2025 General Assembly Session Kick Off

The 2025 Virginia General Assembly Session will kick off on Wednesday, January 8 and should conclude the “short session” in 46 days.  Short sessions are designed to tweak the state budget based on updated projections and address a few legislative items. This year all legislators have a limited number of bills they can introduce. The entire House of Delegates is up for re-election in November as well as the offices for Governor, Lt. Governor, and Attorney General. 

With the House up for re-election and the Governor’s veto power, many do not anticipate a controversial session, but there is always intrigue during any session.  Democrats hold slim majorities in both the House and Senate and any bills passed by the legislature are subject to Republican Governor Glenn Youngkin’s veto as he enters his final year in the Governor’s mansion. 

In late December, the Governor announced his proposed budget for his final year in office.  He is pushing tax rebates and cuts.  In addition to signature items (car tax relief, energy needs, school construction and affordable housing) the Governor has proposed several budget items impacting VTCA members: 

Governor’s Budget: 

• $175 million for the Interstate 81 Corridor Improvement Program  
• $15 million in FY2026 to sustain and expand high school student access to community college dual enrollment and workforce credential programs  
• $3.5 million to provide additional funding for the FastForward program to meet anticipated demand  
• $2 million in FY2025 to promote the Virginia Has Jobs initiative, which will market a new workforce portal designed to connect applicants with available employment and training opportunities 

Legislative items to watch: 

• Allowing VDOT to expand debt capacity to cover bridges and special structures.  VDOT is exploring ways to accelerate design and construction to mitigate the effect of inflation and complete the work earlier at lower cost.  The Commissioner continues to find ways to accelerate the pace of design and construction work which industry can produce in a timely manner. In addition, accelerating design and construction will enable more economic development into the area. 
• Additional funding for mass transit in Northern VA – WMATA. Washington Metropolitan area leaders favor considering a regional revenue source for the Washington Metropolitan Area Transit Authority (Metro), which faces financial challenges to maintain services at the start of the year.  However, where the funding will come from and the amount each jurisdiction will contribute to the fund is a concern regional leaders expressed at a joint meeting in the District of Columbia. Some of the potential funding mechanisms include collecting taxes from regional sales, motor fuel, vehicles and property. 
• The DMVMoves Task Force – a newly created regional authority made up of local and state officials are looking for ways to collectively support WMATA – mostly through administrative management and additional funding in the future through various measures like property taxes, income taxes and other streams of funding. 
• Authorizes the Department of Transportation to perform nonemergency work on the Interstate System with its own employees or agents.  There are no limits or guardrails on this legislation and VTCA sees this as very expensive and anti-local business.  VTCA has been talking with VDOT and anticipates a compromise next year. 
• Allows a retired sworn law-enforcement officer, defined in the bill, to swear to or affirm a certificate for a vehicle speed violation enforced by a photo speed monitoring device. 
• Allows a locality to provide by ordinance for the placement and operation of a photo speed monitoring device by the law-enforcement agency of such locality for the purposes of recording vehicle speed violations on any highway in such locality (i) that is located in a high-injury network as designated by the Department of Transportation or (ii) where such placement is supported by Department of Transportation speed or vehicle incident data as determined by such governing body. 
• Authorizing portable messaging signs mounted on vehicles as long as the signs comply with the FHWA guidelines.   
• Localities’ land-use control policy.  Localities are dealing with growing land-use control issues such as solar farms, expansion of aggregate production facilities, and data centers. Localities are looking for more tools to manage local land use.     
• The Department of Energy is expected to change the qualification requirements of Mine Safety Inspectors.  Current qualifications include criteria that are no longer applicable and otherwise prohibit qualified individuals from becoming inspectors. Industry has worked with the Department of Energy on draft legislation and plans to support the Department’s objective to improve safety.   
• Workers’ Compensation as it pertains to injuries caused by repetitive & sustained physical stressors.  Unions and trial lawyers have tried for years to add repetitive stressors to the list of workers compensation and this year several republicans have introduced legislation.  Republicans fearing next year with a possible Democrat House, State Senate and Governor, can push any version forward, so this year may be the best year to seek a bi-partisan compromise. 
• DPOR’s Board for Contractors would like to adjust monetary project limits for class A, B and C contractors and adjust the VA Contractor Recovery Fund.  
  • This legislation increases the monetary project limits and annual total values for Class A, B, and C contractor licenses. In addition, the bill seeks to amend the Virginia Contractor Transaction Recovery Fund Act to provide greater financial relief to consumers harmed by dishonest contractors and to simplify the fee structure by requiring all contractor license applicants to pay a $25 fee, whether they ultimately receive a license or not.  
  • The proposed amendments offer several key benefits aimed at improving consumer protection and administrative efficiency. First, raising monetary project limits for Class A, B, and C contractor licenses reflects modern economic conditions, ensuring that contractors can take on projects that match current construction costs and market demands. Second, assessing a $25 fee to all contractor license applicants streamlines administrative processes by reducing the need for costly and time-consuming refunds, saving significant staff time and resources. Additionally, increasing the payment limits provides greater financial relief for consumers harmed by dishonest contractors, addressing the outdated caps that have not kept pace with inflation. Overall, these changes enhance consumer protection while supporting both the efficiency and sustainability of the Recovery Fund. 

 
Legislative items which are postponed until 2026: 

• Work Zone Safety Measures
  • Sustainable funding for photo enforcement in work zones.  Currently, VDOT has funding for a handful of pilot projects in 2025, beyond these pilots industry intends to help the state find a way to fund a VSP administered photo enforcement program.   Virginia’s code states all VSP fines for tickets must go to Virginia Literacy Fund to ensure no improper funding goes to the VSP. 
  • Use of additional lights in work zones.  State and local law enforcement have been skeptical of additional lights and fear it may cause additional confusion for the public. 
  • Additional safety measures.  VTCA continues to hold regular safety meetings with VDOT and VSP. VTCA is working with other industry partners to develop a list of safety measures in 2026 to better protect workers.  
• VDOT taking over the NEPA process from FHWA.   
  • In an attempt to streamline the NEPA process, several states (CA, TX, OH, etc.) were granted permission to manage the process on behalf of FHWA.  In negotiations this fall, environmental groups initially were not opposed to the idea.  However, some environmental groups insisted on adding requirements which were not palatable or beneficial from VDOT and industry’s perspective.   Groups were skeptical of the proposed audit process and who was involved and heard of environmental concerns in the TX process.  Due to these concerns, VDOT and legislative leaders have chosen not to proceed with the proposal in 2025.     
• Reviewing the $2.5 million Cap on Term Limit Contracts.   
  • Several years ago, industry worked to clean up the state code on term contracts (different localities had different caps based on the population base).  While successful, there is now concern that needs of some term contracts may exceed the $2.5 million cap per project.   
  • VDOT and industry have agreed to monitor and track the term contracts to determine if the cap needs to be raised for VDOT in 2026. 
• Adjust the cap limit for VDOT for State Forces to self-perform work.  VDOT is interested in increasing the limit which is currently set at $700,000.  VTCA members had several questions and potential concerns with the proposal. VDOT has agreed to work with VTCA on an adjusted number in 2026.     

Just as this week’s winter storm dumped heavy, wet snow on Virginia, Legislators will introduce a large number of bills in the coming days and weeks.  Be on the lookout for VTCA’s Legislative Update.