As the Virginia General Assembly convenes, new legislation protecting working families from harsh debt collection practices is on the table.
With consumer debt at record levels and a recent report from the National Consumer Law Center giving Virginia a "D" rating for its debt exemption laws, advocates are calling for reforms to prevent more families from falling into poverty.
Jay Speer, executive director of the Virginia Poverty Law Center, explained Virginia's current laws leave many vulnerable to devastating financial consequences.
"It just creates a really difficult situation when there are a lot of people in this boat," Speer observed. "You have trouble paying one of your bills, and it goes to judgment. And then, if the laws don't protect your assets, then you just basically get into a downward spiral, and you can't get out of it."
Virginia's wage and bank account garnishment laws have long been criticized for pushing families deeper into poverty. While critics may argue such reforms could hinder creditors, one proposed bill from Del. Phil Hernandez, D-Norfolk, seeks to protect a minimum of $5,000 in family bank accounts from garnishment, ensuring families can cover essential costs like food, housing, and medical care. The General Assembly begins Wednesday.
Another bill by Del. Carrie Coyner, R-Hopewell, seeks to end Virginia's unique policy of 100% wage liens for tax debts, which Speer argued harms individuals, particularly those without legal help.
"They can actually garnish your entire paycheck or put a lien on your paycheck and take 100%, while other creditors can only take 25% or less in the case of when you're not paid very much," Speer explained. "The tax debt can take 100%. So you can only imagine if you suddenly find out you're not going to get any wages at all."
Speer also pointed to Virginia's homestead exemption, which allows homeowners to protect a portion of their property's value from creditors, as another area where the state falls short. While legislation passed in 2024 increased the exemption from $25,000 to $50,000, Speer contended it remains inadequate given today's real estate market.
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The Trump administration has frozen funds used for abandoned mine land cleanup.
Through the Bipartisan Infrastructure Law, Congress invested around $11 billion into a trust fund to help address the backlog of sites needing reclamation but the federal Office of Surface Mining Reclamation and Enforcement has stopped releasing the money.
Chelsea Barnes, director of government affairs and strategy for the advocacy group Appalachian Voices, said with ongoing flooding in eastern Kentucky, heavy rainfall can worsen problems on abandoned mine sites, triggering erosion, landslides and "blowout" events, leading to property damage.
"There's a buildup of water and then it all of a sudden, releases really fast," Barnes explained. "That can go downstream, down a mountainside and crash into homes, businesses, destroy roads."
In addition to tackling environmental hazards, research shows cleanup projects also create jobs. One analysis by the Sierra Club found investing in reclamation will create nearly 3,000 jobs and billions in economic growth in a handful of Appalachian states.
While some states have decided to operate business as usual, assuming federal funds will be unlocked soon, Barnes noted for others, the freeze has halted projects.
"Maybe they have enough money on hand to kind of keep things rolling for a little bit," Barnes acknowledged. "But the longer this goes on, the worse it's going to get."
She emphasized water polluted with metals and chemicals from mining can seep into waterways and kill fish and other aquatic life, and contaminate drinking water. She added federal funds are often used for acid mine drainage cleanup.
"A cleanup project for that might look like a water treatment facility to clean up an old acid mine drainage site," Barnes observed.
There are 12,000 acres of disturbed former mine land in eastern Kentucky which could be reclaimed to reduce environmental and safety hazards, according to a 2024 report by the Appalachian Citizens' Law Center.
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Minnesota is little less than a year away from launching its paid-leave law, but state lawmakers are debating whether to delay the start until 2027.
Paid leave was considered one of the crowning achievements of the 2023 legislative session, when Democrats controlled both chambers. But the GOP now has a slight edge in the House, so the policy is getting a second look.
Employers will be required to provide up to 20 weeks of paid time off each year to a worker dealing with a health issue, or caring for a loved one. During committee debate Thursday, Minnesota AFL-CIO president Bernie Burnham argued against pushing things back.
"Working Minnesotans are ready for the peace of mind that comes from knowing we will have the freedom to care for ourselves, and the people we love, without sacrificing a paycheck," she said.
Supporters of the later start date have said there's still uncertainty about the impact on businesses, especially smaller companies, as they prepare to comply. Others testified there aren't enough safeguards in place yet for the state to smoothly roll out the program. But Burnham said the effort has been vetted, and any kinks can be sorted out after the currently scheduled launch of January 2026.
Some voices in the education field testified in support of the bill calling for a one-year delay. Kim Lewis, associate director of government relations for the Minnesota School Boards Association, said the timing isn't good for school districts around the state.
"A significant number of the 331 districts are currently making staffing cuts to balance budgets," she said. "No one wants to do that, but the increased costs and the increased needs are a reality. Our biggest issue and question is, how do we pay for the paid leave benefit?"
But the Minnesota Association of Professional Employees, which represents more than 18-thousand state workers, has said not only would this halt a critical benefit they've fought for over the past decade, but also result in additional administrative costs for the state.
Minnesota set aside funds to help cover the program's launch. After that, benefits would be funded by payroll taxes shared by employers and workers.
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A lawsuit has been filed against the Trump administration over its budget-cutting plans targeting medical research led by colleges and universities.
Their allies warn of negative consequences for curing diseases, as well as local economies. The suit was brought by Minnesota and 21 other states after the National Institutes of Health said it would follow through on orders to cut $4 billion through a grant funding formula for indirect expenses.
North Dakota is not part of the legal case, but an analysis said the state could lose more than $3 million in research funds.
Ellie Dehoney, senior vice president of policy and advocacy for the group Research!America, said no matter the state, the pain will be quickly felt.
"The suddenness of it is one of the ways that you degrade your research capacity," Dehoney pointed out.
Beyond the effects on finding cures for diseases such as Alzheimer's, Dehoney warned of job losses at lab equipment makers and other supporting businesses. Trump advisers suggest too much grant money goes to overhead costs but advocates countered the argument misrepresents the facts. They said even indirect funds keep the lights on at university labs and support other key infrastructure such as data storage. A federal judge on Monday temporarily halted the cuts as the case proceeds.
Dehoney said medical research at the academic level needs to play out first because the private sector does not have the resources or patience to play the long game in advancing treatments. She also warned slowing scientific progress could keep more people dealing with chronic health issues from improving their quality of life and participating in the workforce.
"I know a person who is on Social Security disability," Dehoney observed. "She went on a biologic (drug), she has rheumatoid arthritis, and now she's working full-time."
Dehoney argued abruptly stalling important research work also benefits global competitors such as China. She feels there is room for groups like hers to work with the Trump administration on finding efficiencies but only if they actually boost research capacity, not reduce it.
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