The Virginia Senate Republican Caucus said Virginia is nearing a potential government shutdown as budget negotiations remain unresolved ahead of the June 30 deadline.
“Democrat incompetence is driving our Commonwealth into a ditch as Virginia nears a government shutdown,” the caucus said in a post on X.
The caucus made the statement amid budget disagreements involving Virginia’s data center industry and whether to continue sales tax exemptions for the sector. The caucus said Democrats control the governorship, Senate, and House of Delegates, but remain divided over budget negotiations.
Good Jobs First reported that Virginia disclosed $1.6 billion in FY2025 sales and use tax revenue losses tied to data centers. The organization said the figure represents a 118% increase from the previous year’s disclosure.
MultiState reported Virginia’s data center tax incentive program is estimated at $1.6 billion annually. The firm said Virginia lawmakers have considered proposals involving energy standards, additional taxes, and transparency requirements for data center tax incentives.
The Virginia Senate Republican Caucus represents Republican members of the Virginia Senate. Its website lists Ryan T. McDougle as Senate Republican Leader and Mark Obenshain as caucus chairman.
