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Senate subcommittee carries major transit funding proposals to budget; debate centers on tax placement

Senate of Virginia Subcommittee (Richmond) · February 11, 2026

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Summary

Lawmakers debated SB638’s package of transit revenues—package delivery fees, taxes on ride-hailing and parking, and regional transit funds—but opted to carry the bill over so funding can be addressed in the budget instead of as standalone taxes.

A Senate subcommittee heard a broad transit funding proposal that would add dedicated revenue for public transit, including regional packages for Northern Virginia, WMATA and other authorities, and then voted to carry the bill over for budget consideration.

The sponsor laid out the bill’s two-part approach: a statewide retail package delivery fee (50¢ per transaction) and new regional taxes, including taxation of transportation network companies and paid commercial parking in Northern Virginia. The bill’s advocate said the measures would restore purchasing power to transit funds and generate hundreds of millions of dollars for transit systems statewide.

Several senators applauded the intent but objected to embedding tax changes in the budget rather than debating them as standalone legislation. Senator McDougall and others said they wanted discussion in the budget context; other members said they opposed inserting new taxes into the budget without transparent debate. The committee carried the bill over to the full budget process for further work.