Virginia Senate

Virginia lawmakers are nearing a budget agreement as the House and Senate meet to finalize the state budget by June 30. The Senate proposed a tiered tax for data centers based on generator use, while the House preserved the data center tax exemption but removed environmental stipulations. Both chambers include priorities like healthcare funding and education raises in their proposals.

The Virginia Senate's budget proposal maintains a sales tax exemption for data centers but introduces a tiered tax on diesel generators used by the industry, projected to generate $1.8 billion for the state. The tax aims to address pollution concerns and offset lost revenue from the exemption, with varying rates based on generator types.

Virginia's House and Senate released conflicting budget proposals, with the House removing environmental standards for data centers and creating a commission to study their impact, while the Senate included a teacher raise and funding for health services. The data center tax exemption remains a key point of contention.

Virginia lawmakers remain deadlocked over extending tax exemptions for data centers as a July 1 budget deadline approaches, threatening a government shutdown. The dispute centers on whether multinational data center operators should pay taxes like other businesses, with opponents citing environmental and economic concerns while supporters highlight job creation and economic contributions.

Virginia Republicans criticized national and state Democrats for attempting to reverse the Supreme Court of Virginia's ruling against their redistricting plan, with House Minority Leader Hakeem Jeffries being targeted. The Democrats are considering various options, including lowering the retirement age of state justices and re-trying the case. An emergency application for relief was filed with the Supreme Court of the United States.

Democrats accused the Trump administration of political prosecution after the FBI raided the office of Virginia Senate President Pro-Tem L. Louise Lucas, but reports surfaced that the investigation started under former President Joe Biden's administration. The raid has sparked outrage among Democrats, who claim it is an example of President Trump's abuse of the Department of Justice to target his perceived political opponents. The investigation's timing and circumstances are being questioned by lawmakers.

Democrats accused the Trump administration of political prosecution after the FBI raided the office of Virginia Senate President Pro-Tem L. Louise Lucas, but reports surfaced that the investigation started under former President Joe Biden's administration. The raid has sparked outrage among Democrats, who claim it is an example of President Trump's abuse of the Department of Justice to target his perceived political opponents. The investigation's timing and circumstances are being questioned by lawmakers.

Federal authorities executed a search warrant at the offices of Virginia Senate President Pro Tempore L. Louise Lucas, a close ally of Democratic Gov. Abigail Spanberger. The raid was carried out by the FBI on Wednesday morning. Multiple FBI vehicles were positioned outside Lucas' office in Portsmouth, Va.