The holiday, which was observed on the Friday before Martin Luther King, Jr. Day in January, celebrated Gens. Robert E. Lee and Thomas “Stonewall” Jackson as “defenders of causes.” The event typically involved Civil War-themed parades, wreath layings and reenactments hosted by Confederate memorial groups.
The bill was among Gov. Ralph Northam 2020 legislative proposals.
“We need to make Election Day a holiday,” he said last year. “We can do it by ending the Lee-Jackson holiday that Virginia holds … It commemorates a lost cause. It’s time to move on.”
Defenders of the holiday argue that it honors Virginia history.
But Confederate symbols have become increasingly unpopular for their association with pro-slavery activists and racism.
Both Lee and Jackson, Virginia natives, owned slaves and fought to preserve slavery in the US.
The state of Virginia has grappled with its Confederate past in recent years.
In July, local politicians removed a statue of Lee and several busts honoring Confederate figures, including Jackson, from the statehouse.
CNN’s Theresa Waldrop, Rebekah Riess and Scottie Andrew contributed to this report.