March 18, 2026
The Virginia legislature has passed a comprehensive statewide Paid Family and Medical Leave (PFML) program. Following two prior gubernatorial vetoes of similar legislation, Senate Bill 2 is now positioned to become law. Governor Abigail Spanberger, who has signaled her support for the program, has 30 days from the March 14 sine die adjournment to act. Absent a veto, Virginia will become the 14th state (plus the District of Columbia) to adopt a mandatory PFML program.
A significant departure in this legislation involves the funding mechanism for startup costs. While benefits are slated to begin December 1, 2028—with premium collections starting April 1, 2028—the state’s fiscal note utilizes a Treasury loan against the General Fund rather than a direct appropriation. This $117 million loan carries a five-year repayment window following the program's launch. This repayment schedule and the large per capita outlay reflect the increasing complexity of modern program administration, including critical IT integrations, employer coordination, and robust fraud controls. Benefit payouts will be available to all employees, regardless of employer size - with an option for self-employed individuals to apply to the state fund. Wage replacement will be 80% up to a capped amount for 12 weeks of coverage. More details included in the legislation may be found here.
With premium collections not slated to begin until April 2028, Virginia employers have a window to evaluate their options.