Updated: 3/5/2026

This year, both the House and Senate’s proposed budgets provide additional direct funding to K-12 public schools and school-based mental health supports. There are also key differences across the proposed budgets, which means there are continued opportunities for advocacy before Virginia sets a final budget for the next two years.  

House Budget Highlights  

• Provides $395 million more than the previous governor’s outgoing budget in direct aid for K-12 education Provides $395 million more than the previous governor’s outgoing budget in direct aid for K-12 education
• Invests $250,000 in reworking the K-12 funding formula over the next two years
• Clarifies that add-on funds can be used for school health services, like hiring nurses to support students’ physical and mental health (Item 125 #5h)
• Adds language that schools can use funding for in-person therapists, not just telehealth providers, and that they can get reimbursed for past telehealth contracts (Item 299 #3h)
• Includes funding for culturally responsive and language-appropriate mental health support and access to evidence-based restorative justice training and support materials

Senate Budget Highlights  

• Provides $596 million more than the previous governor’s outgoing budget ($201 million more than the House’s proposed budget) in direct aid for K-12 education  

• Introduces a new sustained source of revenue by closing the data center sales tax loophole and allocating over $100 million to K-12 schools 

• Invests $1.25 million in reworking the K-12 funding formula over the next two years  

In addition to these key funding highlights, both budgets retained the governor’s proposed $30 million investment in school-based health centers. The Department of Behavioral Health and Developmental Services (DBHDS), in partnership with the Department of Education, will work with this funding to expand school communities’ access to physical and mental health services.  

Despite some of these funding wins, notably, both budgets did not implement a fair share tax that could raise significantly more funding for public schools. This tax would have created a new 10% tax rate for income over $1 million and generated $5 billion over this two-year budget cycle. Both House Bill 188 and 979, which died this session, would have allocated 50% of the revenue toward public schools.  

Although this fair share tax did not pass, the proposal could be considered by the Joint Subcommittee working to revise the K-12 funding formula going forward.  
 
For additional information, see the Fund Our Schools’ budget recap. 

Where Continued Advocacy is Needed  

As budget negotiations continue, lawmakers must prioritize young people and ensure the final budget strengthens school supports and school-based mental health initiatives. Policymakers should:

• Maximize funding for K-12 public schools: ensure that as much money as possible flows directly to districts and students.
• Commit to redesigning the K-12 funding formula: allocate sufficient funds for a meaningful K-12 funding formula redesign that advances adequacy and equity while considering a long-term solution, such as a fair share tax.
• Direct add-on funding toward school-based health supports: allow add-on funding to go toward school nurses to support students’ physical and mental health.
• Ensure schools can contract with in-person therapists and get reimbursed for past telehealth services: approve language around allowing in-person therapists and reimbursement for past telehealth contracts.
• Support the implementation of school-based health centers: add the following permissive language at the recommendation of DBHDS and the Virginia School-Based Health Alliance: “The Department may utilize up to $150K of the funds provided to contract with one or more consultants to provide technical assistance, planning support, and implementation guidance to local school divisions and community partners related to establishing and operating the activities outlined.”
• Invest in culturally responsive and language-accessible mental health services: Include funding to provide culturally responsive and language-appropriate mental health services as well as materials outlining restorative justice best practices.

Students cannot wait. Make your voice heard on these issues by completing our updated action alert.

---