Virginia's General Assembly Begins

Virginia's upcoming legislative session unfolds against a backdrop of a divided government, a familiar landscape for the Commonwealth over the past two decades. Many argue that such division often results in more thoughtful governance, with only bills garnering bipartisan support making their way into law. As transportation contractors, aggregate producers and engineers prepare for the legislative challenges and opportunities ahead, it is crucial to consider the implications of Governor Youngkin's proposed budget and the long-term strategies shaping Virginia's transportation landscape. 

Members should keep in mind that a third of all legislators are newly elected. Most of those candidates ran on only one to three issues and know little about transportation construction, how it gets funded, how long it takes to fund, and all the specifications and rules the industry already follows to comply with FHWA (Federal Highway Administration) as well as VDOT (Virginia s Department of Transportation) and Department of Energy regulations. 
 
Divided Government Dynamics 

Virginia's history reflects a consistent trend of divided government, and Governor Youngkin's administration is no exception. With the next big state election looming in November 2025, a divided government may persist. The new House Speaker Don Scott is focused on November 2025 and preserving Democrats' control of the House.  
 
Governor Youngkin's Proposed Budget on Transportation 

Governor Youngkin's proposed budget for transportation introduces key initiatives that could significantly impact the industry. Notably, there is no proposed gas tax cut, a decision aimed, thanks in part to members of VTCA and numerous local Chambers of Commerce who challenged the notion there is too much money in transportation.   

Key highlights include: 

• A $70 million one-time spending proposal to expedite the completion of the Interstate 81 northbound widening project. 
• A $20 million deposit to the Transportation Partnership Opportunity Fund, supporting transportation infrastructure for major economic development projects. 
• $4 million over the next two years to incentivize the use of the Port of Virginia. 
• $10 million for the acquisition, plan, design, and development of an inland port in the Mount Rogers Planning District. 

Tax Reform and Infrastructure Investments 

Governor Youngkin's ambitious tax reform agenda includes lowering income tax, a slight sales tax increase, and the taxation of streaming services. Additionally, there will be a challenge to take tolls out of Norfolk in exchange for the development of a mega-sports arena in Alexandria.  
 
Federal Government Awards Funds for Rail Projects 

December 8, 2023, brought promising news for passenger rail services in Virginia. The U.S. Department of Transportation allocated substantial funds through the Federal State Partnership for Intercity Passenger Rail (FSP-National) Program: 

• A $1 billion grant to North Carolina for improving rail infrastructure, connecting Richmond to Raleigh with high-speed passenger rail service. 
• $729 million for the Virginia Passenger Rail Authority to finalize the design and construction of the new Long Bridge across the Potomac River. 
• Initial grants of $500,000 each to the Virginia Department of Rail and Public Transportation for pre-construction development of the Commonwealth and Western Corridors. 

Bills VTCA is Working On

• Eliminating the requirement that the entrusted engineer in charge be a full-time employee of the contractor on a Design-Build project. 
• Mandating public notification when any firm is considering exploratory drilling for mining. 
• Eliminating the use of cyanide on all mining facilities. (Aggregate mines do not use cyanide in their mining operations). 
• Allowing union dues to be a tax deduction 
• Establishing minimum wage and training standards in underground infrastructure work. 
• Mandating VDOT establish a utility map database. 
• Create a traffic infraction for any moving violation in a highway work zone punishable by a fine of at least $300 for the first offense and $500 for the second offense. 

As Virginia's transportation industry charts a course through the legislative session, the proposed budget and long-term strategies will shape the sector's trajectory. Transportation contractors and engineers must stay vigilant, actively participating in the dialogue to ensure their voices are heard and their concerns addressed. With the promise of substantial federal funding and potential state-level reforms, the industry stands at the threshold of transformative changes that will echo for years to come. 

VTCA will hold a lobby day this Legislative Session on Tuesday, February 20. It will be critical for you to attend along with a colleague to help explain what we do and why we need to do it.