Virginia Collective Bargaining Bill: Will It Raise Taxes & Hurt Affordability?

Virginia Democrats Advance Bill Mandating Collective Bargaining for Public Employees

Richmond, VA – February 21, 2026 – Virginia lawmakers are poised to enact a sweeping change to labor relations for state and local government employees, potentially ushering in a new era of union representation and, according to critics, significantly increasing costs for taxpayers.

Despite Governor Abigail Spanberger’s focus on “affordability” as a cornerstone of her administration, the state legislature recently passed her “affordability package,” which has already drawn scrutiny regarding its actual impact on costs. Buried within that package is Senate Bill 378 (S.B. 378), which would repeal Virginia’s longstanding ban on collective bargaining for public sector employees and replace it with a statewide mandate.

Virginia has historically been one of a handful of states prohibiting collective bargaining for its public workforce, a prohibition upheld by a 1977 state Supreme Court decision. While former Governor Ralph Northam signed legislation in 2021 allowing localities to opt-in to collective bargaining, the current push aims for a universal mandate across the Commonwealth. Since that 2021 law, at least 17 localities have chosen to allow collective bargaining.

A previous attempt to enact a statewide mandate in 2025 was vetoed by then-Governor Glenn Youngkin. However, with Spanberger now in office and Democrats controlling both chambers of the legislature, the bill’s passage appears likely.

Under S.B. 378, a union can become certified if a majority of employees within a bargaining unit agree to representation. A union election can be triggered with support from just 30 percent of the workforce. Once recognized, the governmental entity would be legally obligated to bargain with the union. The bill also establishes a Public Employee Relations Board and provides for binding arbitration in cases where negotiations stall.

While Governor Spanberger has stated she will not sign legislation repealing Virginia’s right-to-work law for the private sector, union advocates reportedly believe she will support the public sector collective bargaining mandate if it reaches her desk.

The potential financial implications of S.B. 378 are raising concerns among local officials. Research suggests that mandatory collective bargaining can increase state and local government spending by an average of $600 to $750 per person annually, potentially adding $2,300 to $3,000 per year for a family of four.

Estimates for the bill’s fiscal impact are substantial. The state’s cost is projected to be around $50 million annually, while localities could face costs ranging from $50,000 to $403 million over a two-year period.

The Virginia Association of Counties has voiced strong opposition to the bill, and local government officials are expressing alarm. Babur Lateef, chairman at-large of the Prince William County School Board, warned that the bill could represent “the single largest tax increase in Virginia history,” placing a significant burden on local taxpayers and potentially “bankrupt[ing] local governments and school divisions.”

Lateef, while personally supportive of collective bargaining, believes the decision should remain at the local level. He argued that enacting a statewide mandate under the guise of affordability is counterproductive, stating, “If your number one goal of being elected was to do something about affordability, this goes in the exact opposite direction, and you will be putting a burden on the Virginia taxpayer like we’ve never seen.”

As S.B. 378 moves toward potential enactment, Virginia residents face the prospect of increased taxes and potential strain on local budgets.