A federal judge has blocked Virginia's new law prohibiting U.S. Immigration and Customs Enforcement (ICE) officers from wearing masks, ruling less than 12 hours before its scheduled implementation on July 1, 2026. Senior U.S. District Judge Robert Payne indicated the Justice Department is likely to succeed in its argument that federal law precludes the commonwealth from regulating federal officers' conduct.
Virginia's state budget, finalized this week, includes a compromise on data center taxation, averting a potential government shutdown. The budget introduces the first-ever statewide tax on data center energy consumption, replacing a proposed early sunset of a key tax exemption. This resolution allows STACK Infrastructure to advance its $100 billion AI data center project at the Berry Hill Megasite in Southern Virginia. Kevin Hughes, chief external affairs officer for Stack Americas, said, "With the signing of the budget agreement reached by the Governor and the General Assembly, STACK Infrastructure can confirm that our project at the Berry Hill Megasite in Southern Virginia will continue to advance through our competitive site selection process." However, the expansion of data centers faces opposition, with Central Virginia residents demanding a moratorium on new construction. Tanesha Hudson, a Charlottesville-based activist and filmmaker, said, "We are funding a monster that will eat people alive. The rich will get richer, the poor will get poorer and go broke. This isn't capitalism; this is vulturism."
Hundreds of new Virginia laws also took effect on July 1, including the commonwealth's rejoining of the Regional Greenhouse Gas Initiative (RGGI). Governor Abigail Spanberger signed 18 energy bills, stating that rejoining RGGI will provide $650 million for flood prevention and energy efficiency programs, even with new ratepayer rebates. "The bottom line is rejoining RGGI will save Virginia money, period," Spanberger said. "It's a charge on polluters and it comes back to the people of our commonwealth." Other significant laws include expanded cellphone limits in public schools, broader renter protections, a requirement for employers to disclose salary ranges in job postings, and a new program allowing judges to order intelligent speed assistance devices for egregious speeding offenses.
Additionally, the new budget allocates funding for a long-awaited Chesapeake Bay-specific menhaden population study and provides $1 million for the construction of the 9/11 Pentagon Memorial Visitor Education Center. Efforts to protect Tangier Island from rising water and erosion are also progressing.