VIRGINIA - As the Commonwealth enters 2026, several significant legislative changes have officially gone into effect. Following a year of intense budget negotiations and consumer-focused reform in Richmond, Virginia, residents are waking up to new rules that directly impact their take-home pay, healthcare costs, and debt obligations.
Whether you are an hourly worker, a patient navigating medical bills, or a family planning your 2026 budget, these three new laws will play a significant role in your financial outlook this year.
1. The $12.77 Minimum Wage Increase
Effective January 1, 2026, Virginia's statewide minimum wage has officially increased from $12.41 to $12.77 per hour. This adjustment marks the latest step in Virginia's transition to a wage model tied to the Consumer Price Index (CPI-U).
- Inflation Tracking: The $0.36 increase is a direct result of a 2.9% inflation rate recorded throughout 2024. By indexing the wage to the cost of living, the state aims to preserve the purchasing power of low-wage workers.
- Who It Affects: This rate applies to most full-time, part-time, and temporary workers across the state. While certain seasonal exemptions remain, the vast majority of Virginia's workforce is now eligible for this higher base pay.
- Tipped Employees: While the minimum cash wage for tipped workers remains $2.13, employers must ensure that the combination of base pay and tips equals at least $12.77 per hour.
2. The Medical Debt Protection Act
While many laws take effect on New Year's Day, Virginians have a significant financial safeguard arriving mid-year. The Medical Debt Protection Act (HB 1725) is set to take effect on July 1, 2026, offering some of the strongest protections in the country against aggressive medical billing.
- Interest Rate Caps: Once active, the law prohibits extensive healthcare facilities from charging interest or late fees on medical debt for the first 90 days. After that, any interest is capped at just 3% per year.
- Collection Safeguards: The act bans "extraordinary collection actions," such as foreclosing on a primary residence or placing liens on personal property to satisfy medical bills.
- Wage Protections: It also prohibits the garnishment of wages for individuals who qualify for financial assistance under the facility's own policy.
3. No-Cost Cancer Screenings (HB 1828)
Virginia has officially expanded mandatory insurance coverage for essential preventive screenings. Starting with state-regulated plans issued or renewed in 2026, new rules eliminate out-of-pocket costs for critical early detection.
- Breast Cancer Screening: Insurance companies are now prohibited from charging copayments, deductibles, or coinsurance for breast cancer screenings—including diagnostic mammograms, MRIs, and ultrasounds—when a doctor orders them.
- Prostate Cancer Screening: Similar protections have been updated for prostate cancer screening, ensuring that high-risk individuals can access blood tests and exams without financial barriers.
- The "Follow-Up" Rule: A related bill (HB 2611) also targets cost-sharing for cancer follow-up testing, ensuring that survivors are not penalized financially while being monitored for recurrence.
Bonus: The "Richmond Plastic Bag" and Unemployment Shift
While the three laws above apply statewide, two other shifts are worth noting:
- Richmond's Bag Tax: Starting January 1, 2026, retailers in Richmond City (grocery, drug, and convenience stores) are required to collect a 5-cent tax for every disposable plastic bag.
- Unemployment Increase: For those facing job transitions, weekly unemployment benefits for claims filed on or after January 1, 2026, have increased by $52, providing a more substantial safety net during economic searches.
A Stronger Safety Net for Virginians
The legal landscape of 2026 reflects a Virginia that is increasingly focused on protecting the "middle-class wallet." Between the inflation-indexed wage increase and the aggressive new protections against medical debt, the state is attempting to build a more resilient financial environment for its citizens. While these changes may present new compliance challenges for businesses, the overall goal is clear: providing more transparency in debt, lower barriers to essential healthcare, and a wage floor that keeps pace with a changing economy.
