoom Livestream |12:30 - 2:00 PM
Willcox Savage is pleased to invite you to our upcoming Business Solutions Series seminar, hosted in partnership with USI Insurance Services, a leading national insurance brokerage and consulting firm.
This 90‑minute program, offered in-person and via Zoom livestream, will provide employers, HR leaders, and finance professionals with a high‑level understanding of the market forces reshaping employee health benefits and the increasing obligations placed on plan sponsors.
Key Takeaways:
- Insight into current cost drivers affecting employer health plans
- A clearer understanding of PBM practices, regulatory trends, and transparency expectations
- Practical guidance for mitigating fiduciary exposure and strengthening benefits governance
- Strategic considerations for employers evaluating self‑insurance
Speakers:
- Heidi Steinburg, USI Insurance Services
- Cher Wynkoop, Willcox Savage
- Rob Berger, USI Insurance Services
Our complimentary seminar offers 1.5 SHRM & HRCI credit hours (pending).
