Virginia Earthquake and Contract Bill Scrutiny

On March 20, 2026, reports emerged of an unconfirmed seismic event near Midlothian, Virginia. User reports described light to moderate shaking and booming sounds in areas including Midlothian and Chesterfield. Meanwhile, Virginia's House Bill 61 is under scrutiny as it heads to Governor Spanberger. The bill aims to allocate 42% of discretionary spending to SWaM businesses and sets specific guidelines for smaller contracts and construction projects. Purchases between $10,000 and $200,000 would be set aside for certified SWaM businesses, while those under $10,000 would be reserved for microbusinesses. For capital outlay projects, contractors not SWaM-certified would be expected to subcontract 50% of the work to certified businesses. Derrick Max of the Thomas Jefferson Institute for Public Policy argues that the bill could lead to increased costs and lower quality. The bill also calls for a disparity study, estimated at up to $1 million every five years, to evaluate participation gaps among eligible businesses. The governor can sign it, veto it or recommend changes. If no action is taken by the deadline, it would become law without her signature.

It aims to direct 42% of certain discretionary spending to certified Small, Women-owned, and Minority-owned (SWaM) businesses.

Critics argue it could lead to increased costs and lower quality due to political allocation over market allocation.

The bill awaits the governor's decision, who can sign, veto, or recommend changes.

What are your thoughts on the proposed contract bill and its potential impact on Virginia businesses? Share this article with others who need to stay ahead of this trend!