The bill includes giving teachers a 2 percent raise in the first year of the budget, the Washington Post reports. State employees will get a 3 percent raise.
NBC29 says that the budget includes a bond package to enhance Virginia's infrastructure and roads.
"I'm very happy with the session, and I want to thank everybody for working together in a bipartisan way to get us to where we are today," McAuliffe told NBC29.
The two-year budget does not have any tax or fee increases.
Lawmakers will return to the General Assembly in April to take up the governor's suggested amendments or vetoes.