Lawmakers Propose Major Investments to Expand Student Aid, Limit Tuition Increases

State lawmakers, responding to this year’s affordability theme, proposed Sunday budgets to expand student aid for college and career training, and to prevent extreme tuition increases in Virginia over the next two years.

Lawmakers walk from the Virginia State Capitol Building to the Virginia General Assembly Building on Jan. 29, 2026. (Photo by Charlotte Rene Woods/Virginia Mercury)

On Sunday afternoon, lawmakers in both chambers presented their proposals that included additional investments for K-12 education, with less than three weeks left before the General Assembly Session ends on March 14.

One of the proposals introduced by the House Appropriations Committee recommended a $211.3 million investment plan for higher education, which is slightly less than the Senate’s plan, and is intended to make college more affordable, improve job opportunities, and give students more ways to earn degrees or job credentials.

“This will allow our colleges to address the coming biennium without having to fill a budgetary hole from the current fiscal year,”  Del. Betsy Carr, D-Richmond, chair of the House Appropriations Subcommittee on Higher Education, said on Sunday. “Making affordable access for all Virginians is our top priority; it’s what our students, families, and business leaders expect.”

Carr said the higher education subcommittee has attempted to address college affordability in years past, with average tuition costs dropping by nearly 11% at four-year institutions and about 15% at our community colleges since 2019.

However, the House’s spending plan for higher education is likely to change when considered alongside the Senate’s plan, which includes an investment of $285.6 million to address similar priorities.

The House plan allocates $32.5 million for workforce credential grants and $30 million to expand career and technical programs, expected to help over 18,000 Virginians gain marketable job skills.

Other highlights from the House committee’s plan include $9.6 million to upgrade academic, administrative, and financial systems at colleges, and $16 million for the Virginia Institute of Marine Science, extension programs, and higher education centers.

The Senate recommended $65 million for need-based financial aid, to directly ease students’ financial burden, and $100 million in operational funding to help colleges contain rising costs and limit tuition hikes.

As for the Virginia Tuition Assistance Grant (VTAG), which helps students at private colleges, the Senate proposed an additional $17.3 million for the program, compared to the House’s $9.6 million recommendation, potentially increasing aid for more students at these institutions.

Virginia’s private institutions, for their part, lobbied to increase state funding for the grant program. Their aim is to provide financial assistance to Virginia residents attending accredited private, nonprofit colleges and universities for purposes other than religious training or theological education.

Virginia students and families now face shrinking access to federal loans and increased uncertainty about covering college costs, like others nationwide, which is impacting their decisions and causing financial stress.

Over the past three years, lawmakers increased state appropriations for the program by raising the maximum amount each student could receive to $5,250. Before the start of the current session, SCHEV recommended lawmakers increase the award to $5,350 over the biennium.

Christopher Peace, president of the Council of Independent Colleges in Virginia, said he applauds lawmakers’ efforts to ensure students can still access financial aid to attend private colleges.

Peace noted VTAG’s longstanding impact, supporting Virginia students for over 50 years and providing about $2 billion to 340,000 to 350,000 people. Currently, it helps 23,000 annually, with nearly 79% demonstrating financial need.

He said enrollment is climbing, up 6.3% in fall 2024, which reflects growing demand for private colleges. However, Peace warns, “Without additional investment in this cycle, program reserves will be exhausted by FY27, putting the current $5,250 award at risk.”

Both chambers will reconcile their spending plans over the next few weeks. Gov. Abigail Spanberger will review the General Assembly’s final budget package after the session ends the weekend of March 14. Lawmakers are scheduled to return to Richmond to consider any changes around April 22.

by Nathaniel Cline, Virginia Mercury

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