Crossover Update 2025: Key Legislative Developments for VTCA Members

Last week, the Virginia House and Senate released their respective budget proposals. While similar in structure, both budgets face significant challenges, particularly regarding Medicaid funding and federal spending uncertainties. The recent formation of a State Task Force to address Federal Government Spending Reductions has added to the unpredictability, leading many legislators to take a cautious, wait-and-see approach. 

State Budget and Workforce Development

• There is little bold action in the budget, as lawmakers focus on providing state employee raises. 
• The budget does not have to pass since an underlying two-year budget is already in place. Some speculate that the Governor may not sign the proposed budget. 
• Funding for workforce development was largely deferred, with the exception of some additional support for Fast Forward Grants. 

Legislation Impacting Transportation Construction Bills That Did Not Pass:

• HB 1570 (Del. Bill Wiley, R-Frederick): Would have repealed the Virginia Public Procurement Act’s provision allowing public bodies to require project labor agreements on public works projects. 
• HB 1750 (Del. Baxter Ennis, R-Chesapeake): Sought to allow VDOT to perform nonemergency interstate work in-house rather than contracting it out. 
• HB 1789 (Del. Bobby Orrock, R-Caroline): Proposed allowing public bodies to cancel procurement solicitations if all bids exceeded private sector prices by 50% or more. 
• HJ 449 (Del. Terry Austin, R-Botetourt): Requested a study on taxing hybrid and electric trucks to offset declining fuel tax revenues. 
• SB 1425 (Sen. Richard Stuart, R-Westmoreland): Would have directed revenue from the expiration of data center tax exemptions toward road and bridge construction.

Legislation That Advanced to the other Chamber: 

• HB 1922 (Del. Jeion Ward, D-Hampton): Establishes the Small SWaM Business Procurement Enhancement Program, requiring executive agencies to increase small SWaM business participation by 3% annually until reaching a 42% target. Highway transportation construction is exempt from this bill.  However, the bill will require VDOT to participate in discussion on increasing SWAM participation.   
• HB 2041 (Del. Holly Seibold, D-Vienna): Allows localities to enable “photo speed monitoring devices” as “speed safety cameras” and expands their use to include work zones within the jurisdiction of the locality. This bill passed the House and will now be considered by the Senate. 
• HB 2074 (Del. Jeion McLure, D-Hampton): Allows certain highway maintenance and towing vehicles to use portable changeable message signs without prior VDOT authorization. VTCA worked with VDOT and AAA to ensure construction firms working on state highways could also use these signs. This bill passed the House and is moving to the Senate. 
• SB 1082 (Sen. Ryan McDougle, R-Mechanicsville): Authorizes the issuance of Commonwealth of Virginia Special Structures Program Revenue Bonds to accelerate bridge and special structure projects. This bill has advanced to the House. 

What This Means for VTCA Members 

While several bills with potential impacts on procurement and contracting did not pass, the VTCA remains engaged in legislative efforts to ensure fair and competitive opportunities for our members. We successfully collaborated on HB 2074 to allow greater flexibility for contractors using message boards on highway projects. Additionally, the passage of SB 1082 provides a new funding mechanism for critical bridge and structure projects. 

VTCA will continue monitoring these developments and advocating for policies that support the transportation construction industry. 

For any questions or to get involved in our advocacy efforts, contact Gordon Dixon. 

VTCA Bill Tracking