2026 Legislative Review
By Kenzie Dye
The West Virginia State Legislature concluded its 60-day session on March 14, 2026, following intense debates over the state’s future. This year’s legislative review by West Virginia Executive (WVE) looks at pivotal House bills (HB) and Senate bills (SB) aimed at reshaping the state’s economy and improving life for West Virginians. Bills covered come from critical industries, ranging from affordable child care to modernizing the state’s industrial framework.
WVE’s legislative review starts with bills related to the energy industry. West Virginia continuously works toward a diversified energy portfolio, balancing traditional resources with emerging technologies. During this session, SB 420 and HB 5381 showcased the state’s strategy to stabilize the power grid and incentivize local energy and production.
Energy
By Chris Hall
SB 420
Senate: 22-11
The West Virginia First Energy Act, SB 420, attracted considerable interest during the legislative session with the provisions it incorporated into various energy-related bills. Ultimately, the bill was defeated. Key provisions of the bill would have mandated that state utilities sustain at least a 69% utilization rate for coal-fired generation facilities, maintain a 30-day on-site coal supply, obtain approval prior to retiring coal and gas plants, limit utility investments in wind and solar energy and enhance oversight of electric markets and resource planning.
Supporters claimed it would restore stability in electric rates by continuing to use in-state coal generation while also maintaining jobs and investment in the state’s coal and natural gas industries. Opponents claimed the bill would require utilities to use coal even when it’s not cost-effective, increasing electricity costs for homes and businesses.
HB 5381
Senate: 33-0 | House: 91-5
HB 5381, introduced at Governor Patrick Morrisey’s request, stood out as the most significant energy legislation approved during the regular session of 2026. The duties of the Office of Energy are amended to focus on policy development, strategic planning and the establishment of programs aimed at supporting Morrisey’s initiative for the state to reach 50 gigawatts of power generation by 2050.
The bill mandates the creation of comprehensive energy policy through 2050 prioritizing baseload generation from coal, natural gas, nuclear, hydropower, hydrogen and geothermal sources. The Office of Energy may host stakeholder meetings to gather public input on energy policies from industries, policy groups, developers, utilities, mineral owners and citizens. The bill requires development plans to support generation-based economic benefits, energy infrastructure and grid stabilization strategies and requires energy security planning with emergency exercises. HB 5381 also establishes a procedure and criteria for awarding an energy-ready community designation to demonstrate a community’s voluntary readiness to welcome electric generation-related development.
Economic Development
By Rachel Coffman
HB 4001
House: 87-8
HB 4001 was the top priority of the West Virginia House of Delegates’ 2026 economic agenda. Announced as part of the Jobs First – Opportunity Everywhere initiative, House leadership centered its strategy on three core pillars:
workforce-ready education, a job-creating business climate and responsible economic growth. The bill would create Team West Virginia: a privatized, independent nonprofit designed to lead the state’s business recruitment and economic development strategy. The model is largely based on JobsOhio.
Under the legislation, the state could transfer control of its spirits distribution system to Team West Virginia, with the nonprofit required to pay the state at least $30 million annually, ensuring continued revenue to the state’s general fund. In return, Team West Virginia would retain any additional revenues generated beyond that payment, creating a dedicated, non-tax funding stream to reinvest into economic development efforts.
HB 4004 & 4005
HB 4004 – Senate: 33-1 | House: 89-6
HB 4005 – Senate: 27-7 | House: 92-1
HB 4004, the Recharge West Virginia Act, focuses on upskilling existing workforces. Housed in the Division of Economic Development, the program allows qualifying employers to receive reimbursement for training costs when an employee completes approved upskilling training, earns an industry-recognized credential and receives a qualifying wage increase of at least 25% above their prior wage and the state’s average weekly wage. To be eligible, an employee must be employed with the employer and reside in the state for six months. Reimbursements are capped at $10,000 per employee and $100,000 per employer per fiscal year.
Complementing this effort, HB 4005, the Workforce Development Act of 2026, targets the future workforce by expanding youth apprenticeship opportunities. The legislation enables students ages 16 and older to participate in structured, credit-bearing training programs tied to high-demand industries such as manufacturing, engineering and health care. It also modernizes child labor provisions to align with federal standards while allowing supervised, skills-based work experience.
HB 4007 & 4008
HB 4007 – Senate: 33-0 | House: 92-3
HB 4008 – Senate: 33-1 | House: 84-9
From engineering studies and infrastructure planning to road access, West Virginia’s topography can present unique challenges that require additional resources for developers to bring sites to market. HBs 4007 and 4008 aim to address these barriers and enhance the state’s competitiveness.
HB 4007 updates and expands the Industrial Access Road Fund to better support infrastructure and access tied to economic development projects. The bill allows for an additional $3 million to be transferred annually from the State Road Fund, bringing total potential funding to $6 million for industrial access road development. It also expands eligible uses of the fund to support designated business-ready sites that show strong development potential but still need key utility and infrastructure improvements before they can attract employers.
HB 4008 strengthens the business-ready sites program by establishing a microgrant initiative to support early-stage site development. Under the program, sites of at least five acres may receive up to $100,000, while those exceeding 20 acres may qualify for up to $250,000. The bill also allows sites already designated under the program to access additional funding through the Department of Commerce.
Finance
By James Bailey
SB 250
Senate: 30-3 | House: 68-15
The West Virginia Legislature completed the 2027 fiscal year budget in record-time when it completed action on SB 250 with nine days remaining in session. The budget appropriates approximately $5.5 billion in general revenue spending and authorizes the expenditure of $21.5 billion, which includes federal and special revenue
spending authority.
Major appropriations within this budget include $276 million to fully fund the Hope Scholarship program, $125 million additional funds for state roads, $30 million for the Infrastructure and Jobs Development Council for water and sewer improvements and $10 million for the state’s Dilapidated Properties Program. The budget also includes a 3% pay raise for state employees, teachers and other public employees.
The speed at which the budget was completed was tied to the Legislature’s ability to potentially override line-item vetoes by Governor Patrick Morrisey. In 2025, Morrisey utilized his line-item veto authority on 29 separate legislative appropriations. This year, Morrisey only reduced nine line-item appropriations, which was not enough to provoke a legislative override.
SB 392
Senate: 32-2 | House: 88-8
West Virginians will receive an immediate 5% reduction in their income tax rates due to the enactment of SB 392. The top tax rate, for individuals earning more than $60,000, was reduced from 4.82% to 4.58%, with lower brackets reduced proportionally. These reductions are retroactively effective as of January 1, 2026. This tax reduction will cost the state an estimated $125 million in revenue.
This bill and the corresponding debate over income tax reductions became a central point of conversation throughout the legislative session. Morrisey advocated for a 10% reduction, but his budget submitted to the Legislature only accounted for a 5% reduction. Morrisey says an additional 5% could be found through budget offsets. Budget negotiations between the executive and legislative branches hinged on the level of income tax reductions that would be achieved. Following tense negotiations, the Legislature settled on 5%, and Morrisey signed it into law.
SB 393 & 400
SB 393 – Senate: 32-0 | House: 89-6
SB 400 – Senate: 33-1 | House: 93-1
SBs 393 and 400 are the standard annual statutory updates to the state’s personal and corporate income tax provisions. Legislation like these bills are enacted annually to align the state’s income tax provisions to updates made at the federal level. These annual updates are done to make compliance and administration consistent among state and federal tax filings.
SB 393 addresses the corporate net income tax. It incorporates federal tax code changes through December 31, 2025, into state law, ensuring state corporate income tax calculations stay current with federal rules. SB 400 updates provisions related to the personal income tax. This legislation diverts from federal income tax provisions as it relates to gaming and gambling losses. The One Big Beautiful Bill Act of 2025 altered how gambling losses are deducted from personal income taxes in a disadvantageous manner to gamblers. This legislation preserves the existing West Virginia treatment of gambling losses.
HB 5168
Senate: 34-0 | House: 96-1
HB 5168 establishes dedicated funding for county emergency medical services (EMS) through excess state lottery revenues. Up to $12 million will be allocated annually to three special revenue accounts administered by the Office of Emergency Medical Services.
The County Emergency Medical Services Fund will receive up to $3 million annually, which will be distributed only to counties having a countywide EMS excess levy or fee. Distributions will be made proportionally based on each county’s share of the total population of qualifying counties. The All-County Emergency Medical Services Fund will receive up to $3 million annually, which will be distributed to all counties, regardless of a countywide EMS levy or fee. The distributions will be made proportionally based on each county’s share of total state population.
The bill also reestablishes an existing EMS fund as the Emergency Medical Services Crisis Response and Mental Health Treatment Fund, which will now receive up to $6 million annually. This fund may be used for training, equipment, supplies, facility maintenance and crisis response services. The first $1 million must be used for mental health training and support programs. Additional funds may be awarded to counties but are subject to a 30% local matching requirement.
