HB 29

__
  2026 SESSION
  CHAPTER 7
  [H 29]
  Approved February 20, 2026
     An Act to amend and reenact Chapter 725 of the Acts of Assembly of 2025, which appropriates the public revenues for two years
     ending, respectively, on June 30, 2025, and June 30, 2026; and an Act to amend and reenact § 58.1-301, § 24.2-304.05, § 24.2-309.2,
     § 58.1-322.03, § 58.1-332, § 58.1-390.3, and § 58.1-402 of the Code of Virginia.
     Be it enacted by the General Assembly of Virginia:
     1. That Items 0, 77, 101, 104, 115, 124, 125, 125.10, 130, 200, 252.10, 260, 264, 268, 275, 287, 288, 290, 292, 296, 325, 326, 328,
     329, 331, 334, 365, 389, 415, 416, 424, 455, 466, 469, 471, 489.40, C-34, C-54, § 3-1.01, § 3-5.03, § 4-5.04, and § 4-14 of
     Chapter 725 of the 2025 Acts of Assembly, be hereby amended and reenacted.
     2. § 1. The following are hereby appropriated, for the current biennium, as set forth in succeeding parts, sections and items, for the
     purposes stated and for the years indicated:
     A. The balances of appropriations made by previous acts of the General Assembly which are recorded as unexpended, as of the close
     of business on the last day of the previous biennium, on the final records of the State Comptroller; and
     B. The public taxes and arrears of taxes, as well as moneys derived from all other sources, which shall come into the state treasury
     prior to the close of business on the last day of the current biennium. The term "moneys" means nontax revenues of all kinds,
     including but not limited to fees, licenses, services and contract charges, gifts, grants, and donations, and projected revenues derived
     from proposed legislation contingent upon General Assembly passage.
     § 2. Such balances, public taxes, arrears of taxes, and monies derived from all other sources as are not segregated by law to other
     funds, which funds are defined by the State Comptroller, pursuant to § 2.2-803, Code of Virginia, shall establish and constitute the
     general fund of the state treasury.
     § 3. The appropriations made in this act from the general fund are based upon the following:
  First Year  Second Year  Total
  Unreserved Beginning Balance  $12,757,442,466  $0  $12,757,442,466
  $12,488,005,556  $25,245,448,022
  Additions to Balance  ($8,243,470,953)  $19,500,000  ($8,223,970,953)
  ($10,718,951,165)  ($18,962,422,118)
  Official Revenue Estimates  $30,661,036,462  $31,360,409,381  $62,021,445,843
  $32,383,745,537  $63,044,781,999
  Transfer  $1,390,285,768  $1,572,043,937  $2,962,329,705
  $1,935,699,361  $3,325,985,129
  Total General Fund Resources
  Available for
  Appropriation  $36,565,293,743  $32,951,953,318  $69,517,247,061
  $36,088,499,289  $72,653,793,032
     The appropriations made in this act from nongeneral fund revenues are based upon the following:
  First Year  Second Year  Total
  Balance, June 30, 2024  $12,329,216,528  $0  $12,329,216,528
  Official Revenue Estimates  $55,952,484,636  $57,955,178,841  $113,907,663,477
  $55,562,757,179  $111,515,241,815
  Lottery Proceeds Fund  $943,824,250  $875,335,350  $1,819,159,600
  $923,626,865  $1,867,451,115
  Internal Service Fund  $2,548,392,953  $2,661,451,414  $5,209,844,367
  Bond Proceeds  $930,193,760  $406,085,243  $1,336,279,003
  Total Nongeneral Fund
  2
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  Revenues Available for
  Appropriation  $72,704,112,127  $61,898,050,848  $134,602,162,975
  $59,553,920,701  $132,258,032,828
  TOTAL PROJECTED
  REVENUES  $109,269,405,870  $94,850,004,166  $204,119,410,036
  $95,642,419,990  $204,911,825,860
        § 4. Nongeneral fund revenues which are not otherwise segregated pursuant to this act shall be segregated in accordance with the acts
        respectively establishing them.
        § 5. The sums herein appropriated are appropriated from the fund sources designated in the respective items of this act.
        § 6. When used in this act the term:
        A. "Current biennium" means the period from the first day of July two thousand twenty-four, through the thirtieth day of June two
        thousand twenty-six, inclusive.
        B. "Previous biennium" means the period from the first day of July two thousand twenty-two, through the thirtieth day of June two
        thousand twenty-four, inclusive.
        C. "Next biennium" means the period from the first day of July two thousand twenty-six, through the thirtieth day of June two thousand
        twenty-eight, inclusive.
        D. "State agency" means a court, department, institution, office, board, council or other unit of state government located in the
        legislative, judicial, or executive departments or group of independent agencies, or central appropriations, as shown in this act, and
        which is designated in this act by title and a three-digit agency code.
        E. "Nonstate agency" means an organization or entity as defined in § 2.2-1505 C, Code of Virginia.
        F. "Authority" sets forth the general enabling statute, either state or federal, for the operation of the program for which appropriations
        are shown.
        G. "Discretionary" means there is no continuing statutory authority which infers or requires state funding for programs for which the
        appropriations are shown.
        H. "Appropriation" shall include both the funds authorized for expenditure and the corresponding level of full-time equivalent
        employment.
        I. "Sum sufficient" identifies an appropriation for which the Governor is authorized to exceed the amount shown in the Appropriation
        Act if required to carry out the purpose for which the appropriation is made.
        J. "Item Details" indicates that, except as provided in § 6 H above, the numbers shown under the columns labeled Item Details are for
        information reference only.
        K. Unless otherwise defined, terms used in this act dealing with budgeting, planning and related management actions are defined in the
        instructions for preparation of the Executive Budget.
        § 7. The total appropriations from all sources in this act have been allocated as follows:
  BIENNIUM 2024-26
  General Fund  Nongeneral Fund  Total
  OPERATING EXPENSES  $67,475,321,135  $117,834,227,778  $185,309,548,913
  $68,337,282,946  $118,699,213,493  $187,036,496,439
  LEGISLATIVE
  DEPARTMENT  $283,333,301  $10,885,915  $294,219,216
  JUDICIAL DEPARTMENT  $1,323,020,345  $85,770,523  $1,408,790,686
  $1,408,790,868
  EXECUTIVE DEPARTMENT  $65,826,480,706  $111,767,286,620  $177,593,767,326
  $66,688,442,517  $112,632,272,335  $179,320,714,852
  INDEPENDENT AGENCIES  $42,486,783  $5,970,284,720  $6,012,771,503
  STATE GRANTS TO
  NONSTATE AGENCIES  $0  $0  $0
  CAPITAL OUTLAY
  3
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  EXPENSES  $1,994,911,493  $2,704,413,256  $4,699,324,749
  TOTAL  $69,470,232,628  $120,538,641,034  $190,008,873,662
  $70,332,194,439  $121,403,626,749  $191,735,821,188
        § 8. This chapter shall be known and may be cited as the "2026 Amendments to the 2025 Appropriation Act."
  4
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  Item Details($)  Appropriations($)
    ITEM 1.  First Year     Second Year   First Year    Second Year
  FY2025  FY2026      FY2025  FY2026
  PART 1: OPERATING EXPENSES
  LEGISLATIVE DEPARTMENT
    1.        Not set out.
    2.        Not set out.
    3.        Not set out.
    4.        Not set out.
    5.        Not set out.
    6.        Not set out.
    7.        Not set out.
    8.        Not set out.
    9.        Not set out.
    10.       Not set out.
    11.       Not set out.
    12.       Not set out.
    13.       Not set out.
    14.       Not set out.
    15.       Not set out.
    16.       Not set out.
    17.       Not set out.
    18.       Not set out.
    19.       Not set out.
    20.       Not set out.
    21.       Not set out.
    22.       Not set out.
    23.       Not set out.
    24.       Not set out.
    24.50     Not set out.
  5
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  Item Details($)  Appropriations($)
    ITEM 25.  First Year    Second Year      First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
     25.       Not set out.
     26.       Not set out.
     27.       Not set out.
  TOTAL FOR LEGISLATIVE DEPARTMENT  $158,101,699   $136,117,517
  General Fund Positions  646.00  652.00
  Nongeneral Fund Positions  32.50  32.50
  Position Level  678.50  684.50
  Fund Sources: General  $152,521,079   $130,812,222
  Special  $5,302,199     $5,026,874
  Trust and Agency  $140,908      $140,908
  Federal Trust  $137,513      $137,513
  6
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  Item Details($)  Appropriations($)
    ITEM 28.  First Year     Second Year      First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  JUDICIAL DEPARTMENT
     28.       Not set out.
     29.       Not set out.
     30.       Not set out.
     31.       Not set out.
     32.       Not set out.
     33.       Not set out.
     34.       Not set out.
     35.       Not set out.
     36.       Not set out.
     37.       Not set out.
     38.       Not set out.
     39.       Not set out.
     40.       Not set out.
     41.       Not set out.
     42.       Not set out.
     43.       Not set out.
  TOTAL FOR JUDICIAL DEPARTMENT  $697,336,458    $711,454,410
  General Fund Positions  3,794.71        3,804.71
  Nongeneral Fund Positions  110.00  110.00
  Position Level  3,904.71        3,914.71
  Fund Sources: General  $654,452,260    $668,568,085
  Special  $14,463,494     $14,465,621
  Dedicated Special Revenue  $27,105,959     $27,105,959
  Federal Trust  $1,314,745      $1,314,745
  7
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  Item Details($)  Appropriations($)
    ITEM 44.  First Year    Second Year      First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  EXECUTIVE DEPARTMENT
  EXECUTIVE OFFICES
     44.       Not set out.
     44.50     Not set out.
     45.       Not set out.
     46.       Not set out.
     47.       Not set out.
     48.       Not set out.
     49.       Not set out.
     50.       Not set out.
     51.       Not set out.
     52.       Not set out.
     53.       Not set out.
     54.       Not set out.
     55.       Not set out.
     56.       Not set out.
     57.       Not set out.
  TOTAL FOR EXECUTIVE OFFICES  $107,286,486   $107,217,826
  General Fund Positions  462.92  462.92
  Nongeneral Fund Positions  247.58  247.58
  Position Level  710.50  710.50
  Fund Sources: General  $66,058,018    $65,989,358
  Special  $26,207,527    $26,207,527
  Commonwealth Transportation        $2,454,085     $2,454,085
  Dedicated Special Revenue  $607,414      $607,414
  Federal Trust  $11,959,442    $11,959,442
  8
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  Item Details($)  Appropriations($)
    ITEM 58.  First Year     Second Year    First Year    Second Year
  FY2025  FY2026       FY2025  FY2026
  OFFICE OF ADMINISTRATION
     58.       Not set out.
     59.       Not set out.
     60.       Not set out.
     61.       Not set out.
     62.       Not set out.
     63.       Not set out.
     64.       Not set out.
     65.       Not set out.
     66.       Not set out.
     67.       Not set out.
     68.       Not set out.
     69.       Not set out.
     70.       Not set out.
     71.       Not set out.
     72.       Not set out.
     73.       Not set out.
     74.       Not set out.
     75.       Not set out.
     76.       Not set out.
  § 1-1. DEPARTMENT OF ELECTIONS (132)
     77.       Electoral Services (72300)  $22,956,957    $22,029,363
  Electoral Administration, Uniformity, Legality, and
  Quality Assurance Services (72302)  $2,044,462      $2,056,868
  Statewide Voter Registration System and Associated
  Information Technology Services (72304)  $11,486,491     $11,486,491
  Campaign Finance Disclosure Administration
  Services (72309)  $563,174        $313,174
  Voter Services and Communications (72311)  $2,288,631      $2,098,631
  Administrative Services (72312)  $6,574,199      $6,074,199
  Fund Sources: General  $19,904,707     $18,977,113
  Special  $52,250  $52,250
  Trust and Agency  $3,000,000      $3,000,000
  9
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  Item Details($)  Appropriations($)
    ITEM 77.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Authority: Title 24.2, Chapter 1, Code of Virginia.
  A. It is the intention of the General Assembly that all local precincts, other than central
  absentee precincts established under § 24.2-712, Code of Virginia, will use electronic
  pollbooks for elections held beginning in November, 2010.
  B. Any locality using paper pollbooks for elections held beginning in November, 2010,
  shall be responsible for entering voting credit as provided in § 24.2-668. Additionally, any
  locality using paper pollbooks for elections held after November, 2010 may be required to
  reimburse the Department of Elections for state costs associated with providing paper
  pollbooks.
  C. The State Board of Elections shall by regulation provide for an administrative fee up to
  $25 for each non-electronic report filed with the State Board under § 24.2-947.5. The
  regulation shall provide for waiver of the fee based upon indigence.
  D. All unpaid charges and civil penalties assessed under Title 24.2 shall be subject to
  interest, the administrative collection fee and late penalties authorized in the Virginia Debt
  Collection Act, Chapter 48 of Title 2.2, § 2.2-4800 et seq.
  E. 1. It is the intent of the General Assembly that federal awards from the Help America
  Vote Act of 2002 (HAVA) under P.L. 116-93 be used to replace the Virginia Election and
  Registration Information System (VERIS). Any remaining balances out of the amounts
  appropriated in Item 86, paragraph I, of Chapter 552, 2021 Acts of Assembly, Special
  Session I, may be used to support VERIS replacement and shall serve as the state's
  required match to receive the federal HAVA award.
  2. The Secretary of Finance and Secretary of Administration shall approve the allotment
  of remaining balances out of the amount appropriated in Item 86, paragraph I.3, of
  Chapter 552, 2021 Acts of Assembly, Special Session, to be used for VERIS replacement
  costs after the exhaustion of all available HAVA funding eligible for this purpose and the
  initial required state match component of $2,035,142.
  3. Any balances remaining from the appropriation identified in this paragraph shall not
  revert to the general fund at the end of the fiscal year, but shall be brought forward and
  made available to support VERIS replacement in the subsequent fiscal year.
  F.1. Notwithstanding the provisions of subsections C and D of § 24.2-671.2., Code of
  Virginia, a risk-limiting audit of a presidential election or an election for the nomination of
  candidates for the office of President shall not be conducted.
  2. Notwithstanding the provisions of §§ 24.2-653.01, 24.2-671, and 24.2-678 of the Code
  of Virginia, local electoral boards shall, no more than 10 days following the date of the
  November 2024 general election, meet to determine the validity of provisional ballots,
  certify the results of the election, and submit the abstract of votes to the State Board of
  Elections.
  G. Out of this appropriation, $190,000 the first year from the general fund is provided to
  effectuate the provisions of House Bill 588, Senate Bill 4, and House Joint Resolution 45
  of the 2024 General Assembly.
  H. Out of this appropriation, $500,000 the first year from the general fund is provided for
  increases in the cost of information technology services associated with continued
  migration of information and systems to the Cloud. Any amounts remaining from the
  general fund appropriation identified in this paragraph that remain unspent at the end of
  the first year shall be reappropriated in the next fiscal year.
  I. Out of this appropriation, $250,000 the first year from the general fund is provided to
  develop a plan for the replacement of the Committee Electronic Tracking (COMET) and
  Campaign Finance Management (CFM) systems. The Department of Elections shall
  provide a report on the plan for the replacement of these systems to the Governor and the
  Chairs of the House Appropriations and Senate Finance and Appropriations Committees
  by October 1, 2025. Any amounts remaining from the general fund appropriation
  identified in this paragraph that remain unspent at the end of the first year shall be
  reappropriated in the next fiscal year.
  10
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  Item Details($)  Appropriations($)
    ITEM 77.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  J. Notwithstanding the provisions of § 24.2-948.5, Code of Virginia, the Department shall
  make a report of its reviews available to the State Board, the Governor, and the General
  Assembly by December 31 of each year following the election year for the office to which the
  review pertains and the same shall be posted to the Department's website. The July 1
  reporting deadline contained in § 24.2-948.5, Code of Virginia shall no longer apply.
     78.       Not set out.
  Total for Department of Elections  $34,306,918      $33,379,324
  General Fund Positions  67.00  67.00
  Position Level  67.00  67.00
  Fund Sources: General  $31,254,668       $30,327,074
  Special  $52,250  $52,250
  Trust and Agency  $3,000,000        $3,000,000
     79.       Not set out.
     80.       Not set out.
     81.       Not set out.
     82.       Not set out.
  TOTAL FOR OFFICE OF ADMINISTRATION  $4,317,545,551   $4,432,416,060
  General Fund Positions  457.35  460.85
  Nongeneral Fund Positions  845.05  870.55
  Position Level  1,302.40  1,331.40
  Fund Sources: General  $999,238,100      $1,001,334,690
  Special  $28,504,303        $27,798,726
  Enterprise  $636,036,781        $636,036,781
  Internal Service  $2,498,920,200     $2,611,399,696
  Trust and Agency  $138,589,605        $138,589,605
  Dedicated Special Revenue  $8,592,508  $9,592,508
  Federal Trust  $7,664,054  $7,664,054
  11
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  Item Details($)  Appropriations($)
    ITEM 83.  First Year    Second Year      First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  OFFICE OF AGRICULTURE AND FORESTRY
     83.       Not set out.
     84.       Not set out.
     85.       Not set out.
     86.       Not set out.
     87.       Not set out.
     88.       Not set out.
     89.       Not set out.
     90.       Not set out.
     91.       Not set out.
     92.       Not set out.
     93.       Not set out.
     94.       Not set out.
     95.       Not set out.
     96.       Not set out.
     97.       Not set out.
     98.       Not set out.
     99.       Not set out.
  TOTAL FOR OFFICE OF AGRICULTURE AND
  FORESTRY  $158,023,675   $157,504,094
  General Fund Positions  548.58  548.58
  Nongeneral Fund Positions  358.42  358.42
  Position Level  907.00  907.00
  Fund Sources: General  $88,439,880    $85,940,299
  Special  $30,126,648    $30,426,648
  Trust and Agency  $9,335,024     $9,335,024
  Dedicated Special Revenue  $11,895,640    $13,575,640
  Federal Trust  $18,226,483    $18,226,483
  12
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  Item Details($)  Appropriations($)
    ITEM 100.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  OFFICE OF COMMERCE AND TRADE
  § 1-2. SECRETARY OF COMMERCE AND TRADE (192)
     100.       Not set out.
  Economic Development Incentive Payments (312)
     101.       Economic Development Services (53400)  $150,472,331     $61,731,826
  $59,927,583
  Financial Assistance for Economic Development
  (53410)  $150,472,331       $61,731,826
  $59,927,583
  Fund Sources: General  $150,322,331       $61,581,826
  $59,777,583
  Dedicated Special Revenue  $150,000  $150,000
  Authority: Discretionary Inclusion.
  A.1. Out of the appropriation for this Item, $19,750,000 the first year and $19,750,000 the
  second year from the general fund shall be deposited to the Commonwealth's Development
  Opportunity Fund, as established in § 2.2-115, Code of Virginia. Such funds shall be used at
  the discretion of the Governor, subject to prior consultation with the Chairmen of the House
  Appropriations and Senate Finance and Appropriations Committees, to attract economic
  development prospects to locate or expand in Virginia. If the Governor, pursuant to the
  provisions of § 2.2-115, E.1., Code of Virginia, determines that a project is of regional or
  statewide interest and elects to waive the requirement for a local matching contribution, such
  action shall be included in the report on expenditures from the Commonwealth's Development
  Opportunity Fund required by § 2.2-115, F., Code of Virginia. Such report shall include an
  explanation on the jobs anticipated to be created, the capital investment made for the project,
  and why the waiver was provided.
  2. The Governor may allocate these funds as grants or loans to political subdivisions. Loans
  shall be approved by the Governor and made in accordance with procedures established by
  the Virginia Economic Development Partnership and approved by the State Comptroller.
  Loans shall be interest-free unless otherwise determined by the Governor and shall be repaid
  to the general fund of the state treasury. The Governor may establish the interest rate to be
  charged, otherwise, any interest charged shall be at market rates as determined by the State
  Treasurer and shall be indicative of the duration of the loan. The Virginia Economic
  Development Partnership shall be responsible for monitoring repayment of such loans and
  reporting the receivables to the State Comptroller as required.
  3. Funds may be used for public and private utility extension or capacity development on and
  off site; road, rail, or other transportation access costs beyond the funding capability of
  existing programs; site acquisition; grading, drainage, paving, and other activity required to
  prepare a site for construction; construction or build-out of publicly-owned buildings; grants
  or loans to an industrial development authority, housing and redevelopment authority, or other
  political subdivision pursuant to their duties or powers; training; or anything else permitted by
  law.
  4. Consideration should be given to economic development projects that 1) are in areas of
  high unemployment; 2) link commercial development along existing transportation/transit
  corridors within regions; and 3) are located near existing public infrastructure.
  5. It is the intent of the General Assembly that the Virginia Economic Development
  Partnership shall work with localities awarded grants from the Commonwealth's Development
  Opportunity Fund to recover such moneys when the economic development projects fail to
  meet minimal agreed-upon capital investment and job creation targets. All such recoveries
  shall be deposited and credited to the Commonwealth's Development Opportunity Fund.
  B.1. Out of the appropriation for this Item, $2,686,350 the first year and $3,209,250
  13
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  Item Details($)  Appropriations($)
    ITEM 101.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  $2,809,250 the second year from the general fund shall be deposited to the Investment
  Performance Grant subfund of the Virginia Investment Partnership Grant Fund to be used
  to pay investment performance grants in accordance with § 2.2-5101, Code of Virginia.
  Notwithstanding any other provision of law, any excess funds remaining in the subfund
  from prior fiscal years for projects previously approved shall be appropriated for
  expenditure in subsequent fiscal years.
  2. Consideration should be given to economic development projects that 1) are in areas of
  high unemployment; 2) link commercial development along existing transportation/transit
  corridors within regions; and 3) are located near existing public infrastructure.
  C. Out of the appropriation for this Item, $6,000,000 the first year and $4,000,000 the
  second year from the general fund and an amount estimated at $150,000 the first year and
  $150,000 the second year from nongeneral funds shall be deposited to the Governor's
  Motion Picture Opportunity Fund, as established in § 2.2-2320, Code of Virginia. These
  nongeneral fund revenues shall be deposited to the fund from revenues generated by the
  digital media fee established pursuant to § 58.1-1731, et seq., Code of Virginia. Such
  funds shall be used at the discretion of the Governor to attract film industry production
  activity to the Commonwealth.
  D.1. Out of the appropriation for this Item, $2,269,000 the first year and $2,239,000 the
  second year from the general fund shall be deposited to the Virginia Economic
  Development Incentive Grant subfund of the Virginia Investment Partnership Grant Fund
  to be used to pay investment performance grants in accordance with § 2.2-5102.1, Code of
  Virginia. Notwithstanding any other provision of law, any excess funds remaining in the
  subfund from prior fiscal years for projects previously approved shall be appropriated for
  expenditure in subsequent fiscal years.
  2. Consideration should be given to economic development projects that 1) are in areas of
  high unemployment; 2) link commercial development along existing transportation/transit
  corridors within regions; and 3) are located near existing public infrastructure.
  E. Out of the appropriation for this Item, $4,669,833 the first year and $4,669,833 the
  second year from the general fund shall be available for eligible businesses under the
  Virginia Jobs Investment Program. Pursuant to § 2.2-1611, Code of Virginia, the
  appropriation provided for the Virginia Jobs Investment Program for eligible businesses
  shall be deposited to the Virginia Jobs Investment Program Fund.
  F. Out of the appropriation for this Item, $500,000 the first year and $500,000 the second
  year from the general fund may be provided to the Virginia Economic Development
  Partnership to facilitate additional domestic and international marketing and trade
  missions approved by the Governor. The Director, Department of Planning and Budget, is
  authorized to provide these funds to the Virginia Economic Development Partnership
  upon written approval of the Governor.
  G. Out of the appropriation in this Item, $8,000,000 the first year from the general fund
  shall be deposited to the Advanced Shipbuilding Production Facility Grant Fund for grants
  to be paid in accordance with § 59.1-284.29, Code of Virginia.
  H. Out of the appropriation in this Item, $313,750 the first year from the general fund shall
  be deposited to the Pharmaceutical Manufacturing Grant Fund for grants to be paid in
  accordance with § 59.1-284.36, Code of Virginia.
  I.1. Out of the amounts in this Item, $825,000 the first year and $825,000 the second year
  from the general fund shall be deposited to the Governor's New Airline Service Incentive
  Fund to assist in the provision of marketing, advertising, or promotional activities by
  airlines in connection with the launch of new air passenger service at Virginia airports,
  and to incentivize airlines that have committed to commencing new air passenger service
  in Virginia, pursuant to the provisions of § 2.2-2320.1, Code of Virginia.
  2. Notwithstanding the provisions of § 2.2-2320.1, Code of Virginia, 25 percent of the
  annual appropriation to the Governor's New Airline Service Incentive Fund shall be set
  aside for projects in Virginia commercial airports with less than 400,000 enplanements per
  calendar year for the purposes of economic development in these areas. Enplanement data
  14
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  Item Details($)  Appropriations($)
    ITEM 101.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  shall come from the Federal Aviation Administration.
  J. Out of the appropriation in this Item, $5,625,000 the first year from the general fund shall
  be deposited to the Technology Development Grant Fund for grants to be paid in accordance
  with § 59.1-284.38, Code of Virginia.
  K. Out of the appropriation in this Item, $954,500 the first year and $954,500 the second year
  from the general fund shall be deposited to the Shipping and Logistics Headquarters Grant
  Fund for grants to be paid in accordance with § 59.1-284.39, Code of Virginia.
  L. Out of the appropriation in this Item, $28,700,000 the first year from the general fund shall
  be deposited to the Major Headquarters Workforce Grant Fund for grants to be paid in
  accordance with § 59.1-284.31, Code of Virginia.
  M.1. Out of the appropriation in this Item, $40,000,000 the first year, and $20,000,000 the
  second year from the general fund shall be provided for the Virginia Business Ready Sites
  Program Fund, and shall be used in accordance with the provisions of § 2.2-2240.2:1., Code
  of Virginia. As a condition of the grants awarded from these funds, the Virginia Economic
  Development Partnership Authority shall require grant recipients to provide matching funds.
  2. It is the intent of the General Assembly that the Virginia Economic Development
  Partnership Authority consider investing these funds in economic development sites over
  1,000 acres ("mega-sites"), and smaller sites of at least 50 acres. The authority may determine
  a site of at least 25 contiguous acres to be an eligible site provided that the site is located in a
  locality with an area of 35 square miles of land or less.
  3. Notwithstanding the provisions of § 2.2-2240.2:1., Code of Virginia, the Virginia
  Economic Development Partnership Authority may reimburse localities, without a local
  match requirement, for fees associated with rezoning land for the purpose of building a
  portfolio of strategic economic development sites in Virginia from the funds provided in this
  paragraph.
  4. For purposes of the definition of "eligible site" under the Virginia Business Ready Sites
  Program Fund set forth in § 2.2-2240.2:1, Code of Virginia, an otherwise eligible site shall
  not be considered noncontiguous solely because it is bisected by a roadway and other utility
  related infrastructure.
  N. The State Comptroller shall continue the Property Analytics Firm Infrastructure Fund as
  established in Item 112, Paragraph S. of House Bill 29, 2022 General Assembly, Special
  Session I. All moneys in this Fund shall be used as provided for in Item 112, Paragraph S. of
  House Bill 29, 2022 General Assembly, Special Session I.
  O. Out of the appropriation in this Item, $4,000,000 the second year from the general fund
  shall be deposited to the Cloud Computing Cluster Infrastructure Grant Fund for grants to be
  paid in accordance with § 59.1-284.42, Code of Virginia. The funds provided in this
  paragraph are directed to a company made eligible for grants from the Cloud Computing
  Infrastructure Grant Fund in Item 113, Paragraph S., Chapter 1, 2023 Acts of Assembly,
  Special Session I. The eligibility criteria, methodology for calculating the grant payments
  owed to the company, and total aggregate cap of grant payments that may be awarded to the
  eligible company as directed in Item 113, Paragraph S., Chapter 1, 2023 Acts of Assembly,
  Special Session I, shall continue.
  P.1. Out of this appropriation, $2,500,000 the first year from the general fund is provided for
  the development of an inland port in the Mount Rogers Planning District. The Virginia Port
  Authority shall acquire, plan, design, and develop a site for the establishment of an inland port
  in the Mount Rogers Planning District. The Virginia Port Authority and the Virginia
  Economic Development Partnership Authority shall develop a business recruitment strategy
  for the inland port and the surrounding area to provide for rapid development and utilization
  of the facility.
  2. The Director of the Department of Planning and Budget is authorized to transfer moneys
  from this paragraph on a quarterly basis to the Virginia Port Authority. The Virginia Port
  Authority shall verify to the Secretary of Finance and the Director of the Department of
  Planning and Budget estimated quarterly expenses prior to the release of these funds. Any
  funding remaining at the end of either fiscal year shall be carried forward into the next fiscal
  15
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  Item Details($)  Appropriations($)
    ITEM 101.  First Year    Second Year       First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  year for the purposes described in this paragraph.
  3. The Virginia Port Authority may collaborate with the Virginia Department of Rail and
  Public Transportation, Virginia Department of Transportation, the Virginia Economic
  Development Partnership Authority, and any federal, state, or local agency as may be
  necessary to support the development and utilization of an inland port. The Virginia Port
  Authority shall engage in negotiations with necessary parties, including railroads and
  beneficial cargo owners, for development of the inland port.
  4. The Virginia Port Authority shall report quarterly to the Governor, the Secretary of
  Transportation, the Secretary of Commerce and Trade, and the Virginia Economic
  Development Partnership Authority, and the Chairs of the House Appropriations and
  Senate Finance and Appropriations Committees on the timeline, progress to date, and
  overall cost for the construction of the inland port.
  Q. Out of the appropriation in this Item, $1,633,216 the first year and $1,404,243 the
  second year from the general fund shall be deposited to the Financial Services Expansion
  Grant Fund for grants to be paid in accordance with § 59.1-284.43, Code of Virginia.
  R.1. The Secretary of Finance shall approve a short-term, interest-free, state-supported
  treasury loan in an amount up to $40,000,000 to the City of Newport News to support a
  capital investment from the United States Navy related to housing infrastructure.
  2. The Secretary of Finance shall approve and release the loan under the following
  conditions: (i) the United States Navy has committed sufficient resources to fund the
  project; (ii) the City has provided matching funds for the project; and (iii) seventy-five
  percent of non-state funds secured for the project have been expended.
  S.1. Out of the appropriation in this Item, $3,895,682 the first year from the general fund
  shall be provided to the County of Wythe for expenses incurred prior to June 30, 2024,
  related to the installation of a water tank for Progress Park, wastewater treatment plant
  improvements, and wastewater line extensions in the County. The improvements are
  meant to enhance the infrastructure for businesses in Progress Park and properties in the
  surrounding area.
  2. Disbursement of these funds shall be at the discretion of the Virginia Economic
  Development Partnership Authority, based upon an executed Memorandum of
  Understanding with the County of Wythe.
  T. Any unexpended balances carried forward from fiscal year 2024, pursuant to paragraph
  V., Item 113, Chapter 1, 2024 Special Session I, shall be made available to the
  Department of General Services to demolish derelict structures, perform remediation, and
  market for sale the Central Virginia Training Center property in Madison Heights,
  Virginia. Proceeds from the sale of the property shall be deposited in the Behavioral
  Health and Developmental Services Trust Fund. Any funding remaining at the end of
  fiscal year 2025 shall be carried forward to the next fiscal year and reappropriated for the
  purposes described in this paragraph.
  U. Out of this appropriation, $7,500,000 the first year from the general fund is provided to
  the University of Virginia Medical Center for the improvement of a facility to create
  advanced laboratory space to support the scale up of fast-growing life sciences companies.
  Prior to the release of any funding in this paragraph, the University of Virginia Medical
  Center shall enter into a Memorandum of Understanding (MOU) with the Virginia
  Economic Development Partnership Authority, demonstrate a match of non-state funds
  equal to the amount provided in this paragraph, and the Department of Housing and
  Community Development shall verify to the Virginia Economic Development Partnership
  Authority that the Virginia Growth and Opportunity Fund grantee subject to GO Virginia
  Statewide Competitive Grant Contract Number 25-GOVA-10 has successfully completed
  the milestones required of the contract through the fourth quarter of 2025. The MOU shall
  include: (i) the names of the prospective occupants of the renovated lab space; and (ii)
  provisions related to annual reporting by the University of Virginia Medical Center on
  activities occurring in the renovated lab for a duration of no longer than five years
  including a sustainability plan for the long-term operations of the laboratory space. Any
  funding remaining at the end of the fiscal year 2025 shall be carried forward into the next
  16
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  Item Details($)  Appropriations($)
    ITEM 101.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  fiscal year and reappropriated for the purposes described in this paragraph U.
  V. Out of the amounts in this item, $1,000,000 the first year from the general fund shall be
  provided to Chesterfield County to support site design and engineering activities for a major
  energy related economic development project. Such funding shall be contingent upon the
  execution of a Memorandum of Understanding between the Virginia Economic Development
  Partnership Authority and Chesterfield County that requires an equal local match and
  structures this funding on a reimbursement basis. The amounts provided in this paragraph V.
  shall not revert to the general fund at the end of any fiscal year, but shall be carried forward
  and reappropriated.
  W. Out of this appropriation, $3,000,000 the first year from the general fund is provided to
  the Virginia Economic Development Partnership Authority to support a non-profit operating a
  pharmaceutical manufacturing facility in developing a fast-acting insulin. Prior to any funds
  being disbursed, the authority shall enter into a Memorandum of Understanding (MOU) with
  a non-profit organization and the company shall demonstrate a match of non-state funds equal
  to the amount provided in this paragraph. The MOU shall include: (i) a commitment by the
  company to produce a fast-acting biosimilar insulin at a price of not more than $30 per vial
  and not more than $55 for five pre-filled insulin pens; (ii) provisions related to the repayment
  of the funds provided in this paragraph should the company fail to produce and distribute a
  low-cost insulin; and (iii) annual reporting by the company to the authority on the
  development of the fast-acting biosimilar insulin. At the conclusion of the project, the
  company shall be required to report to the authority on the: (i) jobs created as a result of the
  investment; (ii) estimated savings to residents of the Commonwealth from purchase of low-
  cost insulin; and, (iii) estimated potential savings to the Commonwealth as a self-insured
  employer from the availability of affordable insulin manufactured at a non-profit facility in
  Virginia. Any funding remaining at the end of the fiscal year 2025 shall be carried forward
  into the next fiscal year and reappropriated for the purposes described in this paragraph W.
  X. Out of this appropriation, $4,000,000 the first year from the general fund is provided to the
  City of Roanoke for the improvement of an existing facility to create advanced laboratory
  space for new cell/gene therapy companies across southwestern Virginia. Prior to the release
  of any funding in this paragraph, the City of Roanoke shall enter into a Memorandum of
  Understanding (MOU) with the Virginia Economic Development Partnership Authority,
  demonstrate a match of non-state funds equal to the amount provided in this paragraph from
  either cash or in-kind contributions, and confirm the commitment of an anchor tenant that
  specializes in new cell/gene therapy research and is affiliated with a nationally recognized
  hospital to locate in the space. The MOU shall include: (i) the name and activities of the
  anchor tenant that specializes in new cell/gene therapy research and is affiliated with a
  nationally recognized hospital; and (ii) provisions related to annual reporting by the City on
  activities occurring in the renovated lab for a duration of no longer than five years. Any
  funding remaining at the end of the fiscal year 2025 shall be carried forward into the next
  fiscal year and reappropriated for the purposes described in this paragraph X.
  Y. Out of this appropriation, $6,500,000 the first year from the general fund shall be
  transferred to the Secretary of Commerce and Trade for disbursement to Accomack County to
  establish a natural gas infrastructure expansion into Accomack County. The funding may be
  applied to engineering, land, right-of-way, permitting, and other related costs to facilitate
  natural gas delivery to Accomack County. The amounts provided in this paragraph Y. shall
  not revert to the general fund at the end of any fiscal year, but shall be carried forward and
  reappropriated.
  Z. Notwithstanding paragraph V. of this Item, on or before June 30, 2026, the Director,
  Department of Planning and Budget, shall authorize the reversion to the general fund of
  $1,000,000 from the unexpended balances of this program.
  AA. Notwithstanding paragraph P.1-4 of this Item, on or before June 30, 2026, the Director,
  Department of Planning and Budget, shall authorize the reversion to the general fund of
  $9,750,000 from the unexpended balances of this program.
  Total for Economic Development Incentive
  Payments  $150,472,331     $61,731,826
  $59,927,583
  17
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  Item Details($)  Appropriations($)
    ITEM 101.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Fund Sources: General  $150,322,331      $61,581,826
  $59,777,583
  Dedicated Special Revenue  $150,000  $150,000
  Grand Total for Secretary of Commerce and Trade  $151,707,437    $62,966,932
  $61,162,689
  General Fund Positions  9.00  9.00
  Position Level  9.00  9.00
  Fund Sources: General  $151,557,437     $62,816,932
  $61,012,689
  Dedicated Special Revenue  $150,000      $150,000
  § 1-3. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (165)
     102.       Not set out.
     103.       Not set out.
     104.       Economic Development Services (53400)  $16,313,490    $15,313,490
  Financial Assistance for Economic Development
  (53410)  $16,313,490     $15,313,490
  Fund Sources: General  $16,313,490     $15,313,490
  Authority: Title 59.1, Chapters 22 and 49, Code of Virginia.
  A. Out of the amounts in this Item, $15,750,000 the first year and $14,750,000 the second
  year from the general fund shall be provided to carry out the provisions of §§ 59.1-547
  and 59.1-548, Code of Virginia, related to the Enterprise Zone Grant Act. Notwithstanding
  the provisions of §§ 59.1-547 and 59.1-548, Code of Virginia, the department is
  authorized to prorate, with no payment of the unpaid portion of the grant necessary in the
  next fiscal year, the amount of awards each business receives to match the appropriation
  for this Item. Should actual grants awarded in each fiscal year be less than the amounts
  provided in this Item, the excess shall not revert to the general fund but shall be
  reappropriated to support the provisions of this Item. Notwithstanding the provisions of §
  59.1-548, Code of Virginia, or any other provision of law, moneys for enterprise zone real
  property investment grants shall be used to support the inclusion of rooftop solar or solar
  canopies for parking lots as a component of a real property project awarded a grant
  through the program.
  B. Notwithstanding paragraph A. in this Item, on or before June 30, 2026, the Director,
  Department of Planning and Budget, shall authorize the reversion to the general fund of
  $9,020,150 from the unexpended balances of this program.
     105.       Not set out.
     106.       Not set out.
     107.       Not set out.
  Total for Department of Housing and Community
  Development  $597,675,882   $416,825,882
  General Fund Positions  111.25  111.25
  Nongeneral Fund Positions  104.75  104.75
  Position Level  216.00  216.00
  Fund Sources: General  $362,179,060    $181,329,060
  Special  $103,461,630    $103,461,630
  Trust and Agency  $150,000       $150,000
  Dedicated Special Revenue  $400,000       $400,000
  Federal Trust  $131,485,192    $131,485,192
  18
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  Item Details($)  Appropriations($)
    ITEM 108.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
     108.       Not set out.
     109.       Not set out.
     110.       Not set out.
     111.       Not set out.
     112.       Not set out.
     113.       Not set out.
     114.       Not set out.
  § 1-4. VIRGINIA INNOVATION PARTNERSHIP AUTHORITY (309)
     115.       Economic Development Services (53400)  $132,539,319     $42,486,085
  $58,486,085
  Economic Development Services (53412)  $132,539,319        $42,486,085
  $58,486,085
  Fund Sources: General  $132,539,319        $42,486,085
  Dedicated Special Revenue  $0        $16,000,000
  Authority: Discretionary Inclusion.
  A. The Virginia Innovation Partnership Authority (VIPA) is hereby authorized to transfer
  funds in this appropriation to an established managing non-profit to expend said funds for
  realizing the statutory purposes of the Authority, by contracting with governmental and
  private entities, notwithstanding the provisions of § 4-1.05 b of this act.
  B. This appropriation shall be disbursed in twelve equal monthly disbursements each fiscal
  year. The Director, Department of Planning and Budget, may authorize an increase in
  disbursements for any month not to exceed the total appropriation for the fiscal year if such an
  advance is necessary to meet payment obligations.
  C.1. No later than June 15 of each year, the Authority shall provide to the Chairs of the House
  Appropriations and Senate Finance and Appropriations Committees, the Secretary of
  Commerce and Trade, and the Director, Department of Planning and Budget, a report of its
  operating plan for each year of the biennium. No later than September 30 of each year, the
  Authority shall submit to the same entities a detailed expenditure report and a listing of the
  salaries and bonuses for all authority employees for the concluded fiscal year. Both reports
  shall be prepared in the formats as approved by the Director, Department of Planning and
  Budget, and include, but not be limited, to the following:
  a. All planned and actual revenue and expenditures along with funding sources, including
  state, federal, and other revenue sources of both the Authority and the managing non-profit
  entity;
  b. By activity or program, total grants made and investments awarded for each grant and
  investment program;
  c. By activity or program, recoveries of previous grants or investments and sales of equity
  positions;
  d. Cash balances by funding source, and a report, by program, of available, committed and
  projected expenditures of all cash balance; and,
  e. Private investment activity related to the fund of funds established in U. of this item.
  2. The President of the managing non-profit entity shall report quarterly to the entity's board
  of directors, and the Chairs of the House Appropriations and Senate Finance and
  19
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  Item Details($)  Appropriations($)
    ITEM 115.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Appropriations Committees, the Secretary of Commerce and Trade, and the Director,
  Department of Planning and Budget, in a format approved by the Board the following:
  a. The quarterly financial performance, determined by comparing the budgeted and actual
  revenues and expenditures to planned revenues and expenditures for the fiscal year;
  b. All investments and grants executed compared to projected investment closings, return
  on prior investments and grants, including all gains and losses; and
  c. The financial and programmatic performance of all operating entities owned by the
  managing non-profit entity.
  D.1. By November 1 of each year, the President of the Authority shall report to the
  Governor and the Chairs of the House Committee on Appropriations and the Senate
  Committee on Finance and Appropriations, the Secretary of Commerce and Trade, and to
  the Director, Department of Planning and Budget, on key programs and funds managed
  directly by VIPA. The report shall summarize performance on the outcomes of public and
  private research investment in applied research projects, capital investment in Virginia
  companies, job creation, and new company formation.
  2. To the extent possible, the annual performance report shall contain information on the
  metrics outlined below.
  a. For activities associated with the Virginia Venture Partners (VVP): (i) the number of
  companies receiving investments from the fund, (ii) the state investment and amount of
  privately leveraged investments per company, (iii) the estimated number of jobs created,
  (iv) the estimated tax revenue generated, (v) the number of companies who have received
  investments from the VVP fund still operating in Virginia, (vi) return on investment, to
  include the value of proceeds from the sale of equity in companies that received support
  from the program and economic benefits to the Commonwealth, (vii) the number of state
  investments that failed and the state investment associated with failed investments, (viii)
  the number of new companies created or expanded and the number of patents filed, and
  (ix) the geographic distribution of investments.
  b. For activities associated with the Regional Innovation Fund: (i) the type and number of
  capacity building projects, (ii) the total state investment per project, (iii) the anticipated
  results of the investment, (iv) number of jobs created, (v) number of businesses founded,
  (vi) additional sources of investment in the projects receiving support from the fund, and
  (vii) the geographic distribution of the investments.
  c. For activities associated with the Commonwealth Commercialization Fund: (i) the
  number of research grants awarded by domain area, (ii) the state investment per research
  project, (iii) the number of eminent researchers attracted and retained, (iv) additional
  research dollars leveraged as a result of the state investment, (v) number of new products
  completed/released to production, (vi) start-ups created from the research investment, (vii)
  new licenses granted to companies within Virginia, (viii) new licenses granted to
  companies outside Virginia, and (ix) the geographic distribution of the investments.
  3. Such report shall include the prior fiscal year outcomes as well as the outcomes of each
  program managed directly by VIPA since inception. In addition, the report shall also
  include program changes anticipated in the subsequent fiscal year.
  E.1. Out of the appropriation in this Item, $3,100,000 the first year and $3,100,000 the
  second year from the general fund shall be allocated to the Division of Investment to
  support the Virginia Venture Partners fund and other indirect investment mechanisms to
  foster the development of Virginia-based technology companies.
  2. Funds returned, including proceeds received due to the sale of a company that
  previously received a VVP investment, shall remain in the program and be used to make
  future early stage financing investments consistent with the goals of the program. The
  managing non-profit may recover the direct costs incurred associated with securing the
  return of such funds from the moneys returned.
  F. A total of $3,000,000 the first year and $3,000,000 the second year from the general
  fund shall be allocated to the Entrepreneurial Ecosystems Division to support and promote
  20
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  Item Details($)  Appropriations($)
    ITEM 115.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  technology-based entrepreneurial activities in the Commonwealth as specified in § 2.2-2357,
  Code of Virginia. Out of these amounts, $2,000,000 the first year and $2,000,000 the second
  year shall establish the Regional Innovation Fund which may be used to provide follow-on
  sustaining funding to promising entrepreneurial ecosystem projects identified by the Virginia
  Initiative for Growth and Opportunity in Each Region (GO Virginia) Board.
  G. A total of $5,000,000 the first year and $5,000,000 the second year from the general fund
  shall be allocated to the Commonwealth Commercialization Fund to foster innovative and
  collaborative research, development, and commercialization efforts in the Commonwealth in
  projects and programs with a high potential for economic development and job creation as
  specified in § 2.2-2359, Code of Virginia.
  H. A total of $1,000,000 the first year and $1,000,000 the second year from the general fund
  shall be allocated to the Technology Industry Development Services to support strategic
  initiatives to advance the Authority's public purpose. These initiatives may include: (i)
  seeking, or supporting others in seeking, federal grants, contracts, or other funding sources;
  (ii) assuming responsibility for strategic initiatives and partnerships with federal and local
  governments; (iii) taking a lead role in defining, promoting, and implementing policies that
  advance innovation and entrepreneurial activity; and (iv) contracting with federal and private
  entities to further innovation, commercialization, and entrepreneurship in the Commonwealth.
  I. Out of the appropriation in this Item, $1,000,000 the first year and $1,000,000 the second
  year from the general fund shall be made available for the Virginia Center for Unmanned
  Systems. The Center shall serve as a catalyst for growth of unmanned and autonomous
  systems vehicles and technologies in Virginia. The Center will establish collaboration
  between businesses, investors, universities, entrepreneurs and government organizations to
  increase the Commonwealth's position as a leader of the Autonomous Systems community.
  J.1. Out of the appropriation in this Item, $3,750,000 the first year and $3,750,000 the second
  year from the general fund shall be provided for the Virginia Biosciences Health Research
  Corporation (VBHRC), a non-stock corporation research consortium initially comprised of
  the University of Virginia, Virginia Commonwealth University, Virginia Polytechnic Institute
  and State University, George Mason University and the Eastern Virginia Health Sciences
  Center. The consortium will contract with private entities, foundations and other
  governmental sources to capture and perform research in the biosciences, as well as promote
  the development of bioscience infrastructure tools which can be used to facilitate additional
  research activities. The Department of Planning and Budget is authorized to provide these
  funds to the non-stock corporation research consortium referenced in this paragraph upon
  request filed with the Department of Planning and Budget by VBHRC.
  2. Of the amounts provided in J.1. for the research consortium, up to $3,750,000 the first year
  and $3,750,000 the second year may be used to develop or maintain investments in research
  infrastructure tools to facilitate bioscience research.
  3. The remaining funding shall be used to capture and perform research in the biosciences and
  must be matched at least dollar-for-dollar by funding provided by such private entities,
  foundations and other governmental sources. No research will be funded by the consortium
  unless at least two of the participating institutions, including the five founding institutions and
  any other institutions choosing to join, are actively and significantly involved in collaborating
  on the research. No research will be funded by the consortium unless the research topic has
  been vetted by a scientific advisory board and holds potential for high impact near-term
  success in generating other sponsored research, creating spin-off companies or otherwise
  creating new jobs. The consortium will set guidelines to disburse research funds based on
  advisory board findings. The consortium will have near-term sustainability as a goal, along
  with corporate-sponsored research gains, new Virginia company start-ups, and job creation
  milestones.
  4. Other publicly-supported institutions of higher education in the Commonwealth may
  choose to join the consortium as participating institutions. Participation in the consortium by
  the five founding institutions and by other participating institutions choosing to join will
  require a cash contribution from each institution in each year of participation of at least
  $50,000.
  5. Of these funds, up to $500,000 the first year and $500,000 the second year may be used to
  21
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  Item Details($)  Appropriations($)
    ITEM 115.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  pay the administrative, promotional and legal costs of establishing and administering the
  consortium, including the creation of intellectual property protocols, and the publication of
  research results.
  6. VHBRC, in consultation with the publicly-supported institutions of higher education in
  the Commonwealth participating in the consortium, shall provide to the Secretary of
  Commerce and Trade, the Chairs of the House Appropriations and Senate Finance and
  Appropriations Committees, the Director of the Department of Planning and Budget, and
  VIPA by October 1 of each year a written report summarizing the activities of the
  consortium, including, but not limited to, a summary of how any funds disbursed to the
  consortium during the previous fiscal year were spent, and the consortium's progress
  during the fiscal year in expanding upon existing research opportunities and stimulating
  new research opportunities in the Commonwealth.
  7. The accounts and records of the consortium shall be made available for review and
  audit by the Auditor of Public Accounts upon request.
  9. On or before August 1st of each year, the Virginia Bioscience Health Research
  Corporation shall submit information on the financial performance of the organization to
  the Virginia Innovation Partnership Authority to include (i) budgeted and actual revenues
  and expenditures to planned revenues and expenditures for the fiscal year; (ii) total
  investments broken out into various investment activities; and (iii) cash balances by
  funding source.
  K.1. Out of the appropriation in this Item, $925,000 the first year and $925,000 the second
  year from the general fund shall be made available to the Commonwealth Center for
  Advanced Manufacturing (CCAM) for rent, operating support, and maintenance. These
  funds shall not revert back to the general fund at the end of the fiscal year.
  2. Out of the appropriation in this Item, VIPA shall provide $1,100,000 the first year and
  $1,100,000 the second year from the general fund to CCAM for the purpose of providing
  private sector incentive grants to industry members of the CCAM as follows: (i) incentive
  grants for new industry members with no prior membership at CCAM; (ii) incentive
  grants to small manufacturing members who locate their primary job center in the
  Commonwealth, as determined by VEDP, in order to mitigate inaugural, industry
  membership costs associated with joining CCAM; (iii) grants dedicated to CCAM
  industry members to be used exclusively for research project costs and require a minimum
  one-to-one match in funds to conduct additional directed research at the CCAM facility
  after their base amount of directed research is programmed; and (iv) grants to CCAM for
  seedling research project costs that enable CCAM to market new research programs to
  prospective and existing industry members. These funds shall not revert back to the
  general fund at the end of the fiscal year.
  3. Out of the appropriation in this Item, VIPA shall provide $600,000 the first year and
  $600,000 the second year from the general fund to CCAM for (i) university research
  grants requiring a minimum one-to-one match in funds that bring in external research
  funds from federal or private organizations for research to be conducted at the CCAM
  facility and (ii) follow-on efforts, including road mapping activities, marketing and
  proposal development, to leverage project activities for the pursuit of CCAM/University
  jointly funded federal programs. All project approvals are contingent upon each university
  partner entering into a memorandum of understanding (MOU) with CCAM that includes
  specific details about the university's anticipated commitment of financial and human
  resources, as well as programming and academic credentialing plans, to the CCAM
  facility. These funds shall not revert back to the general fund at the end of the fiscal year.
  4. Out of the appropriation in this Item, VIPA shall provide $1,000,000 the first year and
  $1,000,000 the second year from the general fund to CCAM for the purposes of: (i)
  attracting federal funds for research projects to be conducted at CCAM, including
  marketing, travel, grant proposal writing, and business development costs; (ii) matching
  funds for federal research programs; and (iii) federal research program costs not
  reimbursable on federal research awards. These funds shall not revert back to the general
  fund at the end of the fiscal year.
  5. CCAM shall submit a report on October 1 of each year to the Secretary of Finance,
  22
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  Item Details($)  Appropriations($)
    ITEM 115.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  Chairs of the House Appropriations and Senate Finance and Appropriations Committees, and
  VIPA containing a status update of all new incentive programs, including but not limited to
  the following: (i) MOUs it has entered into with each university partner; (ii) funds disbursed
  to both university and private sector partners of CCAM, as well as any other recipients; (iii)
  any other agreements CCAM has entered into with representatives of the public and private
  sectors that may impact current and future incentive fund disbursements; (iv) all efforts and
  costs associated with obtaining federal research grants; and (v) any additional information
  requested by the Secretary of Finance, or the Chairs of the House Appropriations and Senate
  Finance and Appropriations Committees.
  6. On or before August 1st of each year, the Commonwealth Center for Advanced
  Manufacturing shall submit information on the financial performance of the organization to
  the Virginia Innovation Partnership Authority to include (i) budgeted and actual revenues and
  expenditures to planned revenues and expenditures for the fiscal year; (ii) total investments
  broken out into various investment activities; and (iii) cash balances by funding source.
  L.1. Out of the appropriation in this Item, $10,000,000 the first year and $10,000,000 the
  second year from the general fund is provided to scale the Commonwealth Cyber Initiative
  (CCI) and provide resources for faculty recruiting at both the Hub, Virginia Polytechnic
  Institute and State University, and Node sites. The amounts provided in this paragraph are
  non-reverting and shall constitute the base budget for subsequent fiscal years.
  2. Out of the appropriation in this Item, $7,500,000 the first year and $7,500,000 the second
  year from the general fund is provided for the leasing of space and establishment of the Hub
  by the anchoring institution and for the establishment of research faculty, entrepreneurship
  programs, student internships and educational programming, and operations of the Hub. The
  amounts provided in this paragraph are non-reverting and shall constitute the base budget for
  subsequent fiscal years.
  3. Nothing shall prevent the Hub and certified Node sites from seeking matching funds for
  faculty recruitment and support for renovations and equipment from previous bond
  authorizations for higher education equipment or grant programs managed by the Authority,
  including but not limited to the Commonwealth Commercialization Fund. Certified
  institutions shall submit their funding request application to the Authority for review and
  authorization under the application procedures relevant for the program or bond authorization.
  After completing its review, VIPA shall approve or deny the request for an allocation of
  funds.
  4. CCI shall submit a report by October 1st of each year to the Secretary of Commerce and
  Trade, the Chairs of the House Appropriations and Senate Finance and Appropriations
  Committees, the Director of the Department of Planning and Budget, and VIPA detailing the
  use and leverage of the investment in this item in strengthening the state's cyber economy.
  The state report shall contain information on: (i) external research grants attracted to support
  the work of CCI, (ii) research grants awarded from the funds contained in this item, (iii)
  research faculty recruited, (iv) results of entrepreneurship and workforce programming, (v)
  collaborative partnerships and projects, (vi) correlated economic outcomes (jobs and new
  business formation), and (vii) the geographic distribution of awards from the funding
  contained in this item.
  5. On or before August 1st of each year, the Commonwealth Cyber Initiative shall submit
  information on the financial performance of the organization to the Virginia Innovation
  Partnership Authority to include (i) budgeted and actual revenues and expenditures to planned
  revenues and expenditures for the fiscal year; (ii) total investments broken out into various
  investment activities; and (iii) cash balances by funding source.
  M.1. Out of the appropriation in this Item, $350,000 the first year and $350,000 the second
  year from the general fund is designated for the Commonwealth Center for Advanced
  Logistics (CCALS) to provide seed money for collaborative public sector projects with
  partners, such as the Port of Virginia, Department of Corrections, and the Virginia
  Department of Transportation.
  2. CCALS shall submit a report by October 1st of each year to the Secretary of Commerce
  and Trade, the Chairs of the House Appropriations and Senate Finance and Appropriations
  Committees, the Director of the Department of Planning and Budget, and VIPA to include (i)
  23
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  Item Details($)  Appropriations($)
    ITEM 115.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  all planned and actual revenue and expenditures along with funding sources, including
  state, federal, and other revenue sources for CCALS, (ii) the research activities of CCALS,
  and (iii) relevant economic outcomes as a result of the CCALS' work in each fiscal year.
  3. On or before August 1st of each year, the Commonwealth Center for Advanced
  Logistics shall submit information on the financial performance of the organization to the
  Virginia Innovation Partnership Authority to include (i) budgeted and actual revenues and
  expenditures to planned revenues and expenditures for the fiscal year; (ii) total
  investments broken out into various investment activities; and (iii) cash balances by
  funding source.
  N. Out of the appropriation in this Item, $125,000 the first year and $125,000 the second
  year is designated for the Virginia Academy of Engineering, Science and Medicine to
  provide technical assistance to VIPA.
  O. Out of the appropriation in this Item, $750,000 the first year and $750,000 the second
  year from the general fund is provided for the annual lease and operating costs for the
  Authority's Richmond headquarters and other locations throughout the Commonwealth.
  P.1. Out of this appropriation, $46,500,000 the first year from the general fund is provided
  for the University of Virginia's Institute for Biotechnology. The University of Virginia
  shall enter into a Memorandum of Understanding (MOU) with the Virginia Innovation
  Partnership Authority that includes performance objectives for the hiring of up to 30
  researchers or more over the biennium, including research faculty and staff, to support the
  work of the Institute, with a final target to be established during the MOU process, and
  additional near-term and long-term performance objectives agreed to by both parties. In
  addition to performance metrics for the state's investments, the MOU shall also identify:
  (i) the research specialization of the initiative; (ii) sources of private philanthropic and
  other funding; (iii) opportunities for joint research projects and clinical trials; and (iv)
  commitments to non-competition for research in life sciences. These amounts shall remain
  unallotted by the Director of the Department of Planning and Budget until such time as an
  executed MOU has been received from the Virginia Innovation Partnership Authority. On
  or before August 1st of each year, upon the signature of the MOU, the University of
  Virginia shall submit information on the financial performance of the initiative to the
  Virginia Innovation Partnership Authority to include: (i) budgeted and actual revenues and
  expenditures to planned revenues and expenditures for the fiscal year; (ii) total
  investments broken out into various investment activities; and (iii) cash balances.
  2. Any balances in this paragraph remaining at end of the fiscal year shall be carried
  forward and reappropriated.
  Q.1. Out of this appropriation, $26,500,000 the first year from the general fund is provided
  for Virginia Polytechnic Institute and State University's Patient Research Center. Virginia
  Polytechnic Institute and State University shall enter into a Memorandum of
  Understanding (MOU) with the Virginia Innovation Partnership Authority that includes
  performance objectives for the hiring of up to 40 researchers or more over five years,
  including research faculty and staff to support the work of the Center, with a final target to
  be established during the MOU process, and additional near-term and long-term
  performance objectives agreed to by both parties. In addition to performance metrics for
  the state's investments, the MOU shall also identify: (i) the research specialization of the
  initiative; (ii) sources of private philanthropic and other funding; (iii) opportunities for
  joint research projects and clinical trials; and (iv) commitments to non-competition for
  research in life sciences. These amounts shall remain unallotted by the Director of the
  Department of Planning and Budget until such time as an executed MOU has been
  received from the Virginia Innovation Partnership Authority. On or before August 1st of
  each year, upon the signature of the MOU, the Virginia Polytechnic Institute and State
  University shall submit information on the financial performance of the initiative to the
  Virginia Innovation Partnership Authority to include (i) budgeted and actual revenues and
  expenditures to planned revenues and expenditures for the fiscal year; (ii) total
  investments broken out into various investment activities; and (iii) cash balances.
  2. Any balances in this paragraph remaining at end of the fiscal year shall be carried
  forward and reappropriated.
  24
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  Item Details($)  Appropriations($)
    ITEM 115.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  R.1. Out of this appropriation, $13,000,000 the first year from the general fund is provided for
  Virginia Commonwealth University's Medicines for All Institute. Virginia Commonwealth
  University shall enter into a Memorandum of Understanding (MOU) with the Virginia
  Innovation Partnership Authority that includes performance objectives for the hiring of up to
  20 or more researchers over five years, including research faculty and staff to support the
  work of the Institute, with a final target to be established during the MOU process, and
  additional near-term and long-term performance objectives agreed to by both parties. In
  addition to performance metrics for the state's investments, the MOU shall also identify: (i)
  the research specialization of the initiative; (ii) sources of private philanthropic and other
  funding; (iii) opportunities for joint research projects and clinical trials; and (iv) commitments
  to non-competition for research in life sciences. These amounts shall remain unallotted by the
  Director of the Department of Planning and Budget until such time as an executed MOU has
  been received from the Virginia Innovation Partnership Authority. On or before August 1st of
  each year, upon the signature of the MOU, the Virginia Commonwealth University shall
  submit information on the financial performance of the initiative to the Virginia Innovation
  Partnership Authority to include: (i) budgeted and actual revenues and expenditures to
  planned revenues and expenditures for the fiscal year; (ii) total investments broken out into
  various investment activities; and (iii) cash balances.
  2. Any balances in this paragraph remaining at end of the fiscal year shall be carried forward
  and reappropriated.
  S.1. Out of this appropriation, $4,053,234 the first year from the general fund is provided for
  Old Dominion University's Digital Patient Model. Old Dominion University shall enter into a
  Memorandum of Understanding (MOU) with the Virginia Innovation Partnership Authority
  that includes performance objectives on new models developed through this investment,
  researcher collaborations, number of new technologies conceptualized, developed or tested,
  and additional near-term and long-term performance objectives agreed to by both parties. In
  addition to performance metrics for the state's investments, the MOU shall also identify: (i)
  the research specialization of the initiative; (ii) sources of private philanthropic and other
  funding; (iii) opportunities for joint research projects and clinical trials; and (iv) commitments
  to non-competition for research in life sciences. These amounts shall remain unallotted by the
  Director of the Department of Planning and Budget until such time as an executed MOU has
  been received from the Virginia Innovation Partnership Authority. On or before August 1st of
  each year, upon the signature of the MOU, Old Dominion University shall submit information
  on the financial performance of the organization to the Virginia Innovation Partnership
  Authority to include (i) budgeted and actual revenues and expenditures to planned revenues
  and expenditures for the fiscal year; (ii) total investments broken out into various investments
  activities; and (iii) cash balances.
  2. Any balances in this paragraph remaining at end of the fiscal year shall be carried forward
  and reappropriated.
  T. The institutions listed in paragraphs P., Q., R., and S. of this item shall work in
  collaboration with the Virginia Innovation Partnership Authority, Virginia Health Bioscience
  Research Corporation, and Virginia Biotechnology Research Partnership Authority to develop
  a proposal for a research center of life science in Virginia. This proposal shall include at a
  minimum: (i) an estimate of costs to continue the initiatives funded in paragraphs P., Q., R.,
  and S. of this item; (ii) opportunities for joint research projects and clinical trials between the
  initiatives; (iii) a model that centralizes the funding for these initiatives, similar to the
  Commonwealth Cyber Initiative; (iv) opportunities to consolidate state funded life science
  efforts, programs, and initiatives; and (v) options for including additional higher education
  institutions, especially Historically Black Colleges and Universities in the statewide effort.
  The proposal shall be submitted on or before June 30, 2025, to the General Assembly, the
  Chairs of the House Committee on Appropriations and Senate Finance and Appropriations
  Committee.
  U. Any additional funds transferred to the Authority as a result of actions pursuant to Item
  126.10, paragraph S.5 of the Chapter 854, 2019 Acts of Assembly may be used: (1) to enable
  the establishment of a fund of funds that will permit the Commonwealth to invest in one or
  more syndicated private investment funds; (2) to enhance direct investment programs by
  placing additional investments in partnership with Virginia accelerators and university
  technology commercialization programs; and (3) to enable the establishment of a sustainable
  25
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  Item Details($)  Appropriations($)
    ITEM 115.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  program to enhance discovery of, and early investment in, technologies aligned with the
  Virginia Innovation Index. Decisions to invest in private funds shall be subject to approval
  by the Board of Directors. Investments in such funds shall be monitored by the Board of
  Directors.
  V.1. Out of the appropriation in this Item, $16,000,000 the second year from the
  Commonwealth Opioid Abatement and Remediation Fund shall be provided to the
  Virginia Innovation Partnership Authority to establish and execute the Opioid Overdose
  Reversal Agent Program, a manufacturing program for a quality, lowest sustainable cost,
  opioid overdose reversal agent. The Virginia Innovation Partnership Authority shall
  coordinate with the Virginia Opioid Abatement Authority to administer the Program. Key
  objectives of the Program shall be: (i) providing a long-term, sustainable supply of opioid
  overdose reversal agent to help combat Virginia's opioid epidemic; (ii) providing pricing
  stability and increase access for this critical life-saving medication; and, (iii) leveraging,
  when possible, existing federal and state investments building the advanced
  pharmaceutical development and manufacturing CAMPUS in Petersburg.
  2. The Program shall contract with the private sector to lead an end-to-end opioid
  overdose reversal agent nasal spray development program to provide a new FDA-
  approved generic version resulting in a lower cost product to help drive down state and
  locality budgets for opioid overdose reversal agent and improve access, quality, and
  availability through a domestic supply. Funding provided to the contracting entity may be
  used for: (i) investment in research and development activities supporting an opioid
  overdose reversal agent API, formulation development, manufacturing process
  qualification and validation, and regulatory approval; and (ii) capital expenditures,
  including custom machinery for assembly of the drug/device combination product and
  semi-automated packaging. All intellectual property developed by the program would be
  owned by the private entity and all capital expenditures, including custom equipment,
  would be owned by the Virginia Innovation Partnership Authority or partner agency.
  Total for Virginia Innovation Partnership
  Authority  $132,539,319     $42,486,085
  $58,486,085
  Fund Sources: General  $132,539,319      $42,486,085
  Dedicated Special Revenue  $0      $16,000,000
  TOTAL FOR OFFICE OF COMMERCE AND
  TRADE  $1,046,584,579   $679,954,265
  $694,150,022
  General Fund Positions  278.72  279.72
  Nongeneral Fund Positions  252.28  252.28
  Position Level  531.00  532.00
  Fund Sources: General  $768,725,049    $402,094,735
  $400,290,492
  Special  $113,219,258    $113,219,258
  Commonwealth Transportation  $1,800,567      $1,800,567
  Trust and Agency  $775,000       $775,000
  Dedicated Special Revenue  $1,704,283      $1,704,283
  $17,704,283
  Federal Trust  $160,360,422    $160,360,422
  26
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  Item Details($)  Appropriations($)
    ITEM 116.  First Year     Second Year    First Year    Second Year
  FY2025  FY2026       FY2025  FY2026
  OFFICE OF EDUCATION
     116.       Not set out.
  § 1-5. DEPARTMENT OF EDUCATION, CENTRAL OFFICE OPERATIONS (201)
     117.       Not set out.
     118.       Not set out.
     119.       Not set out.
     120.       Not set out.
     121.       Not set out.
     122.       Not set out.
     123.       Not set out.
  Direct Aid to Public Education (197)
     124.       Financial Assistance for Educational, Cultural,
  Community, and Artistic Affairs (14300)  $90,684,567    $51,944,567
  $51,747,067
  Financial Assistance for Supplemental Education
  (14304)  $90,684,567        $51,944,567
  $51,747,067
  Fund Sources: General  $90,684,567        $51,944,567
  $51,747,067
  Authority: Discretionary Inclusion.
  Appropriation Detail of Educational, Cultural, Community, and Artistic Affairs (14300)
  Supplemental Education Assistance  FY 2025  FY 2026
  Programs (14304)
  Achievable Dream - Newport News  $500,000  $500,000
  Achievable Dream - Virginia Beach  $500,000  $500,000
  Active Learning Grants  $250,000  $250,000
  Advancing Computer Science Education  $1,350,000  $1,350,000
  American Civil War Museum  $200,000  $200,000
  AP, IB, and Cambridge Assessment Exam  $750,000  $900,000
  Fee Reduction
  Black History Museum and Cultural  $700,000  $700,000
  Center of Virginia
  Blue Ridge PBS  $1,600,000  $850,000
  Career and Technical Education  $6,000,000  $0
  Initiatives - Portsmouth, Chesapeake,
  Fredericksburg, Stafford County
  Career and Technical Education Regional  $600,000  $600,000
  Centers
  Career and Technical Education Resource  $498,021  $498,021
  Center
  Career and Technical Education Student  $718,957  $718,957
  Organizations
  27
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  Item Details($)  Appropriations($)
    ITEM 124.  First Year    Second Year   First Year  Second Year
  FY2025  FY2026      FY2025        FY2026
  Career Council at Northern Neck Career  $60,300  $60,300
  & Technical Center
  Chesterfield Recovery High School  $500,000  $500,000
  Children's Museum of Richmond  $750,000  $0
  Communities in Schools (CIS)  $2,004,400  $2,004,400
  Community Builders Pilot Program  $500,000  $300,000
  Community Schools Development and  $5,000,000  $2,500,000
  Implementation Planning Grant
  Computer Science Teacher Training  $550,000  $550,000
  Connect Plus  $600,000  $600,000
  Critical National Security Language  $250,000  $250,000
  Grant Program
  Dolly Parton's Imagination Library For  $1,657,065  $1,157,065
  Kids
  Early Childhood Educator Incentive  $20,000,000  $0
  EduTutorVA  $250,000  $250,000
  eMediaVA  $1,950,000  $1,200,000
  Excel Center - Goodwill Industries of  $500,000  $0
  the Valleys
  Great Aspirations Scholarship Program  $500,000  $500,000
  (GRASP)
  Greater Peninsula C.A.R.E.S.  $500,000  $0
  Grow Your Own Teacher  $240,000  $240,000
  Hampton Roads Recovery High School  $500,000  $250,000
  Jobs for Virginia Graduates (JVG)  $2,243,776  $2,243,776
  Loudoun County Recovery High School  $500,000  $250,000
  Mathews County - Asbestos Removal  $1,000,000  $0
  Milk and Cookies (MAC) Children's  $250,000  $250,000
  Program
  National Board Certification Program  $4,997,500  $4,997,500
  $4,800,000
  New Chesapeake Men for Progress  $100,000  $0
  Education Foundation
  Opportunity Scholars  $500,000  $0
  PBS Appalachia  $1,000,000  $250,000
  Petersburg Executive Leadership  $350,000  $350,000
  Recruitment Incentives
  Pittsylvania County Public Library  $160,000  $0
  Positive Behavioral Interventions &  $1,598,000  $1,598,000
  Support (PBIS)
  Power Scholars Academy- YMCA  $1,200,000  $1,200,000
  BELL
  Praxis and Virginia Communication and  $50,000  $50,000
  Literacy Assessment Assistance for
  Provisionally Licensed Minority
  Teachers
  Project Discovery  $987,500  $987,500
  Public Safety Training Center - Prince  $50,000  $50,000
  William County
  Reach Virginia  $630,000  $0
  Reck League  $150,000  $150,000
  School Program Innovation  $500,000  $500,000
  Small School Division Assistance  $145,896  $145,896
  Soundscapes - Newport News  $90,000  $90,000
  28
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  Item Details($)  Appropriations($)
    ITEM 124.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  Southside Virginia Regional Technology  $108,905  $108,905
  Consortium
  Southwest Virginia Public Education  $124,011  $124,011
  Consortium
  STEM Program / Research Study (VA  $1,181,975  $1,181,975
  Air & Space Center)
  STEM Competition Team Grants  $200,000  $200,000
  Targeted Extended/Enriched School Year  $7,763,312  $7,763,312
  and Year-round School Grants
  Teach for America  $750,000  $500,000
  Teacher Recruitment & Retention Grant  $2,281,000  $2,281,000
  Programs
  Teacher Residency Program  $2,850,000  $2,850,000
  21st Century Community Learning  $3,000,000  $2,000,000
  Centers
  UBU 100/My Life Coach Academy  $250,000  $0
  Van Gogh Outreach Program  $71,849  $71,849
  Virginia Alliance of Boys and Girls Clubs  $1,000,000  $0
  Virginia Early Childhood Foundation  $1,250,000  $1,250,000
  (VECF)
  Virginia Holocaust Museum  $375,000  $125,000
  Virginia Leads Innovation Network  $0  $250,000
  Virginia Student Training and  $300,000  $300,000
  Refurbishment (VA STAR) Program
  Vision Screening Grants  $591,000  $791,000
  VPI Provisional Teacher Licensure  $306,100  $306,100
  Wolf Trap Model STEM Program  $1,300,000  $1,300,000
  YMCA of South Hampton Roads  $500,000  $0
  Total  $90,684,567  $51,944,567
  $51,747,067
  A. Out of this appropriation, the Department of Education shall provide $2,243,776 the first
  year and $2,243,776 the second year from the general fund for the Jobs for Virginia Graduates
  initiative.
  B. Out of this appropriation, the Department of Education shall provide $124,011 the first
  year and $124,011 the second year from the general fund for the Southwest Virginia Public
  Education Consortium at the University of Virginia's College at Wise. An additional $71,849
  the first year and $71,849 the second year from the general fund is provided to the
  Consortium to continue the Van Gogh Outreach program with Lee and Wise County Public
  Schools and expand the program to the twelve school divisions in Southwest Virginia.
  C. This appropriation includes $108,905 the first year and $108,905 the second year from the
  general fund for the Southside Virginia Regional Technology Consortium to expand the
  research and development phase of a technology linkage.
  D. An additional state payment of $145,896 the first year and $145,896 the second year from
  the general fund is provided as a Small School Division Assistance grant for the City of
  Norton. To receive these funds, the local school board shall certify to the Superintendent of
  Public Instruction that its division has entered into one or more educational, administrative or
  support service cost-sharing arrangements with another local school division.
  E. Out of this appropriation, $498,021 the first year and $498,021 the second year from the
  general fund shall be allocated for the Career and Technical Education Resource Center to
  provide vocational curriculum and resource instructional materials free of charge to all school
  divisions.
  F.1. It is the intent of the General Assembly that the Department of Education provide
  bonuses from state funds to classroom teachers in Virginia's public schools who have
  29
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  Item Details($)  Appropriations($)
    ITEM 124.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  obtained national certification from the National Board for Professional Teaching
  Standards and grants for candidates working in a Title I school or a school eligible for
  participation in the Community Eligibility Provision pursuant to § 22.1-207.4:1 who are
  candidates for initial national certification or maintenance of national certification (MOC)
  from the National Board for Professional Teaching Standards. This appropriation includes
  an amount estimated at $4,997,500 the first year and $4,997,500 $4,800,000 the second
  year from the general fund for the purpose of paying these bonuses and grants. The Board
  shall establish procedures for determining amounts of awards if the moneys are not
  sufficient to award each eligible teacher the appropriate award amount.
  2. Any public school staff member who has obtained national certification from the
  National Board for Professional Teaching Standards shall be eligible to receive an initial
  grant award of $5,000 and a subsequent award of $2,500 each year for the life of the
  certificate.
  3. Any candidate (i) working in a Title 1 school or a school eligible for participation in the
  Community Eligibility Provision pursuant to § 22.1-207.4:1 and (ii) who is pursuing
  initial national certification from the National Board for Professional Teaching Standards
  is eligible to apply to the Department for a grant to cover (a) half of the total initial
  national certification fee, equal to the sum of the cost of the four components and the
  registration fee for initial national certification, to be disbursed upon initial registration for
  such certification and (b) the remaining half of such total initial national certification fee
  to be disbursed upon successful achievement of initial national certification as verified by
  the National Board for Professional Teaching Standards.
  4. Any candidate (i) working in a Title 1 school or a school eligible for participation in the
  Community Eligibility Provision pursuant to § 22.1-207.4:1 and (ii) who is pursuing MOC
  from the National Board for Professional Teaching Standards is eligible to apply to the
  Department for an incentive grant to cover the total MOC fee, equal to the sum of the cost
  of MOC and the registration fee for MOC, to be disbursed upon successful completion of
  the MOC process as verified by the National Board for Professional Teaching Standards.
  5. By October 15 of each year, school divisions shall notify the Department of Education
  of the number of eligible candidates under contract for that school year that hold or are
  pursuing such certification.
  G. This appropriation includes $2,281,000 the first year and $2,281,000 the second year
  from the general fund for grants, scholarships, and incentive payments to attract, recruit,
  and retain high-quality teachers and fill critical teacher shortage disciplines in Virginia's
  public schools.
  1. Out of this appropriation, $708,000 the first year and $708,000 the second year from the
  general fund is provided for teaching scholarship loans. These scholarships shall be for
  undergraduate students in college with a cumulative grade point average of at least 2.7 on
  a 4.0 scale or its equivalent, who are nominated by their Virginia regionally accredited
  college or university, and who meet the criteria and qualifications, pursuant to § 22.1-
  290.01, Code of Virginia, except as provided herein. Awards shall be made to students
  who are enrolled full-time or part-time in approved undergraduate or graduate teacher
  education programs for the top ten critical teacher shortage disciplines, however minority
  students may be enrolled in any content area for teacher preparation. Upon program
  completion, scholarship recipients may fulfill the scholarship loan obligation by teaching
  in the public schools of the Commonwealth in the first full academic year after becoming
  eligible for a renewable teaching license in the appropriate endorsement area and teaching
  for at least two years in a school division (i) in one of the critical teacher shortage
  disciplines as established by the Board of Education; or (ii) in a Virginia public school or
  program with 50 percent or more of the students eligible for free or reduced price lunch;
  or (iii) in a school division designated critical shortage subject area, as defined in the
  Board of Education's Regulations Governing the Determination of Critical Teacher
  Shortage Areas. Scholarship recipients who only complete one year of the teaching
  obligation shall be forgiven for one-half of the scholarship loan amount. Scholarship
  amounts are based on up to $10,000 per year for full-time students, and shall be prorated
  for part-time students based on the number of credit hours. The Department of Education
  shall report annually on the critical shortage teaching areas in Virginia.
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  a. The Department of Education shall make payments on behalf of the scholarship recipients
  directly to the Virginia institution of higher education where the scholarship recipient is
  enrolled full-time or part-time in an approved undergraduate or graduate teacher education
  program.
  b. The Department of Education is authorized to recover total funds awarded as scholarships,
  or the appropriate portion thereof, in the event that scholarship recipients fail to honor the
  stipulated teaching obligation.
  c. Within the fiscal year, any funds not awarded from this program may be applied toward the
  other teacher preparation, recruitment, and retention programs under paragraph G.
  2. Out of this appropriation, $808,000 the first year and $808,000 the second year from the
  general fund is provided to attract, recruit, and retain high-quality diverse individuals to teach
  science, technology, engineering, or mathematics (STEM) subjects in Virginia's middle and
  high schools experiencing difficulty in recruiting qualified teachers. Eligible teachers must (i)
  be employed full-time in a Virginia school division or school with more than 40 percent of the
  students eligible for free or reduced price lunch; (ii) be entering their first, second, or third
  year of teaching experience; and (iii) hold a five- or ten-year valid Virginia teaching license
  with an endorsement in Middle Education 6-8: Mathematics, Mathematics-Algebra-I,
  Mathematics, Middle Education 6-8: Science, Biology, Chemistry, Earth and Space Science,
  Physics, Engineering, or Technology Education and be assigned to a teaching position in a
  corresponding STEM subject area. Selected eligible teachers will receive a $5,000 incentive
  award after the completion of each year of full-time teaching experience, up to three
  consecutive years under the grant, in an eligible school division or school with a satisfactory
  performance evaluation and a written commitment to return in the same school division for
  the following school year. The maximum incentive award for each eligible teacher is $15,000.
  Eligibility for these incentives shall be determined through an application process whereby
  school divisions shall apply to the Department of Education. Priority for distribution of these
  incentives shall be to school divisions experiencing the most acute difficulties in recruiting
  qualified teachers, as determined using Department of Education criteria. For individuals who
  received funds under this program prior to July 1, 2020, the criteria provided in Chapter 854,
  2019 Acts of Assembly, shall continue to apply. Within the fiscal year, any funds not awarded
  from this program may be applied toward the other teacher preparation, recruitment, and
  retention programs under paragraph G.
  3. Out of this appropriation, $415,000 the first year and $415,000 the second year from the
  general fund is provided to help school divisions recruit and retain qualified middle-school
  mathematics teachers. Within the fiscal year, any funds not awarded from this program may
  be applied toward the other teacher preparation, recruitment, and retention programs under
  paragraph G.
  4. a. Out of this appropriation, $350,000 the first year and $350,000 the second year from the
  general fund is provided to support costs for teachers to become qualified to teach dual
  enrollment and industry credential courses in local school divisions. Qualifying teachers are
  1) licensed public high school teachers pursuing additional credentialing requirements
  necessary to be considered faculty who are qualified to teach dual enrollment courses in high
  schools in their local school division, or 2) high school teachers employed by a local school
  division and pursing additional training or coursework to earn a Board of Education-approved
  industry recognized credential that will lead to instruction in high schools in their local school
  division of regionally in-demand industry credentials. The Department of Education shall
  collaborate with the Virginia Office of Education Economics to determine regionally in-
  demand industry credentials.
  b. For teachers pursuing credentialing requirements to teach dual enrollment courses, the
  Department of Education shall make payments on behalf of the scholarship recipients directly
  to the regionally accredited Virginia institution of higher education where the scholarship
  recipient is enrolled in courses for credit applicable to dual enrollment course curriculum
  available for public high school students. The lifetime maximum dual enrollment tuition
  scholarship award for each approved eligible teacher is $12,000. Eligibility for access to these
  dual enrollment tuition scholarship awards shall be determined through an application process
  whereby school divisions shall apply to the Department of Education. In the application
  process, the applying school division shall include: i) an explanation of why such dual
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  FY2025  FY2026  FY2025        FY2026
  enrollment tuition scholarship is warranted, ii) the dual enrollment course or courses that
  shall be offered by the scholarship recipient's high school and taught by the recipient upon
  the recipient's successful completion of required coursework for appropriate credentialing
  to teach such dual enrollment courses, and iii) the projected student enrollment in the
  recipient taught public high school dual enrollment courses.
  c. For teachers pursuing additional training or coursework to teach an industry credential,
  the Department of Education shall make payments on behalf of the awardees directly to
  the employing school division for reimbursement of training, coursework, or assessment
  costs. The lifetime maximum credentialing award for each approved eligible teacher is
  $12,000. Eligibility for access to these reimbursement awards shall be determined through
  an application process whereby school divisions shall apply to the Department of
  Education. In the application process, the applying school division shall include: i) an
  explanation of why such reimbursement is warranted, ii) the career and technical course or
  courses that shall be offered by the awardee's high school and taught by the awardee upon
  successful acquirement of the industry credential, and iii) the projected student enrollment
  in the awardee's employing public high school career and technical courses.
  d. The Department of Education shall compile and report the application information for
  each applying school division, and shall also report the number of recipients and amount
  of tuition or reimbursement awarded to each school division, the institution of higher
  education receiving tuition, the credentialing area pursued by recipients, and dual
  enrollment or career and technical courses offered after the recipient's successful
  completion of the pursued credentialing. The Department shall submit the report by June
  30 annually to the Secretary of Education, the House Committees on Education and
  Appropriations and the Senate Committees on Finance and Appropriations and Education
  and Health.
  H. Out of this appropriation, $500,000 the first year and $500,000 the second year from
  the general fund shall be distributed to the Great Aspirations Scholarship Program
  (GRASP) to provide students and families in need access to financial aid, scholarships,
  and counseling to maximize educational opportunities for students.
  I. Out of this appropriation, the Department of Education shall provide $2,004,400 the first
  year and $2,004,400 the second year from the general fund to Communities in Schools.
  These funds shall be used to strengthen and sustain existing programming in Hampton
  Roads, Northern Virginia, Petersburg, Richmond City, and Southwest Virginia and to
  expand programming to new schools. Further, Communities in Schools is directed to
  assist the Community School organization with developing opportunities to establish a
  Community School program in interested school divisions.
  J. 1. Out of this appropriation, the Department of Education shall provide $987,500 the
  first year and $987,500 the second year from the general fund for Project Discovery.
  These funds are towards the cost of the program in Abingdon, Accomack/Northampton,
  Alexandria, Amherst, Appomattox, Arlington, Bedford, Bland, Campbell, Charlottesville,
  Cumberland, Danville/Pittsylvania, Fairfax, Franklin/Patrick,
  Fredericksburg/Spotsylvania, Goochland/Powhatan, Lynchburg, Newport News, Norfolk,
  Richmond City, Roanoke City, Smyth, Surry/Sussex, Tazewell, Williamsburg/James City,
  Wythe, and Madison/Orange and the salary of a fiscal officer for Project Discovery. The
  Department of Education shall administer the Project Discovery funding distributions to
  each community action agency. Distributions to each community action agency shall be
  based on performance measures established by the Board of Directors of Project
  Discovery. The contract with Project Discovery should specify the allocations to each
  local program and require the submission of a financial and budget report and program
  evaluation performance measures.
  2. Each participating community action agency shall submit annual performance metrics
  for services provided through the Project Discovery program that provide measurable
  evaluations and outcomes of participating students. Such performance metrics shall
  include evidenced-based data that effectively measure academic improvement outcomes.
  In addition, the performance metrics shall also include evidenced-based data to evaluate
  the specific effectiveness of the program for participating students on a longitudinal basis.
  Further, the performance metrics shall include the coordination and collaboration efforts
  32
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    ITEM 124.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  the program staff regularly have with the school-based personnel, such as teachers and
  guidance counselors, that support and maximize opportunities of participating students to
  successfully graduate from high school and then to enroll and graduate from an institution of
  higher learning. Project Discovery shall submit a comprehensive and cumulative program
  performance metrics evaluation to the Department of Education no later than October 1 each
  year.
  K. Out of this appropriation, the Department of Education shall provide $300,000 the first
  year and $300,000 the second year from the general fund for the Virginia Student Training
  and Refurbishment Program.
  L. Out of this appropriation, $1,598,000 the first year and $1,598,000 the second year from
  the general fund is provided to expand the number of schools implementing a system of
  positive behavioral interventions and supports with the goal of improving school climate and
  reducing disruptive behavior in the classroom. Such a system may be implemented as part of
  a tiered system of supports that utilizes evidence-based, system-wide practices to provide a
  response to academic and behavioral needs. Any school division which desires to apply for
  this competitive grant must submit a proposal to the Department of Education by June 1
  preceding the school-year in which the program is to be implemented. The proposal must
  define student outcome objectives including, but not limited to, reductions in disciplinary
  referrals and out-of-school suspension rates. In making the competitive grant awards, the
  Department of Education shall give priority to school divisions proposing to serve schools
  identified by the Department as having high suspension rates. No funds awarded to a school
  division under this grant may be used to supplant funding for schools already implementing
  the program.
  M. Targeted Extended/Enriched School Year and Year-round School Grants Payments
  1. Out of this appropriation, $7,150,000 the first year and $7,150,000 the second year from the
  general fund is provided for a targeted extended/enriched school year or year-round school
  incentive in order to improve student achievement. Annual start-up grants of up to $300,000
  per school may be awarded for a period of up to two years after the initial implementation
  year. The per school amount may be up to $400,000 in the case of schools that have an
  Accredited with Conditions status and are rated at Level Three in two or more Academic
  Achievement for All Students school quality indicators, or schools that had an Accredited
  with Conditions status and were rated at Level Three in two or more Academic Achievement
  for All Students school quality indicators when the initial application was made. Schools that
  qualified for the per school grant up to $400,000 under the previous Standards of
  Accreditation Denied Accreditation status remain eligible for funding for the initial three year
  period; after that period, such schools are subject to eligibility under the current Standards of
  Accreditation. After the third consecutive year of successful participation, an eligible school's
  grant amount shall be based on a shared split of the grant between the state and participating
  school division's local composite index. Such continuing schools shall remain eligible to
  receive a grant based on the 2012 JLARC Review of Year Round Schools' researched base
  findings.
  2. Except for school divisions with schools that are in an Accredited with Conditions status
  and are rated at Level Three in two or more Academic Achievement for All Students school
  quality indicators or in a Denied Accreditation status, any other school division applying for
  such a grant shall be required to provide a twenty percent local match to the grant amount
  received from either an extended/enriched school year or year-round school start-up or
  planning grant.
  3. In the case of any school division with schools that are in an Accredited with Conditions
  status and are rated at Level Three in two or more Academic Achievement for All Students
  school quality indicators or in a Denied Accreditation status that apply for funds, the school
  division shall also consult with the Superintendent of Public Instruction or designee on all
  recommendations regarding instructional programs or instructional personnel prior to
  submission to the local board for approval.
  4. Out of this appropriation, $613,312 the first year and $613,312 the second year from the
  general fund is provided for planning grants of no more than $50,000 each for local school
  divisions pursuing the creation of new extended/enriched school year or year-round school
  programs for divisions or individual schools in support of the findings from the 2012 JLARC
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    ITEM 124.  First Year    Second Year       First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Review of Year Round Schools. School divisions must submit applications to the
  Department of Education by August 1 of each year. Priority shall be given to schools
  based on need, relative to the state accreditation ratings or similar federal designations.
  Applications shall include evidence of commitment to pursue implementation in the
  upcoming school year. If balances exist, existing extended school year programs may be
  eligible to apply for remaining funds.
  5. A school division that has been awarded an extended/enriched school year or year-
  round school start-up grant or planning grant for the development of an extended/enriched
  school year or year-round school program may spend the awarded grant over two
  consecutive fiscal years.
  6. a) Any such school division receiving funding from a Targeted Extended/Enriched
  School Year and Year-round School grant shall provide an annual progress report to the
  Department of Education that evaluates end of year success of the extended/enriched
  school year or year-round school model implemented as compared to the prior school year
  performance as measured by an appropriate evaluation matrix no later than September 1
  each year.
  b) The Department of Education shall develop such evaluation matrix that would be
  appropriate for a comprehensive evaluation for such models implemented. Further, the
  Department of Education is directed to submit the annual progress reports from the
  participating school divisions and an executive summary of the program's overall status
  and levels of measured success to the Chairs of House Appropriations and Senate Finance
  and Appropriations Committees no later than November 1 each year.
  7. Any funds remaining in this paragraph following grant awards may be disbursed by the
  Department of Education as grants to school divisions to support innovative approaches to
  instructional delivery or school governance models.
  N. Out of this appropriation, $750,000 the first year and $500,000 the second year from
  the general fund is provided through grants or contracts for the cost of fees and financial
  incentives associated with the Teach for America Program to support hiring teachers in
  challenged schools. The additional support in the first year shall be used to grow teacher
  placement in hard-to-staff schools in Northern Virginia and explore an expansion to the
  Hampton Roads area. These funds shall not revert to the general fund at the end of fiscal
  year 2025 but shall be reappropriated for expenditure for the same purpose in fiscal year
  2026. Within the fiscal year, any unobligated balance may be used for the Teacher
  Residency program.
  O. Out of this appropriation, $1,300,000 the first year and $1,300,000 the second year
  from the general fund is provided to the Wolf Trap Foundation for the Performing Arts to
  administer STEM Arts and early literacy programs for preschool, kindergarten, and first
  grade students in Accomack, Albemarle, Arlington, Chesterfield, Fairfax, Henrico,
  Loudoun, Norfolk, Petersburg, Richmond, Suffolk, and Wythe Public Schools. The model
  will also support growth in the 5C skills identified in the Profile of a Virginia Graduate.
  Within this appropriation, funds may support the phase in of services into currently
  unserved divisions in an equitable manner, with a special focus on capacity building and
  establishing new services in Regions 3, 6, or 8. The Wolf Trap Foundation shall work with
  the Department of Education and currently served divisions to determine need and phase
  programs into unserved divisions. The Wolf Trap Foundation shall report annually to the
  Chairs of the House Committee on Education and the Senate Committee on Education and
  Health and the Superintendent of Public Instruction on its activities, including number of
  divisions served, number of students served, number of educators, and number of families
  impacted.
  P. Out of this appropriation, $500,000 the first year and $500,000 the second year from the
  general fund is provided for the Achievable Dream partnership with Newport News
  School Division.
  Q. Out of this appropriation, $2,850,000 the first year and $2,850,000 the second year
  from the general fund is provided for grants for teacher residency partnerships between
  university teacher preparation programs and the Petersburg, Norfolk, and Richmond City
  school divisions and any other university teacher preparation programs and hard-to-staff
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    ITEM 124.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  school divisions to help improve new teacher training and retention for hard-to-staff schools.
  The grants will support a site-specific residency model program for preparation, planning,
  development and implementation, including possible stipends in the program to attract
  qualified candidates and mentors. Applications must be submitted to the Department of
  Education by August 1 each year.
  1. Of this amount, $1,100,000 the first year and $1,100,000 the second year is provided for
  Virginia Commonwealth University to continue and expand a program to support residents in
  partnership with the Richmond Teacher Residency program. Virginia Commonwealth
  University shall include this program in its annual report to the Department of Education,
  pursuant to paragraph Q.2. of this Item.
  2. Partner school divisions shall provide at least one-third of the cost of each program and
  shall provide data requested by the university partner in order to evaluate program
  effectiveness by the mutually agreed upon timelines. Each university partner shall report
  annually, no later than June 30, to the Department of Education on available outcome
  measures, including student performance indicators, as well as additional data needs requested
  by the Department of Education. The Department of Education shall provide, directly to the
  university partners, relevant longitudinal data that may be shared. The Department of
  Education shall consolidate all submissions from the participating university partners and
  school divisions and submit such consolidated annual report to the Chairs of the House
  Appropriations and Senate Finance and Appropriations Committees no later than November 1
  each year.
  R. Out of this appropriation, $60,300 the first year and $60,300 the second year from the
  general fund is provided to the Northern Neck Regional Technical Center to expand the
  workforce readiness education and industry based skills and certification development efforts
  supporting that region in the state. These funds support the Center's programs that serve high
  school students from the surrounding counties of Essex, Lancaster, Northumberland,
  Rappahannock, Westmoreland and Colonial Beach.
  S. Out of this appropriation, $1,250,000 the first year and $1,250,000 the second year from
  the general fund is provided to the Virginia Early Childhood Foundation.
  1. Of this amount, $250,000 the first year and $250,000 the second year is provided for
  general operations of the Foundation's grant program to strengthen the capacity of local
  communities to promote school readiness for young children through innovative regional
  partnerships.
  2. Of this amount, $1,000,000 the first year and $1,000,000 the second year is provided to
  operate a scholarship program to increase the skills of Virginia's early education workforce.
  T. This appropriation includes $500,000 the first year and $500,000 the second year from the
  general fund to support ten competitive grants, not to exceed $50,000 each, for planning the
  implementation of systemic Elementary, Middle, and/or High School Program Innovation by
  either individual school divisions or consortia of school divisions or implementing a plan for
  public pre-kindergarten through Grade 12 School Program Innovation previously approved by
  the Department of Education. The local applicant(s) selected to conduct this systemic
  approach to school reform, in consultation with the Department of Education, will develop
  and plan or implement innovative approaches to engage and to motivate students through
  personalized learning and instruction leading to demonstrated mastery of content, as well as
  skills development of career readiness. Essential elements of school innovation include: (1)
  student centered learning, with progress based on student demonstrated proficiency; (2) 'real-
  world' connections that promote alignment with community work-force needs and emphasize
  transition to college and/or career; and (3) varying models for educator supports and staffing.
  Individual school divisions or consortia will be invited to apply on a competitive basis by
  submitting a grant application that includes descriptions of key elements of innovations, a
  detailed budget, expectations for outcomes and student achievement benefits, evaluation
  methods, and plans for sustainability. The Department of Education will make the final
  determination of which individual school divisions or consortia of divisions will receive the
  year-long planning grant for public pre-kindergarten through Grade 12 School Innovation or a
  grant to implement an Elementary, Middle, and/or High School Program Innovation plan
  previously approved by the Department of Education. Any school division or consortium of
  divisions which desires to apply for this competitive grant must submit a proposal to the
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    ITEM 124.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Department of Education by June 1 preceding the school year in which the planning or
  implementation for systemic school innovation is to take place.
  U. Out of this appropriation, $200,000 the first year and $200,000 the second year from
  the general fund is provided for STEM Competition Team Grants as part of the STEM C
  Competition Team Grant Fund. Grants may not exceed $5,000 each. At least half of this
  appropriation should be provided to public elementary and secondary schools in the
  Commonwealth at which at least 60 percent of students qualify for free or reduced-price
  lunch.
  V. Out of this appropriation, $1,181,975 the first year and $1,181,975 the second year
  from the general fund is provided to support a multi-platform STEM education
  engagement program and research study and other educational programs at the Virginia
  Air & Space Center.
  W. Out of this appropriation, $350,000 the first year and $350,000 the second year from
  the general fund is provided for executive leadership incentives in the Petersburg City
  Public Schools to strengthen the impact of division and school level executive leadership
  on student achievement in the school division. Such incentives may include, but not be
  limited to, supplements to locally funded salaries, deferred salary compensation, bonuses,
  housing and commuting supplements, and professional development supplements. The
  Department of Education shall provide such executive management incentive payments
  directly to the Petersburg City Public Schools accounts pursuant to a Memorandum of
  Understanding entered into between the Board of Education and the Petersburg City
  School Board, which shall cover no less than both years of the biennium and may be
  amended with the consent of both parties. Such Agreement shall include operational and
  student achievement metrics and include provisions for the achievement of such metrics as
  a condition of payment of the incentive funds by the Department of Education. The
  Department of Education shall provide updates on the Agreement to the Chairs of the
  Senate Finance and Appropriations and House Appropriations Committees.
  X. Out of this appropriation, $50,000 the first year and $50,000 the second year from the
  general fund is provided for praxis assistance and Virginia Communication and Literacy
  Assessment assistance for provisionally licensed minority teachers seeking full licensure
  in Virginia. Grants of up to $10,000 shall be awarded to school divisions, teacher
  preparation programs, or nonprofit organizations in all regions of the state to subsidize test
  fees and the cost of tutoring for provisionally licensed minority teachers seeking full
  licensure in Virginia.
  Y. Out of this appropriation, $591,000 the first year and $791,000 the second year from
  the general fund is provided to school divisions to pay for a portion of the vision screening
  of students in kindergarten, grade two or three and grades seven and ten, pursuant to
  Chapter 312, 2017 Session Acts of Assembly. Eligible school divisions may receive the
  state's share of $7.00 for each student reported in average daily membership and enrolled
  in kindergarten, grades three, seven and ten and who has received such vision screening
  test. The Department of Education shall administrator and distribute reimbursements to
  school divisions and the funding shall be prorated if needed, such that the appropriation is
  not exceeded. Prioritization shall be given the schools that would most benefit from state
  assistance in order to provide such vision screening service to students that are eligible for
  free lunch.
  Z. Out of this appropriation, $600,000 the first year and $600,000 the second year from
  the general fund is provided for annual grants of $60,000 to each of the eight regional
  career and technical centers, Winchester Public Schools' Innovation Center and Norfolk
  Public Schools' Norfolk Technical Center, to expand workforce readiness education and
  industry based skills.
  AA. 1. Out of this appropriation, $550,000 the first year and $550,000 the second year
  from the general fund is provided to CodeVA for the development, marketing, and
  implementation of high-quality and effective computer science training and professional
  development activities for public school teachers throughout the Commonwealth for the
  purpose of improving the computer science literacy of all public school students in the
  Commonwealth using the Computer Science Standards of Learning For Virginia Public
  Schools, which were reviewed and endorsed by the Virginia Board of Education in
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    ITEM 124.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  November 2017. The provided funds may be utilized for planning, preparing and materials
  needed for teacher training sessions provided during the biennium.
  2. CodeVA shall report, no later than October 1, each year to the Chairmen of the House
  Education and Senate Education & Health Committees, Secretary of Education and the
  Superintendent of Public Instruction on its activities in the previous year to support computer
  science teacher training and curriculum development, including on collaboration with other
  stakeholders to avoid duplication of efforts.
  BB. To strengthen quality, attract new educators, and reduce turnover in hard-to-serve
  preschool classrooms, $20,000,000 the first year from the general fund shall be used to
  supplement the Early Childhood Educator Incentive created through the Preschool
  Development Grant Birth to Five and in support of the implementation of the Unified
  Measurement and Improvement System, known as VQB5, established pursuant to § 22.1-
  289.05, Code of Virginia. The Virginia Department of Education shall set the specific
  guidelines for the program and funds.
  CC. Out of this appropriation, $250,000 the first year and $250,000 the second year from the
  general fund shall be provided for grants to school divisions for encouraging active-in class,
  remote and hybrid learning for students in pre-kindergarten through the second grade. School
  divisions seeking to apply for this grant shall submit a proposal to the Department of
  Education outlining the intended use of funds and a projected number of students to be
  served. The Department shall establish criteria for awarding these funds. The funds may be
  used to purchase a platform featuring on-demand activities that integrate math and English
  Standards of Learning content into movement-rich activities that can be used at school, home
  and on all devices (i.e. computers, tablets, and phones).
  DD. Out of this appropriation, $1,600,000 the first year and $850,000 the second year from
  the general fund is provided to Blue Ridge PBS for educational outreach programming. These
  funds shall not revert to the general fund at the end of fiscal year 2025 but shall be
  reappropriated for expenditure for the same purpose in fiscal year 2026.
  EE. Out of this appropriation, $1,200,000 the first year and $1,200,000 the second year from
  the general fund is provided to support public-private partnerships between local school
  divisions and the Virginia Alliance of YMCAs to expand student participation opportunities
  in curriculum based learning loss programs through existing summer Power Scholars
  Academies or after school programs in such partnered school divisions.
  FF. Out of this appropriation, $718,957 the first year and $718,957 the second year from the
  general fund is provided to support Career and Technical Education Student Organizations.
  These Student Organizations extend Career and Technical Education in Virginia through
  networks of programs, business and community partnerships, and leadership experiences at
  the school, state, and national levels and provide Virginia students with opportunities to apply
  academic, technical, and employability knowledge and skills necessary in today's workforce.
  GG. Out of this appropriation, $1,950,000 the first year and $1,200,000 the second year from
  the general fund is provided for the Hampton Roads Education Telecommunications
  Association's eMediaVA program for statewide digital content development, online learning,
  and related support services. All digital content produced and delivery of online learning shall
  be determined by July 1 of each year in consultation with division superintendents or their
  designee and shall meet criteria established by the Department of Education, meet or exceed
  applicable Standards of Learning, and be correlated to such state standards. The eMedia VA
  program shall incorporate school divisions' needs for digital content, online learning, teacher
  training, and support services that advance technology integration into the K-12 classroom, as
  well as for additional educational resources that may be made available to school divisions
  throughout the Commonwealth. These funds shall not revert to the general fund at the end of
  the first year but shall be reappropriated for expenditure for the same purpose in the second
  year.
  HH. Out of this appropriation, $1,350,000 the first year and $1,350,000 the second year from
  the general fund is provided to support the advancement of computer science education and
  implementation of the Commonwealth's computer science standards across the public
  education continuum. These funds are intended to provide high quality professional
  development to current and future teachers; create, curate, and disseminate high quality
  37
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  Item Details($)  Appropriations($)
    ITEM 124.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  computer science curriculum, instructional resources, and assessments; support summer
  and after-school computer science related programming for students; and facilitate
  meaningful career exposure and work-based learning opportunities in computer science
  fields for high school students. Funds shall be disbursed through a competitive grant
  process and shall prioritize at-risk students and schools. The Department of Education
  shall develop a process to award these funds in accordance with the provisions of this
  language.
  II. Out of this appropriation, $500,000 the first year and $500,000 the second year from
  the general fund is provided for the Achievable Dream partnership with Virginia Beach
  School Division.
  JJ. Out of this appropriation, $1,657,065 the first year and $1,157,065 the second year
  from the general fund is provided to support Dolly Parton's Imagination Library for Kids
  program. These funds shall not revert to the general fund at the end of fiscal year 2025 but
  shall be reappropriated for expenditure for the same purpose in fiscal year 2026.
  KK. Out of this appropriation, $250,000 the first year and $250,000 the second year from
  the general fund is provided to EduTutorVA to support targeted tutoring to help K-12
  students recover from COVID-19 learning gaps.
  LL. Out of this appropriation, $250,000 the first year and $250,000 the second year is
  provided to the Milk and Cookies (MAC) Children's Program to support expansion of the
  support program for children of parents who are incarcerated.
  MM. Out of this appropriation, $500,000 the first year and $500,000 the second year from
  the general fund is provided to Chesterfield County Public Schools to assist with
  establishing a recovery high school as a year-round high school with enrollment open to
  any high school student residing in Superintendent's Region 1 who is in the early stages of
  recovery from substance use disorder or dependency. Students in the high school shall be
  provided academic, emotional, and social support needed to progress toward earning a
  high school diploma and reintegrating into a traditional high school setting. Chesterfield
  County Public Schools shall submit a report regarding the planning, implementation, and
  outcomes of the recovery high school to the Chairs of the House Appropriations
  Committee and Senate Finance and Appropriations Committee by December 1 each year.
  NN. Out of this appropriation, $240,000 the first year and $240,000 the second year from
  the general fund is provided for a Grown Your Own Teacher program to provide grants to
  low-income high school graduates who attended an institution of higher education in the
  Commonwealth and subsequently teach in high-need public schools in the school
  divisions from which they graduated high school. The Department of Education shall
  establish a process by which school divisions may apply for grants from the Grow Your
  Own Teacher Program to provide a grant of $7,500 per academic year for up to four years
  for individuals who (i) graduated from a public high school in the local school division;
  (ii) were eligible for free lunch during the individual's attendance at a public high school
  in the local school division; and (iii) teach, within one year of graduating from an
  institution of higher education in the Commonwealth for a period of at least four years, at
  a public school at which at least 50 percent of students qualify for free lunch in the school
  division from which such individual graduated high school. In developing such process,
  the Department will ensure that at least one school division within each of the eight
  superintendent regions, applying for such grants, be awarded prior to awarding grants to
  multiple school divisions within a single superintendent region. Each superintendent
  region shall be permitted to apply for up to four tuition grant awards. The Department is
  authorized to offer and award any remaining unallotted awards to other applying school
  divisions within a superintendent region. In the event that any nominee fails or refuses to
  comply with the teaching commitment, no grant shall be disbursed to the nominee.
  OO. Out of this appropriation, $375,000 the first year and $125,000 the second year from
  the general fund is provided for the Virginia Holocaust Museum. These funds will support
  the Alexander Lebenstein Teacher Education Institute and expand the professional
  development of educators across the Commonwealth and the advancement of experiential
  learning opportunities for K-12 students. Additionally, these funds are intended to support
  high-quality, off-site learning experiences, educational content, and exhibitions for
  students to engage in educational content, aligned to the Virginia Standards of Learning,
  38
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  Item Details($)  Appropriations($)
    ITEM 124.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  related to the history of the Holocaust, hate crimes and other genocides. These funds shall not
  revert to the general fund at the end of fiscal year 2025 but shall be reappropriated for
  expenditure for the same purpose in fiscal year 2026.
  PP. Out of this appropriation, $630,000 the first year from the general fund is provided for
  Reach Virginia to provide teacher retention services to Virginia public school divisions.
  QQ. Out of this appropriation, $90,000 the first year and $90,000 the second year from the
  general fund is provided to Newport News Public Schools to expand the Soundscapes
  program and increase student participation in intensive music study and ensemble
  performances.
  RR. Out of this appropriation, $306,100 the first year and $306,100 the second year from the
  general fund is allocated for the Department of Education to provide grants of no more than
  $30,000 each for local school divisions that have applied for such funds for the sole purpose
  of providing financial incentives to provisionally licensed teachers teaching students enrolled
  in the Virginia Preschool Initiative or other publicly-funded preschool programs operated by
  the school division and who are actively engaged in coursework and professional
  development, toward achieving the required degree and license that satisfy the licensure
  requirements reflected in § 22.1-299, Code of Virginia. School divisions must submit
  applications to the Department of Education by December 1 of each year. Priority for
  awarding grants shall be given to hard-to-staff schools and schools with the highest number of
  provisionally licensed teachers teaching students enrolled in the Virginia Preschool Initiative
  or other publicly-funded preschool programs operated by the school division. The Department
  of Education shall develop the application process to be provided to school divisions that have
  provisionally licensed preschool teachers employed and are teaching students enrolled in the
  Virginia Preschool Initiative or other publicly-funded preschool programs operated by the
  school division.
  SS. Out of this appropriation, $50,000 the first year and $50,000 the second year from the
  general fund is provided to Prince William County Public Schools for a Public Safety
  Training Center at Unity Reed High School, which prepares students for a career in fire
  fighting.
  TT. Out of this appropriation, $1,000,000 the first year and $250,000 the second year from the
  general fund is provided for PBS Appalachia for educational outreach programming. These
  funds shall not revert to the general fund at the end of fiscal year 2025 but shall be
  reappropriated for expenditure for the same purpose in fiscal year 2026.
  UU. 1. Out of this appropriation, $1,000,000 the first year and $500,000 the second year from
  the general fund is provided to support the establishment of year-round high schools that are
  open to any student residing in the defined region who is in the early stages of recovery from
  substance use disorder or dependency. Students in the high school shall be provided
  academic, emotional, and social support needed to progress toward earning a high school
  diploma and reintegrating into a traditional high school setting. School divisions and regions
  are encouraged to use their Opioid Abatement Authority City/County Settlement Funds to
  support operations of the high schools.
  2. Of this amount, $500,000 the first year and $250,000 the second year is provided to
  Loudoun County Public Schools to support the establishment of a school for students residing
  in Superintendent's Region 4.
  3. Of this amount, $500,000 the first year and $250,000 the second year is provided to
  Virginia Beach Public Schools to support the establishment of a school for students residing
  in Superintendent's Region 2.
  4. Loudoun County and Virginia Beach Public Schools shall submit a report regarding the
  planning, implementation, and outcomes of the recovery high school to the Chairs of the
  House Appropriations Committee and Senate Finance and Appropriations Committee by
  December 1 each year.
  VV. Out of this appropriation, $6,000,000 the first year from the general fund is provided to
  support public school career and technical education initiatives. Of this amount, $2,000,000 is
  provided to support career and technical education programs in Portsmouth; $2,000,000 is
  39
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  Item Details($)  Appropriations($)
    ITEM 124.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  provided to support career and technical education programs in Chesapeake; $1,000,000 is
  provided to support career and technical education programs in Fredericksburg; and
  $1,000,000 is provided to support career and technical education programs in Stafford
  County. Funds shall be used only for equipment.
  WW. Out of this appropriation, $150,000 the first year and $150,000 the second year from
  the general fund is provided to Reck League to support students in underperforming
  schools in the Hampton Roads region.
  XX. Out of this appropriation, $3,000,000 the first year and $2,000,000 the second year
  from the general fund is provided to supplement the 21st Century Community Learning
  Centers Program in Item 126. These funds shall be awarded to community-based
  organizations partnering with school divisions for afterschool, before-school, and summer
  learning programs to provide additional instructional opportunities to combat learning loss
  for school-age children attending high-poverty, low-performing schools. The Department
  may contract with the Virginia Partnership for Out-of-School Time to assist applicants
  with obtaining the required licensure and to provide best practices and support to grantees.
  YY. Out of this appropriation, $200,000 the first year and $200,000 the second year from
  the general fund is provided for the American Civil War Museum to support the
  advancement of experiential learning opportunities for K-12 students. These funds are
  intended to support free high-quality, evidence-based learning experiences, educational
  content, and exhibitions for students, educators and parents to engage in educational
  content, aligned to the Virginia Standards of Learning.
  ZZ. Out of this appropriation, $160,000 the first year from the general fund is designated
  for the Pittsylvania County Public Library Gretna Branch.
  AAA. Out of this appropriation, $5,000,000 the first year and $2,500,000 the second year
  from the general fund is provided to support Community Schools Development and
  Implementation Planning Grants. The Department shall award grants to school divisions
  and Communities in Schools and its affiliates to support the development and
  implementation of community schools initiatives that provide a framework for integrated
  student supports, expanded and enriched learning time and opportunities, active family
  and community engagement, and collaborative leadership practices. These funds shall not
  revert to the general fund at the end of fiscal year 2025 but shall be reappropriated for
  expenditure for the same purpose in fiscal year 2026.
  BBB. Out of this appropriation, $750,000 the first year and $900,000 the second year from
  the general fund is provided for the Advanced Placement (AP), International
  Baccalaureate (IB), and Cambridge Assessment International Education Exam Fee
  Reduction Program (the Program) for the purpose of covering all but $20 of the last dollar
  cost of applicable fees associated with taking an AP, IB or Cambridge examination for any
  public high school student who is eligible to receive free or reduced price lunch after all
  other applicable discounts and financial assistance are taken into account. For students
  attending a school participating in the Community Eligibility Provision, eligibility shall be
  based on an individual student's family income. The Program shall be administered by the
  Department. Pursuant to the Program, the Department shall annually transfer to each local
  school board a grant in a sum sufficient to cover such portion of such fees for each such
  student in the local school division. The Department shall establish such rules, policies,
  and procedures as it deems necessary or appropriate for the administration of the Program,
  including an annual process whereby each local school board demonstrates its grant
  funding needs. Each local school board shall provide notification to eligible students and
  parents of the availability of this assistance at the time of enrollment in a course associated
  with such examination and at the time of test registration of the opportunity for the student
  to take an AP, IB or Cambridge examination at such reduced fee.
  CCC. Out of this appropriation, $250,000 the first year and $250,000 the second year from
  the general fund is provided for the Critical National Security Language Grant program.
  The department shall create and publish an application and process for local school
  divisions to apply for the existing funding by October 1, 2024.
  DDD. Out of this appropriation, $500,000 the first year and $300,000 the second year
  from the general fund is provided for the Community Builders Pilot Program in the cities
  40
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  Item Details($)  Appropriations($)
    ITEM 124.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  of Roanoke and Petersburg. Funds shall be distributed among the two localities based on prior
  year final average daily membership.
  EEE. Out of this appropriation, $700,000 the first year and $700,000 the second year from the
  general fund is provided to the Black History Museum and Cultural Center of Virginia to
  support the advancement of experiential learning opportunities for K-12 students and their
  communities.
  FFF. Out of this appropriation, $600,000 the first year and $600,000 the second year from the
  general fund is provided to establish the Connect Plus program to support wraparound
  services for youth and families in the St. Luke community of Henrico County through
  targeted curriculum and programming.
  GGG. Out of this appropriation, $100,000 the first year from the general fund is provided to
  support the New Chesapeake Men for Progress Education Foundation to provide mentoring
  for young men in the community and enhanced services for underserved youth. These funds
  shall not revert to the general fund at the end of fiscal year 2025 but shall be reappropriated
  for expenditure for the same purpose in fiscal year 2026.
  HHH. Out of this appropriation, $1,000,000 the first year from the general fund is provided to
  the Virginia Alliance of Boys and Girls Clubs to expand student access to Clubs and extend
  traditional learning beyond the traditional school day with a focus on workforce development,
  mental health and wellness, safety, and leadership. These funds shall not revert to the general
  fund at the end of fiscal year 2025 but shall be reappropriated for expenditure for the same
  purpose in fiscal year 2026.
  III. Out of this appropriation, $250,000 the first year from the general fund is provided to
  support the My Life Coach Academy and the UBU 100 Program in the City of Richmond to
  provide advanced educational opportunities and career readiness through comprehensive
  support and resources provided to at-risk youth. These funds shall not revert to the general
  fund at the end of the first year but shall be reappropriated for expenditure for the same
  purpose in the second year.
  JJJ. Out of this appropriation, $500,000 the first year from the general fund is provided to
  Opportunity Scholars to support program expansion in Hampton Roads and Northern
  Virginia. These funds shall not revert to the general fund at the end of the first year but shall
  be reappropriated for expenditure for the same purpose in the second year.
  KKK. Out of this appropriation, $500,000 the first year from the general fund is provided to
  the Greater Peninsula C.A.R.E.S. Learning Recovery Program to support students
  experiencing significant learning loss in Hampton and Newport News with a focus on
  academic recovery, social development, and equitable access to educational resources. These
  funds shall not revert to the general fund at the end of the first year but shall be reappropriated
  for expenditure for the same purpose in the second year.
  LLL. Out of this appropriation, $250,000 the second year from the general fund is provided
  for the Virginia Leads Innovation Network (VaLIN) to enable the network to support a
  regional center model supporting the needs of Virginia's educators, students, and families.
  MMM. Out of this appropriation, $500,000 the first year from the general fund is provided to
  support the Diplomas for All Program at the Goodwill Industries of the Valley's Excel Center
  to help adults earn high school diplomas and workforce credentials. These funds shall not
  revert to the general fund at the end of fiscal year 2025 but shall be reappropriated for
  expenditure for the same purpose in fiscal year 2026.
  NNN. Out of this appropriation, $500,000 the first year from the general fund is provided to
  the YMCA of South Hampton Roads to support youth programming.
  OOO. Out of this appropriation, $1,000,000 the first year from the general fund is provided to
  Mathews County Public Schools to support asbestos removal from a middle school.
  PPP. Out of this appropriation, $750,000 the first year from the general fund is provided to
  support the Children's Museum of Richmond's educational programming. These funds shall
  not revert to the general fund at the end of fiscal year 2025 but shall be reappropriated for
  expenditure for the same purpose in fiscal year 2026.
  41
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  Item Details($)  Appropriations($)
    ITEM 124.  First Year    Second Year       First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
     125.       State Education Assistance Programs (17800)  $10,581,610,874 $10,796,667,828
  $10,754,980,721
  Standards of Quality for Public Education (SOQ)
  (17801)  $8,700,123,680     $9,031,364,659
  $8,831,787,983
  Financial Incentive Programs for Public Education
  (17802)  $876,897,932    $801,751,774
  $911,294,138
  Financial Assistance for Categorical Programs
  (17803)  $60,765,012     $64,216,050
  $64,271,740
  Distribution of Lottery Funds (17805)  $943,824,250    $899,335,345
  $947,626,860
  Fund Sources: General  $9,385,271,394     $9,609,817,253
  $9,519,838,631
  Special  $1,020,000       $1,020,000
  Commonwealth Transportation  $1,495,230       $1,495,230
  Trust and Agency  $993,824,250   $1,074,335,345
  $1,122,626,860
  Dedicated Special Revenue  $200,000,000     $110,000,000
  Authority: Standards of Quality for Public Education (SOQ) (17801): Article VIII, Section
  2, Constitution of Virginia; Chapter 667, Acts of Assembly, 1980; §§ 22.1-176 through
  22.1-198, 22.1-199.1, 22.1-199.2, 22.1-213 through 22.1-221, 22.1-227 through 22.1-237,
  22.1-253.13:1 through 22.1-253.13:8, 22.1-254.01, Code of Virginia; Title 51.1, Chapters
  1, 5, 6.2, 7, and 14, Code of Virginia; P.L. 91-230, as amended; P.L. 93-380, as amended;
  P.L. 94-142, as amended; P.L. 98-524, as amended, Federal Code.
  Financial Incentive Programs for Public Education (17802): §§ 22.1-24, 22.1-289.1
  through 22.1-318, Code of Virginia; P.L. 79-396, as amended; P.L. 89-10, as amended;
  P.L. 89-642, as amended; P.L. 108-265, as amended; Title II P.L. 99-159, as amended,
  Federal Code.
  Financial Assistance for Categorical Programs (17803): Discretionary Inclusion; Treaty of
  1677 between Virginia and the Indians; §§ 22.1-3.4, 22.1-108, 22.1-199 through 22.1-
  212.2:2, 22.1-213 through 22.1-221, 22.1-223 through 22.1-237, 22.1-254, Code of
  Virginia; P.L. 89-10, as amended; P.L. 91-230, as amended; P.L. 93-380, as amended;
  P.L. 94-142, as amended; P.L. 94-588; P.L. 95-561, as amended; P.L. 98-211, as
  amended; P.L. 98-524, as amended; P.L. 99-570; P.L. 100-297, as amended; P.L. 102-73,
  as amended; P.L. 105-220, as amended, Federal Code.
  Distribution of Lottery Funds (17805): §§ 58.1-4022 and 58.1-4022.1, Code of Virginia
  Appropriation Detail of Education
  Assistance Programs (17800)
  Standards of Quality (17801)  FY 2025  FY 2026
  Basic Aid  $4,556,200,098  $4,693,027,373
  $4,621,678,202
  Sales Tax  $1,755,500,000  $1,821,500,000
  $1,816,500,000
  Textbooks  $108,201,736  $108,020,593
  $106,648,385
  Vocational Education  $94,910,721  $94,639,010
  $93,364,410
  Gifted Education  $44,034,788  $43,987,798
  $43,427,143
  Special Education  $528,261,934  $527,339,469
  $520,293,920
  Special Education Add-On  $0  $52,782,732
  $51,871,196
  42
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  Item Details($)  Appropriations($)
    ITEM 125.  First Year     Second Year   First Year    Second Year
  FY2025  FY2026      FY2025  FY2026
  At-Risk Add-On (split funded)  $566,390,188  $628,692,979
  $555,844,420
  English Learner Teachers  $213,236,555  $228,451,867
  $203,485,918
  VRS Retirement (includes RHCC)  $535,427,199  $534,586,237
  $527,723,760
  Social Security  $249,159,066  $248,722,333
  $245,529,141
  Group Life  $15,357,012  $15,322,436
  $15,125,842
  Remedial Summer School  $33,444,383  $34,291,832
  $30,295,646
  Total  $8,700,123,680  $9,031,364,659
  $8,831,787,983
  Incentive Programs (17802)
  Compensation Supplement  $178,824,244  $376,360,450
  $368,473,990
  Governor's Schools  $28,543,740  $29,761,333
  $30,903,928
  Clinical Faculty  $318,750  $318,750
  Career Switcher Mentoring Grants  $279,983  $279,983
  Special Education - Endorsement  $437,186  $437,186
  Program
  Special Education – Vocational Education  $200,089  $200,089
  Virginia Workplace Readiness Skills  $308,655  $308,655
  Assessment
  Math/Reading Instructional Specialists  $1,834,538  $1,834,538
  Initiative
  Early Reading Specialists Initiative  $3,476,790  $3,476,790
  Breakfast After the Bell Incentive  $1,074,000  $1,074,000
  School Meals Expansion  $4,100,000  $4,100,000
  Alleghany County - Covington City  $600,000  $0
  School Division Consolidation Incentive
  School Construction Assistance Program  $250,000,000  $110,000,000
  Supplemental Payment in Lieu of Sales  $272,500,000  $273,600,000
  Tax on Food and Personal Hygiene
  Products
  Bonus Payment  $134,399,957  $0
  $116,286,229
  Total  $876,897,932  $801,751,774
  $911,294,138
  Categorical Programs (17803)
  Adult Education  $1,051,800  $1,051,800
  Adult Literacy  $2,480,000  $2,480,000
  American Indian Treaty Commitment  $54,383  $61,202
  $65,120
  School Lunch Program  $5,801,932  $5,801,932
  Special Education - Homebound  $5,634,204  $5,690,550
  $5,742,322
  Special Education - Jails  $4,356,532  $4,560,383
  Special Education - State Operated  $41,386,161  $44,570,183
  Programs
  43
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  Item Details($)  Appropriations($)
    ITEM 125.  First Year    Second Year      First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Total  $60,765,012  $64,216,050
  $64,271,740
  Lottery Funded Programs (17805)
  At-Risk Add-On (split funded)  $274,024,247  $242,477,896
  $297,193,134
  Foster Care  $12,193,067  $12,281,254
  $12,353,227
  Special Education - Regional Tuition  $95,778,547  $99,778,547
  Early Reading Intervention  $39,834,324  $39,775,832
  $47,453,393
  Mentor Teacher  $1,000,000  $1,000,000
  K-3 Primary Class Size Reduction  $156,375,875  $163,084,946
  $150,917,871
  School Breakfast Program  $11,456,532  $12,619,194
  $11,132,810
  SOL Algebra Readiness  $18,807,402  $18,767,429
  $18,802,957
  Infrastructure and Operations Per Pupil  $301,361,275  $276,361,278
  Funds  $275,251,492
  Regional Alternative Education  $10,682,684  $10,949,677
  $11,347,584
  Individualized Student Alternative  $2,247,581  $2,247,581
  Education Program (ISAEP)
  Career and Technical Education –  $11,681,872  $11,681,872
  Categorical
  Project Graduation  $1,387,240  $1,387,240
  Race to GED (NCLB/EFAL)  $2,410,988  $2,410,988
  Path to Industry Certification  $1,831,464  $1,831,464
  (NCLB/EFAL)
  Supplemental Basic Aid  $1,001,152  $930,147
  $1,086,700
  Supplemental Support for Accomack  $1,750,000  $1,750,000
  and Northampton
  Total  $943,824,250  $899,335,345
  $947,626,860
  Technology – VPSA  $55,764,000  $55,924,800
  $55,582,000
  Security Equipment - VPSA  $12,000,000  $12,000,000
  Payments out of the above amounts shall be subject to the following conditions:
  A. Definitions
  1. "March 31 Average Daily Membership," or "March 31 ADM" - The responsible school
  division's average daily membership for grades K-12 including (1) handicapped students
  ages 5-21 and (2) students for whom English is a second language who entered school for
  the first time after reaching their twelfth birthday, and who have not reached twenty-two
  years of age on or before August 1 of the school year, for the first seven (7) months (or
  equivalent period) of the school year through March 31 in which state funds are
  distributed from this appropriation. Preschool and postgraduate students shall not be
  included in March 31 ADM.
  a. School divisions shall take a count of September 30 fall membership and report this
  information to the Department of Education no later than October 15 of each year.
  44
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  Item Details($)  Appropriations($)
    ITEM 125.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  b. Except as otherwise provided herein, by statute, or by precedent, all appropriations to the
  Department of Education shall be calculated using March 31 ADM unadjusted for half-day
  kindergarten programs, estimated at 1,214,292.30 the first year and 1,213,645.50
  1,196,459.59 the second year. March 31 ADM for half-day kindergarten shall be adjusted at
  85 percent.
  c. Students who are either (i) enrolled in a nonpublic school or (ii) receiving home instruction
  pursuant to § 22.1-254.1 and who are enrolled in a public school on less than a full-time basis
  in any mathematics, science, English, history, social science, vocational education, health
  education or physical education, fine arts or foreign language course, or receiving special
  education services required by a student's individualized education plan, shall be counted in
  the funded fall membership and March 31 ADM of the responsible school division. Each
  course shall be counted as 0.25, up to a cap of 0.5 of a student.
  d. Students enrolled in an Individualized Student Alternative Education Program (ISAEP)
  pursuant to § 22.1-254 E shall be counted in the March 31 Average Daily Membership of the
  responsible school division. School divisions shall report these students separately in their
  March 31 reports of Average Daily Membership.
  2. "Standards of Quality" - Operations standards for grades kindergarten through 12 as
  prescribed by the Board of Education subject to revision by the General Assembly.
  3.a. "Basic Operation Cost" - The cost per pupil, including provision for the number of
  instructional personnel required by the Standards of Quality for each school division with a
  minimum ratio of 51 professional personnel for each 1,000 pupils or proportionate number
  thereof, in March 31 ADM for the same fiscal year for which the costs are computed, and
  including provision for driver, gifted, occupational-vocational, and special education, library
  materials and other teaching materials, teacher sick leave, general administration, division
  superintendents' salaries, free textbooks (including those for free and reduced price lunch
  pupils), operation and maintenance of school plant, transportation of pupils, instructional
  television, professional and staff improvement, remedial work, fixed charges and other costs
  in programs not funded by other state and/or federal aid.
  4.a. "Composite Index of Local Ability-to-Pay" - An index figure computed for each locality.
  The composite index is the sum of 2/3 of the index of wealth per pupil in unadjusted March
  31 ADM reported for the first seven (7) months of the 2021-2022 school year and 1/3 of the
  index of wealth per capita (population estimates for 2021 as determined by the Weldon
  Cooper Center for Public Service of the University of Virginia) multiplied by the local
  nominal share of the costs of the Standards of Quality of 0.45 in each year. The indices of
  wealth are determined by combining the following constituent index elements with the
  indicated weighting: (1) true values of real estate and public service corporations as reported
  by the State Department of Taxation for the calendar year 2021 - 50 percent; (2) adjusted
  gross income for the calendar year 2021 as reported by the State Department of Taxation - 40
  percent; (3) the sales for the calendar year 2021 which are subject to the state general sales
  and use tax, as reported by the State Department of Taxation - 10 percent. Each constituent
  index element for a locality is its sum per March 31 ADM, or per capita, expressed as a
  percentage of the state average per March 31 ADM, or per capita, for the same element. A
  locality whose composite index exceeds 0.8000 shall be considered as having an index of
  0.8000 for purposes of distributing all payments based on the composite index of local ability-
  to-pay. Each constituent index element for a locality used to determine the composite index of
  local ability-to-pay for the current biennium shall be the latest available data for the specified
  official base year provided to the Department of Education by the responsible source agencies
  no later than November 15, 2023.
  b. For any locality whose total calendar year 2021 Virginia Adjusted Gross Income is
  comprised of at least 3 percent or more by nonresidents of Virginia, such nonresident income
  shall be excluded in computing the composite index of ability-to-pay. The Department of
  Education shall compute the composite index for such localities by using adjusted gross
  income data which exclude nonresident income, but shall not adjust the composite index of
  any other localities. The Department of Taxation shall furnish to the Department of Education
  such data as are necessary to implement this provision.
  c.1) Notwithstanding the funding provisions in § 22.1-25 D, Code of Virginia, additional state
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  funding for future consolidations shall be as set forth in future Appropriation Acts.
  2) In the case of the consolidation of Bedford County and Bedford City school divisions,
  the fifteen year period for the application of a new composite shall apply beginning with
  the fiscal year that starts on July 1, 2013. The composite index established by the Board of
  Education shall equal the lowest composite index that was in effect prior to July 1, 2013,
  of any individual localities involved in such consolidation, and this index shall remain in
  effect for a period of fifteen years, unless a lower composite index is calculated for the
  combined division through the process for computing an index as set forth above.
  3) If the composite index of a consolidated school division is reduced during the course of
  the fifteen year period to a level that would entitle the school division to a lower interest
  rate for a Literary Fund loan than it received when the loan was originally released, the
  Board of Education shall reduce the interest rate of such loan for the remainder of the
  period of the loan. Such reduction shall be based on the interest rate that would apply at
  the time of such adjustment. This rate shall remain in effect for the duration of the loan
  and shall apply only to those years remaining to be paid.
  d. When it is determined that a substantial error exists in a constituent index element, the
  Department of Education will make adjustments in funding for the current school year
  only in the division where the error occurred. The composite index of any other locality
  shall not be changed as a result of the adjustment. No adjustment during the biennium will
  be made as a result of updating of data used in a constituent index element.
  e. In the event that any school division consolidates two or more small schools, the
  division shall continue to receive Standards of Quality funding and provide for the
  required local expenditure for a period of five years as if the schools had not been
  consolidated. Small schools are defined as any elementary, middle, or high school with
  enrollment below 200, 300 and 400 students, respectively.
  5. "Required Local Expenditure for the Standards of Quality" - The locality's share based
  on the composite index of local ability-to-pay of the cost required by all the Standards of
  Quality minus its estimated revenues from the state sales and use tax dedicated to public
  education, and those sales tax revenues transferred to the general fund from the Public
  Education Standards of Quality/Local Real Estate Property Tax Relief Fund and
  appropriated in this Item, both of which are returned on the basis of the latest yearly
  estimate of school age population provided by the Weldon Cooper Center for Public
  Service, as specified in this Item, collected by the Department of Education and
  distributed to school divisions in the fiscal year in which the school year begins.
  6. "Required Local Match" - The locality's required share of program cost based on the
  composite index of local ability-to-pay for all Lottery and Incentive programs, where
  required, in which the school division has elected to participate in a fiscal year.
  7. "Planning District Eight" - The nine localities which comprise Planning District Eight
  are Arlington County, Fairfax County, Loudoun County, Prince William County,
  Alexandria City, Fairfax City, Falls Church City, Manassas City, and Manassas Park City.
  8. "State Share of the Standards of Quality" - The state share of the Standards of Quality
  (SOQ) shall be equal to the total funded SOQ cost for a school division less the school
  division's estimated revenues from the state sales and use tax dedicated to public education
  based on the latest yearly estimate of school age population provided by the Weldon
  Cooper Center for Public Service, adjusted for the state's share of the composite index of
  local ability to pay.
  9. Entitlements under this Item that use school-level or division-level Free Lunch
  eligibility percentages to determine the entitlement amounts are based on the most recent
  data available as of the biennial rebenchmarking calculations made for the current
  biennium. For schools that participate in the Community Eligibility Provision program,
  such entitlements are based on the most recent Free Lunch eligibility data available prior
  to that school's enrollment in the Community Eligibility Provision program.
  10. In the event that the general fund appropriations in this Item are not sufficient to meet
  the entitlements payable to school divisions pursuant to the provisions of this Item, the
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  Department of Education is authorized to transfer any available general fund funds between
  these Items to address such insufficiencies. If the total general fund appropriations after such
  transfers remain insufficient to meet the entitlements of any program funded with general
  fund dollars, the Department of Education is authorized to prorate such shortfall
  proportionately across all of the school divisions participating in any program where such
  shortfall occurred.
  11. The Department of Education is directed to apply a cap on inflation rates in the same
  manner prescribed in § 51.1-166.B, Code of Virginia, when updating funding to school
  divisions during the biennial rebenchmarking process.
  12. Notwithstanding any other provision in statute or in this Item, the Department of
  Education is directed to combine the end-of-year Average Daily Membership (ADM) for
  those school divisions who have partnered together as a fiscal agent division and a contractual
  division for the purposes of calculating prevailing costs included in the Standards of Quality
  (SOQ).
  13. Notwithstanding any other provision in statute or in this Item, the Department of
  Education is directed to include zeroes in the linear weighted average calculation of support
  non-personal costs for the purpose of calculating prevailing costs included in the Standards of
  Quality (SOQ).
  14. Notwithstanding any other provision in statute or in this Item, the Department of
  Education is directed to eliminate the corresponding and appropriate object code(s) related to
  reported travel expenditures included the linear weighted average non-personal cost
  calculations for the purpose of calculating prevailing costs included in the Standards of
  Quality (SOQ).
  15. Notwithstanding any other provision in statute or in this Item, the Department of
  Education is directed to eliminate the corresponding and appropriate object code(s) related to
  reported leases and rental and facility expenditures included the linear weighted average non-
  personal cost calculations for the purpose of calculating prevailing costs included in the
  Standards of Quality (SOQ).
  16. Notwithstanding any other provision in statute or in this Item, the Department of
  Education is directed to fund transportation costs using a 15 year replacement schedule, which
  is the national standard guideline, for school bus replacement schedule for the purpose of
  calculating funded transportation costs included in the Standards of Quality (SOQ).
  17. To provide additional flexibility, notwithstanding the provisions of § 22.1-79.1, Code of
  Virginia, any school division that was granted a waiver regarding the opening date of the
  school year for the 2011-2012 school year under the good cause requirements shall continue
  to be granted a waiver for the 2024-2025 school year and the 2025-2026 school year.
  B. General Conditions
  1. The Standards of Quality cost in this Item related to fringe benefits shall be limited for
  instructional staff members to the employer's cost for a number not exceeding the number of
  instructional positions required by the Standards of Quality for each school division and for
  their salaries at the statewide prevailing salary levels as printed below.
  Instructional Position  First Year Salary  Second Year Salary
  Elementary Teachers  $61,514  $61,514
  Elementary Assistant Principals  $84,990  $84,990
  Elementary Principals  $105,277  $105,277
  Secondary Teachers  $65,655  $65,655
  Secondary Assistant Principals  $91,978  $91,978
  Secondary Principals  $115,271  $115,271
  Instructional Aides  $24,673  $24,673
  a.1) Payment by the state to a local school division shall be based on the state share of fringe
  benefit costs of 55 percent of the employer's cost distributed on the basis of the composite
  index.
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  2) A locality whose composite index exceeds 0.8000 shall be considered as having an
  index of 0.8000 for purposes of distributing fringe benefit funds under this provision.
  3) The state payment to each school division for retirement, social security, and group life
  insurance costs for non-instructional personnel is included in and distributed through
  Basic Aid.
  b. Payments to school divisions from this Item shall be calculated using March 31
  Average Daily Membership adjusted for half-day kindergarten programs.
  c. Payments for health insurance fringe benefits are included in and distributed through
  Basic Aid.
  2. Each locality shall offer a school program for all its eligible pupils which is acceptable
  to the Department of Education as conforming to the Standards of Quality program
  requirements.
  3. In the event the statewide number of pupils in March 31 ADM results in a state share of
  cost exceeding the general fund appropriation in this Item, the locality's state share of
  Basic Aid shall be reduced proportionately so that this general fund appropriation will not
  be exceeded. In addition, the required local share of Basic Aid shall also be reduced
  proportionately to the reduction in the state's share.
  4. The Department of Education shall make equitable adjustments in the computation of
  indices of wealth and in other state-funded accounts for localities affected by annexation,
  unless a court of competent jurisdiction makes such adjustments. However, only the
  indices of wealth and other state-funded accounts of localities party to the annexation will
  be adjusted.
  5. In the event that the actual revenues from the state sales and use tax dedicated to public
  education and those sales tax revenues transferred to the general fund from the Public
  Education Standards of Quality/Local Real Estate Property Tax Relief Fund and
  appropriated in this Item (both of which are returned on the basis of the latest yearly
  estimate of school age population provided by the Weldon Cooper Center for Public
  Service) for sales in the fiscal year in which the school year begins are different from the
  number estimated as the basis for this appropriation, the estimated state sales and use tax
  revenues shall not be adjusted.
  6. This appropriation shall be apportioned to the public schools with guidelines established
  by the Department of Education consistent with legislative intent as expressed in this act.
  7.a. Appropriations of state funds in this Item include the number of positions required by
  the Standards of Quality. This Item includes a minimum of 51 professional instructional
  positions and aide positions (C 5); Education of the Gifted, 1.0 professional instructional
  position (C 6); Occupational-Vocational Education Payments and Special Education
  Payments; a minimum of 6.0 professional instructional positions and aide positions (C 7
  and C 8) for each 1,000 pupils in March 31 ADM each year in support of the current
  Standards of Quality.
  b. No actions provided in this section signify any intent of the General Assembly to
  mandate an increase in the number of instructional personnel per 1,000 students above the
  numbers explicitly stated in the preceding paragraph.
  c. Appropriations in this Item include programs supported in part by transfers to the
  general fund from the Public Education Standards of Quality/Local Real Estate Property
  Tax Relief Fund pursuant to Part 3 of this Act. These transfers combined together with
  other appropriations from the general fund in this Item funds the state's share of the
  following revisions to the Standards of Quality pursuant to Chapters 939 & 955 of the
  Acts of Assembly of 2004: five elementary resource teachers per 1,000 students; one
  support technology position per 1,000 students; one instructional technology position per
  1,000 students; and a full daily planning period for teachers at the middle and high school
  levels in order to relieve the financial pressure these education programs place on local
  real estate taxes.
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  d. To provide flexibility, school divisions may use the state and local funds for instructional
  technology resource teachers required by the Standards of Quality to employ a data
  coordinator position, an instructional technology resource teacher position, or a data
  coordinator/instructional resource teacher blended position. The data coordinator position is
  intended to serve as a resource to principals and classroom teachers in the area of data
  analysis and interpretation for instructional and school improvement purposes, as well as for
  overall data management and administration of state assessments. School divisions using
  these SOQ funds in this manner shall only employ instructional personnel licensed by the
  Board of Education.
  e. To provide flexibility in the provision of reading intervention services, school divisions
  may use the state Early Reading Intervention initiative funding provided from the Lottery
  Proceeds Fund and the required local matching funds to employ reading specialists to provide
  the required reading intervention services. School divisions using the Early Reading
  Intervention Initiative funds in this manner shall only employ instructional personnel licensed
  by the Board of Education.
  f. To provide flexibility in the provision of mathematics intervention services, school
  divisions may use the state Standards of Learning Algebra Readiness initiative funding
  provided from the Lottery Proceeds Fund and the required local matching funds to employ
  mathematics teacher specialists to provide the required mathematics intervention services.
  School divisions using the Standards of Learning Algebra Readiness initiative funding in this
  manner shall only employ instructional personnel licensed by the Board of Education.
  g. Notwithstanding the provisions of subsection H 1 of § 22.1-253.13:2 of the Code of
  Virginia, each local school board shall employ, at a minimum, one full-time principal in each
  elementary school.
  h. Notwithstanding the provisions of subsection G of § 22.1-253.13:2 of the Code of Virginia,
  school boards may employ other staff such as reading coaches or other instructional staff who
  are working towards obtaining the training and licensure requirements necessary to fulfill the
  reading specialist staffing standards.
  8.a.1) Pursuant to § 22.1-97, Code of Virginia, the Department of Education is required to
  make calculations at the start of the school year to ensure that school divisions have
  appropriated adequate funds to support their estimated required local expenditure for the
  corresponding state fiscal year. In an effort to reduce the administrative burden on school
  divisions resulting from state data collections, such as the one needed to make the
  aforementioned calculations, the requirements of § 22.1-97, Code of Virginia, pertaining to
  the adequacy of estimated required local expenditures, shall be satisfied by signed
  certification by each division superintendent at the beginning of each school year that
  sufficient local funds have been budgeted to meet all state required local effort and required
  local match amounts. This provision shall only apply to calculations required of the
  Department of Education related to estimated required local expenditures and shall not pertain
  to the calculations associated with actual required local expenditures after the close of the
  school year.
  2) The Department of Education shall also make calculations after the close of the school year
  to verify that the required local effort level, based on actual March 31 Average Daily
  Membership, was met. Pursuant to § 22.1-97, Code of Virginia, the Department of Education
  shall report annually, no later than the first day of the General Assembly session, to the House
  Committees on Education and Appropriations and the Senate Committees on Finance and
  Appropriations and Education and Health, the results of such calculations made after the close
  of the school year and the degree to which each school division has met, failed to meet, or
  surpassed its required local expenditure. The Department of Education shall specify the
  calculations to determine if a school division has expended its required local expenditure for
  the Standards of Quality. This calculation may include but is not limited to the following
  calculations:
  b. The total expenditures for operation, defined as total expenditures less all capital outlays,
  expenditures for debt service, facilities, non-regular day school programs (such as adult
  education, preschool, and non-local education programs), and any transfers to regional
  programs will be calculated.
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  c. The following state funds will be deducted from the amount calculated in paragraph a.
  above: revenues from the state sales and use tax (returned on the basis of the latest yearly
  estimate of school age population provided by the Weldon Cooper Center for Public
  Service, as specified in this Item) for sales in the fiscal year in which the school year
  begins; total receipts from state funds (except state funds for non-regular day school
  programs and state funds used for capital or debt service purposes); and the state share of
  any balances carried forward from the previous fiscal year. Any qualifying state funds that
  remain unspent at the end of the fiscal year will be added to the amount calculated in
  paragraph a. above.
  d. Federal funds, and any federal funds carried forward from the previous fiscal year, will
  also be deducted from the amount calculated in paragraph a. above. Any federal funds that
  remain unspent at the end of the fiscal year and any capital expenditures paid from federal
  funds will be added to the amount calculated in paragraph a. above.
  e. Tuition receipts, receipts from payments from other cities or counties, and fund
  transfers will also be deducted from the amount calculated in paragraph a, then
  f. The final amount calculated as described above must be equal to or greater than the
  required local expenditure defined in paragraph A. 5.
  g. The Department of Education shall collect the data necessary to perform the
  calculations of required local expenditure as required by this section.
  h. A locality whose expenditure in fact exceeds the required amount from local funds may
  not reduce its expenditures unless it first complies with all of the Standards of Quality.
  9.a. Any required local matching funds which a locality, as of the end of a school year, has
  not expended, pursuant to this Item, for the Standards of Quality shall be paid by the
  locality into the general fund of the state treasury. Such payments shall be made not later
  than the end of the school year following that in which the under expenditure occurs.
  b. Whenever the Department of Education has recovered funds as defined in the preceding
  paragraph a., the Secretary of Education is authorized to repay to the locality affected by
  that action, seventy-five percent (75%) of those funds upon his determination that:
  1) The local school board agrees to include the funds in its June 30 ending balance for the
  year following that in which the under expenditure occurs;
  2) The local governing body agrees to reappropriate the funds as a supplemental
  appropriation to the approved budget for the second year following that in which the under
  expenditure occurs, in an appropriate category as requested by the local school board, for
  the direct benefit of the students;
  3) The local school board agrees to expend these funds, over and above the funds required
  to meet the required local expenditure for the second year following that in which the
  under expenditure occurs, for a special project, the details of which must be furnished to
  the Department of Education for review and approval;
  4) The local school board agrees to submit quarterly reports to the Department of
  Education on the use of funds provided through this project award; and
  5) The local governing body and the local school board agree that the project award will
  be cancelled and the funds withdrawn if the above conditions have not been met as of June
  30 of the second year following that in which the under expenditure occurs.
  c. There is hereby appropriated, for the purposes of the foregoing repayment, a sum
  sufficient, not to exceed 75 percent of the funds deposited in the general fund pursuant to
  the preceding paragraph a.
  10. The Department of Education shall specify the manner for collecting the required
  information and the method for determining if a school division has expended the local
  funds required to support the actual local match based on all Lottery and Incentive
  programs in which the school division has elected to participate. Unless specifically stated
  otherwise in this Item, school divisions electing to participate in any Lottery or Incentive
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  program that requires a local funding match in order to receive state funding, shall certify to
  the Department of Education its intent to participate in each program by July 1 each fiscal
  year in a manner prescribed by the Department of Education. As part of this certification
  process, each division superintendent must also certify that adequate local funds have been
  appropriated, above the required local effort for the Standards of Quality, to support the
  projected required local match based on the Lottery and Incentive programs in which the
  school division has elected to participate. State funding for such program(s) shall not be made
  until such time that the school division can certify that sufficient local funding has been
  appropriated to meet required local match. The Department of Education shall make
  calculations after the close of the fiscal year to verify that the required local match was met
  based on the state funds that were received.
  11. Any sum of local matching funds for Lottery and Incentive program which a locality has
  not expended as of the end of a fiscal year in support of the required local match pursuant to
  this Item shall be paid by the locality into the general fund of the state treasury unless the
  carryover of those unspent funds is specifically permitted by other provisions of this act. Such
  payments shall be made no later than the end of the school year following that in which the
  under expenditure occurred.
  12. The Superintendent of Public Instruction shall provide a report annually, no later than the
  first day of the General Assembly session, on the status of teacher salaries, by local school
  division, to the Governor and the Chairs of the Senate Finance and Appropriations and House
  Appropriations Committees. In addition to information on average salaries by school division
  and statewide comparisons with other states, the report shall also include information on
  starting salaries by school division and average teacher salaries by school.
  13. All state and local matching funds required by the programs in this Item shall be
  appropriated to the budget of the local school board.
  14. By November 1 of each year, the Department of Planning and Budget, in cooperation with
  the Department of Education, shall prepare and submit a preliminary forecast of Standards of
  Quality expenditures, based upon the most current data available, to the Chairs of the House
  Appropriations and Senate Finance and Appropriations Committees. In odd-numbered years,
  the forecast for the current and subsequent two fiscal years shall be provided. In even-
  numbered years, the forecast for the current and subsequent fiscal year shall be provided. The
  forecast shall detail the projected March 31 Average Daily Membership and the resulting
  impact on the education budget.
  15. Except as otherwise provided in this act, the Superintendent of Public Instruction shall
  provide guidelines for the distribution and expenditure of general fund appropriations and
  such additional federal, private and other funds as may be made available to aid in the
  establishment and maintenance of the public schools.
  16. At the Department of Education's option, fees for audio-visual services may be deducted
  from state Basic Aid payments for individual local school divisions.
  17. For distributions not otherwise specified, the Department of Education, at its option, may
  use prior year data to calculate actual disbursements to individual localities.
  18. Payments for accounts related to the Standards of Quality made to localities for public
  education from the general fund, as provided herein, shall be payable in twenty-four semi-
  monthly installments at the middle and end of each month.
  19. Notwithstanding § 58.1-638 D., Code of Virginia, and other language in this Item, the
  Department of Education shall, for purposes of calculating the state and local shares of the
  Standards of Quality, apportion state sales and use tax dedicated to public education and those
  sales tax revenues transferred to the general fund from the Public Education Standards of
  Quality/ Local Real Estate Property Tax Relief Fund in the first year based on the July 1,
  2022, estimate of school age population provided by the Weldon Cooper Center for Public
  Service and, in the second year, based on the July 1, 2023, estimate of school age population
  provided by the Weldon Cooper Center for Public Service.
  Notwithstanding § 58.1-638 D., Code of Virginia, and other language in this Item, the State
  Comptroller shall distribute the state sales and use tax revenues dedicated to public education
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  and those sales tax revenues transferred to the general fund from the Public Education
  Standards of Quality/ Local Real Estate Property Tax Relief Fund in the first year based
  on the July 1, 2022, estimate of school age population provided by the Weldon Cooper
  Center for Public Service and, in the second year, based on the July 1, 2023, estimate of
  school age population provided by the Weldon Cooper Center for Public Service.
  20. The school divisions within the Tobacco Region, as defined by the Tobacco Region
  Revitalization Commission, shall jointly explore ways to maximize their collective
  expenditure reimbursement totals for all eligible E-Rate funding.
  21. This Item includes appropriations totaling an estimated $943,824,250 the first year and
  $899,335,345 $947,626,860 the second year from the revenues deposited to the Lottery
  Proceeds Fund. These amounts are appropriated for distribution to counties, cities, and
  towns to support public education programs pursuant to Article X, Section 7-A
  Constitution of Virginia. Any county, city, or town which accepts a distribution from this
  fund shall provide its portion of the cost of maintaining an educational program meeting
  the Standards of Quality pursuant to Section 2 of Article VIII of the Constitution without
  the use of distributions from the fund.
  22. For reporting purposes, the Department of Education shall include Lottery Proceeds
  Funds as state funds.
  23.a. Any locality that has met its required local effort for the Standards of Quality
  accounts for FY 2025 and that has met its required local match for incentive or Lottery-
  funded programs in which the locality elected to participate in FY 2025 may carry over
  into FY 2026 any remaining state Direct Aid to Public Education fund balances available
  to help minimize any FY 2026 revenue adjustments that may occur in state funding to that
  locality. Localities electing to carry forward such unspent state funds must appropriate the
  funds to the school division for expenditure in FY 2026.
  b. Any locality that has met its required local effort for the Standards of Quality accounts
  for FY 2026 and that has met its required local match for incentive or Lottery-funded
  programs in which the locality elected to participate in FY 2026 may carry over into FY
  2027 any remaining state Direct Aid to Public Education fund balances available to help
  minimize any FY 2027 revenue adjustments that may occur in state funding to that
  locality. Localities electing to carry forward such unspent state funds must appropriate the
  funds to the school division for expenditure in FY 2027.
  24. Localities are encouraged to allow school boards to carry over any unspent local
  allocations into the next fiscal year. Localities are also encouraged to provide increased
  flexibility to school boards by appropriating state and local funds for public education in a
  lump sum.
  25. The Department of Education shall include in the annual School Performance Report
  Card for school divisions the percentage of each division's annual operating budget
  allocated to instructional costs. For this report, the Department of Education shall establish
  a methodology for allocating each school division's expenditures to instructional and non-
  instructional costs in a manner that is consistent with the funding of the Standards of
  Quality as approved by the General Assembly.
  26. It is the intent of the General Assembly that all school divisions annually provide their
  employees, upon request, with a user-friendly statement of total compensation, including
  contract duration if less than 12 months.
  27. The Department of Education, in collaboration with the Virginia Community College
  System, will ensure that the same policies regarding the cost for dual enrollment courses
  held at a community college, are consistently applied to public school students and home-
  schooled students alike. These policies will clearly address the school division
  contributions and any student charges for dual enrollment courses, and will ensure that
  public school students and home-school students are treated in the same manner.
  28. Each school division shall report each year to the Department of Education the
  individual uses for the prior year of the following funds prescribed by this item: (i) At-
  Risk Add-On and (ii) Early Reading Intervention. The Department shall prescribe the
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  format and timeline required for the reporting of such information, which shall include,
  permitted categories of spending, personnel, both state and local contributions, and to the
  extent possible, the individual schools which these funds were expended. The Department
  shall compile and submit this information to the Chairs of the House Appropriations and
  Senate Finance and Appropriations Committees no later than the first day of the General
  Assembly session.
  29. Multidivision online providers, as defined in § 22.1-212.23, Code of Virginia, shall
  provide certain data as prescribed by the Department of Education related to students enrolled
  through a contract between such a provider and a school division, including such students
  who do not reside in the school division that is party to the contract. Such data shall include,
  but is not limited to, enrollment, which shall be disaggregated by serving school,
  demographics, attendance, achievement, and achievement gaps, and be transmitted in a format
  prescribed by the Department. The Department shall report such data annually through the
  School Quality Profiles in a manner that clearly disaggregates and communicates school
  quality information related to (i) the students that do not reside in the school division and are
  served through the contract, and (ii) all other students.
  30. Each school division shall report to the Department of Education information on the use
  of funds appropriated in fiscal year 2024 for the Flexible Funding Supplement and on the use
  of pass-through federal Elementary and Secondary School Emergency Relief funds used since
  2020. Such reporting shall specify amounts obligated and expensed based on reporting
  categories as prescribed by the Department of Education. School divisions also shall report
  how funds address performance gains or losses related to reading and mathematics and
  support preparation and implementation of the Virginia Literacy Act. The Department of
  Education shall compile this information and submit it to the Governor and the Chairs of the
  House Appropriations and Senate Finance and Appropriations Committee no later than
  October 1, 2024, 2025, and 2026.
  31. a. Notwithstanding the provisions of subsection A of § 22.1-349.1, Code of Virginia, for
  the purpose of this Item and the College Partnership Laboratory School Fund, a "college
  partnership laboratory school" means a public, nonsectarian, nonreligious school in the
  Commonwealth established by a baccalaureate public institution of higher education.
  b. Institutions not eligible for funding under paragraph B.31.a. of this Item may partner with a
  public baccalaureate institution of higher education in Virginia to operate a college
  partnership laboratory school if they wish to access funding from the College Partnership
  Laboratory School Fund. The public baccalaureate institution must have an approved college
  partnership laboratory school application to serve as the fiscal agent and partner by June 30,
  2024. The Department of Education shall require resubmission of contracts to meet the fiscal
  agent and partnership requirements of this paragraph. The Department shall report to the
  Chairs of the Senate Finance and Appropriations and House Appropriations Committees of
  any submissions and prior contracts.
  c. College partnership laboratory schools shall (i) reach financial sustainability by the end of
  their initial approval period as defined in § 22.1-349.8 of the Code of Virginia such that no
  additional state funding other than state funds received by a school division in support of
  Direct Aid for Public Education is required to support ongoing operations after the first
  contract renewal, and (ii) submit supporting information to the Board of Education
  demonstrating progress toward financial sustainability. The Board of Education shall report
  annually by November 1 to the Governor and Chairs of the House Appropriations and Senate
  Finance and Appropriations Committees on progress of college laboratory schools in meeting
  this financial sustainability requirement.
  C. Apportionment
  1. Subject to the conditions stated in this paragraph and in paragraph B of this Item, each
  locality shall receive sums as listed above within this program for the basic operation cost and
  payments in addition to that cost. The apportionment herein directed shall be inclusive of, and
  without further payment by reason of, state funds for library and other teaching materials.
  2. School Employee Retirement Contributions
  a. This Item provides funds to each local school board for the state share of the employer's
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  retirement cost incurred by it, on behalf of instructional and support personnel, for
  subsequent transfer to the retirement allowance account as provided by Title 51.1, Chapter
  1, Code of Virginia.
  b. Notwithstanding § 51.1-1401, Code of Virginia, the Commonwealth shall provide
  payments for only the state share of the Standards of Quality fringe benefit cost of the
  retiree health care credit. This Item includes payments in both years based on the state
  share of fringe benefit costs of 55 percent of the employer's cost on funded Standards of
  Quality instructional and support positions, distributed based on the composite index of
  the local ability-to-pay.
  c. The appropriation for school employee retirement contributions includes payments from
  funds derived from the principal of the Literary Fund in accordance with Article VIII,
  Section 8, of the Constitution of Virginia. The amounts set aside from the Literary Fund
  for this purpose shall not exceed $175,000,000 the second year.
  3. School Employee Social Security Contributions
  This Item provides funds to each local school board for the state share of the employer's
  Social Security cost incurred by it, on behalf of the instructional personnel for subsequent
  transfer to the Contribution Fund pursuant to Title 51.1, Chapter 7, Code of Virginia.
  4. School Employee Insurance Contributions
  This Item provides funds to each local school board for the state share of the employer's
  Group Life Insurance cost incurred by it on behalf of instructional personnel who
  participate in group insurance under the provisions of Title 51.1, Chapter 5, Code of
  Virginia.
  5. Basic Aid Payments
  a.1) A state share of the Basic Operation Cost, which cost per pupil in March 31 ADM is
  established individually for each local school division based on the number of
  instructional personnel required by the Standards of Quality and the statewide prevailing
  salary levels (adjusted in Planning District Eight for the cost of competing) as well as
  recognized support costs calculated on a prevailing basis for an estimated March 31 ADM.
  2) This appropriation includes funding to recognize the common labor market in the
  Washington-Baltimore-Northern Virginia, DC-MD-VA-WV Combined Statistical Area.
  Standards of Quality salary payments for instructional and support positions in school
  divisions of the localities set out below have been adjusted for the equivalent portion of
  the Cost of Competing Adjustment (COCA) rates that are paid to local school divisions in
  Planning District Eight. For the counties of Stafford, Fauquier, Spotsylvania, Clarke,
  Warren, Frederick, and Culpeper and the Cities of Fredericksburg and Winchester, the
  SOQ payments for instructional and support positions have been increased by 25 percent
  each year of the COCA rates paid to school divisions in Planning District Eight.
  The support COCA rate is 18.0 percent.
  b. The state share for a locality shall be equal to the Basic Operation Cost for that locality
  less the locality's estimated revenues from the state sales and use tax and the Supplemental
  General Fund Payment In Lieu of Sales Tax on Food and Personal Hygiene Products
  (returned on the basis of the latest yearly estimate of school age population provided by
  the Weldon Cooper Center for Public Service, as specified in this Item), in the fiscal year
  in which the school year begins and less the required local expenditure.
  c. For the purpose of this paragraph, the Department of Taxation's fiscal year sales and use
  tax estimates are as cited in this Item.
  d. 1) In accordance with the provisions of § 37.2-713, Code of Virginia, the Department of
  Education shall deduct the locality's share for the education of handicapped pupils residing
  in institutions within the Department of Behavioral Health and Developmental Services
  from the locality's Basic Aid payments.
  2) The amounts deducted from Basic Aid for the education of intellectually disabled
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  persons shall be transferred to the Department of Behavioral Health and Developmental
  Services in support of the cost of educating such persons; the amount deducted from Basic
  Aid for the education of emotionally disturbed persons shall be used to cover extraordinary
  expenses incurred in the education of such persons. The Department of Education shall
  establish guidelines to implement these provisions and shall provide for the periodic transfer
  of sums due from each local school division to the Department of Behavioral Health and
  Developmental Services and for Special Education categorical payments. The amount of the
  actual transfers will be based on data accumulated during the prior school year.
  e. 1) The apportionment to localities of all driver education revenues received during the
  school year shall be made as an undesignated component of the state share of Basic Aid in
  accordance with the provisions of this Item. Only school divisions complying with the
  standardized program established by the Board of Education shall be entitled to participate in
  the distribution of state funds appropriated for driver education. The Department of Education
  will deduct a designated amount per pupil from a school division's Basic Aid payment when
  the school division is not in compliance with § 22.1-205 C, Code of Virginia. Such amount
  will be computed by dividing the current appropriation for the Driver Education Fund by
  actual March 31 ADM.
  2) Local school boards may charge a per pupil fee for behind-the-wheel driver education
  provided, however, that the fee charged plus the per pupil basic aid reimbursement for driver
  education shall not exceed the actual average per pupil cost. Such fees shall not be cause for a
  pro rata reduction in Basic Aid payments to school divisions.
  f. Textbooks
  1) The appropriation in this Item includes $108,201,736 the first year and $108,020,593
  $106,648,385 the second year from the general fund as the state's share of the cost of
  textbooks based on a per pupil amount of $160.14 the first year and $160.14 the second year.
  A school division shall appropriate these funds for textbooks or any other public education
  instructional expenditure by the school division. The state's distributions for textbooks shall
  be based on adjusted March 31 ADM. These funds shall be matched by the local government,
  based on the composite index of local ability-to-pay.
  2) School divisions shall provide free textbooks to all students.
  3) School divisions may use a portion of this funding to purchase Standards of Learning
  instructional materials. School divisions may also use these funds to purchase electronic
  textbooks or other electronic media resources integral to the curriculum and classroom
  instruction and the technical equipment required to read and access the electronic textbooks
  and electronic curriculum materials.
  4) Any funds provided to school divisions for textbook costs that are unexpended as of June
  30, 2025, or June 30, 2026, shall be carried on the books of the locality to be appropriated to
  the school division the following year to be used for same purpose. School divisions are
  permitted to carry forward any remaining balance of textbook funds until the funds are
  expensed for a qualifying purpose.
  g. The one-cent state sales and use tax earmarked for education and the sales tax revenues
  transferred to the general fund from the Public Education Standards of Quality/Local Real
  Estate Property Tax Relief Fund and appropriated in this Item which are distributed to
  localities on the basis of the latest yearly estimate of school age population provided by the
  Weldon Cooper Center for Public Service as specified in this Item shall be reflected in each
  locality's annual budget for educational purposes as a separate revenue source for the current
  fiscal year.
  h. The appropriation for the Standards of Quality for Public Education (SOQ) includes
  amounts estimated at $586,000,000 the first year and $608,900,000 $606,900,000 the second
  year from the amounts transferred to the general fund from the Public Education Standards of
  Quality/Local Real Estate Property Tax Relief Fund pursuant to Part 3 of this act which are
  derived from the 0.375 cent increase in the state sales and use tax levied pursuant to § 58.1-
  638, Code of Virginia. These additional funds are provided to local school divisions and local
  governments in order to relieve the financial pressure education programs place on local real
  estate taxes.
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  i. From the total amounts in paragraph h. above, an amount estimated at $390,600,000 the
  first year and $405,900,000 $404,600,000 the second year (approximately 1/4 cent of sales
  and use tax) is appropriated to support a portion of the cost of the state's share of the
  following revisions to the Standards of Quality pursuant to Chapters 939 & 955 of the
  Acts of Assembly of 2004: five elementary resource teachers per 1,000 students; one
  support and one instructional technology position per 1,000 students; a full daily planning
  period for teachers at the middle and high school levels in order to relieve the pressure on
  local real estate taxes and shall be taken into account by the governing body of the county,
  city, or town in setting real estate tax rates.
  j. From the total amounts in paragraph h. above, an amount estimated at $195,300,000 the
  first year and $203,000,000 $202,300,000 the second year (approximately 1/8 cent of sales
  and use tax) is appropriated in this Item to distribute the remainder of the revenues
  collected and deposited into the Public Education Standards of Quality/Local Real Estate
  Property Tax Relief Fund on the basis of the latest yearly estimate of school age
  population provided by the Weldon Cooper Center for Public Service as specified in this
  Item.
  k. For the purposes of funding certain support positions in Basic Aid, a funding ratio
  methodology is used based upon 24 support positions per 1,000 ADM to funded SOQ
  instructional positions in the first year and 27.89 support positions per 1,000 ADM to
  funded SOQ instrucitonal positions in the second year. Such methodology shall not apply
  to the following SOQ support positions: division superintendent, school board members,
  pupil transportation positions, or specialized student support positions established in
  Chapter 454, 2021 Acts of Assembly, Special Session I.
  6. Education of the Gifted Payments
  a. An additional payment shall be disbursed by the Department of Education to local
  school divisions to support the state share of one full-time equivalent instructional position
  per 1,000 students in adjusted March 31 ADM.
  b. Local school divisions are required to spend, as part of the required local expenditure
  for the Standards of Quality the established per pupil cost for gifted education (state and
  local share) on approved programs for the gifted.
  7. Occupational-Vocational Education Payments
  a. An additional payment shall be disbursed by the Department of Education to the local
  school divisions to support the state share of the number of Vocational Education
  instructors required by the Standards of Quality. These funds shall be disbursed on the
  same basis as the payment is calculated.
  b. An amount estimated at $173,439,108 the first year and $174,563,383 the second year
  from the general fund included in Basic Aid Payments relates to vocational education
  programs in support of the Standards of Quality.
  8. Special Education Payments
  a. An additional payment shall be disbursed by the Department of Education to the local
  school divisions to support the state share of the number of Special Education instructors
  required by the Standards of Quality. These funds shall be disbursed on the same basis as
  the payment is calculated.
  b. Out of the amounts for special education payments, general fund support is provided to
  fund the caseload standards for speech pathologists at 68 students for each year of the
  biennium.
  c. In addition to the funds provided to support the state share of Special Education
  instructors in paragraphs a and b, an add-on payment shall be provided to support each
  special education student, based on a 4.75 percent add-on to basic aid per service Level I
  students and a 5.25 percent add-on to basic aid for Service Level II students, as defined in
  8VAC20-81-10.
  9. At Risk Add-On
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  a. Out of this appropriation, $566,390,188 the first year and $628,692,979 $555,844,420 the
  second year from the general fund and $274,024,247 the first year and $242,477,896
  $297,193,134 the second year from the Lottery Proceeds Fund is provided to distribute the
  state share of funds for the At-Risk Program. These payments shall be distributed based on
  the estimated number of At-Risk students, based on (1) the most recent three-year average
  Identified Student Percentage, applying a 1.25 multiplier factor , and (2) including one quarter
  of students identified as English language learners.
  b. The At-Risk Program shall provide each school division the state share of an 11.0 percent
  basic-aid add-on per estimated At-Risk student. In addition, the program shall provide each
  school division the state share of a payment equal to a 0.0 to 37.0 percent basic-aid add-on per
  estimated At-Risk student, with each school division's add-on percentage determined based
  upon the school division's concentration of At-Risk students relative to all other school
  divisions. Funding shall be matched by the local government based on the composite index of
  local ability-to-pay.
  c. These funds may be used for the purposes established in general law, including supporting
  programs and services for students who are educationally at risk, including prevention,
  intervention, or remediation activities required pursuant to Standard 1 (§ 22.1-253.13:1);
  teacher recruitment programs and incentives; targeted compensation adjustments to assist in
  recruiting and retaining experienced teachers in high poverty schools; Dropout Prevention;
  community and school-based truancy officer programs; Advancement Via Individual
  Determination (AVID); Project Discovery; programs for English language learners; the hiring
  of additional school counselors, testing coordinators, and licensed behavior analysts;
  programs relating to increasing the success of disadvantaged students in completing a high
  school degree and providing opportunities to encourage further education and training; and
  programs designed to reduce chronic absenteeism.
  d. If the Board of Education has required a local school board to submit a corrective action
  plan pursuant to § 22.1-253.13:3, Code of Virginia, either for the school division pursuant to a
  division level review, or for any schools within its division that have been designated as not
  meeting the standards as approved by the Board of Education, the Superintendent of Public
  Instruction shall determine and report to the Board of Education whether each such local
  school board has met its obligation to develop and submit such corrective action plan(s) and is
  making adequate and timely progress in implementing the plan(s). Additionally, if an
  academic or other review process undertaken pursuant to § 22.1-253.13:3, Code of Virginia,
  has identified actions for a local school board to implement, the Superintendent of Public
  Instruction shall determine and report to the Board of Education whether the local school
  board has implemented required actions. If the Superintendent certifies that a local school
  board has failed or refused to meet any of those obligations as referenced in a memorandum
  of understanding between the local school board and the Board of Education, the Board of
  Education shall withhold payment of some or all At-Risk Add-On funds otherwise allocated
  to the affected division pursuant to this allocation for the pending fiscal year. In determining
  the amount of At-Risk Add-On funds to be withheld, the Board of Education shall take into
  consideration the extent to which such funds have already been expended or contractually
  obligated. The local school board shall be given an opportunity to correct its failure and, if
  successful in a timely manner, may have some or all of its At-Risk Add-On funds restored at
  the Board of Education's discretion.
  10. Regional Alternative Education Programs
  a. An additional state payment of $10,682,684 the first year and $10,949,677 $11,267,424 the
  second year from the Lottery Proceeds Fund shall be disbursed for Regional Alternative
  Education programs. Such programs shall be for the purpose of educating certain expelled
  students and, as appropriate, students who have received suspensions from public schools and
  students returned to the community from the Department of Juvenile Justice.
  b. Each regional program shall have a small student/staff ratio. Such staff shall include, but
  not be limited to education, mental health, health, and law enforcement professionals, who
  will collaborate to provide for the academic, psychological, and social needs of the students.
  Each program shall be designed to ensure that students make the transition back into the
  "mainstream" within their local school division.
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  c.(i) Regional alternative education programs are funded through this Item based on the
  state's share of the incremental per pupil cost for providing such programs. This
  incremental per pupil payment shall be adjusted for the composite index of local ability-
  to-pay of the school division that counts such students attending such program in its
  March 31 Average Daily Membership. It is the intent of the General Assembly that this
  incremental per pupil amount be in addition to the basic aid per pupil funding provided to
  the affected school division for such students. Therefore, local school divisions are
  encouraged to provide the appropriate portion of the basic aid per pupil funding to the
  regional programs for students attending these programs, adjusted for costs incurred by the
  school division for transportation, administration, and any portion of the school day or
  school year that the student does not attend such program.
  (ii) In the event a school division does not use all of the student slots it is allocated under
  this program, the unused slots may be reallocated or transferred to another school division.
  (a) A school division must request from the Department of Education the availability and
  possible use of any unused student slots. If any unused slots are available and if the
  requesting school division chooses to utilize any of the unused slots, the requesting school
  division shall only receive the state's share of tuition for the unused slot that was allocated
  in this Item for the originally designated school division.
  (b) However, no requesting school division shall receive more tuition funding from the
  state for any requested unused slot than what would have been the calculated amount for
  the requesting school division had the unused slot been allocated to the requesting school
  division in the original budget. Furthermore, the requesting school division shall pay for
  any remaining tuition payment necessary for using a previously unused slot.
  (c) The Department of Education shall provide assistance for the state share of the
  incremental cost of Regional Alternative Education program operations based on the
  composite index of local ability-to-pay.
  d. Out of the appropriation included in paragraph C.38. of this item, $549,281 the first
  year and $1,115,929 the second year from the Lottery Proceeds Fund is provided for a
  compensation supplement payment equal to 3.0 percent of base pay on July 1, 2024, and
  3.0 percent of base pay on July 1, 2025, for Regional Alternative Education Program
  instructional and support positions.
  e. In the second year, the Department of Education shall conduct a biennial application
  process to determine the slot allocation of the regional alternative education program for
  the subsequent biennium. Each school division, or the fiscal agent for each regional
  program, shall apply for the desired number of student slots from the statewide total
  number of slots funded in the state formula. The approved number of slots shall be set for
  both years of the biennium. The Department of Education shall prorate initial application
  requests if the initial application demand for slots exceeds the number of slots available. In
  each fiscal year, the Department of Education shall reallocate any unused student slots as
  prescribed in this item.
  f. Out of the appropriation included in paragraph C.44.b. of this item, $397,907 the
  second year from the Lottery Proceeds Fund is included in the Regional Alternative
  Education Program funding allocation for a one-time bonus payment equal to $1,500 on
  June 1, 2026, for Regional Alternative Education Program instructional and support
  positions. Any funds appropriated for this purpose may be carried on the books of the
  program to be appropriated for the same purpose in Fiscal Year 2027.
  11. Remedial Summer School
  a. This appropriation includes $33,444,383 the first year and $34,291,832 $30,295,646 the
  second year from the general fund for the state's share of Remedial Summer School
  Programs. These funds are available to school divisions for the operation of programs
  designed to remediate students who are required to attend such programs during a summer
  school session or during an intersession in the case of year-round schools. These funds
  may be used in conjunction with other sources of state funding for remediation or
  intervention. School divisions shall have maximum flexibility with respect to the use of
  these funds and the types of remediation programs offered; however, in exercising this
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  flexibility, students attending these programs shall not be charged tuition and no high school
  credit may be awarded to students who participate in this program.
  b. For school divisions charging students tuition for summer high school credit courses,
  consideration shall be given to students from households with extenuating financial
  circumstances who are repeating a class in order to graduate.
  12. K-3 Primary Class Size Reduction Payments
  a. An additional payment estimated at $156,375,875 the first year and $163,084,946
  $150,917,871 the second year from the Lottery Proceeds Fund shall be disbursed by the
  Department of Education as an incentive for reducing class sizes in the primary grades.
  b. The Department of Education shall calculate the payment based on the incremental cost of
  providing the lower class sizes based on the lower of the division average per pupil cost of all
  divisions or the actual division per pupil cost.
  c. Localities are required to provide a match for these funds based on the composite index of
  local ability-to-pay.
  d. By October 15 of each year school divisions must provide data to the Department of
  Education that each participating school has a September 30 pupil/teacher ratio in grades K
  through 3 that meet the following criteria:
  Qualifying School Percentage of  Grades K-3  Maximum Individual
  Students Approved
  Eligible for Free Lunch, Three-Year  School Ratio  K-3 Class Size
  Average
  30% but less than 45%  19 to 1  24
  45% but less than 55%  18 to 1  23
  55% but less than 65%  17 to 1  22
  65% but less than 70%  16 to 1  21
  70% but less than 75%  15 to 1  20
  75% or more  14 to 1  19
  e. School divisions may elect to have eligible schools participate at a higher ratio, or only in a
  portion of grades kindergarten through three, with a commensurate reduction of state and
  required local funds, if local conditions do not permit participation at the established ratio
  and/or maximum individual class size. In the event that a school division requires additional
  actions to ensure participation at the established ratio and/or maximum individual class size,
  such actions must be completed by December 1 of the impacted school year. Special
  education teachers and instructional aides shall not be counted towards meeting these required
  pupil/teacher ratios in grades kindergarten through three.
  f. The Superintendent of Public Instruction may grant waivers to school divisions for the class
  size requirement in eligible schools that have only one class in an affected grade level in the
  school.
  13. Literary Fund Subsidy Program Payments
  a. The Department of Education and the Virginia Public School Authority (VPSA) shall
  provide a program of funding for school construction and renovation through the Literary
  Fund and through VPSA bond sales. Notwithstanding 8VAC-20-100, the program shall be
  used to provide funds, through Literary Fund loans and subsidies, and through VPSA bond
  sales, to fund a portion of the projects submitted by localities during the annual open
  enrollment process, or other critical projects that may receive priority as identified by the
  Board of Education. Interest rate subsidies will provide school divisions with the present
  value difference in debt service between a Literary Fund loan and a borrowing through the
  VPSA. To qualify for an interest rate subsidy, the school division's project must be eligible
  for a Literary Fund loan and shall be subject to the same restrictions. The VPSA shall work
  with the Department of Education in selecting those projects to be funded through the interest
  rate subsidy/bond financing program, so as to ensure the maximum leverage of Literary Fund
  moneys and a minimum impact on the VPSA Bond Pool.
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  b. Notwithstanding §§ 22.1-146.1 through 22.1-153, Code of Virginia, and 8VAC-20-100,
  the Board of Education shall: 1) issue loans from the designated and uncommitted
  balances of the Literary Fund to the school boards of local school divisions that apply for
  such loans, authorized by the governing body and the school board, for the purposes of a)
  erecting, altering, or enlarging school buildings in local school divisions, or b) refinancing
  or redemption of negotiable notes, bonds, and other evidences of indebtedness or
  obligations incurred by a locality on behalf of a school division which has an application
  for a Literary Fund loan for an approved school project pending before the Board of
  Education; 2) establish a maximum Literary Fund loan amount per project of $25.0
  million; 3) in consultation with the Department of Treasury, establish loan interest rates
  that are benchmarked to a market index on an annual basis for all tiers of localities and
  provide interest rates that are reasonably below such market index; 4) replace the existing
  First Priority and Second Priority waiting lists with an annual open enrollment process for
  loans, with priority based on the local composite index of ability-to-pay; and 5) offer a
  loan add-on not to exceed $5.0 million per loan for projects that will result in school
  consolidation and the net reduction of at least one existing school. The Department of
  Education, in cooperation with the Department of the Treasury, shall provide an update on
  Literary Fund loan issuance to the Governor and the Chairs of the House Appropriations
  and Senate Finance and Appropriations Committees by October 1 each year. This report
  shall include detail of: 1) loan applications received in the prior fiscal year by locality,
  project, and amount; 2) loans issued in the prior fiscal year by locality, project, and
  amount; 3) the schedule of loan interest rates and the basis for those rates; 4) loans issued
  for school consolidation projects and the projected impact of those school consolidations;
  and 5) the impact of loans issued to date on the Literary Fund cash balance, outstanding
  loan balance, and projected asset base.
  c. The Board of Education may offer up to $200,000,000 the first year and up to
  $50,000,000 the second year $78,000,000 from the Literary Fund in school construction
  loans, subject to the availability of funds. Amounts designated for school construction
  loans that are not obligated in the first year may be obligated in the second year. In
  addition, the Department of Education may offer Literary Fund loans from the
  uncommitted balances of the Literary Fund after meeting the obligations of the interest
  rate subsidy sales and the amounts set aside from the Literary Fund for Debt Service
  Payments for Education Technology and Security Equipment in this Item.
  d. 1) In the event that on any scheduled payment date of bonds of the Virginia Public
  School Authority (VPSA) authorized under the provisions of a bond resolution adopted
  subsequent to June 30, 1997, issued subsequent to June 30, 1997, and not benefiting from
  the provisions of either § 22.1-168 (iii), (iv), and (v), Code of Virginia, or § 22.1-168.1,
  Code of Virginia, the sum of (i) the payments on general obligation school bonds of cities,
  counties, and towns (localities) paid to the VPSA and (ii) the proceeds derived from the
  application of the provisions of § 15.2-2659, Code of Virginia, to such bonds of localities,
  is less than the debt service due on such bonds of the VPSA on such date, there is hereby
  appropriated to the VPSA, first, from available moneys of the Literary Fund and, second,
  from the general fund a sum equal to such deficiency.
  2) The Commonwealth shall be subrogated to the VPSA to the extent of any such
  appropriation paid to the VPSA and shall be entitled to enforce the VPSA's remedies with
  respect to the defaulting locality and to full recovery of the amount of such deficiency,
  together with interest at the rate of the defaulting locality's bonds.
  e. The chairman of the Board of Commissioners of the VPSA shall, on or before
  November 1 of each year, make and deliver to the Governor and the Secretary of Finance
  a certificate setting forth his estimate of total debt service during each fiscal year of the
  biennium on bonds of the VPSA issued and projected to be issued during such biennium
  pursuant to the bond resolution referred to in paragraph a above. The Governor's budget
  submission each year shall include provisions for the payment of debt service pursuant to
  paragraph 1) above.
  14. Educational Technology Payments
  a. Any unobligated amounts transferred to the educational technology fund shall be
  disbursed on a pro rata basis to localities. The additional funds shall be used for
  60
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  FY2025  FY2026  FY2025  FY2026
  technology needs identified in the division's technology plan approved by the Department of
  Education.
  b. The Department of Education shall authorize estimated amounts as indicated in Table 1
  from the Literary Fund to provide debt service payments for the education technology grant
  program conducted through the Virginia Public School Authority in the referenced years.
  Table 1
  Grant Year  FY 2025  FY 2026
  2020  $11,392,500
  2021  $11,356,600  $11,351,600
  2022  $12,068,000  $12,066,750
  2023  $12,040,000  $12,044,750
  2024  $12,223,431  $12,222,500
  2025  $12,939,920
  $12,219,438
  c. It is the intent of the General Assembly to authorize sufficient Literary Fund revenues to
  pay debt service on the Virginia Public School Authority bonds or notes authorized for
  education technology grant programs. In developing the proposed 2026-2028, 2028-2030, and
  2030-2032 biennial budgets for public education, the Department of Education shall include a
  recommendation to the Governor to authorize sufficient Literary Fund revenues to make debt
  service payments for these programs in fiscal years 2027, 2028, 2029, 2030, and 2031.
  d. 1) An education technology grant program shall be conducted through the Virginia Public
  School Authority, through the issuance of equipment notes in an amount estimated at
  $55,764,000 in fiscal year 2025 and $55,924,000$55,582,000 in fiscal year 2026. Proceeds of
  the notes will be used to establish a computer-based instructional and testing system for the
  Standards of Learning (SOL) and to develop the capability for high speed Internet
  connectivity at high schools followed by middle schools followed by elementary schools.
  School divisions shall use these funds first to develop and maintain the capability to support
  the administration of online SOL testing for all students with the exception of students with a
  documented need for a paper SOL test.
  2) Grant funds from the issuance of $55,764,000 in fiscal year 2025 and $55,924,000
  $55,582,000 in fiscal year 2026 in equipment notes are based on a grant of $26,000 per school
  and $50,000 per school division. For purposes of this grant program, eligible schools shall
  include schools that are subject to state accreditation and reporting membership in grades K
  through 12 as of September 30, 2024, for the fiscal year 2025 issuance, and September 30,
  2025, for the fiscal year 2026 issuance, as well as regional vocational centers, special
  education centers, alternative education centers, regular school year Governor's Schools,
  CodeRVA Regional High School, and the School for the Deaf and the Blind. Schools that
  serve only pre-kindergarten students shall not be eligible for this grant.
  3. a.) Supplemental grants shall be allocated to eligible divisions to support schools that are
  not fully accredited in accordance with this paragraph. Schools that include a ninth grade that
  administer SOL tests in Spring 2024 and that are not fully accredited for the second
  consecutive year, based on school accreditation ratings in effect for fiscal year 2024 and fiscal
  year 2025 will qualify to participate in the Virginia e-Learning Backpack Initiative in fiscal
  year 2025 and receive: (1) a supplemental grant of $400 per student reported in ninth grade
  fall membership in a qualifying school for the purchase of a laptop or tablet for that student
  and (2) a supplemental grant of $2,400 per qualifying school to purchase two content creation
  packages for teachers. Schools eligible to receive this supplemental grant in fiscal year 2025
  shall continue to receive the grant for the number of subsequent years equaling the number of
  grades 9 through 12 in the qualifying school up to a maximum of four years. Schools that
  administer SOL tests in Spring 2025 and that are not fully accredited for the second
  consecutive year based on school accreditation ratings in effect for fiscal year 2025 and fiscal
  year 2026 will qualify to participate in the initiative in fiscal year 2026. Schools eligible for
  the supplemental grants in previous fiscal years shall continue to be eligible for the remaining
  years of their grant award. Schools eligible to receive this supplemental grant in fiscal year
  2026 shall continue to receive the grant for the number of subsequent years equaling the
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  FY2025  FY2026  FY2025        FY2026
  number of grades 9 through 12 in the qualifying school up to a maximum of four years.
  Grants awarded to qualifying schools that do not have grades 10, 11, or 12 may transition
  with the students to the primary receiving school for all years subsequent to grade 9.
  Schools are eligible to receive these grants for a period of up to four years and shall not be
  eligible to receive a separate award in the future once the original award period has
  concluded. Schools that are fully accredited or that are new schools with conditional
  accreditation in their first year shall not be eligible to receive this supplemental grant.
  b.) Supplemental grants allocated to school divisions for participation in the Virginia e-
  Learning Backpack Initiative prior to fiscal year 2017 shall be used in eligible schools for
  (1) the purchase of a laptop or tablet for a student reported in ninth grade fall membership,
  and (2) the purchase of two content creation packages for teachers per grant. The amounts
  for such grants shall remain unchanged.
  4) Required local match:
  a) Localities are required to provide a match for these funds equal to 20 percent of the
  grant amount, including the supplemental grants provided pursuant to paragraph g. 5). At
  least 25 percent of the local match, including the match for supplemental grants, shall be
  used for teacher training in the use of instructional technology, with the remainder spent
  on other required uses. The Superintendent of Public Instruction is authorized to reduce
  the required local match for school divisions with a composite index of local ability-to-pay
  below 0.2000. The Virginia School for the Deaf and the Blind is exempt from the match
  requirement.
  b) School divisions that administer 100 percent of SOL tests online in all elementary,
  middle, and high schools may use up to 75 percent of their required local match to
  purchase targeted technology-based interventions. Such interventions may include the
  necessary technology and software to support online learning, technology-based content
  systems, content management systems, technology equipment systems, information and
  data management systems, and other appropriate technologies that support the individual
  needs of learners. School divisions that receive supplemental grants pursuant to paragraph
  g.5) above shall use the funds in qualifying schools to purchase laptops and tablets for
  ninth grade students reported in fall membership and content creation packages for
  teachers.
  5) The goal of the education technology grant program is to improve the instructional,
  remedial, and testing capabilities of the Standards of Learning for local school divisions
  and to increase the number of schools achieving full accreditation.
  6) Funds shall be used in the following manner:
  a) Each division shall use funds to reach a goal, in each high school, of: (1) a 5-to-1
  student to computer ratio; (2) an Internet-ready local area network (LAN) capability; and
  (3) high speed access to the Internet. School connectivity (computers, LANs and network
  access) shall include sufficient download/upload capability to ensure that each student will
  have adequate access to Internet-based instructional, remedial and assessment programs.
  b) When each high school in a division meets the goals established in paragraph a) above,
  the remaining funds shall be used to develop similar capability in first the middle schools
  and then the elementary schools.
  c) For purposes of establishing or enhancing a computer-based instructional program
  supporting the Standards of Learning pursuant to paragraph g. 1) above, these grant funds
  may be used to purchase handheld multifunctional computing devices that support a broad
  range of applications and that are controlled by operating systems providing full
  multimedia support and mobile Internet connectivity. School divisions that elect to use
  these grant funds to purchase such qualifying handheld devices must continue to meet the
  on-line testing requirements stated in paragraph g. 1) above.
  d) School divisions shall be eligible to receive supplemental grants pursuant to paragraph
  g.5) above. These supplemental grants shall be used in qualifying schools for the purchase
  of laptops and tablets for ninth grade students reported in fall membership and content
  creation packages for teachers. Participating school divisions will be required to select a
  62
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    ITEM 125.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  core set of electronic textbooks, applications and online services for productivity, learning
  management, collaboration, practice, and assessment to be included on all devices. In
  addition, participating school divisions will assume recurring costs for electronic textbook
  purchases and maintenance.
  e) Pursuant to § 15.2-1302, Code of Virginia, and in the event that two or more school
  divisions became one school division, whether by consolidation of only the school divisions
  or by consolidation of the local governments, such resulting division shall be provided
  funding through this program on the basis of having the same number of school divisions as
  existed prior to September 30, 2000.
  7) Local school divisions shall maximize the use of available federal funds, including E-Rate
  Funds, and to the extent possible, use such funds to supplement the program and meet the
  goals of this program.
  e. The Department of Education shall maintain criteria to determine if high schools, middle
  schools, or elementary schools have the capacity to meet the goals of this initiative. The
  Department of Education shall be responsible for the project management of this program.
  f. 1) In the event that, on any scheduled payment date of bonds or notes of the Virginia Public
  School Authority (VPSA) issued for the purpose described in § 22.1-166.2, Code of Virginia,
  and not benefiting from the provisions of either § 22.1-168 (iii), (iv) and (v), Code of
  Virginia, or § 22.1-168.1, Code of Virginia, the available moneys in the Literary Fund are less
  than the amounts authorized for debt service due on such bonds or notes of the VPSA on such
  date, there is hereby appropriated to the VPSA from the general fund a sum equal to such
  deficiency.
  2) The Chairman of the Board of Commissioners of the VPSA shall, on or before November 1
  of each year, make and deliver to the Governor and the Secretary of Finance a certificate
  setting forth his estimate of total debt service during each fiscal year of the biennium on
  bonds and notes of the VPSA issued and projected to be issued during such biennium
  pursuant to the resolution referred to in paragraph 1) above. The Governor's budget
  submission each year shall include provisions for the payment of debt service pursuant to
  paragraph 1) above.
  g. Unobligated proceeds of the notes, including investment income derived from the proceeds
  of the notes may be used to pay interest on, or to decrease principal of the notes or to fund a
  portion of such other educational technology grants as authorized by the General Assembly.
  h. 1) For the purposes of § 56-232, Code of Virginia, "Contracts of Telephone Companies
  with State Government" and for the purposes of § 56-234 "Contracts for Service Rendered by
  a Telephone Company for the State Government" shall be deemed to include communications
  lines into public schools which are used for educational technology. The rate structure for
  such lines shall be negotiated by the Superintendent of Public Instruction and the Chief
  Information Officer of the Virginia Information Technologies Agency. Further, the
  Superintendent and Director are authorized to encourage the development of "by-pass"
  infrastructure in localities where it fails to obtain competitive prices or prices consistent with
  the best rates obtained in other parts of the state.
  2) The State Corporation Commission, in its consideration of the discount for services
  provided to elementary schools, secondary schools, and libraries and the universal service
  funding mechanisms as provided under § 254 of the Telecommunications Act of 1996, is
  hereby encouraged to make the discounts for intrastate services provided to elementary
  schools, secondary schools, and libraries for educational purposes as large as is prudently
  possible and to fund such discounts through the universal fund as provided in § 254 of the
  Telecommunications Act of 1996. The commission shall proceed as expeditiously as possible
  in implementing these discounts and the funding mechanism for intrastate services, consistent
  with the rules of the Federal Communications Commission aimed at the preservation and
  advancement of universal service.
  15. Security Equipment Payments
  1) A security equipment grant program shall be conducted through the Virginia Public School
  Authority, through the issuance of equipment notes in an amount estimated at up to
  63
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    ITEM 125.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  $12,000,000 in fiscal year 2025 and $12,000,000 in fiscal year 2026 in conjunction with
  the Virginia Public School Authority technology notes program authorized in C.12. of this
  Item. Proceeds of the notes will be used to help offset the related costs associated with the
  purchase of appropriate security equipment that will improve and help ensure the safety of
  students attending public schools in Virginia.
  2) The Department of Education shall authorize estimated amounts as indicated in Table 1
  from the Literary Fund to provide debt service payments for the security equipment grant
  programs conducted through the Virginia Public School Authority in the referenced years.
  Table 1
  Grant Year  FY 2025  FY 2026
  2020  $2,430,750
  2021  $2,424,400  $2,428,400
  2022  $2,581,250  $2,579,750
  2023  $2,583,000  $2,581,750
  2024  $2,626,373  $2,625,250
  2025  $2,768,425
  $2,628,875
  3) It is the intent of the General Assembly to authorize sufficient Literary Fund revenues
  to pay debt service on the Virginia Public School Authority bonds or notes authorized for
  this program. In developing the proposed 2026-2028, 2028-2030, and 2030-2032 biennial
  budgets for public education, the Department of Education shall include a
  recommendation to the Governor to authorize sufficient Literary Fund revenues to make
  debt service payments for these programs in fiscal years 2027, 2028, 2029, 2030, and
  2031.
  4) In the event that, on any scheduled payment date of bonds or notes of the Virginia
  Public School Authority issued for the purpose described in § 22.1-166.2, Code of
  Virginia, and not benefiting from the provisions of either § 22.1-168 (iii), (iv) and (v),
  Code of Virginia, or § 22.1-168.1, Code of Virginia, the available moneys in the Literary
  Fund are less than the amounts authorized for debt service due on such bonds or notes on
  such date, there is hereby appropriated to the Virginia Public School Authority from the
  general fund a sum equal to such deficiency.
  5) The Chairman of the Board of Commissioners of the Virginia Public School Authority
  shall, on or before November 1 of each year, deliver to the Governor and the Secretary of
  Finance a certificate setting forth his estimate of total debt service during each fiscal year
  of the biennium on bonds and notes issued and projected to be issued during such
  biennium. The Governor's budget submission each year shall include provisions for the
  payment of debt service pursuant to paragraph 1) above.
  6) Grant award funds from the issuance of up to $12,000,000 in fiscal year 2025 and
  $12,000,000 in fiscal year 2026 in equipment notes shall be distributed to eligible school
  divisions. The grant awards will be based on a competitive grant basis of up to $250,000
  per school division. School divisions will be permitted to apply annually for grant funding.
  For purposes of this program, eligible schools shall include schools that are subject to state
  accreditation and reporting membership in grades K through 12 as of September 30, 2024,
  for the fiscal year 2025 issuance, and September 30, 2025, for the fiscal year 2026
  issuance, as well as regional vocational centers, special education centers, alternative
  education centers, regular school year Governor's Schools, and the Virginia School for the
  Deaf and the Blind.
  7) School divisions would submit their application to Department of Education by August
  1 of each year based on the criteria developed by the Department of Education in
  collaboration with the Department of Criminal Justice Services who will provide
  requested technical support. Furthermore, the Department of Education will have the
  authority to make such grant awards to such school divisions.
  8) It is also the intent of the General Assembly that, beginning with fiscal year 2020, the
  total amount of the grant awards shall not exceed $60,000,000 over any ongoing revolving
  64
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    ITEM 125.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  five year period.
  9) Required local match:
  a) Localities are required to provide a match for these funds equal to 25 percent of the grant
  amount. The Superintendent of Public Instruction is authorized to reduce the required local
  match for school divisions with a composite index of local ability-to-pay below 0.2000. The
  Virginia School for the Deaf and the Blind is exempt from the match requirement.
  b) Pursuant to § 15.2-1302, Code of Virginia, and in the event that two or more school
  divisions became one school division, whether by consolidation of only the school divisions
  or by consolidation of the local governments, such resulting division shall be provided
  funding through this program on the basis of having the same number of school divisions as
  existed prior to September 30, 2000.
  c) Local school divisions shall maximize the use of available federal funds, including E-Rate
  Funds, and to the extent possible, use such funds to supplement the program and meet the
  goals of this program.
  16. Early Reading Intervention Payments
  a. An additional payment of $39,834,324 the first year and $39,775,832 $47,453,393 the
  second year from the Lottery Proceeds Fund shall be disbursed by the Department of
  Education to local school divisions for the purposes of providing early reading intervention
  services to students in grades kindergarten through 3 who demonstrate deficiencies based on
  their individual performance on diagnostic tests which have been approved by the Department
  of Education. The Department of Education shall review the tests of any local school board
  that requests authority to use a test other than the state-provided test to ensure that such local
  test uses criteria for the early diagnosis of reading deficiencies that are similar to those criteria
  used in the state-provided test. The Department of Education shall make the state-provided
  diagnostic test used in this program available to local school divisions. School divisions shall
  report the results of the diagnostic tests to the Department of Education on an annual basis at a
  time to be determined by the Superintendent of Public Instruction.
  b. These payments shall be based on the state's share of the cost of providing two and one-half
  hours of additional instruction each week for an estimated number of students in each school
  division at a student to teacher ratio of five to one. The estimated number of students in each
  school division in each year shall be determined by multiplying the projected number of
  students reported in each school division's fall membership in grades kindergarten, 1, 2, and 3
  by the percent of students who are determined to need services based on diagnostic tests
  administered in the most recent year that data is available in that school division.
  c. These payments are available to any school division that certifies to the Department of
  Education that an intervention program will be offered to such students and that each student
  who receives an intervention will be assessed again at the end of that school year. At the
  beginning of the school year, local school divisions shall partner with the parents of those
  third grade students in the division who demonstrate reading deficiencies, discussing with
  them a developed plan for remediation and retesting. Such intervention programs, at the
  discretion of the local school division, may include, but not be limited to, the use of: special
  reading teachers; trained aides; full-time early literacy tutors; volunteer tutors under the
  supervision of a certified teacher; computer-based reading tutorial programs; aides to instruct
  in-class groups while the teacher provides direct instruction to the students who need extra
  assistance; or extended instructional time in the school day or year for these students.
  Localities receiving these payments are required to match these funds based on the composite
  index of local ability-to-pay.
  d. In the event that a school division does not use the diagnostic test provided by the
  Department of Education in the year that serves as the basis for updating the funding formula
  for this program but has used it in past years, the Department of Education shall use the most
  recent data available for the division for the state-provided diagnostic test.
  e. The results of all reading diagnostic tests and reading remediation shall be discussed with
  the student and the student's parent prior to the student being promoted to grade four.
  f. Funds appropriated for Standards of Quality Remedial Summer School or At-Risk Add-On
  65
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    ITEM 125.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  may also be used to meet the requirements of this program.
  17. Standards of Learning Algebra Readiness Payments
  a. An additional payment of $18,807,402 the first year and $18,767,429 $18,802,957 the
  second year from the Lottery Proceeds Fund shall be disbursed by the Department of
  Education to local school divisions for the purposes of providing math intervention
  services to students in grades 6, 7, 8 and 9 who are at-risk of failing the Algebra I end-of-
  course test, as demonstrated by their individual performance on diagnostic tests which
  have been approved by the Department of Education. These amounts reflect $200,000 the
  first year and $200,000 the second year apportioned to each school division to account for
  the cost of the diagnostic test. The Department of Education shall review the tests to
  ensure that such local test uses state-provided criteria for diagnosis of math deficiencies
  which are similar to those criteria used in the state-provided test. The Department of
  Education shall make the state-provided diagnostic test used in this program available to
  local school divisions. School divisions shall report the results of the diagnostic tests to the
  Department of Education on an annual basis at a time to be determined by the
  Superintendent of Public Instruction.
  b. These payments shall be based on the state's share of the cost of providing two and one-
  half hours of additional instruction each week for an estimated number of students in each
  school division at a student to teacher ratio of ten to one. The estimate number of students
  in each school division shall be determined by multiplying the projected number of
  students reported in each school division's fall membership by the percent of students that
  qualify for the federal Free Lunch Program.
  c. These payments are available to any school division that certifies to the Department of
  Education that an intervention program will be offered to such students and that each
  student who receives an intervention will be assessed again at the end of that school year.
  Localities receiving these payments are required to match these funds based on the
  composite index of local ability-to-pay.
  18. English Learner Teacher Payments
  A payment of $213,236,555 the first year and $228,451,867 $203,485,918 the second year
  from the general fund shall be disbursed by the Department of Education to local school
  divisions to support the state's share of professional instructional positions for English
  Learner teachers. Local school divisions shall provide a local match based on the
  composite index of local ability-to-pay. The number of such English Learner teacher
  positions required pursuant to the Standards of Quality are as established below:
  EL Student Proficiency Level  SOQ Staffing Required
  One  1 position per 20 EL students
  Two  1 position per 30 EL students
  Three  1 position per 40 EL students
  Four  1 position per 50 EL students
  All Other Identified EL Students  1 position per 100 EL students
  To provide flexibility in implementing this new staffing standard in the first year, the
  number of English Learner teachers required for each school division for the first year
  shall be equal to the number of such teachers that were required during the 2023-2024
  school year, plus one half of the additional positions required in the above table for the
  first year.
  19. Special Education Instruction Payments
  a. The Department of Education shall establish rates for all elements of Special Education
  Instruction Payments.
  b. Out of the appropriations in this Item, the Department of Education shall make
  available, subject to implementation by the Superintendent of Public Instruction, an
  amount estimated at $95,778,547 the first year and $99,778,547 the second year from the
  Lottery Proceeds Fund for the purpose of the state's share of the tuition rates for approved
  66
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    ITEM 125.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  public Special Education Regional Tuition school programs. Notwithstanding any contrary
  provision of law, the state's share of the tuition rates shall be based on the composite index of
  local ability-to-pay.
  c. Out of the amounts for Financial Assistance for Categorical Programs, $41,386,161 the first
  year and $44,570,183 the second year from the general fund is appropriated to permit the
  Department of Education to enter into agreements with selected local school boards for the
  provision of educational services to children residing in certain hospitals, clinics, and
  detention homes by employees of the local school boards. The portion of these funds provided
  for educational services to children residing in local or regional detention homes shall only be
  determined on the basis of children detained in such facilities through a court order issued by
  a court of the Commonwealth. The selection and employment of instructional and
  administrative personnel under such agreements will be the responsibility of the local school
  board in accordance with procedures as prescribed by the local school board. State payments
  for the first year to the local school boards operating these programs will be based on certified
  expenditures from the fourth quarter of FY 2024 and the first three quarters of FY 2025. State
  payments for the second year to the local school boards operating these programs will be
  based on certified expenditures from the fourth quarter of FY 2025 and the first three quarters
  of FY 2026.
  20. Vocational Education Instruction Payments
  a. It is the intention of the General Assembly that the Department of Education explore
  initiatives that will encourage greater cooperation between jurisdictions and the Virginia
  Community College System in meeting the needs of public school systems.
  b. This appropriation includes $1,800,000 the first year and $1,800,000 the second year from
  the Lottery Proceeds Fund for secondary vocational-technical equipment. A base allocation of
  $2,000 each year shall be available for all divisions, with the remainder of the funding
  distributed on the basis of student enrollment in secondary vocational-technical courses. State
  funds received for secondary vocational-technical equipment must be used to supplement, not
  supplant, any funds currently provided for secondary vocational-technical equipment within
  the locality. Local school divisions are not required to provide a local match in order to
  receive these state funds.
  c.1) This appropriation includes an additional $2,000,000 the first year and $2,000,000 the
  second year from the Lottery Proceeds Fund to update vocational-technical equipment to
  industry standards providing students with classroom experience that translates to the
  workforce.
  2) Of this amount, $1,400,000 the first year and $1,400,000 the second year is provided for
  vocational-technical equipment in high-demand, high-skill, and fast-growth industry sectors
  as identified by the Virginia Board of Workforce Development and based on data from the
  Bureau of Labor Statistics and the Virginia Employment Commission.
  3) Of this amount, $600,000 the first year and $600,000 the second year will be awarded
  based on competitive innovative program grants for high-demand and fast-growth industry
  sectors with priority given to state-identified challenged schools, the Governor's Science
  Technology, Engineering, and Mathematics (STEM) academies, and the Governor's Health
  Science Academies.
  d. This appropriation includes $1,831,464 the first year and $1,831,464 the second year from
  the Lottery Proceeds Fund to support the Path to Industry Certification program. Of this
  amount, $500,000 the first year and $500,000 the second year shall support credentialing
  testing materials for students and professional development for instructors in science,
  technology, engineering, and mathematics-health sciences (STEM-H) career and technical
  education programs.
  21. Adult Education Payments
  State funds shall be used to reimburse general adult education programs on a fixed cost per
  pupil or cost per class basis. No state funds shall be used to support vocational noncredit
  courses.
  22. General Education Payments
  67
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  Item Details($)  Appropriations($)
    ITEM 125.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  a. This appropriation includes $2,410,988 the first year and $2,410,988 the second year
  from the Lottery Proceeds Fund to support Race to GED. Out of this appropriation,
  $465,375 the first year and $465,375 the second year shall be used for PluggedIn VA.
  b. This appropriation includes $1,387,240 the first year and $1,387,240 the second year
  from the Lottery Proceeds Fund to support Project Graduation and any associated
  administrative and contractual service expenditures related to this initiative.
  23. Individual Student Alternative Education Program (ISAEP) Payments
  Out of this appropriation, $2,247,581 the first year and $2,247,581 in the second year from
  the Lottery Proceeds Fund shall be provided for the secondary schools' Individual Student
  Alternative Education Program (ISAEP), pursuant to Chapter 488 and Chapter 552 of the
  1999 Session of the General Assembly.
  24. Foster Children Education Payments
  a. An additional state payment is provided from the Lottery Proceeds Fund for the prior
  year's local operations costs, as determined by the Department of Education, for each pupil
  not a resident of the school division providing his education (a) who has been placed in
  foster care or other custodial care within the geographical boundaries of such school
  division by a Virginia agency, whether state or local, which is authorized under the laws
  of this Commonwealth to place children; (b) who has been placed in an orphanage or
  children's home which exercises legal guardianship rights; (c) who is a resident of Virginia
  and has been placed, not solely for school purposes, in a child-caring institution or group
  home; or (d) who is a student that was formerly in foster care upon reaching 18 years of
  age but who has not yet reached 22 years of age. For pupils included in subsection (d), the
  school division shall keep an accurate record of the number of days in which such child
  was enrolled in its public schools and shall be included in the division's certification
  provided to the Board of Education by July 1 each school year per § 22.1-101.1 C, Code
  of Virginia.
  b. This appropriation provides $12,193,067 the first year and $12,281,254 $12,353,227 the
  second year from the Lottery Proceeds Fund to support children attending public school
  who have been placed in foster care or other such custodial care across jurisdictional lines,
  as provided by subsections A and B of § 22.1-101.1, Code of Virginia. To the extent these
  funds are not adequate to cover the full costs specified therein, the Department is
  authorized to expend unobligated balances in this Item for this support.
  25. Sales Tax Payments
  a. This is a sum-sufficient appropriation for distribution to counties, cities and towns a
  portion of net revenue from the state sales and use tax, in support of the Standards of
  Quality (Title 22.1, Chapter 13.2, Code of Virginia) (See the Attorney General's opinion
  of August 3, 1982).
  b. Certification of payments and distribution of this appropriation shall be made by the
  State Comptroller.
  c. The distribution of state sales tax funds shall be made in equal bimonthly payments at
  the middle and end of each month.
  26. Adult Literacy Payments
  a. Appropriations in this Item include $125,000 the first year and $125,000 the second
  year from the general fund for the ongoing literacy programs conducted by Mountain
  Empire Community College.
  b. Out of this appropriation, the Department of Education shall provide $100,000 the first
  year and $100,000 the second year from the general fund for the Virginia Literacy
  Foundation grants to support programs for adult literacy including those delivered by
  community-based organizations and school divisions providing services for adults with 0-
  9th grade reading skills.
  27. Governor's School Payments
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  a. Out of the amounts for Governor's School Payments, the Department of Education shall
  provide assistance for the state share of the incremental cost of regular school year Governor's
  Schools based on each participating locality's composite index of local ability-to-pay.
  Participating school divisions must certify that no tuition is assessed to students for
  participation in this program.
  b.1) Out of the amounts for Governor's School Payments, the Department of Education shall
  provide assistance for the state share of the incremental cost of summer residential Governor's
  Schools and Foreign Language Academies to be based on the greater of the state's share of the
  composite index of local ability-to-pay or 50 percent. Participating school divisions must
  certify that no tuition is assessed to students for participation in this program if they are
  enrolled in a public school.
  2) Out of the amounts for Governor's School Payments, $41,000 the first year and $41,000 the
  second year is provided to support the Hanover Regional Summer Governor's School for
  Career and Technical Advancement, which was established pursuant to Chapter 425, 2014
  Acts of Assembly, and Chapter 665, 2015 Acts of Assembly.
  c. For the Summer Governor's Schools and Foreign Language Academies programs, the
  Superintendent of Public Instruction is authorized to adjust the tuition rates, types of programs
  offered, length of programs, and the number of students enrolled in order to maintain costs
  within the available state and local funds for these programs.
  d. It shall be the policy of the Commonwealth that state general fund appropriations not be
  used for capital outlay, structural improvements, renovations, or fixed equipment costs
  associated with initiation of existing or proposed Governor's schools. State general fund
  appropriations may be used for the purchase of instructional equipment for such schools,
  subject to certification by the Superintendent of Public Instruction that at least an equal
  amount of funds has been committed by participating school divisions to such purchases.
  e. The Board of Education shall not take any action that would increase the state's share of
  costs associated with the Governor's Schools as set forth in this Item. This provision shall not
  prohibit the Department of Education from submitting requests for the increased costs of
  existing programs resulting from updates to student enrollment for school divisions currently
  participating in existing programs or for school divisions that begin participation in existing
  programs.
  f.1) Regular school year Governor's Schools are funded through this Item based on the state's
  share of the incremental per pupil cost for providing such programs for each student attending
  a Governor's School up to a cap of 1,800 students per Governor's School in the first year and a
  cap of 1,800 students per Governor's School in the second year. This incremental per pupil
  payment shall be adjusted for the composite index of the school division that counts such
  students attending an academic year Governor's School in their March 31 Average Daily
  Membership. It is the intent of the General Assembly that this incremental per pupil amount
  be in addition to the basic aid per pupil funding provided to the affected school division for
  such students. Therefore, local school divisions are encouraged to provide the appropriate
  portion of the basic aid per pupil funding to the Governor's Schools for students attending
  these programs, adjusted for costs incurred by the school division for transportation,
  administration, and any portion of the day that the student does not attend a Governor's
  School.
  2) Students attending a revolving Academic Year Governor's School program for only one
  semester shall be counted as 0.50 of a full-time equivalent student and will be funded for only
  fifty percent of the full-year funded per pupil amount. Funding for students attending a
  revolving Academic Year program will be adjusted based upon actual September 30th and
  January 30th enrollment each fiscal year. For purposes of this Item, revolving programs shall
  mean Academic Year Governor's School programs that admit students on a semester basis.
  3) Students attending a continuous, non-revolving Academic Year Governor's School
  program shall be counted as a full-time equivalent student and will be funded for the full-year
  funded per pupil amount. Funding for students attending a continuous, non-revolving
  Academic Year Governor's School program will be adjusted based upon actual September
  30th student enrollment each fiscal year. For purposes of this Item, continuous, non-revolving
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  programs shall mean Academic Year Governor's School programs that only admit students
  at the beginning of the school year. Fairfax County Public Schools shall not reduce local
  per pupil funding for the Thomas Jefferson Governor's School below the amounts
  appropriated for the 2003-2004 school year.
  g. All regional Governor's Schools are encouraged to provide full-day grades 9 through 12
  programs.
  h. Out of the appropriation included in paragraph C.38. of this item, $811,727 the first
  year and $1,722,016 $1,737,049 the second year from the general fund is provided in the
  Academic Year Governor's School funding allocation to increase the per pupil amount as
  an add-on for a compensation supplement equal to 3.0 percent of base pay on July 1, 2024,
  and 3.0 percent of base pay on July 1, 2025, for Academic Year Governor's School
  instructional and support positions.
  i. Each Academic Year Governor's School shall set diversity goals for its student body and
  faculty, develop a plan to meet said goals in collaboration with community partners at
  public meetings, and such goals and plan shall be published on the school's website. Each
  school shall submit a report to the Governor by October 1 of each year on its goals and
  status of implementing its plan, and such report shall be published on the school's website.
  The report shall include, but not be limited to the following: utilization of universal
  screenings in feeder divisions; admission processes in place or under consideration that
  promote access for historically underserved students; and outreach and communication
  efforts deployed to recruit historically underserved students. The report shall include the
  racial/ethnic make-up and socioeconomic diversity of its students, faculty, and applicants.
  j. Out of the appropriation included in paragraph C.44.b. of this item, $902,372 the
  second year from the general fund is provided in the Academic Year Governor's School
  funding allocation to increase the per pupil amount as an add-on for a bonus payment
  equal $1,500 on June 1, 2026, for Academic Year Governor's School instructional and
  support positions. Any funds appropriated for this purpose may be carried on the books of
  the program to be appropriated for the same purpose in Fiscal Year 2027.
  28. School Nutrition Payments
  It is provided that, subject to implementation by the Superintendent of Public Instruction,
  no disbursement shall be made out of the appropriation for school nutrition to any locality
  in which the schools permit the sale of competitive foods in food service facilities or areas
  during the time of service of food funded pursuant to this Item.
  29. School Breakfast Payments
  a. Out of this appropriation, $11,456,532 the first year and $12,619,194 $11,132,810 the
  second year from the Lottery Proceeds Fund is included to continue a state funded
  incentive program to maximize federal school nutrition revenues and increase student
  participation in the school breakfast program. These funds are available to any school
  division as a reimbursement for breakfast meals served that are in excess of the baseline
  established by the Department of Education. The per meal reimbursement shall be $0.28;
  however, the department is authorized, but not required to reduce this amount
  proportionately in the event that the actual number of meals to be reimbursed exceeds the
  number on which this appropriation is based so that this appropriation is not exceeded.
  b. In order to receive these funds, school divisions must certify that these funds will be
  used to supplement existing funds provided by the local governing body and that local
  funds derived from sources that are not generated by the school nutrition programs have
  not been reduced or eliminated. The funds shall be used to improve student participation
  in the school breakfast program. These efforts may include, but are not limited to,
  reducing the per meal price paid by students, reducing competitive food sales in order to
  improve the quality of nutritional offerings in schools, increasing access to the school
  breakfast program, or providing programs to increase parent and student knowledge of
  good nutritional practices. In no event shall these funds be used to reduce local tax
  revenues below the level appropriated to school nutrition programs in the prior year.
  Further, these funds must be provided to the school nutrition programs and may not be
  used for any other school purpose.
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  c.1) Out of this appropriation, $1,074,000 the first year and $1,074,000 the second year from
  the general fund is provided to fund an After-the-Bell Model breakfast program available on a
  voluntary basis to elementary, middle, and high schools where student eligibility for free or
  reduced lunch exceeds 45.0 percent for the participating eligible school, and to provide
  additional reimbursement for eligible meals served in the current traditional school breakfast
  program at all grade levels in any participating school. The Department of Education is
  directed to ensure that only eligible schools receive reimbursement funding for participating
  in the After-the-Bell school breakfast model. The schools participating in the program shall
  evaluate the educational impact of the models implemented that provide school breakfasts to
  students after the first bell of the school day, based on the guidelines developed by the
  Department of Education and submit the required report to the Department of Education no
  later than August 31 each year.
  2) The Department of Education shall communicate, through Superintendent's Memo, to
  school divisions the types of breakfast serving models and the criteria that will meet the
  requirements for this State reimbursement, which may include, but are not limited to,
  breakfast in the classroom, grab and go breakfast, or a breakfast after first period. School
  divisions may determine the breakfast serving model that best applies to its students, so long
  as it occurs after the instructional day has begun. The Department of Education shall monthly
  transfer to each school division a reimbursement rate of $0.05 per breakfast meal that meets
  either of the established criteria in elementary schools and a reimbursement rate of $0.10 per
  breakfast meal that meets either of the established criteria in middle or high schools.
  3) No later than July 1 each year, the Department of Education shall provide for a breakfast
  program application process for school divisions with eligible schools, including guidelines
  regarding specified required data to be compiled from the prior school year or years and for
  the upcoming school year program. The number of approved applications shall be based on
  the estimated number of sites that can be accommodated within the approved funding level.
  The Department of Education shall set criteria for establishing priority should the number of
  applications from eligible schools exceed the approved funding level. The reporting
  requirements must include: chronic absenteeism rates, student attendance and tardy arrivals,
  office discipline referrals, student achievement measures, teachers' and administrators'
  responses to the impact of the program on student hunger, student attentiveness, and overall
  classroom learning environment before and after implementation, and the financial impact on
  the division's school food program. Funded schools that do not provide data by August 31 are
  subject to exclusion from funding in the following year. The Department of Education shall
  collect and compile the results of the breakfast program and shall submit the report to the
  Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations
  Committees no later than November 1 following each school year.
  30. Clinical Faculty and Mentor Teacher Program Payments
  This appropriation includes $1,000,000 the first year and $1,000,000 the second year from the
  Lottery Proceeds Fund to be paid to local school divisions for statewide Mentor Teacher
  Programs to assist pre-service teachers and beginning teachers to make a successful transition
  into full-time teaching. This appropriation also includes $318,750 the first year and $318,750
  the second year from the general fund for Clinical Faculty programs to assist pre-service
  teachers and beginning teachers to make a successful transition into full-time teaching. Such
  programs shall include elements which are consistent with the following:
  a. An application process for localities and school/higher education partnerships that wish to
  participate in the programs;
  b. For Clinical Faculty programs only, provisions for a local funding or institutional
  commitment of 50 percent, to match state grants of 50 percent;
  c. Program plans which include a description of the criteria for selection of clinical faculty
  and mentor teachers, training, support, and compensation for clinical faculty and mentor
  teachers, collaboration between the school division and institutions of higher education, the
  clinical faculty and mentor teacher assignment process, and a process for evaluation of the
  programs;
  d. The Department of Education shall allow flexibility to local school divisions and higher
  education institutions regarding compensation for clinical faculty and mentor teachers
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  FY2025  FY2026  FY2025        FY2026
  consistent with these elements of the programs; and
  e. It is the intent of the General Assembly that no preference between pre-service or
  beginning teacher programs be construed by the language in this Item. School divisions
  operating beginning teacher mentor programs shall receive equal consideration for
  funding.
  31. Career Switcher/Alternative Licensure Payments
  Appropriations in this Item include $279,983 the first year and $279,983 the second year
  from the general fund to provide grants to school divisions that employ mentor teachers
  for new teachers entering the profession through the alternative route to licensure as
  prescribed by the Board of Education.
  32. Virginia Workplace Readiness Skills Assessment
  Appropriations in this Item include $308,655 the first year and $308,655 the second year
  from the general fund to provide support grants to school divisions for standard diploma
  graduates. To provide flexibility, school divisions may use the state grants for the actual
  assessment or for other industry certification preparation and testing.
  33. Early Reading Specialists Initiative
  a. An additional payment of $3,476,790 the first year and $3,476,790 the second year from
  the general fund shall be disbursed by the Department of Education to qualifying local
  school divisions for the purpose of providing a reading specialist for schools with a third
  grade that rank lowest statewide on the reading Standards of Learning (SOL) assessments.
  Funding for a reading specialist during the 2024-2026 biennium shall be based on the
  results of the Spring 2023 reading SOL assessments. Such schools shall be eligible to
  receive the state share of funding for both years of the biennium. Following certification
  from a school division that it will not participate in the program, the Department is
  authorized to identify additional eligible schools based upon the list of schools that rank
  lowest on the Spring 2023 SOL reading assessment.
  b. These payments shall be based on the state's share of the cost of providing one reading
  specialist per qualifying school.
  c. These payments are available to any school division with a qualifying school that
  certifies to the Department of Education that the division has hired a reading specialist or
  reading coach to provide direct services to children reading below grade level in the
  school to improve reading achievement for the purpose of creating additional instructional
  time for reading specialists or reading coaches to work with students reading below grade
  level to improve reading achievement. Additionally, school divisions shall certify that the
  reading specialists or reading coaches hired pursuant to this program are in addition to the
  reading specialist positions funded through Basic Aid and required pursuant to B.7.h. of
  this Item to serve students at the qualifying school.
  d. These payments also are available to any school division with a qualifying school that
  certifies to the Department of Education that the division is supporting tuition for
  collegiate programs and instruction for currently employed instructional school personnel
  to earn the credentials necessary to meet licensure requirements to be endorsed as a
  reading specialist. Additionally, school divisions shall certify that the currently employed
  instructional school personnel whose tuition is supported pursuant to this program are in
  addition to the reading specialist positions funded through Basic Aid and required
  pursuant to B.7.h. of this Item to serve students at the qualifying school.
  e. School divisions receiving these payments are required to match these funds based on
  the composite index of local ability-to-pay.
  f. Within the fiscal year, any funds not awarded from this program may be awarded to
  eligible schools under the Math/Reading Instructional Specialist Initiative.
  34. Math/Reading Instructional Specialist Initiative
  a. Included in this appropriation is $1,834,538 the first year and $1,834,538 the second
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  FY2025  FY2026  FY2025  FY2026
  year from the general fund in additional payments for reading or math instructional specialists
  at underperforming schools. From this amount, the state share of one reading or math
  specialist shall be provided to local school divisions with schools which rank lowest statewide
  on the Spring Standards of Learning (SOL) math or reading assessment. Funding for one math
  or reading specialist during the 2024-2026 biennium shall be based on the results of the
  Spring 2023 SOL assessments. Such schools shall be eligible to receive the state share of
  funding for both years of the biennium. If, following certification from a school division that
  it will not participate in the program, the Department is authorized to identify additional
  eligible schools based upon the list of schools that rank lowest on the Spring 2023 SOL math
  or reading assessment.
  b. These payments are available to any school division with a qualifying school that certifies
  to the Department of Education that the division has (1) hired a math or reading instructional
  specialist, or (2) is supporting tuition for collegiate programs and instruction for currently
  employed instructional school personnel to earn the credentials necessary to meet licensure
  requirements to be endorsed as a math specialist or a reading specialist. Localities receiving
  these payments are required to match these funds based on the composite index of local
  ability-to-pay.
  c. School divisions that elect to use funding to support tuition for collegiate programs and
  instruction for currently employed instructional school personnel pursuant to paragraph b.
  shall provide documentation of these costs to the Department of Education prior to receiving
  state funds. The Department of Education shall provide state funding for the lesser of the
  actual cost or the state share of a math or reading specialist position per eligible school for
  funds used in such a manner.
  d. The Department of Education is authorized to utilize available funding appropriated to the
  Early Reading Specialist Initiative contained in this Item to pay for instructional specialists at
  additional eligible schools, or to support tuition for collegiate programs and instruction for
  currently employed instructional school personnel at additional eligible schools to earn the
  credentials necessary to meet licensure requirements to be endorsed as an instructional
  specialist.
  e. Within the fiscal year, any funds not awarded from this program may be awarded to eligible
  schools under the Early Reading Specialists Initiative.
  f. The Department of Education may award prorated state funds for specialist positions filled
  after the beginning of the school year.
  35. Broadband Connectivity Capabilities
  By November 1 each year, school divisions shall report to the Department of Education the
  status of broadband connectivity capability of schools in the division on a form to be provided
  by the Department. Such report shall include school-level information on the method of
  Internet service delivery, the level of bandwidth capacity and the degree such capacity is
  sufficient for delivery of school-wide digital resources and instruction, degree of internet
  connectivity via Wi-Fi, cost information related to Internet connectivity, data security, and
  such other pertinent information as determined by the Department of Education. The
  Department shall provide a summary of the division responses in a report to be made
  available on its agency Web site.
  36. Infrastructure and Operations Per Pupil Funds
  a. Out of this appropriation, an amount estimated at $301,361,275 the first year and
  $276,361,278 $275,251,492 the second year from the Lottery Proceeds Fund shall be
  disbursed by the Department of Education to local school divisions to support the state share
  of an estimated $446.01 per pupil the first year and $409.70$414.97 per pupil the second year
  in adjusted March 31 average daily membership. These per pupil amounts are subject to
  change for the purpose of payment to school divisions based on the actual March 31 ADM
  collected each year. These funds shall be matched by the local government, based on the
  composite index of local ability-to-pay. Further, in order to receive this funding, the locality
  in which the school division is located shall appropriate these funds solely for educational
  purposes and shall not use such funds to reduce total local operating expenditures for public
  education below the amount expended by the locality for such purposes in the year upon
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  which the 2020-2022 biennial Standards of Quality expenditure data were based; provided
  however that no locality shall be required to maintain a per-pupil expenditure which is
  greater than the per pupil amount expended by the locality for such purposes in the year
  upon which the 2020-2022 biennial Standards of Quality expenditure data were based.
  The Department of Education is authorized each year to temporarily suspend
  Infrastructure and Operations Per Pupil Allocation payments made to school divisions
  from Lottery funds to ensure that any shortfall in Lottery revenue can be accounted for in
  the remaining Infrastructure and Operations Per Pupil Allocation payments to be made for
  the year.
  b. From the amounts listed above, funds are provided to ensure that small school divisions
  receive an Infrastructure and Operations payment of at least $200,000 each year. Divisions
  receiving additional funds for a payment of at least $200,000 shall only be required to
  provide the local match on the per pupil amount distributed in paragraph C.35.a.
  c. Of the amounts listed above, no more than 60 percent shall be used for recurring costs
  and at least 40 percent shall be spent on nonrecurring expenditures by the relevant school
  divisions. Nonrecurring costs shall include school construction, additions, infrastructure,
  site acquisition, renovations, school buses, technology, and other expenditures related to
  modernizing classroom equipment, and debt service payments on school projects
  completed or initiated during the last 10 years. The Department of Education shall
  consider such nonrecurring expenses by school divisions from local funds to be credited
  toward their required local match under this program.
  d. Any funds provided to school divisions that are unexpended as of June 30, 2025, and
  June 30, 2026, shall not revert to the Commonwealth but shall be carried on the books of
  the locality in local escrow accounts pursuant to § 22.1-175.5, to be appropriated to the
  school division for use for the same purpose.
  37. Special Education Endorsement Program
  a. Notwithstanding § 22.1-290.02, Code of Virginia, out of this appropriation, $437,186
  the first year and $437,186 the second year from the general fund is provided for
  traineeships and program operation grants that shall be awarded to public Virginia
  institutions of higher education to prepare persons who are employed in the public schools
  of Virginia, state operated programs, or regional special education centers as special
  educators with a provisional license and enrolled either part-time or full-time in programs
  for the education of children with disabilities. Applicants shall be graduates of a regionally
  accredited college or university.
  b. The award of such grants shall be made by the Department of Education, and the
  number of awards during any one year shall depend upon the amounts appropriated by the
  General Assembly for this purpose. The amount awarded for each traineeship shall be
  $600 for a minimum of three semester hours of course work in areas required for the
  special education endorsement to be taken by the applicant during a single semester or
  summer session. Only one traineeship shall be awarded to a single applicant in a single
  semester or summer session.
  38. Compensation Supplement
  a. Out of this appropriation, $178,824,244 the first year and $376,360,450 $368,473,990
  the second year from the general fund is provided for the state share of the following
  salary increases and related fringe benefit costs:
  1) For the first year, a 3.0 percent salary increase effective July 1, 2024, for funded SOQ
  instructional and support positions. Sufficient funds are appropriated in this act to finance,
  on a statewide basis, the state share of up to a 3.0 percent salary increase effective July 1,
  2024, to school divisions that certify to the Department of Education that an equivalent
  increase will be provided to instructional and support personnel the first year. The state
  share of funding provided to a school division in support of this compensation supplement
  shall be prorated for school divisions that provide less than an average 3.0 percent salary
  increase the first year; however, to access these funds, a school division must provide at
  least an average 1.5 percent salary increase the first year.
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  2) For the second year, an additional 3.0 percent salary increase effective July 1, 2025, for
  funded SOQ instructional and support positions. Sufficient funds are appropriated in this act
  to finance, on a statewide basis, the state share of up to an additional 3.0 percent salary
  increase effective July 1, 2025, to school divisions that certify to the Department of Education
  that an equivalent increase will be provided to instructional and support personnel the second
  year. The state share of funding provided to a school division in support of this compensation
  supplement shall be prorated for school divisions that provide less than an additional average
  3.0 percent salary increase the second year; however, to access these funds, a school division
  must provide at least an additional average 1.5 percent salary increase the second year. School
  divisions that provided an average increase in excess of 3.0 percent in the first year may credit
  the excess portion of the increase toward the second year for the purpose of accessing these
  funds in the second year.
  3) Payments in the second year to any school division shall be based on providing the funds
  needed to continue the first year increase actually provided by the division plus the increase
  provided by the division in the second year.
  b. Out of this appropriation, $811,727 the first year and $1,722,016$1,737,049 the second
  year from the general fund is provided for the state share of the salary increases stated in
  paragraph a. above for Academic Year Governor's Schools, and $549,281 the first year and
  $1,115,929 the second year from the Lottery Proceeds fund is provided for the state share of
  these salary increases for Regional Alternative Education Programs.
  c. It is the intent that the average instructional and support position salaries are increased in
  local school divisions throughout the state by at least 3.0 percent the first year, at least an
  additional 3.0 percent the second year, resulting in a combined increase of at least 6.09
  percent during the biennium.
  d. The state funds that the school division is eligible to receive shall be matched by the local
  government based on the composite index of local ability-to-pay. This local match shall be
  calculated for funded SOQ instructional and support positions using an effective date of July
  1, 2024, the first year and July 1, 2025, the second year. Local school divisions shall certify to
  the Department of Education that funds used as the local match are derived solely from local
  revenue sources.
  e. This funding is not intended as a mandate to increase salaries.
  39. School Meals Expansion
  Out of this appropriation, $4,100,000 the first year and $4,100,000 the second year from the
  general fund is provided for local school divisions to reduce or eliminate the cost of school
  breakfast and school lunch for students who are eligible for reduced price meals under the
  federal National School Lunch Program and School Breakfast Program. The Department of
  Education is authorized to reduce this amount proportionately so as not to exceed this
  appropriation.
  40. Alleghany County - Covington City School Division Consolidation Incentive
  Out of this appropriation, $600,000 the first year from the general fund is provided as an
  incentive for the consolidation of the Alleghany County and Covington City school divisions.
  This incentive payment represent the fifth installment of five $600,000 payments as
  recommended for this consolidation incentive through the methodology contained in the
  Study on School Division Joint Contracting Incentives (Report Document 548, 2016).
  41. Supplemental Support for Accomack and Northampton
  Out of this appropriation, $1,750,000 the first year and $1,750,000 the second year from the
  Lottery Proceeds Fund shall be disbursed to provide support to Accomack and Northampton
  school divisions for teacher recruitment and retention efforts, including adjustments to salary
  scales to minimize the misalignment to salary scales of adjacent counties.
  42. School Construction Assistance Program.
  a. Out of this appropriation, $200,000,000 the first year and $110,000,000 the second year
  from the School Construction Fund and $50,000,000 the first year from the Literary Fund that
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  FY2025  FY2026  FY2025        FY2026
  shall be transferred into the School Construction Fund is provided for the Board of
  Education to award grants on a competitive basis from the Fund to local school boards that
  demonstrate poor building conditions, commitment, and need in order for such local
  school boards to fund the construction, expansion, or modernization of public school
  buildings. Any unobligated balance for this program on June 30, each year shall be
  reappropriated for expenditure in the second year for the same purpose.
  b. The Board of Education shall develop guidelines for the administration of this program,
  which shall provide at a minimum that:
  1. Grants shall be provided only for projects that conform to the Department of
  Education's “Guidelines for School Facilities in Virginia's Public Schools," as amended.
  2. Grant awards shall be based on project costs, including planning, design, site
  acquisition and construction, the school division's local composite index, and the fiscal
  stress category as designated by the Virginia Commission on Local Government in its
  most recent "Report on Comparative Revenue Capacity, Revenue Effort, and Fiscal Stress
  of Virginia's Counties and Cities" for the locality that contains the school division, as
  follows:
  School Division  Grant Award Amount
  School divisions with a local composite index value  30 percent of project costs
  below .3000, or contained in a locality designated with
  high fiscal stress
  School divisions with a local composite index value at or        20 percent of project costs
  above .3000 and below .4000, or contained in a locality
  designated with above average fiscal stress
  All other school divisions  10 percent of project costs
  3. A minimum qualifying score shall be met for a project to qualify for a grant award
  based on Board-developed scoring criteria. The Board shall set such minimum score at a
  level to ensure funds are reserved for critical school construction projects. Such scoring
  criteria shall provide appropriate weight to the following categories for the award of
  grants:
  a.) Commitment, which may be demonstrated by factors such as: (i) an agreement by the
  local governing body to maintain or increase the percentage of local revenues dedicated to
  public education throughout the duration of the financing proposed for the project and (ii)
  the extent of project design and site acquisition for such project that has been completed
  prior to application of anticipated grant funds.
  b.) Need, which may consider factors such as: (i) the percentage of students in the local
  school division eligible to receive free price meals; (ii) the percentage of residents of the
  locality in which the local school division is located with incomes at or below the federal
  poverty guidelines established by the U.S. Department of Health and Human Services;
  (iii) the local composite index of local ability-to-pay for the local school division; (iv) debt
  capacity of the locality in which the school division is located; and (v) the most recent
  fiscal stress score of the locality that includes the local school division as designated by
  the Virginia Commission on Local Government.
  c.) Poor school building conditions, which may consider factors such as: (i) the condition
  of the facilities proposed to be replaced or upgraded using these funds, including the
  current level of compliance of the existing facility with the Americans with Disabilities
  Act of 1990 (42 U.S.C. § 12101 et seq.) and the facilities potential threat to the health or
  safety of building occupants; (ii) the school division maintenance reserve tool established
  pursuant to Chapter 650 of the 2022 General Assembly; and (iii) the overall condition of
  other facilities within the school division.
  4. If qualifying grant award requests exceed the amount of funds available, grants shall be
  awarded based on ranked project scores, and shall not be prorated.
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  5. The release of funds to grant awardees shall be reasonably aligned with the timing of
  incurred expenses.
  6. A specific project shall only receive one grant award. The total project cost eligible to
  receive a grant shall be up to $100,000,000. Grant awards shall not be amended for any
  additional reasonable project costs after the Board awards a grant to a division.
  c. For the purpose of this program, "project costs" shall include reasonable project
  construction costs as defined by the Board, including planning, design, site acquisition and
  construction, and not to include financing costs, outdoor facilities predominantly used for
  extracurricular athletic activities, loose equipment, and furniture.
  d. The Board of Education shall submit an executive summary of the program, including
  details on projects funded each year and any necessary legislative or budget recommendations
  to improve the program, no later than December 1 of each year to the Chairs of the House
  Education Committee, Senate Education and Health Committee, House Appropriations
  Committee, and Senate Finance and Appropriations Committee.
  43. Supplemental General Fund Payment in Lieu of Sales Tax on Food and Personal Hygiene
  Products
  Out of this appropriation, $272,500,000 the first year and $273,600,000 the second year from
  the general fund shall be distributed to localities on the basis of the latest yearly estimate of
  school age population provided by the Weldon Cooper Center for Public Service as specified
  in this item for SOQ sales tax payments pursuant to § 58.1-611.1.C of the Code of Virginia.
  These funds represent the reduction of sales tax distributions to school divisions resulting
  from the exemption of the state sales and use tax on food for human consumption and
  essential personal hygiene products. These payments shall be applied in the same manner as
  sales tax payments to offset the state and local shares of basic aid and shall require no local
  match.
  44. Bonus Payment
  a.1. Out of this appropriation, $134,399,957 the first year from the general fund is provided
  for a one-time bonus payment of $1,000 by no later than June 1, 2025, per funded SOQ
  instructional position and per Academic Year Governor's School and Regional Alternative
  Education Program instructional and support position. Funded SOQ instructional positions
  shall include all teacher, guidance counselor, librarian, instructional aide, principal, and
  assistant principal positions.
  b. 2. Sufficient funding is provided for the entire cost of an average $1,000 bonus per funded
  SOQ instructional and support position in this act. Sufficient funding is provided for the entire
  cost of an average $1,000 bonus per Academic Year Governor's School and Regional
  Alternative Education Program instructional and support position based on the most-recently
  available full-time equivalent position counts, as reported to the Department of Education.
  School divisions shall have discretion to determine the amount of bonuses per employee to
  maximize the use of these funds to promote retention among instructional and support
  positions in this act. The funds a division is eligible to receive shall require no match by the
  local government. Localities are encouraged to use additional available funds to provide
  bonuses to other eligible instructional and support positions.
  b.1. Out of this appropriation, $116,286,229 the second year from the general fund is
  provided for the state share of a one-time bonus payment of $1,500 per employee on June 1,
  2026, for funded SOQ instructional and support positions. Sufficient funds are appropriated
  in this act to finance, on a statewide basis, the state share of this bonus for school divisions
  that certify to the Department of Education that a bonus of a minimum average of $1,500 per
  employee or equivalent action will be provided during the second year or Fiscal Year 2027.
  School divisions shall have discretion to determine the amount of bonuses per employee to
  maximize the use of these funds to promote retention among instructional and support
  positions in this act.
  2. Any funds provided from the appropriation in C.44.b.1 that are unexpended by a locality
  that has certified that it will provide the bonus during Fiscal Year 2027 shall be carried on
  the books of the locality to be appropriated to the school division in the following year for the
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  FY2025  FY2026  FY2025        FY2026
  same purpose.
  3. Out of this appropriation, $902,372 the second year from the general fund is provided
  for the state share of the one-time bonus payment stated in paragraph b. above for
  Academic Year Governor's Schools and $397,907 the second year from the Lottery
  Proceeds Fund is provided for the state share of this bonus payment for Regional
  Alternative Education Programs. Sufficient funding is provided for the state share of an
  average $1,500 bonus per employee based on the most-recently available full-time
  equivalent positions counts as reported to the Department of Education.
  4. The state funds that the school division is eligible to receive shall be matched by the
  local government based on the composite index of local ability-to-pay. This local match
  shall be calculated for funded SOQ instructional and support positions using an effective
  date of June 1, 2026.
     125.10     Early Childhood Care and Education Programs
  (17600)  $585,580,474     $593,210,086
  Early Childhood Care and Education Programs
  (17601)  $585,580,474   $593,210,086
  Fund Sources: General  $391,712,192   $461,691,610
  Federal Trust  $193,868,282   $131,518,476
  Authority: Early Childhood Care and Education: Title 22.1, Chapter 14, Code of Virginia;
  P.L. 113-186, Federal Code
  A. Out of this appropriation, $391,312,192 the first year and $461,691,610 the second year
  from the general fund is provided to support Early Childhood Care and Education
  Programs as provided below.
  Item 472 (2) of this act and Item 486 (2) of the 2022-2024 Appropriation Act provide that
  federal ARPA-SLRF funds returned to the State and Local Recovery Fund may be used to
  supplement the Child Care Subsidy Program. General funds in this Item shall be
  unallotted in the first year in an amount equivalent to the supplemental funds provided
  from the State and Local Recovery Fund, and the Director, Department of Planning and
  Budget, shall revert such unallotted amounts to the general fund on or before June 30,
  2025.
  Program  FY 2025  FY 2026
  Child Care Subsidy Program
  General Fund  $174,992,388  $266,500,894
  $272,029,306
  Federal CCDF  $129,871,766  $131,518,476
  Federal ARPA-SLRF  $69,014,425  $0
  TANF/VIEW & Fee for Service (GF  $26,864,671  $26,864,671
  appropriated through Department of
  Social Services)
  CCDF Total  $400,743,250  $424,884,041
  $430,412,453
  Mixed Delivery Grant Program
  General Fund  $38,837,720  $38,837,720
  Virginia Preschool Initiative
  General Fund: Four Year Olds  $128,616,155  $123,236,076
  $126,359,858
  General Fund: VPI Expansion  $23,865,929  $33,116,920
  $24,464,726
  VPI Total  $152,482,084  $156,352,996   I VETO ITEM
  $150,824,584   125.10.J. ON
  PAGES 77-78
  Employee Child Care Assistance Pilot  $25,000,000  $0   AND PAGES
  84-85
  /s/ Glenn
  Youngkin
  5-2-25
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    ITEM 125.10.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  Program
  Total General Funds  $391,312,192  $461,691,610
  B. Child Care Subsidy Program
  1. The Department of Education and the Department of Social Services shall determine the
  amount of nongeneral funds to be transferred to the Department of Social Services to address
  costs associated with administration of the Child Care and Development Fund each year from
  amounts appropriated in Item 117. Additionally, the Department of Education and the
  Department of Social Services shall determine the amount of general and nongeneral funds to
  be transferred to the Department of Social Services to support the budgeted slots in the Child
  Care Subsidy Program from amounts appropriated in this Item.
  2. Notwithstanding 8VAC-20-790, the Department of Education shall establish an annual
  target at the local level for the number of children that may be served by available funds and
  ensure that each locality has mechanisms in place for maintaining waitlists if family demand
  exceeds the targets.
  4. Family copayment rates for fiscal year 2025 shall not exceed those that were in effect at the
  beginning of fiscal year 2024. Family copayment rates for fiscal year 2026 shall be $5 per
  month for households whose income is below 100% of the federal poverty level and up to 5%
  of annual income for all other households with no household exceeding 5% of their income.
  5. Parental work and job search requirements for fiscal year 2025 shall not exceed those that
  were in effect at the beginning of fiscal year 2024. Parental work and job search requirements
  for fiscal year 2026 shall include a time limit of 90 days for job search. Households are
  eligible for up to one extension for extraordinary circumstances, which shall be defined and
  tracked by the Department of Education.
  6. The Department of Education shall revise attendance requirements for the Child Care
  Subsidy Program, subject to review by the Early Childhood Care and Education Commission,
  to ensure participating children fully benefit and maximization of available resources. The
  Department shall report proposed changes to the General Assembly by December 1, 2025.
  C. Mixed Delivery Grant Program
  1. A Mixed-Delivery initiative is established to support public-private delivery of early
  learning services for birth to five-year-old children. Programs must provide full-day or half-
  day services. The Department of Education is authorized to prorate payment for this program
  so as not to exceed available appropriation. Actual funding provided to the Virginia Early
  Childhood Foundation shall be based on the actual use of allocated slots. Lead agencies shall
  report to the Virginia Early Childhood Foundation on actual use of allocated slots, and any
  funds allocated but not used on the actual provision of early childhood services shall be
  returned to the Department of Education.
  a) The Department of Education shall establish academic standards that are in accordance
  with appropriate preparation for students to be ready to successfully enter kindergarten. These
  standards shall be established in such a manner as to be measurable for student achievement
  and success. Students shall be required to be evaluated in the fall and in the spring by each
  participating provider and grantees must certify that the Virginia Preschool Initiative
  standards are followed in order to receive the funding for quality preschool education and
  criteria for the service components. Such standards shall align with the Virginia Standards of
  Learning for Kindergarten.
  b) The Department of Education shall require and ensure that all participating classrooms
  have the quality of their teacher-child interactions assessed through a rigorous and research-
  based observation instrument in accordance with the statewide measurement and
  improvement system VQB5.
  c) Any locality that desires to participate in this grant program must submit a proposal each
  year to the Virginia Early Childhood Foundation. The application must be submitted by May
  15 to align with the Virginia Preschool Initiative timeline. Each application shall identify a
  lead agency for this program within the locality. The lead agency shall be responsible for
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  developing a local plan for the delivery of quality preschool services to at-risk birth to
  five-year-old children in private settings that demonstrates the coordination of resources in
  an effort to serve the greatest number of at-risk children.
  d) The proposal must demonstrate: (i) coordination with all parties necessary for the
  successful delivery of comprehensive services, including schools, child care providers,
  local social services agencies, Head Start, local health departments, and other groups
  identified by the lead agency, (ii) a plan for supporting inclusive practices for children
  with identified special needs, (iii) a plan to transition the Mixed-Delivery local model into
  a sustainable program, and (iv) a mechanism for annually measuring and reporting unmet
  parental demand and preference, including establishing waitlists.
  e) Local plans must indicate the number of at-risk children to be served, and the eligibility
  criteria for participation in this program shall be consistent with the economic and
  educational risk factors stated in the current program guidelines that are specific to: (i)
  family income at or below 200 percent of federal poverty guidelines, (ii) homelessness,
  (iii) student's parents or guardians are school dropouts, or (iv) children with disabilities or
  delays who are eligible for special education services under the Individuals with
  Disabilities Education Act, regardless of household income. Up to 15 percent of slots may
  be filled based on locally established eligibility criteria so as to meet the unique needs of
  at-risk children in the community. Localities that can demonstrate that more than 15
  percent of slots are needed to meet the needs of at-risk children in their community may
  apply for a waiver from the Superintendent of Public Instruction to use a larger percentage
  of their slots. Localities must demonstrate that increasing eligibility will enable the
  maximization of federal funds and will not have a negative impact on access for other
  individuals currently being served.
  f) Notwithstanding any provisions of § 22.1-299, Code of Virginia, and in order to achieve
  the priorities of the Joint Subcommittee on Early Childhood Care and Education for
  exploring the feasibility of and barriers to mixed delivery preschool systems in Virginia,
  recipients of a Mixed-Delivery Preschool grant shall be provided maximum flexibility
  within their respective local initiative in order to fully implement the associated goals and
  objectives of Mixed-Delivery Models. Recipients of a Mixed-Delivery Preschool grant
  and divisions participating in such grant activities shall be exempted from all regulatory
  and statutory provisions related to teacher licensure requirements and qualifications when
  paid by public funds within the confines of the Mixed-Delivery Preschool initiative.
  g) Children served by the Mixed-Delivery initiative shall be assigned student
  identification numbers as provided in § 22.1-287.03 B of the Code of Virginia to evaluate
  program outcomes and to permit comparison with Virginia Preschool Initiative outcomes.
  h) Mixed-Delivery providers shall provide information to the Department of Education as
  necessary to fulfill the reporting requirement established.
  i) The Department of Education shall report to the Governor and the Chairs of the House
  Committee on Education and the Senate Committee on Education and Health by July 1,
  2025, on the efficacy of the Mixed-Delivery Initiative since the inception of the program
  and compare its outcomes relative to the Virginia Preschool Initiative and the Child Care
  Subsidy Program.
  2. Providers in the program may collect copayments from participating families. Such
  copayments shall be based on the same schedule provided for the Child Care Subsidy
  Program.
  3. Parental work and job search requirements shall be the same as required for the Child
  Care Subsidy Program.
  4. The Department of Education, in consultation with the Virginia Early Childhood
  Foundation and subject to review by the Early Childhood Care and Education
  Commission, shall revise attendance requirements for the Mixed-Delivery initiative to
  ensure participating children fully benefit and maximization of available resources. The
  Department shall report proposed changes to the General Assembly by December 1, 2025.
  D. Virginia Preschool Initiative
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  FY2025  FY2026  FY2025  FY2026
  1.a. Funds shall be disbursed by the Department of Education to schools and community-
  based organizations to provide quality preschool programs for at-risk four-year-olds who are
  residents of Virginia and unserved by Head Start program funding and for at-risk five-year-
  olds who are not eligible to attend kindergarten, or who did not have access to a sufficient
  preschool experience and whose families request preschool as the most appropriate
  placement. Final Virginia Preschool Initiative placement decisions for eligible children shall
  be based on family and program leader input.
  b. These state funds and required local matching funds shall be used to provide programs for
  at-risk four-year-old children, which include quality preschool education, health services,
  social services, parental involvement and transportation. It shall be the policy of the
  Commonwealth that state funds and required local matching funds for the Virginia Preschool
  Initiative not be used for capital outlay, not be used to supplant any Head Start federal funds
  provided for local early education programs, and not be used until the local Head Start grantee
  certifies that all local Head Start slots are filled. Programs must provide full-day or half-day
  and, at least, school-year services.
  c. The Department of Education shall establish academic standards that are in accordance
  with appropriate preparation for students to be ready to successfully enter kindergarten. These
  standards shall be established in such a manner as to be measurable for student achievement
  and success. Students shall be required to be evaluated in the fall and in the spring by each
  participating school division and the school divisions must certify that the Virginia Preschool
  Initiative program follows the established standards in order to receive the funding for quality
  preschool education and criteria for the service components. Such standards shall align with
  the Virginia Standards of Learning for Kindergarten.
  d. The Department of Education shall revise attendance requirements for the Virginia
  Preschool Initiative, subject to review by the Early Childhood Care and Education
  Commission, to ensure participating children fully benefit and maximization of available
  resources. The Department shall report proposed changes to the General Assembly by
  December 1, 2025.
  e.(i) Grants shall be distributed based on an allocation formula providing the state share of a
  $9,968 per pupil grant in the first year and a $9,968 per pupil grant in the second year for 100
  percent of the unserved at-risk four-year-olds in each locality for a full-day program. Grants
  to half-day programs shall be funded based on the state share of $4,984 in the first year and
  $4,984 in the second year per unserved at-risk four-year-old in each locality.
  For Planning District Eight localities, grants shall be distributed based on an allocation
  formula providing the state share of a $10,701 per pupil grant in the first year and a $10,701
  per pupil grant in the second year for 100 percent of the unserved at-risk four-year-olds in
  each locality for a full-day program; grants to half-day programs for these localities shall be
  funded based on the state share of $5,351 in the first year and $5,351 in the second year per
  unserved at-risk four-year-old in each locality.
  For the counties of Stafford, Fauquier, Spotsylvania, Clarke, Warren, Frederick, and Culpeper
  and the Cities of Fredericksburg and Winchester, grants shall be distributed based on an
  allocation formula providing the state share of a $10,151 per pupil grant in the first year and a
  $10,151 per pupil grant in the second year for 100 percent of the unserved at-risk four-year-
  olds in each locality for a full-day program; grants to half-day programs for these localities
  shall be funded based on the state share of $5,076 in the first year and $5,076 in the second
  year per unserved at-risk four-year-old in each locality.
  The number of unserved at-risk four-year-olds in each locality shall be based on the projected
  number of kindergarten students, updated once each biennium for the Governor's introduced
  biennial budget. The Department of Education shall biennially rebenchmark the Virginia
  Preschool Initiative per pupil amounts using a formula similar to the current formula
  supporting public K-12 education in Virginia.
  For slots filled as of September 30 each year, grants shall be based on the state share of 100
  percent of the per pupil amount for a full-day or half-day program. For slots filled between
  October 1 and December 31 each year, grants shall be based on the state share of the per pupil
  amount for a full-day or half-day program prorated for the portion of the school year each
  child is served. Following the Department of Education's fall student record collection each
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  year, the Department shall project the number of additional slots that may be filled
  between October 1 and December 31 each year. The Department of Education is
  authorized to prorate state funding for slots filled between October 1 and December 31
  each year if demand exceeds available appropriation.
  (ii) VPI Expansion funds are provided to serve at-risk three-year-olds who are residents of
  Virginia and unserved by Head Start funding using criteria determined by the Department
  of Education and subject to available appropriation. Localities may apply to participate by
  May 15 each year and shall be selected on a competitive basis. Localities shall be required
  to: (i) demonstrate broad stakeholder support, (ii) track outcomes for participating
  children, (iii) demonstrate how they will maximize federal and state funds to preserve
  existing birth to five slots, including certifying that all local Head Start slots are filled, (iv)
  support inclusive practices of children with identified special needs, and (v) collaborate
  among the school division, local department of social services, programs accepting child
  care subsidy payments, and providers for Head Start, private child care, and early
  childhood special education and early intervention programs. Localities that meet the
  following characteristics shall be prioritized for participation: (i) communities with limited
  child care options; (ii) programs serving children in private, mixed-delivery settings; or
  (iii) communities that demonstrate full support of public and private providers. Grants
  shall be distributed based on an allocation formula providing the state share of the per
  pupil amounts as provided for four-year old slots.
  (iii) Full-day programs shall operate for a minimum of five and one-half instructional
  hours, excluding breaks for meals, and half-day programs shall operate for a minimum of
  three hours of classroom instructional time per day, excluding breaks for lunch. Virginia
  Preschool Initiative programs may include unstructured recreational time that is intended
  to develop teamwork, social skills, and overall physical fitness in any calculation of total
  instructional time, provided that such unstructured recreational time does not exceed 15
  percent of total instructional time or teaching hours. No additional state funding is
  provided for programs operating greater than three hours per day but less than five and
  one-half hours per day. In determining the state and local shares of funding, the composite
  index of local ability-to-pay is capped at 0.5000.
  (iv) For new programs in the first year of implementation only, programs operating less
  than a full school year shall receive state funds on a fractional basis determined by the
  pro-rata portion of a school year program provided. In determining the prorated state
  funds to be received, a school year shall be 180 days or 990 teaching hours.
  (v) To ensure children with special needs have equitable opportunity to enter kindergarten
  ready, all Virginia Preschool Initiative programs are expected to be inclusive of children
  with disabilities. Specifically, programs shall meet or exceed a target inclusion rate, such
  that 10 percent of all children participating in the Virginia Preschool Initiative are children
  with disabilities, defined as those with an Individualized Education Plan, and are served in
  inclusive classrooms that include children who do not have an Individualized Education
  Plan. A program that is unable to meet this target shall provide reasons a 10 percent
  inclusion rate was not achieved in the given school year in its annual comprehensive
  report.
  2.a. Any locality that desires to participate in this grant program must submit a proposal
  through its chief administrator (county administrator or city manager) by May 15 of each
  year. The chief administrator, in conjunction with the school superintendent, shall identify
  a lead agency for this program within the locality. The lead agency shall be responsible for
  developing a local plan for the delivery of quality preschool services to at-risk children,
  which demonstrates the coordination of resources and the combination of funding streams
  in an effort to serve the greatest number of at-risk four-year-old children and, if
  applicable, to serve at-risk three-year-old children. The plan shall also include a
  mechanism for annually measuring and reporting unmet parental demand and preference,
  including establishing waitlists.
  b. The proposal must demonstrate coordination with all parties necessary for the
  successful delivery of comprehensive services, including the schools, child care providers,
  local social services agency, Head Start, local health department, and other groups
  identified by the lead agency. The proposal must identify which entities were consulted
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    ITEM 125.10.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  and how the locality will ensure that federal funds are preserved and maximized including
  demonstrating compliance with Title I of the federal Elementary and Secondary Education
  Act to ensure that a Local Educational Agency receiving Title I funding coordinates with
  Head Start programs and other early learning programs receiving federal funds by developing
  Memorandums of Understanding with such agencies to coordinate services. The proposal
  must also demonstrate a plan for supporting inclusive practices for children with identified
  special needs.
  c. A local match, based on the composite index of local ability-to-pay, shall be required. For
  purposes of meeting the local match, localities may use local expenditures for existing
  qualifying programs, however, at least fifty percent of the local match will be cash and no
  more than fifty percent will be in-kind. In-kind contributions are defined as cash outlays that
  are made by the locality that benefit the program but are not directly charged to the program.
  The value of fixed assets cannot be considered as an in-kind contribution. Philanthropic or
  other private funds may be contributed to the locality to be appropriated in their local budget
  and then utilized as local match. Localities shall also continue to pursue and coordinate other
  funding sources, including child care subsidies. Funds received through this program must be
  used to supplement, not supplant, any funds currently provided for programs within the
  locality. However, in the event a locality is unable to continue the previous level of support to
  programs for at-risk four-year-olds from Title I of the federal Elementary and Secondary
  Education Act (ESEA), the state and local funds provided in this grants program may be used
  to continue services to these Title I students. Such inability may occur due to adjustments to
  the allocation formula in the reauthorization of ESEA as the Every Student Succeeds Act of
  2015, or due to a percentage reduction in a locality's Title I allocation in a particular year. Any
  locality so affected shall provide written evidence to the Superintendent of Public Instruction
  and request his approval to continue the services to Title I students.
  3. Local plans must provide clear methods of service coordination for the purpose of reducing
  the per child cost for the service, increasing the number of at-risk children served and/or
  extending services for the entire year.
  Examples of these include:
  a. "Wraparound Services" - methods for combining funds such as child care subsidy dollars
  administered by local social service agencies with dollars for quality preschool education
  programs.
  b. "Wrap-out Services" - methods for using grant funds to purchase quality preschool services
  to at-risk four-year-old children through an existing child care setting by purchasing
  comprehensive services within a setting which currently provides quality preschool education.
  c. "Expansion of Service" - methods for using grant funds to purchase slots within existing
  programs, such as Head Start, which provides comprehensive services to at-risk three- and
  four-year-old children.
  4. Local plans must indicate the number of at-risk four-year-old children to be served, and the
  eligibility criteria for participation in this program shall be consistent with the economic and
  educational risk factors stated in the current program guidelines that are specific to: (i) family
  income at or below 200 percent of federal poverty guidelines, (ii) homelessness, (iii) student's
  parents or guardians are school dropouts, or (iv) children with disabilities or delays who are
  eligible for special education services under the Individuals with Disabilities Education Act,
  regardless of household income. Up to 15 percent of a division's slots may be filled based on
  locally established eligibility criteria so as to meet the unique needs of at-risk children in the
  community. If applicable, local plans must also indicate the number of at-risk three-year-old
  children to be served using the same eligibility criteria listed above. Localities that can
  demonstrate that more than 15 percent of slots are needed to meet the needs of at-risk children
  in their community may apply for a waiver from the Superintendent of Public Instruction to
  use a larger percentage of their slots. Localities must demonstrate that increasing eligibility
  will enable the maximization of federal funds and will not have a negative impact on access
  for other individuals currently being served.
  5.a. The Department of Education shall provide technical assistance for the administration of
  this grant program to provide assistance to localities in developing a comprehensive,
  coordinated, quality preschool program that prepares all participants for kindergarten.
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  b. The Department shall provide interested localities with information on models for
  service delivery, methods of coordinating funding streams, such as funds to match federal
  IV-A child care dollars, to maximize funding without supplanting existing sources of
  funding for the provision of services to at-risk three- and four-year-old children. A priority
  for technical assistance in the design of programs shall be given to localities where the
  majority of the at-risk three- and four-year-old population is currently unserved.
  6. VPI Expansion funds are provided to support Virginia Preschool Initiative slots to serve
  children on wait lists. In each year, unused grants distributed as provided in for four-year
  old slots shall be redistributed based on guidelines established by the Department of
  Education subject to the appropriation available for this purpose. Such guidelines shall
  provide the criteria used to redistribute grants and provide for the notification of grants
  redistribution to programs no later than July 1 of each year. The Department shall conduct
  this process annually, and the redistribution shall not affect the allocation formula for the
  subsequent year.
  7.a. VPI Expansion funds are provided to support an add-on grant per child for
  approximately 2,000 children to incentivize mixed-delivery of services through private
  providers. These add-on grants are intended to provide funds to minimize the difference
  between the amount of the per-pupil grant allocation and the per-pupil cost to serve a child
  in a community-based or private provider setting. Recipients of the add-on grants will be
  encouraged to support classrooms that support inclusive practices of children with special
  needs. Localities shall indicate in their plans submitted pursuant to this Item how many of
  their Virginia Preschool Initiative slots will be provided in community-based or private
  provider settings to receive the add-on grant. Community-based providers that are
  recipients of Virginia Preschool Initiative grants shall be exempted from all regulatory and
  statutory provisions related to teacher licensure requirements and qualifications when paid
  by public funds within the confines of the Virginia Preschool Initiative community-add-on
  partnerships and provided that the provider meets the expectations of the statewide
  measurement and improvement system.
  b. The amount of these add-on grants for community-based providers shall be informed by
  the Department of Education's methodology to estimate the actual cost of providing high-
  quality early childhood education services in community-based settings. This is not
  intended as a mandate to increase the individual amounts of these add-on grants or to
  increase the state appropriation supporting these add-on grants. The amount of the add-on
  grant plus the Virginia Preschool Initiative per pupil amount shall not exceed prevailing
  child care market rates in a particular region and shall align with Child Care Subsidy
  Program rates. The Department of Education is authorized to prorate payments for these
  add-on grants so as not to exceed the available appropriation.
  8. VPI Expansion funds are provided to support increased Virginia Preschool Initiative
  teacher to student ratios and class sizes, as follows:
  a. Any classroom that exceeds benchmarks set by the Board of Education shall be staffed
  as follows: (i) one teacher shall be provided for any class of ten students or less; (ii) if the
  enrollment in any class exceeds ten students but does not exceed 20, a full-time teacher's
  aide shall be assigned to the class; and (iii) the maximum class size shall be 20 students.
  b. All other classrooms shall be staffed as follows: (i) one teacher shall be employed for
  any class of nine students or less; (ii) if the enrollment in any class exceeds nine students
  but does not exceed 18, a full-time teacher's aide shall be assigned to the class; and (iii)
  the maximum class size shall be 18 students.
  G. Notwithstanding 8VAC-20-780, or any other requirement in state law or regulation, the
  Superintendent of Public Instruction shall have the authority to alter staff-to-child ratios
  and group sizes for licensed child day centers and child day centers that participate in the
  Child Care Subsidy Program or Mixed Delivery Grant Program by increasing the number
  of children per staff by (1) one child for groups of children from birth to the age of
  eligibility to attend public school, and (2) two children for groups of children from the age
  of eligibility to attend public school through 12 years. Child day centers that take
  advantage of this flexibility must notify families in writing of the temporary increase in
  ratios and group size. This authority and any resultant waiver of state law or regulation
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  shall expire June 30, 2026. The Superintendent of Public Instruction shall ensure that any
  action taken under this provision is permissible under federal requirements.
  H. The Early Childhood Care and Education Commission shall review and recommend
  updates to the current copayment schedule, parental work requirements, and attendance
  expectations applicable to the Child Care Subsidy Program and Mixed Delivery Grant
  Program. In its review, the Commission shall consider: (i) leveraging state general funds to
  minimize the fiscal cliff as family income increases beyond program eligibility, (ii) use of
  reasonable family copayments to minimize the need for additional general funds. No later
  than December 1, 2024, the Commission shall submit its recommendations to the to the
  Governor and the Chairmen of the House Committee on Appropriations, the Senate
  Committee on Finance and Appropriations, the House Committee on Commerce and Energy,
  the Senate Committee on Commerce and Labor, the House Committee on Education, and the
  Senate Committee on Education and Health.
  I. The Early Childhood Care and Education Commission shall review and recommend:
  1. Adjustments to CCSP reimbursement rates for school age children and the appropriateness
  of continuing to provide services through CCSP to school age children. Such review must also
  include an update on the current structure of publicly-funded out-of-school time learning and
  extracurricular programs and should evaluate how to: (i) maximize public dollars while
  ensuring parent choice; (ii) quantify impact and return on investment including evaluating
  cost and cost factors in comparison to birth-to-five programming; (iii) strengthen quality of
  afterschool and summer options and whether a statewide measurement system is needed; (iv)
  identify out-of-school time deserts; and (v) develop innovative approaches to reduce deserts,
  better support working parents, and ensure sustainability. In conducting this review, the
  Commission shall consult representatives of school divisions, 21st Century Learning grantees,
  private childcare providers, Virginia Partnership for Out-of-School Time, local Parks and
  Recreation entities, the YMCA, Communities in Schools, Boys and Girls Clubs, and other
  non-profit organizations that provide out-of-school time programming.
  2. Approaches to maximize state and federal resources by adjusting income eligibility
  requirements to reflect regional costs of living variations.
  The Commission shall provide a report on its recommendations to the Governor and the
  Chairs of the House Appropriations and Senate Finance and Appropriations Committees by
  December 1, 2025.
  J. The Employee Child Care Assistance Pilot Program (the Pilot Program) is established for
  the purpose of providing matching funds in order to incentivize employers to contribute to the    I VETO ITEM 125.10.J.
  child care costs of their employees. The Pilot Program shall be administered by the Virginia      ON PAGES 77-78
  Early Childhood Foundation (the Foundation). The Foundation shall establish such guidelines       AND PAGES 84-85
  and procedures as it deems necessary for the administration of the Pilot Program, subject to      /s/ Glenn Youngkin
  the following conditions and requirements:  5-2-25
  1. To participate in the Pilot Program, an employer shall agree to make child care
  contributions to an eligible mixed delivery provider on behalf of the employee and shall
  provide any other information deemed necessary by the Foundation. The Foundation shall
  issue a state match directly to an eligible mixed delivery provider, or to a third-party
  administrator, that has entered into an agreement with a participating employer.
  2. The Foundation shall, in consultation with the Early Childhood Care and Education
  Commission, establish guidelines for the pilot program. Such guidelines shall: (i) limit
  eligibility for state contributions for slots serving households with income at or below 85
  percent of the state median income; (ii) establish a schedule of expected family copayments
  not to exceed 5 percent of household income for households with income at or below 300
  percent of the federal poverty level and between 5 percent and 10 percent of family income
  for households with incomes above 300 percent of the federal poverty level and below 85
  percent of the state median income; and (iii) provide that the state match does not exceed 40
  percent of the cost of the slot remaining after application of family copayments.
  3. Pilot Program funds shall be provided on a first-come, first-served basis. The Foundation is
  encouraged to prioritize participation of small businesses and serving a variety of employers
  and employees representing each Ready Region.
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  4. The Foundation may combine the Pilot Program with or incorporate the Pilot Program
  into a program or initiative related to the Mixed Delivery Program provided that such a
  combination allows for the maximization of funds used for the purposes in this item.
  5. The Foundation shall provide a report to the General Assembly by September 1 each
  year on the effectiveness and impact of the program.
  6. Any balances appropriated for the Pilot Program that are unexpended on June 30, 2025,
  June 30, 2026 and June 30, 2027, shall not revert to the general fund but shall be
  reappropriated for expenditure for the same purpose until June 30, 2028.
  7. For the purpose of the Pilot Program, "Eligible mixed delivery provider" means a child
  day center or family day home that has been selected or identified to deliver mixed
  delivery services through a local agreement with the relevant regional entity established
  pursuant to subsection D of § 22.1-289.05 of the Code of Virginia, "Employer" means an
  employer with at least one employee who works in the Commonwealth in each of 20 or
  more calendar weeks in the current or preceding calendar year, and "Small business"
  means an employer with fewer than 50 employees.
  K. Out of this appropriation, $400,000 the first year from the general fund is provided for
  the Small Family Day Home Provider Incentive Pilot Program established in House Bill
  1833. This is a one-time appropriation, and unexpended funds shall be carried forward
  into subsequent fiscal years and be used to support the pilot program until its expiration at
  the end of fiscal year 2029.
  L. The Department of Education, in collaboration with the Department of Social Services,
  shall prepare and submit an annual report to the Governor and Chairs of the House
  Appropriations and Senate Finance and Appropriations Committees no later than
  December 15 each year. Such annual report shall include the following information:
  1. All CCDF expenditures from the previous fiscal year, current grant balances and
  obligation and liquidation deadlines, as well as all anticipated spending for the current and
  two subsequent fiscal years. Identified spending should, at a minimum, be broken down
  by subsidies (mandated, discretionary and general fund), administrative costs, and quality
  efforts.
  2. Certification from the Department that the maximum amount of federal funds were
  drawn down in the preceding fiscal year. Should the Department be unable to certify that
  maximum federal funds were drawn down, the Department shall identify strategies for
  Virginia to obtain the maximum amount of federal funds in the following fiscal year(s) as
  part of this plan.
  3. The number of subsidies (mandate, discretionary and general fund) provided, by
  locality, the number of providers receiving subsidy funds, the overall number of child care
  providers, and the waitlist for services. This information should be provided the previous
  fiscal year, current fiscal year, and two subsequent fiscal years.
  4. The recently completed CCDF annual report as required by the federal Office of Child
  Care.
  5. For the Virginia Preschool Initiative and Mixed Delivery Programs, information
  detailing the use of state funds, including the number of calculated slots and funding
  allocated to each local program or provider, and the number of such slots that have been
  filled. Such information shall be aggregated in a manner to identify: (i) funding and the
  number of slots used to serve a student in a public school and non-public school setting;
  (ii) the number of three-year olds served; (iii) waitlist slots requested, offered, and
  provided; and (iv) the number of students served whose families are at or below 130
  percent poverty, above 130 percent but at or below 200 percent of poverty, above 200
  percent but at or below 350 percent of poverty, and above 350 percent of poverty.
  6. For Virginia Preschool Initiative, a description of the programs' progress towards the
  target inclusion rate, such that 10 percent of all children enrolled in each program are
  children with disabilities, defined as those with an Individualized Education Plan. To
  compile this information, Virginia Preschool Initiative programs shall report the share of
  children with Individualized Education Plans in inclusive classrooms annually, and if the
  86
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    ITEM 125.10.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  program's current inclusion rate falls below 10 percent, the program shall provide reasons a 10
  percent inclusion rate was not achieved in the given school year and what actions the program
  could implement to increase its rate of inclusion in the next year.
  7. Waitlist information for the CCSP, Mixed Delivery Program, and the Virginia Preschool
  Initiative, including an estimate of how many children on the waitlist could be served
  immediately if a slot became available based on eligibility and regional capacity.
       126.    Not set out.
  Total for Direct Aid to Public Education  $12,737,873,230 $12,921,819,796
  $12,879,935,189
  Fund Sources: General  $9,867,668,153 $10,123,453,430
  $10,033,277,308
  Special  $1,020,000      $1,020,000
  Commonwealth Transportation  $1,495,230      $1,495,230
  Trust and Agency  $993,824,250 $1,074,335,345
  $1,122,626,860
  Dedicated Special Revenue  $200,000,000     $110,000,000
  Federal Trust  $1,673,865,597 $1,611,515,791
  Grand Total for Department of Education, Central
  Office Operations  $13,055,663,293 $13,243,296,057
  $13,201,411,450
  General Fund Positions  184.17  201.67
  Nongeneral Fund Positions  335.83  362.33
  Position Level  520.00  564.00
  Fund Sources: General  $9,988,514,454 $10,234,876,501
  $10,144,700,379
  Special  $7,716,586      $7,716,586
  Commonwealth Transportation  $1,796,906      $1,796,906
  Trust and Agency  $1,006,548,652 $1,087,059,747
  $1,135,351,262
  Dedicated Special Revenue  $200,000,000     $110,000,000
  Federal Trust  $1,851,086,695 $1,801,846,317
       127.    Not set out.
       128.    Not set out.
       129.    Not set out.
  § 1-6. STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA (245)
       130.    Higher Education Student Financial Assistance
  (10800)  $275,788,512    $265,288,512
  $285,288,512
  Scholarships (10810)  $275,598,512     $265,098,512
  $285,098,512
  Regional Financial Assistance for Education (10813)  $190,000  $190,000
  Fund Sources: General  $255,528,512     $260,028,512
  $280,028,512
  Special  $20,010,000       $5,010,000
  Dedicated Special Revenue  $250,000  $250,000
  Authority: Title 23.1, Chapter 6, Code of Virginia, Regional Grants and Contracts:
  Discretionary Inclusion; Undergraduate and Graduate Assistance: Discretionary Inclusion
  A. Those private institutions which participate in the programs provided by the appropriations
  in this Item shall, upon request by the State Council of Higher Education, submit financial and
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  FY2025  FY2026  FY2025        FY2026
  other information which the Council deems appropriate.
  B. Out of the amounts for Scholarships the following sums shall be made available for:
  1. Tuition Assistance Grant Program, $104,125,881 the first year and $112,325,881 the
  second year from the general fund is designated for full-time undergraduate and graduate
  students.
  2. a. Virginia Space Grant Consortium Scholarships, $795,000 the first year and $795,000
  the second year from the general fund.
  b. Out of the amounts included in this item, $100,000 the first year and $100,000 the
  second year from the general fund shall be provided to the Virginia Space Grant
  Consortium (VSGC) to provide scholarships for select high school students to participate
  in immersive ground and flight training through the solo experience as a step in addressing
  the critical pilot shortage. The VSGC shall work with Averett University and Liberty
  University to provide two sessions of its New Horizons solo academy giving 30 high
  school students the opportunity to accomplish their first solo flight.
  c. Out of the amounts included in this item, $220,375 the first year and $220,375 the
  second year from the general fund shall be provided to the Virginia Space Grant
  Consortium to provide scholarships for high school students to participate in the Virginia
  Earth System Science Scholars program.
  3. Out of this appropriation, $20,000 the first year and $20,000 the second year from the
  general fund is designated to provide grants of up to $5,000 per year for Virginia students
  who attend schools and colleges of optometry. Each student receiving a grant shall agree
  to set up practice in the Commonwealth for a period of not less than two years upon
  completion of instruction.
  4. No amount, or part of an amount, listed for any program specified under paragraph B
  shall be expended for any other program in this appropriation.
  C. Tuition Assistance Grant Program
  1. Payments to students out of this appropriation shall not exceed $5,125 the first year and
  $5,250 the second year for qualified undergraduate students and $5,000 the first year and
  $5,000 the second year for qualified graduate and medical students attending not-for-
  profit, independent institutions in accordance with § 23.1-628 through § 23.1-635, Code of
  Virginia. However, for those undergraduate students pursuing a career in teaching,
  payments shall be increased by an additional $500 in their senior year.
  2. The private institutions which participate in this program shall, during the spring
  semester previous to the commencement of a new academic year or as soon as a student is
  admitted for that year, whichever is later, notify their enrolled and newly admitted
  Virginia students about the availability of tuition assistance awards under the program.
  The information provided to students and their parents must include information about the
  eligibility requirements, the application procedures, and the fact that the amount of the
  award is an estimate and is not guaranteed. The number of students applying for
  participation and the funds appropriated for the program determine the amount of the
  award. Conditions for reduction of award amount and award eligibility are described in
  this Item and in the regulations issued by the State Council of Higher Education. The
  institutions shall certify to the council that such notification has been completed and shall
  indicate the method by which it was carried out. Upon consultation with and approval
  from SCHEV, private institutions which participate in this program may develop and
  distribute the Tuition Assistance Grant application form for electronic administration.
  3. Institutions participating in this program must submit annually to the council copies of
  audited financial statements.
  4. To be eligible for a fall or full-year award out of this appropriation, a student's
  application must have been received by a participating independent college or by the State
  Council of Higher Education by September 15. Returning students who received the
  award in the previous year will be prioritized. Applications for a fall or full-year award
  received after September 15 but no later than October 1 will be held for consideration if
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  FY2025  FY2026  FY2025  FY2026
  funds are available and returning student awards have been made. Applications for spring
  semester only awards must be received by December 1 and will be considered only if funds
  remain available.
  5. No limitations shall be placed on the award of Tuition Assistance Grants other than those
  set forth herein or in the Code of Virginia.
  6. All eligible institutions not previously approved by the State Council of Higher Education
  to participate in the Tuition Assistance Grant Program shall have received accreditation by a
  nationally recognized regional accrediting agency, prior to participation in the program or by
  the Commission on Osteopathic College Accreditation of the American Osteopathic
  Association in the case of freestanding institutions of higher education that offer the Doctor of
  Osteopathic Medicine as the sole degree program.
  7. Payments to undergraduate students shall be greater than payments to graduate and medical
  students and shall be based on a differential established by the State Council of Higher
  Education for Virginia.
  8. No awards shall be provided to graduate students except in health-related professional
  programs to include allied health, nursing, pharmacy, medicine, and osteopathic medicine.
  9. Notwithstanding any other provisions of law, Eastern Virginia Medical School is not
  eligible to participate in the Tuition Assistance Grant Program.
  10. Any general fund appropriation in the Tuition Assistance Grant Program which is
  unexpended at the close of business June 30 of any fiscal year shall be reappropriated for use
  in the program in the following year.
  11. a. New incoming students enrolled exclusively in an online education or distance learning
  program are eligible to receive awards up to $2,560 the first year and $2,625 the second year
  from the Tuition Assistance Grant Program. However, existing students enrolled exclusively
  in online education or distance learning programs as of the 2019-20 academic year shall
  remain eligible to receive awards of up to the 2019-2020 award amounts for as long as the
  student maintains enrollment in each successive fiscal year, unless granted an exception for
  cause by SCHEV, until current degree completion or current degree program eligibility limits
  have otherwise expired, whichever comes first.
  b. It is the intent of the General Assembly that awards under this paragraph related to new
  incoming students shall be calculated and granted at 50 percent of the undergraduate
  residential level.
  12. All students eligible and receiving an award under this program enrolled into a TAG-
  eligible private not-for-profit Virginia Historically Black College and University (HBCU)
  accredited by the Southern Association of Colleges and Schools Commission on Colleges
  (SACSCOC) shall receive an additional award of up to $7,500 the first year and up to $7,500
  the second year.
  13. Out of this appropriation, $1,800,000 the first year from the general fund is designated for
  an additional award up to $2,000 for all students eligible and receiving an award under this
  program and enrolled into a TAG-eligible private not-for-profit Virginia institution,
  designated by the U.S. Department of Education as a Hispanic-Serving Institution (HSI), and
  accredited by the Southern Association of Colleges and Schools Commission on Colleges
  (SACSCOC).
  D.1. Regional Grants and Contracts: Out of this appropriation, $170,000 the first year and
  $170,000 the second year from the general fund is designated to support Virginia's
  participation in the Southern Regional Education Board initiative to increase the number of
  minority doctoral graduates.
  2. The amounts listed in paragraph D.1. shall be expended in accordance with the agreements
  between the Commonwealth of Virginia and the Southern Regional Education Board.
  E.1. Out of this appropriation, $11,980,000 the first year and $16,780,000 the second year
  from the general fund is designated to support the Virginia Military Survivors and Dependents
  program, § 23.1-608, Code of Virginia, to provide up to a $2,200 annual stipend to offset the
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  FY2025  FY2026  FY2025        FY2026
  costs of room, board, books and supplies for qualified survivors and dependents of
  military service members.
  2. The amount of the stipend is an estimate depending on the number of students eligible
  under § 23.1-608, Code of Virginia. Changes that increase or decrease the grant amount
  shall be determined by the State Council of Higher Education for Virginia.
  3. The Director, State Council of Higher Education for Virginia, shall allocate these funds
  to public institutions of higher education on behalf of students qualifying under this
  provision.
  4. Each institution of higher education shall report the number of recipients for this
  program to the State Council of Higher Education for Virginia by April 1 of each year.
  The State Council of Higher Education for Virginia shall report this information to the
  Chairs of the House Appropriations and Senate Finance and Appropriations Committees
  by June 30 of each year.
  5. The Department of Veterans Services shall consult with the State Council of Higher
  Education for Virginia prior to the dissemination of any information related to the
  financial benefits provided under this program.
  F.1. Out of the appropriation for this Item, $3,085,256 the first year and $3,285,256 the
  second year from the general fund is designated to support the Two-Year College Transfer
  Grant Program.
  2. The State Council of Higher Education for Virginia shall disburse these funds for full-
  time students consistent with § 23.1-623 through § 23.1-627, Code of Virginia. Beginning
  with students who are entering a senior institution as a two-year transfer student for the
  first time in the fall 2013 academic year, and who otherwise meet the eligibility criteria of
  § 23.1-624, Code of Virginia, the maximum EFC is raised to $12,000 or its equivalent.
  3. The actual amount of the award depends on the number of students eligible under §
  23.1-623 through § 23.1-627, Code of Virginia. Changes that decrease the grant amount
  shall be determined by the State Council of Higher Education for Virginia.
  4. Out of this appropriation, up to $600,000 the first year and $600,000 the second year
  from the general fund is designated to support students eligible for the first time under §
  23.1-623 through § 23.1-627, Code of Virginia. The State Council of Higher Education for
  Virginia shall transfer these funds to Norfolk State University, Old Dominion University,
  Radford University, University of Virginia's College at Wise, Virginia Commonwealth
  University and Virginia State University so that each institution can provide for grants of
  $1,000 from these funds for these students.
  a. Each institution shall award grants from these funds for one year and students shall not
  receive subsequent awards until they have satisfied the requirements to move to the next
  class level. Each recipient may receive a maximum of one year of support per class level
  for a maximum total of two years of support.
  b. Any balances remaining from the appropriation identified in paragraph F.4. shall not
  revert to the general fund at the end of the fiscal year, but shall be brought forward and
  made available to the State Council of Higher Education for Virginia to support the
  purposes specified in paragraphs F.1. and F.4. in the subsequent fiscal year.
  c. It is anticipated that the institutions shift by a total of 600 the number of students each
  enrolls from first time freshman to transfers eligible under § 23.1-623 through § 23.1-627,
  Code of Virginia. Institutional goals under this fund are estimated as follows:
  Institution  Transfer Target
  Norfolk State University  80
  Old Dominion University  140
  Radford University  140
  University of Virginia's College at Wise  20
  Virginia Commonwealth University  140
  Virginia State University  80
  90
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    ITEM 130.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  d. The State Council of Higher Education for Virginia may allocate these funds among the
  institutions in Paragraph F.4.c. as necessary to meet the actual number of transfers each
  institution generates for students eligible for the first time under § 23.1-623 through § 23.1-
  627, Code of Virginia. Each institution shall report its progress toward the targets in
  Paragraph F.4.c. to the Chairs of the House Appropriations and Senate Finance and
  Appropriations Committees by May 1 each year.
  e. The report shall include a detailed accounting of the use of the funds provided and a plan
  for achieving the goals identified in this item.
  G. 1. Out of this appropriation, $22,450,000 the first year and $23,750,000 the second year
  from the general fund and $15,000,000 the first year from nongeneral funds is designated for
  the New Economy Workforce Credential Grant Program.
  2. The State Council of Higher Education for Virginia shall develop guidelines for the
  program, collect data, evaluate and approve grant funds for allocation to eligible institutions.
  3. Local community colleges shall not start new workforce programs that would duplicate
  existing high school and adult Career and Technical Education (CTE) programs for high-
  demand occupations in order to receive funding under this Grant.
  4. No more than 25 percent of Grant funds may be used in one occupational field.
  H. Out of this appropriation, $5,000,000 the first year and $5,000,000 the second year from
  nongeneral funds is designated for scholarships for eligible students participating in the
  Gaining Early Awareness and Readiness for Undergraduate Program (GearUp).
  I.1. Out of this appropriation $37,500,000 the first year and $37,500,000 the second year from
  the general fund is provided to enhance efforts to recruit and retain students eligible for Pell
  grant assistance at public institutions of higher education.
  2. The State Council of Higher Education for Virginia shall work with institutions with below
  average enrollment of Pell-eligible students to develop individualized recruitment and
  retention plans targeting low-income students.
  3. Any Virginia public institution of higher education may apply for funding through a
  competitive grant process. Applications must demonstrate efforts to restructure outreach,
  recruitment, admission, and retention procedures. Funds are intended to support initiatives
  that attract, enroll, and retain low-income students. Institutions that request funds for need-
  based financial aid must specify that aid may be used to support internship opportunities.
  Priority shall be given to institutions with below-average Pell enrollment. Any unexpended
  balance in this item at the close of business on June 30 each year shall not revert to the
  general fund, but shall be carried forward and reappropriated. Out of the amount in paragraph
  I.1. of this item, the Council may use up to one percent of the funds for the administration and
  evaluation of the activities described in this item.
  4. Any institutional grant under this initiative shall be subject to performance outcomes
  established in paragraph I.5. Funds shall be ongoing to ensure successful enrollment and
  completion for students. Initiatives demonstrating successful outcomes may be prioritized in
  future base funding requests.
  5. The Council shall establish eligibility criteria, evaluate proposals, determine award sizes,
  establish performance outcomes and monitor performance in consultation with staff from the
  House Appropriations and the Senate Finance and Appropriations Committees, the Office of
  the Secretary of Education, and the Department of Planning and Budget. The Council shall
  notify the Chairs of the House Appropriations Committee and Senate Finance and
  Appropriations Committee 30 days prior to releasing funds to institutions.
  6. The Council shall report periodically on activities related to this initiative and make
  recommendations for any potential future support to institutions that successfully meet their
  defined outcomes. Additionally, by November 1 of each year within the performance period
  of any awarded institutional grant, the Council shall report to the Chairs of the House
  Appropriations and Senate Finance and Appropriations Committees and the Secretary of
  91
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  Item Details($)  Appropriations($)
    ITEM 130.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Education on the outcomes and effectiveness of the awarded funds. Such report shall
  include, at minimum, data on recruitment, retention, and graduation of Pell-eligible
  students at institutions receiving funding and performance against the outcomes
  established in paragraph I.5.
  J. 1. As a condition of this appropriation, $75,000,000 the first year and $65,000,000
  $85,000,000 the second year from the general fund is designated to offset the impact of
  programs under Title 23.1, Chapter 6, Code of Virginia.
  2. The State Council of Education for Virginia shall work with public higher education
  institutions to determine the appropriate allocation of these funds.
  3. Any unexpended balance in this item at the close of business on June 30 each year shall
  not revert to the general fund, but shall be carried forward and reappropriated to support
  the purposes specified in paragraphs J.1. and J.4. in the subsequent fiscal year.
  4. By November 1 of each year, the Council shall report on the status of programs under
  Title 23.1, Chapter 6, Code of Virginia.
     131.       Not set out.
     132.       Not set out.
     133.       Not set out.
     134.       Not set out.
     135.       Not set out.
  Total for State Council of Higher Education for
  Virginia  $316,579,866   $302,710,815
  $322,710,815
  General Fund Positions  52.00  53.00
  Nongeneral Fund Positions  25.00  25.00
  Position Level  77.00  78.00
  Fund Sources: General  $288,932,701   $290,063,650
  $310,063,650
  Special  $21,766,739     $6,766,739
  Trust and Agency  $190,000      $190,000
  Dedicated Special Revenue  $250,000      $250,000
  Federal Trust  $5,440,426     $5,440,426
     136.       Not set out.
     137.       Not set out.
     138.       Not set out.
     139.       Not set out.
     140.       Not set out.
     141.       Not set out.
     142.       Not set out.
     142.10     Not set out.
     143.       Not set out.
  92
_
  Item Details($)  Appropriations($)
    ITEM 143.  First Year     Second Year   First Year    Second Year
  FY2025  FY2026      FY2025  FY2026
     144.       Not set out.
     145.       Not set out.
     146.       Not set out.
     147.       Not set out.
     148.       Not set out.
     149.       Not set out.
     150.       Not set out.
     151.       Not set out.
     152.       Not set out.
     153.       Not set out.
     154.       Not set out.
     155.       Not set out.
     156.       Not set out.
     157.       Not set out.
     158.       Not set out.
     159.       Not set out.
     160.       Not set out.
     161.       Not set out.
     162.       Not set out.
     163.       Not set out.
     164.       Not set out.
     165.       Not set out.
     166.       Not set out.
     167.       Not set out.
     168.       Not set out.
     169.       Not set out.
     170.       Not set out.
  93
_
  Item Details($)  Appropriations($)
    ITEM 171.  First Year    Second Year   First Year  Second Year
  FY2025  FY2026      FY2025        FY2026
     171.       Not set out.
     172.       Not set out.
     173.       Not set out.
     174.       Not set out.
     175.       Not set out.
     176.       Not set out.
     177.       Not set out.
     178.       Not set out.
     179.       Not set out.
     180.       Not set out.
     181.       Not set out.
     182.       Not set out.
     183.       Not set out.
     184.       Not set out.
     185.       Not set out.
     186.       Not set out.
     187.       Not set out.
     188.       Not set out.
     189.       Not set out.
     190.       Not set out.
     191.       Not set out.
     192.       Not set out.
     193.       Not set out.
     194.       Not set out.
     195.       Not set out.
     196.       Not set out.
     197.       Not set out.
     198.       Not set out.
  94
_
  Item Details($)  Appropriations($)
    ITEM 199.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
     199.       Not set out.
  § 1-7. VIRGINIA COMMUNITY COLLEGE SYSTEM (260)
     200.       Educational and General Programs (10000)  $1,089,558,483   $1,080,055,383
  Higher Education Instruction (100101)  $491,903,481      $482,400,381
  Higher Education Public Services (100103)  $5,001,741        $5,001,741
  Higher Education Academic (100104)  $107,868,991      $107,868,991
  Higher Education Student Services (100105)  $118,564,801      $118,564,801
  Higher Education Institutional Support (100106)  $262,405,451      $262,405,451
  Operation and Maintenance Of Plant (100107)  $103,814,018      $103,814,018
  Fund Sources: General  $581,255,312      $571,752,212
  Higher Education Operating  $508,303,171      $508,303,171
  Authority: Title 23.1, Chapter 29, Code of Virginia.
  A. This Item includes general and nongeneral fund appropriations to support institutional
  initiatives that help meet statewide goals described in the Restructured Higher Education
  Financial and Administrative Operations Act of 2005 (Chapters 933 and 945, 2005 Acts of
  Assembly).
  B. It is the objective of the Commonwealth that a standard of 70 percent full-time faculty be
  established for the Virginia Community College System. Consistent with higher education
  funding guidelines, it is expected that the Virginia Community College System will utilize the
  funds provided for base operating support to achieve this objective. In addition, the first
  priority for new funding provided to the community college system shall be for operating
  support at individual community colleges. Thirty days prior to the beginning of each fiscal
  year, the Virginia Community College System shall report to the Chairs of the House
  Appropriations and Senate Finance and Appropriations Committees on the allocation of all
  new general funds and nongeneral funds in this item and any cost recovery plans between the
  individual community colleges and the system office.
  C. It is the intent of the General Assembly that funds available to the Virginia Community
  College System be reallocated to accommodate changes in enrollment and other cost factors
  at each of the community colleges.
  D. Tuition and fee revenues from out-of-state students taking distance education courses
  through the Virginia Community College System must exceed all direct and indirect costs of
  providing instruction to those students. Tuition and fee rates to meet this requirement shall be
  established by the State Board for Community Colleges.
  E. Out of this appropriation, amounts for the following special programs are designated: at J.
  Sargeant Reynolds Community College, the Program for the Deaf, $64,547 and four positions
  the first year and $64,547 and four positions the second year from the general fund and the
  Program for the Intellectually Disabled, $91,004 and four positions the first year and $91,004
  and four positions the second year from the general fund; and, at New River Community
  College, the Program for the Deaf, $78,328 and four positions the first year and $78,328 and
  four positions the second year from the general fund, and the Program for the Intellectually
  Disabled, $69,682 and 4.5 positions the first year and $69,682 and 4.5 positions the second
  year from the general fund; and, at Danville Community College, the Program for the Deaf,
  $26,001 and one position the first year and $26,001 and one position the second year from the
  general fund.
  F. Out of this appropriation, $39,001 the first year and $39,001 the second year from the
  general fund is designated to support the Southwest Virginia Telecommunications Network.
  G. Out of this appropriation, $261,370 and four positions the first year and $261,370 and four
  positions the second year from the general fund is provided to support Virginia Western
  Community College's participation in the Roanoke Higher Education Center and the Botetourt
  County Education and Training Center at Greenfield.
  H. Out of this appropriation, $130,005 the first year and $130,005 the second year from the
  95
_
  Item Details($)  Appropriations($)
    ITEM 200.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  general fund is designated to support the Southwestern Virginia Advanced Manufacturing
  Technology Center at Wytheville Community College.
  I.1. Out of this appropriation, $345,000 the first year and $345,000 the second year from
  the general fund is provided for the annual lease or rental costs of space in the Botetourt
  County Education and Training Center at Greenfield.
  2. The general fund amounts provided for in this paragraph for workforce training,
  retraining, programming, and community education facilities at the Botetourt County
  Education and Training Center shall be matched by local or private sources in a ratio of
  two-thirds state funds to at least one-third local or private funds, as approved by the State
  Board for Community Colleges.
  J. As Virginia's public colleges and universities approach full funding of the base
  adequacy guidelines and as the General Assembly strives to fully fund the general fund
  share of the base adequacy guidelines, these funds are provided with the intent that, in
  exercising their authority to set tuition and fees, the Board of Visitors shall take into
  consideration the impact of escalating college costs for Virginia students and families. In
  accordance with the cost-sharing goals set forth in § 4-2.01 b. of this act, the Board of
  Visitors is encouraged to limit increases on tuition and mandatory educational and general
  fees for in-state, undergraduate students to the extent possible.
  K. Out of this appropriation, $191,884 the first year and $191,884 the second year from
  the general fund shall be provided to Northern Virginia Community College to support
  public-private sector partnerships in order to maximize the number of newly licensed
  nurses and increase the supply of nursing faculty.
  L. Out of this appropriation, $489,000 the first year and $489,000 the second year from
  the general fund is designated for Northern Virginia Community College to implement the
  SySTEMic Solutions initiative which will enable expansion of dual enrollment courses
  with a STEM focus in all Northern Virginia school districts; opportunities to earn
  industry-aligned certifications; professional development opportunities for STEM
  teachers; part-time employment and internship opportunities for students in STEM
  programs; hands-on SOL-based science lessons at the elementary level with industry input
  and support; and collaborative robotics programs between the community college and K-
  12 schools. It is expected that an equal amount of private funds will be generated as a
  match for the state support.
  M. Out of this appropriation, $19,560 the first year and $19,560 the second year from the
  general fund shall be provided to Southside Virginia Community College. Out of this
  amount, $9,780 each year from the general fund shall be provided to the Estes Community
  Center in Chase City, $9,780 each year from the general fund shall be provided to the
  Lake Country Advanced Knowledge Center in South Hill.
  N. Out of this appropriation, $115,130 the first year and $115,130 the second year from
  the general fund is provided for the Mecklenburg County Job Retraining Center.
  O. Out of this appropriation, $255,000 the first year and $255,000 the second year from
  the general fund and $163,000 the first year and $163,000 the second year from
  nongeneral funds is designated for the operation of the Amherst Center of Central Virginia
  Community College. Central Virginia Community College shall report annually to the
  Chairs of the House Appropriations and Senate Finance and Appropriations Committees
  on the number of students enrolled, the programs provided with number of students served
  and the number of degrees and certificates awarded by program.
  P. Out of this appropriation, $200,000 the first year and $200,000 the second year from the
  general fund is designated for Laurel Ridge Community College. Of this amount $100,000
  the first year and $100,000 the second year is designated to support the career and
  technical education programs at the Middletown Campus and $100,000 the first year and
  $100,000 the second year is designated for workforce training programs at the Fauquier
  Campus. The programs will be designed in collaboration with regional employers and
  high schools.
  Q. Out of this appropriation, $1,100,000 and seven positions the first year and $1,100,000
  96
_
  Item Details($)  Appropriations($)
    ITEM 200.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  and seven positions the second year from the general fund is designated for veterans resource
  centers at Northern Virginia Community College, Tidewater Community College, Virginia
  Peninsula Community College, Germanna Community College, J. Sargeant Reynolds
  Community College, Brightpoint Community College, and Virginia Western Community
  College.
  R. Out of this appropriation, $250,000 and nine positions the first year and $250,000 and nine
  positions the second year from the general fund is designated to support the Rural Horseshoe
  Initiative.
  S. Out of this appropriation, $480,000 and two positions the first year and $480,000 and two
  positions the second year from the general fund are designated for the Virginia Community
  College System, in partnership with the State Council of Higher Education for Virginia, to
  develop and maintain a mandated online repository for all transfer agreements, course
  equivalency tools, Passport Credit Program Guidelines and other informational resources
  related to transferring from a public two-year institution to a public four-year institution. The
  repository shall also include a Dual Enrollment Guide, Exam Equivalency Guide, Degree
  Searcher, and other transfer tools and components that support student transfer.
  T. Out of this appropriation, $1,413,689 the first year and $1,413,689 the second year from
  the general fund is designated for costs of three associate degree programs in Occupational
  Therapy Assistant, Physical Therapy Assistant, and Surgical Technology that have transferred
  to Virginia Western Community College as a result of the merger of Radford University and
  the Jefferson College of Health Sciences authorized in Chapter 60 of the 2019 Acts of
  Assembly.
  U. Out of this appropriation, $4,000,000 the first year and $4,000,000 the second year from
  the general fund is designated for advising, marketing, outreach and public awareness efforts
  for the G3 program in Item 201.
  V. Out of this appropriation, $1,050,000 the first year and $1,050,000 the second year from
  the general fund is designated for health science and technology education at Virginia
  Western, New River, Central Virginia and Mountain Gateway Community Colleges.
  W. Out of this appropriation, $296,314 the first year and $296,314 the second year from the
  general fund is designated for Southside Virginia Community College to implement the Solar
  Hands-On Instructional Network of Excellence (SHINE) workforce program.
  X. Out of this appropriation, $500,000 the first year and $500,000 the second year from the
  general fund is designated for the Virginia Community College System (VCCS) to support a
  state-funded grant program to support the Great Expectations Program in the following areas:
  the hiring of college coaches or mentors, housing stipends, child care, and transportation
  needs. VCCS shall report to the Commission on Youth the outcomes of the grant program by
  November 30 of each year. The Great Expectations Program serves young adults who have
  experienced foster care.
  Y. Out of this appropriation, $1,000,000 the first year and $1,000,000 the second year from
  the general fund is designated for enhancements to the cyber-security infrastructure.
  Z. Out of this appropriation, $500,000 the first year and $500,000 the second year from the
  general fund is designated for Virginia Peninsula Community College to support its
  collaboration with the Coastal Virginia Science, Technology, Engineering, and Mathematics
  Hub.
  AA. Out of this appropriation, $1,500,000 and two positions the first year and $1,500,000 and
  two positions the second year from the general fund is designated for Danville Community
  College to support an aviation maintenance technology program. Danville Community
  College shall develop a comprehensive work plan which includes an implementation plan,
  projected expenditures, performance benchmarks and partnership responsibilities. Danville
  Community College shall initiate the program and accreditation approval through federal and
  state entities and complete partnership agreements with Danville Regional Airport, Averett
  University, other higher education partners, participating K-12 school divisions, businesses
  and any public bodies necessary for program.
  BB. Out of this appropriation $7,750,000 the first year and $7,750,000 the second year from
  97
_
  Item Details($)  Appropriations($)
    ITEM 200.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  the general fund is provided for support of workforce programs in regions with high labor
  demand and low supply. Funds may be used for startup costs related to new program
  development and shall include an employer match to ensure alignment to workforce
  needs. Funds also may be used to support new program development for career and
  technical dual enrollment courses.
  CC. Out of this appropriation, $500,000 the first year and $250,000 the second year from
  the general fund is designated for Northern Virginia Community College to provide
  technical assistance for automotive and building maintenance training programs
  coordinated by the Prince William County Department of Facilities and Fleet
  Management, to address workforce shortages.
  DD. Out of this appropriation, $350,000 the first year and $350,000 the second year from
  the general fund is provided to the Virginia Community College System to support mixed-
  delivery programs and classroom equipment and materials at Virginia Peninsula
  Community College. Of this amount, $100,000 the first year and $100,000 the second year
  is provided to support early childhood instructional delivery, equipment, and program
  operating costs. Virginia Peninsula Community College is authorized to enter into a
  partnership agreement with a third-party provider to facilitate in-practice early childhood
  educational training. Funds shall be ongoing and incorporated into the institution's base
  budget for the next biennium.
  EE. Upon enactment of this act, the Virginia Community College System shall transfer
  $13,600,000 from educational and general program cash balances to the State Council of
  Higher Education for Virginia for deposit to the New Economy Workforce Credential
  Grant Fund. This amount shall not be appropriated under the State Council of Higher
  Education for Virginia in fiscal year 2026 but shall be incorporated into the New
  Economy Workforce Credential Grant Program appropriation in the next biennium.
     201.       Not set out.
     202.       Not set out.
     203.       Not set out.
     204.       Not set out.
     205.       Not set out.
  Total for Virginia Community College System  $1,448,149,046   $1,435,741,056
  General Fund Positions  5,635.57  5,635.57
  Nongeneral Fund Positions  5,258.58  5,258.58
  Position Level  10,894.15        10,894.15
  Fund Sources: General  $724,190,181    $712,282,191
  Higher Education Operating  $707,848,102    $707,348,102
  Debt Service  $16,110,763     $16,110,763
     206.       Not set out.
     207.       Not set out.
     208.       Not set out.
     209.       Not set out.
     210.       Not set out.
     211.       Not set out.
  98
_
  Item Details($)  Appropriations($)
    ITEM 212.  First Year     Second Year   First Year    Second Year
  FY2025  FY2026      FY2025  FY2026
     212.       Not set out.
     213.       Not set out.
     214.       Not set out.
     215.       Not set out.
     216.       Not set out.
     217.       Not set out.
     218.       Not set out.
     219.       Not set out.
     220.       Not set out.
     221.       Not set out.
     222.       Not set out.
     223.       Not set out.
     224.       Not set out.
     225.       Not set out.
     226.       Not set out.
     227.       Not set out.
     228.       Not set out.
     229.       Not set out.
     230.       Not set out.
     231.       Not set out.
     232.       Not set out.
     233.       Not set out.
     234.       Not set out.
     235.       Not set out.
     236.       Not set out.
     237.       Not set out.
     238.       Not set out.
     239.       Not set out.
  99
_
  Item Details($)  Appropriations($)
    ITEM 240.  First Year    Second Year      First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
     240.       Not set out.
     240.10     Not set out.
     241.       Not set out.
  TOTAL FOR OFFICE OF EDUCATION  $29,018,400,026 $29,829,016,765
  $29,807,132,158
  General Fund Positions  19,272.89       19,301.24
  Nongeneral Fund Positions  43,782.05       44,105.55
  Position Level  63,054.94       63,406.79
  Fund Sources: General  $13,915,953,212 $14,019,373,555
  $13,949,197,433
  Special  $65,821,852     $54,425,777
  Higher Education Operating    $11,627,891,917 $12,401,088,086
  Commonwealth Transportation        $1,796,906      $1,796,906
  Enterprise  $7,479,910      $7,479,910
  Trust and Agency  $1,006,738,652 $1,087,249,747
  $1,135,541,262
  Debt Service  $308,781,595    $312,907,180
  Dedicated Special Revenue        $220,335,288    $130,335,288
  Federal Trust  $1,863,600,694 $1,814,360,316
  100
_
  Item Details($)  Appropriations($)
    ITEM 242.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  OFFICE OF FINANCE
     242.       Not set out.
  § 1-8. DEPARTMENT OF ACCOUNTS (151)
     243.       Not set out.
     244.       Not set out.
     245.       Not set out.
     246.       Not set out.
     247.       Not set out.
     248.       Not set out.
     249.       Not set out.
     250.       Not set out.
  Department of Accounts Transfer Payments (162)
     251.       Not set out.
     252.       Not set out.
     252.10     Revenue Cash Reserve (23700)  $294,482,240  $0
  $312,330,340
  Appropriated Revenue Reserve (23701)  $294,482,240  $0
  $312,330,340
  Fund Sources: General  $294,482,240  $0
  $312,330,340
  Authority: Title 2.2, Chapter 18, Article 4.1, Code of Virginia
  A. Out of this appropriation, $294,482,240 the first year from the general fund attributable to
  actual tax collections for fiscal year 2024 shall be paid by the State Comptroller on or before
  June 30, 2025, into the Revenue Reserve Fund pursuant to § 2.2-1831.3, Code of Virginia.
  B. Out of this appropriation, $312,330,340 the second year from the general fund attributable
  to actual tax collections for fiscal year 2025 shall be paid by the State Comptroller on or
  before June 30, 2026, into the Revenue Reserve Fund pursuant to § 2.2-1831.3, Code of
  Virginia.
     253.       Not set out.
     254.       Not set out.
     255.       Not set out.
  Total for Department of Accounts Transfer Payments
  $1,773,568,325   $1,478,586,085
  $1,790,916,425
  Nongeneral Fund Positions  1.00  1.00
  Position Level  1.00  1.00
  101
_
  Item Details($)  Appropriations($)
    ITEM 255.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Fund Sources: General  $1,275,362,240       $980,380,000
  $1,292,710,340
  Trust and Agency  $81,359,934        $81,359,934
  Dedicated Special Revenue  $416,846,151       $416,846,151
  Grand Total for Department of Accounts  $1,839,749,151   $1,547,339,693
  $1,859,670,033
  General Fund Positions  115.00  126.00
  Nongeneral Fund Positions  55.00  55.00
  Position Level  170.00  181.00
  Fund Sources: General  $1,290,962,021       $997,973,598
  $1,310,303,938
  Special  $1,108,292  $1,108,292
  Internal Service  $49,472,753        $50,051,718
  Trust and Agency  $81,359,934        $81,359,934
  Dedicated Special Revenue  $416,846,151       $416,846,151
     256.       Not set out.
  § 1-9. DEPARTMENT OF TAXATION (161)
     257.       Not set out.
     258.       Not set out.
     259.       Not set out.
     260.       Administrative and Support Services (79900)  $188,328,909      $60,630,056
  General Management and Direction (79901)  $30,630,934        $30,812,012
  Information Technology Services (79902)  $157,697,975        $29,818,044
  Fund Sources: General  $188,175,455        $60,476,602
  Special  $153,454  $153,454
  Authority: §§ 58.1-200, 58.1-202, and 58.1-213, Code of Virginia.
  A. To defray the costs of administration for voluntary contributions made on individual
  income tax returns for taxable years beginning on or after January 1, 2003, the Department
  of Taxation may retain up to five percent of the contributions made to each organization,
  not to exceed a total of $50,000 from all organizations in any taxable year.
  B. The Department is hereby authorized to request and receive a treasury loan to fund the
  necessary start-up costs associated with the implementation of a sales and use tax
  modification or other state or local tax imposed pursuant to Chapter 766, 2013 Acts of
  Assembly. The treasury loan shall be repaid for these costs from the tax revenues. The
  Department shall also retain sufficient revenues to recover its costs incurred administering
  these taxes.
  C. Notwithstanding the provisions of §§ 2.2-507 and 2.2-510, when the Tax
  Commissioner determines that an issue may have a major impact on tax policies, revenues
  or expenditures, he may request that the Attorney General appoint special counsel to
  render such assistance or representation as needed. The compensation for such special
  counsel shall be paid out of the funds appropriated for the administration of the
  Department of Taxation.
  D. The Department of Taxation is required to provide, at the beginning of an audit,
  detailed information on the audit process and tax policies that are being examined.
  Furthermore, the Department shall compile and make available on their website a list of
  common issues which are identified in a large number of audits.
  E.1. Out of this appropriation, $131,000,000 the first year from the general fund is
  102
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  Item Details($)  Appropriations($)
    ITEM 260.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  provided for costs associated with the replacement of the Department of Taxation's (TAX)
  Integrated Revenue Management System (IRMS). This appropriation is contingent on TAX
  including in its contract with the selected vendor an electronic filing system for individual
  income tax that can be used by all Virginians. The Director, Department of Planning and
  Budget shall unallot any amounts of this appropriation not needed to perform required actions
  necessary for work prior to, and in support of, the procurement. The remaining funding may
  be allotted at such time when TAX demonstrates in its final contractual terms for the
  replacement of IRMS that it contains a provision for an electronic filing system for individual
  income tax that can be used by all Virginians. After the contingency is met the Director,
  Department of Planning and Budget shall allot the amount that is needed in each fiscal year
  based on a reasonable funding schedule provided by TAX for each fiscal year. Any amounts
  remaining from the general fund appropriation identified in this paragraph that remain
  unspent at the end of any fiscal year shall be reappropriated in the next fiscal year until the
  project is completed. TAX shall report by September 1, of each year to the Chairs of the
  House Appropriations and Senate Finance and Appropriations Committees on the current
  status of the IRMS replacement, the funding expended in the prior fiscal year, project
  milestones achieved in the prior fiscal year, and any potential concerns that may impact the
  project's timeline and success.
  2. There is hereby established in the state treasury a special nonreverting fund known as the
  Project Lighthouse Fund. Any moneys remaining in the Fund, at the end of each fiscal year
  shall not revert to the general fund but shall remain in the Fund.
  3. The balance of any funds remaining from the amounts appropriated in this paragraph shall
  be deposited into the Project Lighthouse Fund. Moneys in the Fund shall be used solely for
  the purpose of providing for costs associated with the replacement of the Department of
  Taxation's (TAX) Integrated Revenue Management System (IRMS).
  4. The workgroup described in Item 257 Paragraph D of the 2025 Appropriation Act shall
  continue its periodic oversight of the implementation of this project. The workgroup shall
  include the Secretary of Finance or his designee, staff from the House Appropriations and
  Senate Finance and Appropriations Committees, the Director of the Department of Planning
  and Budget, and the Chief Information Officer of the Commonwealth.
  5. The Department of Taxation shall report to the Governor and the Chairs of the House
  Appropriations and Senate Finance and Appropriations Committees by November 1 of each
  year until implementation of the new system is complete. Such report shall include an
  executive summary of the interim activity of the project implementation, including information
  regarding the current status of the project, the funding expended in the prior fiscal year,
  project milestones achieved in the prior fiscal year, and any potential concerns that may
  impact the project's timeline and success.
  Total for Department of Taxation  $1,245,748,691    $140,520,417
  General Fund Positions  930.00  933.00
  Nongeneral Fund Positions  56.00  56.00
  Position Level  986.00  989.00
  Fund Sources: General  $1,232,322,626       $126,981,352
  Special  $11,977,645        $12,635,645
  Dedicated Special Revenue  $1,448,420  $903,420
     261.       Not set out.
     262.       Not set out.
     263.       Not set out.
  § 1-10. TREASURY BOARD (155)
     264.       Bond and Loan Retirement and Redemption (74300)  $1,043,008,147   $1,047,160,071
  $1,028,511,903
  103
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  Item Details($)  Appropriations($)
    ITEM 264.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Debt Service Payments on General Obligation
  Bonds (74301)  $40,958,214  $33,517,136
  $33,033,823
  Debt Service Payments on Public Building
  Authority Bonds (74303)  $364,877,486  $375,705,634
  Debt Service Payments on College Building
  Authority Bonds (74304)  $637,172,447  $637,937,301
  $619,772,446
  Fund Sources: General  $1,006,876,637      $1,011,608,929
  $992,960,761
  Higher Education Operating  $31,526,576       $31,526,576
  Dedicated Special Revenue  $645,000  $645,000
  Federal Trust  $3,959,934        $3,379,566
  Authority: Title 2.2, Chapter 18, Code of Virginia; Article X, Section 9, Constitution of
  Virginia.
  A. The Director, Department of Planning and Budget is authorized to transfer
  appropriations between Items in the Treasury Board to address legislation affecting the
  Treasury Board passed by the General Assembly.
  B.1. Out of the amounts for Debt Service Payments on General Obligation Bonds, the
  following amounts are hereby appropriated from the general fund for debt service on
  general obligation bonds issued pursuant to Article X, Section 9 (b), of the Constitution of
  Virginia:
  Series  FY 2025  FY 2026
  General Fund  Federal Funds  General Fund       Federal Funds
  2013 Refunding  $0  $0  $0  $0
  2015B Refunding  $11,340,750  $0  $14,880,000  $0
  $0
  2016B Refunding  $4,842,700  $0  $4,682,950  $0
  2019C Refunding  $1,124,264  $0  $1,052,436  $0
  2024B Refunding  $23,550,500  $12,801,750
  2025B Refunding  $0  $0  $14,396,687  $0
  Projected debt service  $100,000  $0  $100,000  $0
  & expenses
  Total Service Area  $40,958,214  $0  $33,517,136  $0
  $33,033,823
  2. Out of the amounts for Debt Service Payments on General Obligation Bonds, sums
  needed to fund issuance costs and other expenses are hereby appropriated.
  C.1. Out of the amounts for Debt Service Payments on Virginia Public Building Authority
  Bonds shall be paid to the Virginia Public Building Authority the following amounts for
  use by the authority for its various bond issues:
  Series  FY 2025  FY 2026
  General Fund  Nongeneral Fund  General Fund    Nongeneral Fund
  2010B  $21,717,048  $2,088,467  $21,436,829  $1,806,640
  2012A Refunding  $10,337,125  $0  $0  $0
  2013A  $8,745,050  $0  $1,354,800  $0
  2014A  $5,889,375  $645,000  $0  $0
  2014B  $2,014,388  $0  $2,012,972  $0
  2014C Refunding  $31,600,750  $0  $0  $0
  2015A  $17,297,845  $0  $17,296,720  $0
  2015B Refunding  $11,263,075  $0  $11,263,075  $0
  104
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  Item Details($)  Appropriations($)
    ITEM 264.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  2016A  $14,377,100  $0  $14,379,225  $0
  2016B Refunding  $31,946,700  $0  $31,953,825  $0
  2016C  $11,656,750  $0  $11,656,750  $0
  2016D  $906,482  $0  $903,176  $0
  2017A Refunding  $5,899,700  $0  $12,065,800  $0
  2018A  $11,742,369  $0  $11,745,244  $0
  2018B  $1,232,590  $0  $1,232,990  $0
  2019A  $13,433,275  $0  $13,431,150  $0
  2019B  $10,157,150  $0  $10,159,775  $0
  2019C  $5,106,276  $0  $0  $0
  2020A  $15,718,050  $0  $15,718,925  $0
  2020B Refunding  $33,784,375  $0  $34,228,625  $0
  2020C  $6,617,714  $0  $6,618,540  $0
  2021A  $38,488,625  $0  $38,485,750  $0
  2021B Refunding  $1,186,304  $0  $1,184,866  $0
  2022A  $33,093,050  $0  $33,092,550  $0
  2022B  $5,346,540  $0  $5,210,290  $0
  2024A  $7,070,534  $0  $13,601,500  $0
  2024B Refunding  $4,324,443  $0  $42,706,000  $645,000
  2024C  $941,336  $0  $6,351,330  $0
  2025A  $0  $0  $13,800,367  $0
  2025B  $0  $0  $1,112,920  $0
  Projected debt service  $250,000  $0  $15,163,287  $0
  and expenses  $250,000
  Total Service Area  $362,144,019  $2,733,467  $373,253,994  $2,451,640
  2.a. Funding is included in this Item for the Commonwealth's reimbursement of a portion of
  the approved capital costs as determined by the State Board of Local and Regional Jails and
  other interest costs as provided in §§ 53.1-80 through 53.1-82.2 of the Code of Virginia, for
  the following:
  Commonwealth Share of
  Project  Approved Capital Costs
  Fairfax County Adult Detention Center - Security and  $14,479,670
  Mechanical Upgrades
  Loudoun County Adult Detention Center - Expansion and  $9,975,250
  Renovation
  Albemarle-Charlottesville Regional Jail - Renovation  $11,689,250
  Total Approved Capital Costs  $36,144,170
  b. The Commonwealth's share of the total construction cost of the projects listed in the table
  in paragraph C.2.a. shall not exceed the amount listed for each project. Reimbursement of the
  Commonwealth's portion of the construction costs of these projects shall be subject to the
  approval of the Department of Corrections of the final expenditures.
  c. This paragraph shall constitute the authority for the Virginia Public Building Authority to
  issue bonds for the foregoing projects pursuant to § 2.2-2261 of the Code of Virginia.
  3.a. Funding is included in this item for the Commonwealth's reimbursement of a portion of
  the approved capital costs as determined by the State Board of Local and Regional Jails and
  other interest costs as provided in §§ 53.1-80 through 53.1-82.2, Code of Virginia, for the
  following:
  Project  Maximum
  Capital Costs
  Chesapeake Correctional Center  $437,603
  Chesterfield County Jail - Resubmittal  $340,320
  105
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  Item Details($)  Appropriations($)
    ITEM 264.  First Year    Second Year       First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Montgomery County Jail  $221,051
  New River Valley Regional Jail  $144,022
  New River Valley Regional Jail - Resubmittal  $321,177
  Norfolk City Jail  $843,243
  Piedmont Regional Jail  $411,855
  Pittsylvania County Jail  $15,076,753
  Portsmouth City Jail  $26,420,944
  Prince William-Manassas Regional ADC  $541,250
  Total  $44,758,218
  b.i. The Commonwealth's share of the total construction cost of the projects listed in the
  table in paragraph C.3.a. shall not exceed the amount listed for each project.
  ii. Projects with a total cost less than $12,000,000, shall have reimbursement of the
  Commonwealth's portion of the construction costs of these projects be subject to the
  approval of the Department of Corrections (DOC) of the final expenditures.
  iii. Projects with a total cost equal to or exceeding $12,000,000 shall undergo a cost and
  design review by the Department of General Services (DGS) in accordance with Item 385
  of this act. The cost target set by DGS shall include capital project costs as defined in §
  53.1-82.2. Upon completion of the cost review, DGS shall inform the Department of
  Planning and Budget (DPB), Department of Corrections (DOC), and the Chairs of the
  House Appropriations and Senate Finance and Appropriations Committees of the outcome
  of its review. Based on the DGS review and allowable costs pursuant to §§ 53.1-80
  through 53.1-82.2, DPB shall set a maximum reimbursement of the Commonwealth's
  portion of the construction costs amount, not to exceed the amount set forth in the above
  table and communicate such amount to DOC. Such reimbursement shall then be subject to
  the approval of DOC of the final expenditures. Notwithstanding any other approval
  provisions in § 53.1-80, Code of Virginia, these projects are hereby authorized for
  reimbursement in accordance with the provisions of C.3.a. and b. of this item.
  c. This paragraph shall constitute the authority for the Virginia Public Building Authority
  to issue bonds for the foregoing projects pursuant to § 2.2-2261, Code of Virginia.
  D.1. Out of the amounts for Debt Service Payments on Virginia College Building
  Authority Bonds shall be paid to the Virginia College Building Authority the following
  amounts for use by the Authority for payments on obligations issued for financing
  authorized projects under the 21st Century College Program:
  Series  FY 2025  FY 2026
  2010B  $27,288,516  $26,692,000
  2012B  $399,100  $20,354,100
  2014A  $412,050  $14,147,050
  2014B Refunding  $5,080,400  $0
  2015A  $23,556,450  $241,600
  2015B Refunding  $30,686,153  $30,688,347
  2015D  $12,457,685  $18,547,435
  2016A  $16,792,150  $16,791,400
  2016B Refunding  $1,972,000  $1,972,000
  2016C  $4,431,155  $4,433,558
  2017B Refunding  $23,952,750  $24,070,500
  2017C  $31,468,500  $31,465,500
  2017D  $11,316,888  $11,318,600
  2017E Refunding  $79,348,750  $65,166,500
  2019A  $31,126,350  $31,126,600
  2019B  $9,987,000  $9,984,500
  2019C Refunding  $29,061,250  $29,067,000
  106
_
  Item Details($)  Appropriations($)
    ITEM 264.  First Year     Second Year      First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  2020A  $20,154,950  $20,155,700
  2020B Refunding  $7,477,287  $6,206,018
  2021A  $32,914,300  $32,915,050
  2022A  $38,214,663  $42,806,913
  2022B  $4,591,955  $0
  2023A  $41,846,525  $41,847,525
  2023B Refunding  $17,090,500  $17,090,500
  2024A  $42,386,087  $42,385,800
  Projected 21st Century debt service &  $250,000  $4,652,563
  expenses  $250,000
  Subtotal 21st Century  $544,263,414  $544,126,759
  $539,724,196
  2. Out of the amounts for Debt Service Payments on Virginia College Building Authority
  Bonds shall be paid to the Virginia College Building Authority the following amounts for the
  payment of debt service on authorized bond issues to finance equipment:
  Series  FY 2025  FY 2026
  2018A  $12,862,500  $0
  2019A  $12,568,750  $12,573,750
  2020A  $12,062,500  $12,061,500
  2021A  $12,513,750  $12,514,000
  2022A  $13,943,500  $13,942,250
  2023A  $14,400,000  $14,402,750
  2024A  $14,558,033  $14,554,000
  Projected debt service & expenses  $0  $13,762,292
  $0
  Subtotal Equipment  $92,909,033  $93,810,542
  $80,048,250
  Total Service Area  $637,172,447  $637,937,301
  $619,772,446
  3. Beginning with the FY 2008 allocation of the higher education equipment trust fund, the
  Treasury Board shall amortize equipment purchases at seven years, which is consistent with
  the useful life of the equipment.
  4. Out of the amounts for Debt Service Payments on Virginia College Building Authority
  Bonds, the following nongeneral fund amounts from a capital fee charged to out-of-state
  students at institutions of higher education shall be paid to the Virginia College Building
  Authority in each year for debt service on bonds issued under the 21st Century Program:
  Institution  FY 2025  FY 2026
  George Mason University  $2,804,490  $2,804,490
  Old Dominion University  $1,108,899  $1,108,899
  University of Virginia  $5,006,754  $5,006,754
  Virginia Polytechnic Institute and State  $5,192,295  $5,192,295
  University
  Virginia Commonwealth University  $2,359,266  $2,359,266
  College of William and Mary  $1,639,845  $1,639,845
  Christopher Newport University  $131,508  $131,508
  University of Virginia's College at Wise  $48,330  $48,330
  James Madison University  $2,843,787  $2,843,787
  Norfolk State University  $420,789  $420,789
  Longwood University  $106,149  $106,149
  University of Mary Washington  $234,834  $234,834
  Radford University  $300,486  $300,486
  107
_
  Item Details($)  Appropriations($)
    ITEM 264.  First Year    Second Year       First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Virginia Military Institute  $400,470  $400,470
  Virginia State University  $773,577  $773,577
  Richard Bland College  $10,830  $10,830
  Virginia Community College System  $3,301,665  $3,301,665
  TOTAL  $26,683,974  $26,683,974
  5. Out of the amounts for Debt Service Payments of College Building Authority Bonds,
  the following is the estimated general and nongeneral fund breakdown of each institution's
  share of the debt service on the Virginia College Building Authority bond issues to
  finance equipment. The nongeneral fund amounts shall be paid to the Virginia College
  Building Authority in each year for debt service on bonds issued under the equipment
  program:
  FY 2025  FY 2026
  Institution  General Fund  Nongeneral Fund  General Fund    Nongeneral Fund
  College of William &  $2,957,968  $259,307  $3,098,080  $259,307
  Mary  $2,544,266
  University of Virginia  $13,447,481  $1,088,024  $14,084,454  $1,088,024
  $11,566,713
  Virginia Polytechnic  $13,410,836  $992,321  $13,913,645  $992,321
  Institute and State  $11,426,435
  University
  Virginia Military  $1,139,325  $88,844  $1,193,292  $88,844
  Institute  $979,978
  Virginia State  $1,725,783  $108,886  $1,807,529  $108,886
  University  $1,484,415
  Norfolk State  $1,543,096  $108,554  $1,616,188  $108,554
  University  $1,327,278
  Longwood University  $955,904  $54,746  $1,001,183  $54,746
  $822,211
  University of Mary  $843,157  $97,063  $883,095  $97,063
  Washington  $725,232
  James Madison  $2,969,737  $254,504  $3,110,406  $254,504
  University  $2,554,389
  Radford University  $2,243,707  $135,235  $2,349,987  $135,235
  $1,929,902
  Old Dominion  $6,702,689  $374,473  $6,755,319  $374,473
  University  $5,547,735
  Virginia  $8,812,123  $401,647  $9,229,532  $401,647
  Commonwealth  $7,579,657
  University
  Richard Bland College  $205,919  $2,027  $215,673  $2,027
  $177,119
  Christopher Newport  $970,088  $17,899  $1,016,039  $17,899
  University  $834,411
  University of Virginia's  $322,325  $19,750  $337,593  $19,750
  College at Wise  $277,245
  George Mason  $5,327,956  $205,665  $5,315,467  $205,665
  University  $4,365,272
  Virginia Community  $22,625,588  $633,657  $23,697,308  $633,657
  College System  $19,461,167
  Virginia Institute of  $465,587  $0  $487,641  $0
  Marine Science  $400,470
  Roanoke Higher  $99,807  $0  $104,535  $0
  Education Authority  $85,848
  Southwest Virginia  $103,007  $0  $107,886  $0
  108
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  Item Details($)  Appropriations($)
    ITEM 264.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  Higher Education Center  $88,600
  Institute for Advanced  $352,530  $0  $369,228  $0
  Learning and Research  $303,225
  Southern Virginia  $123,167  $0  $129,001  $0
  Higher Education Center  $105,940
  New College Institute  $44,342  $0  $46,442  $0
  $38,140
  Eastern Virginia Medical  $674,309  $0  $706,250  $0
  School  $580,000
  TOTAL  $88,066,431  $4,842,602  $91,575,773  $4,842,602
  $75,205,648
  6. Old Dominion University may be responsible for the share of debt service issued to Eastern
  Virginia Medical School in this item to continue the financing of equipment for the schools
  and divisions existing as Eastern Virginia Medical School prior to the effective date of
  Chapters 756 and 778, 2023 Acts of Assembly.
  E. Pursuant to various Payment Agreements between the Treasury Board and the
  Commonwealth Transportation Board, funds required to pay the debt service due on
  Commonwealth Transportation Board bonds shall be paid to the Trustee for the bondholders
  by the Treasury Board after transfer of these funds to the Treasury Board from the
  Commonwealth Transportation Board pursuant to Item 443, paragraph E of this act and §§
  33.2-2300, 33.2-2400, and 58.1-816.1, Code of Virginia.
  F. Under the authority of this act, an agency may transfer funds to the Treasury Board for use
  as lease, rental, or debt service payments to be used for any type of financing where the
  proceeds are used to acquire equipment and to finance associated costs, including but not
  limited to issuance and other financing costs. In the event such transfers occur, the transfers
  shall be deemed an appropriation to the Treasury Board for the purpose of making the lease,
  rental, or debt service payments described herein.
  G. Notwithstanding the provisions of 2.2-1156, Code of Virginia, if tax-exempt bonds were
  used by the Commonwealth or its authorities, boards, or institutions to finance the acquisition,
  construction, improvement or equipping of real property, proceeds from the subsequent sale
  or disposition of such property and any improvements may first be applied toward
  remediation options available under federal law in order to maintain the tax-exempt status of
  such bonds.
     265.       Not set out.
  Total for Treasury Board  $1,043,008,147   $1,047,160,071
  $1,028,511,903
  Fund Sources: General  $1,006,876,637      $1,011,608,929
  $992,960,761
  Higher Education Operating  $31,526,576        $31,526,576
  Dedicated Special Revenue  $645,000  $645,000
  Federal Trust  $3,959,934  $3,379,566
     266.       Not set out.
  TOTAL FOR OFFICE OF FINANCE  $4,227,311,971   $2,838,767,442
  $3,132,449,614
  General Fund Positions  1,139.70  1,154.95
  Nongeneral Fund Positions  213.30  214.05
  Position Level  1,353.00  1,369.00
  Fund Sources: General  $3,554,714,837      $2,164,497,032
  $2,458,179,204
  Special  $13,679,306        $14,337,306
  Higher Education Operating  $31,526,576        $31,526,576
  Commonwealth Transportation  $185,187  $185,187
  109
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  Item Details($)  Appropriations($)
    ITEM 266.  First Year    Second Year   First Year  Second Year
  FY2025  FY2026      FY2025        FY2026
  Internal Service  $49,472,753      $50,051,718
  Trust and Agency  $151,416,530     $152,978,209
  Dedicated Special Revenue     $422,356,848     $421,811,848
  Federal Trust  $3,959,934       $3,379,566
  110
_
  Item Details($)  Appropriations($)
    ITEM 267.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  OFFICE OF HEALTH AND HUMAN RESOURCES
  § 1-11. SECRETARY OF HEALTH AND HUMAN RESOURCES (188)
     267.       Not set out.
  Children's Services Act (200)
     268.       Protective Services (45300)  $472,383,965    $498,650,250
  $519,381,430
  Financial Assistance for Child and Youth Services
  (45303)  $472,383,965      $498,650,250
  $519,381,430
  Fund Sources: General  $414,751,636      $441,017,921
  $461,749,101
  Federal Trust  $57,632,329       $57,632,329
  Authority: Title 2.2, Chapter 52, Code of Virginia.
  A. The Department of Education shall serve as fiscal agent to administer funds cited in
  paragraphs B and C.
  B.1.a. Out of this appropriation, $319,037,048 the first year and $438,012,921$458,744,101
  the second year from the general fund and $57,632,329 the first year and $58,632,329 the
  second year from nongeneral funds shall be used for the state pool of funds pursuant to § 2.2-
  5211, Code of Virginia. This appropriation shall consist of a Medicaid pool allocation, and a
  non-Medicaid pool allocation.
  b. The Medicaid state pool allocation shall consist of $31,214,350 the first year and
  $31,214,350 the second year from the general fund and $48,212,331 the first year and
  $48,212,331 the second year from nongeneral funds. The Office of Children's Services will
  transfer these funds to the Department of Medical Assistance Services as they are needed to
  pay Medicaid provider claims.
  c. The non-Medicaid state pool allocation shall consist of $287,822,698 the first year and
  $406,798,571$427,529,751 the second year from the general fund and $8,419,998 the first
  year and $9,419,998 the second year from nongeneral funds. The nongeneral funds shall be
  transferred from the Department of Social Services.
  d. The Office of Children's Services, with the concurrence of the Department of Planning and
  Budget, shall have the authority to transfer the general fund allocation between the Medicaid
  and non-Medicaid state pools in the event that a shortage should exist in either of the funding
  pools.
  e. The Office of Children's Services, per the policy of the State Executive Council, shall deny
  state pool funding to any locality not in compliance with federal and state requirements
  pertaining to the provision of special education and foster care services funded in accordance
  with § 2.2-5211, Code of Virginia.
  f. Of the amounts in paragraph B.1.c., the Director, Office of Children's Services, shall
  allocate up to $2,200,000 the first year and $2,200,000 the second year from the general fund
  to localities for wrap-around services for students with disabilities as defined in the Children's
  Services Act policy manual.
  2.a. Out of this appropriation, $92,709,588 the first yearfrom the general fund and $1,000,000
  the first yearfrom nongeneral funds shall be set aside to pay for the state share of
  supplemental requests from localities that have exceeded their state allocation for mandated
  services. The nongeneral funds shall be transferred from the Department of Social Services.
  b. In the first year, the director of the Office of Children's Services may approve and obligate
  supplemental funding requests in excess of the amount in 2a above, for mandated pool fund
  expenditures up to 10 percent of the total general fund appropriation authority in B1a in this
  111
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    ITEM 268.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Item.
  c. The State Executive Council shall maintain local government performance measures to
  include, but not be limited to, use of federal funds for state and local support of the
  Children's Services Act.
  d. Pursuant to § 2.2-5200, Code of Virginia, Community Policy and Management Teams
  shall seek to ensure that services and funding are consistent with the Commonwealth's
  policies of preserving families and providing appropriate services in the least restrictive
  environment, while protecting the welfare of children and maintaining the safety of the
  public. Each locality shall submit to the Office of Children's Services information on
  utilization of residential facilities for treatment of children and length of stay in such
  facilities. By December 15 of each year, the Office of Children's Services shall report to
  the Governor and Chairmen of the House Appropriations and Senate Finance and
  Appropriations Committees on utilization rates and average lengths of stays statewide and
  for each locality.
  3. Each locality receiving funds for activities under the Children's Services Act (CSA)
  shall have a utilization management process, including a uniform assessment, approved by
  the State Executive Council, covering all CSA services. Utilizing a secure electronic site,
  each locality shall also provide information as required by the Office of Children's
  Services to include, but not be limited to case specific information, expenditures, number
  of youth served in specific CSA activities, length of stay for residents in core licensed
  residential facilities, and proportion of youth placed in treatment settings suggested by the
  uniform assessment instrument. The State Executive Council, utilizing this information,
  shall track and report on child specific outcomes for youth whose services are funded
  under the Children's Services Act. Only non-identifying demographic, service, cost and
  outcome information shall be released publicly. Localities requesting funding from the set
  aside in paragraph 2.a. and 2.b. must demonstrate compliance with all CSA provisions to
  receive pool funding.
  4. The Secretary of Health and Human Resources, in consultation with the Secretary of
  Education and the Secretary of Public Safety and Homeland Security, shall direct the
  actions for the Departments of Social Services, Education, and Juvenile Justice, Medical
  Assistance Services, Health, and Behavioral Health and Developmental Services, to
  implement, as part of ongoing information systems development and refinement, changes
  necessary for state and local agencies to fulfill CSA reporting needs.
  5. The State Executive Council shall provide localities with technical assistance on ways
  to control costs and on opportunities for alternative funding sources beyond funds
  available through the state pool.
  6. Out of this appropriation, $100,000 the first year and $100,000 the second year from the
  general fund is provided for a combination of regional and statewide meetings for
  technical assistance to local community policy and management teams, family assessment
  and planning teams, and local fiscal agents. Training shall include, but not be limited to,
  cost containment measures, building community-based services, including creation of
  partnerships with private providers and non-profit groups, utilization management, use of
  alternate revenue sources, and administrative and fiscal issues. A state-supported
  institution of higher education, in cooperation with the Virginia Association of Counties,
  the Virginia Municipal League, and the State Executive Council, may assist in the
  provisions of this paragraph. A training plan shall be presented to and approved by the
  State Executive Council before the beginning of each fiscal year. A training calendar and
  timely notice of programs shall be provided to Community Policy and Management
  Teams and family assessment and planning team members statewide as well as to local
  fiscal agents and chief administrative officers of cities and counties. A report on all
  regional and statewide training sessions conducted during the fiscal year, including (i) a
  description of each program and trainers, (ii) the dates of the training and the number of
  attendees for each program, (iii) a summary of evaluations of these programs by attendees,
  and (iv) the funds expended, shall be made to the Chairmen of the House Appropriations
  and Senate Finance and Appropriations Committees and to the members of the State
  Executive Council by December 1 of each year. Any funds unexpended for this purpose in
  the first year shall be reappropriated for the same use in the second year.
  112
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  FY2025  FY2026  FY2025  FY2026
  7. Out of this appropriation, $70,000 the first year and $70,000 the second year from the
  general fund is provided for the Office of Children's Services to contract for the support of
  uniform CSA reporting requirements.
  8. The State Executive Council shall require a uniform assessment instrument.
  9. The Office of Children's Services, in conjunction with the Department of Social Services,
  shall determine a mechanism for reporting Temporary Assistance for Needy Families
  Maintenance of Effort eligible costs incurred by the Commonwealth and local governments
  for the Children's Services Act.
  10. For purposes of defining cases involving only the payment of foster care maintenance,
  pursuant to § 2.2-5209, Code of Virginia, the definition of foster care maintenance used by
  the Virginia Department of Social Services for federal Title IV-E shall be used.
  C. 1.a. For services provided prior to July 1, 2025, the funding formula to carry out the
  provisions of the Children's Services Act is as follows:
  the allocations for the Medicaid and non-Medicaid pools shall be the amounts specified in
  paragraphs B.1.b. and B.1.c. in this Item. These funds shall be distributed to each locality in
  each year of the biennium based on the greater of that locality's percentage of actual 1997
  Children's Services Act pool fund program expenditures to total 1997 pool fund program
  expenditures or the latest available three-year average of actual pool fund program
  expenditures as reported to the state fiscal agent.
  b. For the fiscal year beginning July 1, 2025, the Office of Children's Services shall cease the
  allocation process and reimburse localities for eligible services as requests are submitted.
  2. All localities are required to appropriate a local match for the base year funding consisting
  of the actual aggregate local match rate based on actual total 1997 program expenditures for
  the Children's Services Act. This local match rate shall also apply to all reimbursements from
  the state pool of funds in this Item and carryforward expenditures submitted prior to
  September 30 each year for the preceding fiscal year, including administrative
  reimbursements under paragraph C.4. in this Item.
  3.a. Notwithstanding the provisions of C.2. of this Item, beginning July 1, 2008, the local
  match rate for community based services for each locality shall be reduced by 50 percent.
  b. Localities shall review their caseloads for those individuals who can be served
  appropriately by community-based services and transition those cases to the community for
  services. Beginning July 1, 2009, the local match rate for non-Medicaid residential services
  for each locality shall be 25 percent above the fiscal year 2007 base. Beginning July 1, 2011,
  the local match rate for Medicaid residential services for each locality shall be 25 percent
  above the fiscal year 2007 base.
  c. By December 1 of each year, The State Executive Council (SEC) shall provide an update to
  the Governor and the Chairmen of the House Appropriations and Senate Finance and
  Appropriations Committees on the outcomes of this initiative.
  d. At the direction of the State Executive Council, local Community Policy and Management
  Teams (CPMTs) and Community Services Boards (CSBs) shall work collaboratively in their
  service areas to develop a local plan for intensive care coordination (ICC) services that best
  meets the needs of the children and families. If there is more than one CPMT in the CSB's
  service area, the CPMTs and the CSB may work together as a region to develop a plan for
  ICC services. Local CPMTs and CSBs shall also work together to determine the most
  appropriate and cost-effective provider of ICC services for children in their community who
  are placed in, or at-risk of being placed in, residential care through the Children's Services
  Act, in accordance with guidelines developed by the State Executive Council. The State
  Executive Council and Office of Children's Services shall establish guidelines for reasonable
  rates for ICC services and provide training and technical assistance to CPMTs and fiscal
  agents regarding these services.
  e. The local match rate for all non-Medicaid services provided in the public schools after June
  30, 2011 shall equal the fiscal year 2007 base.
  113
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    ITEM 268.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  4. Out of this appropriation, an amount equal to two percent of the fiscal year 1997 pool
  fund allocations, not to exceed $2,560,000 the first year and $2,560,000 the second year
  from the general fund, shall be allocated among all localities for administrative costs.
  Every locality shall be required to appropriate a local match based on the local match
  contribution in paragraph C.2. of this Item. Inclusive of the state allocation and local
  matching funds, every locality shall receive the larger of $12,500 or an amount equal to
  two percent of the total pool allocation. Localities are encouraged to use administrative
  funding to hire a full-time or part-time local coordinator for the Children's Services Act
  program. Localities may pool this administrative funding to hire regional coordinators.
  5. For purposes of the funding formula in the Children's Services Act, "locality" means
  city or county.
  D. Community Policy and Management Teams shall use Medicaid-funded services
  whenever they are available for the appropriate treatment of children and youth receiving
  services under the Children's Services Act. Effective July 1, 2009, pool funds shall not be
  spent for any service that can be funded through Medicaid for Medicaid-eligible children
  and youth except when Medicaid-funded services are unavailable or inappropriate for
  meeting the needs of a child.
  E. Pursuant to subdivision 3 of § 2.2-5206, Code of Virginia, Community Policy and
  Management Teams shall enter into agreements with the parents or legal guardians of
  children receiving services under the Children's Services Act. The Office of Children's
  Services shall be a party to any such agreement.
  F. The Office of Children's Services, in cooperation with the Department of Medical
  Assistance Services, shall provide technical assistance and training to assist residential and
  treatment foster care providers who provide Medicaid-reimbursable services through the
  Children's Services Act to become Medicaid-certified providers.
  G. The Office of Children's Services shall work with the State Executive Council and the
  Department of Medical Assistance Services to assist Community Policy and Management
  Teams in appropriately accessing a full array of Medicaid-funded services for Medicaid-
  eligible children and youth through the Children's Services Act, thereby increasing
  Medicaid reimbursement for treatment services and decreasing the number of denials for
  Medicaid services related to medical necessity and utilization review activities.
  H. Pursuant to subdivision 21 of § 2.2-2648, Code of Virginia, no later than December 20
  in the odd-numbered years, the State Executive Council shall biennially publish and
  disseminate to members of the General Assembly and Community Policy and
  Management Teams a progress report on services for children, youth, and families and a
  plan for such services for the succeeding biennium.
  I. Out of this appropriation, $275,000 the first year and $275,000 the second year from the
  general fund shall be used to purchase and maintain an information system to provide
  quality and timely child demographic, service, expenditure, and outcome data.
  J. The State Executive Council shall work with the Department of Education to ensure that
  funding in this Item is sufficient to pay for the educational services of students that have
  been placed in or admitted to state or privately operated psychiatric or residential
  treatment facilities to meet the educational needs of the students as prescribed in the
  student's Individual Educational Plan (IEP).
  K.1. The Office of Children's Services (OCS) shall report on funding for therapeutic foster
  care services including but not limited to the number of children served annually, average
  cost of care, type of service provided, length of stay, referral source, and ultimate
  disposition. In addition, the OCS shall provide guidance and training to assist localities in
  negotiating contracts with therapeutic foster care providers.
  2. The Office of Children's Services shall report on funding for special education day
  treatment and residential services, including but not limited to the number of children
  served annually, average cost of care, type of service provided, length of stay, referral
  source, and ultimate disposition.
  3. The Office of Children's Services shall report by December 1 of each year the
  114
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    ITEM 268.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  information included in this paragraph to the Chairmen of the House Appropriations and
  Senate Finance and Appropriations Committees.
  L. Notwithstanding any other provision of law, for services provided on or after July 1, 2025,
  the rate of reimbursement to localities for private day educational services shall not increase
  more than 5.0 percent over the rates for such services provided the previous year.
     269.       Not set out.
  Total for Children's Services Act  $475,323,411    $501,648,236
  $522,379,416
  General Fund Positions  16.00  16.00
  Position Level  16.00  16.00
  Fund Sources: General  $417,691,082     $444,015,907
  $464,747,087
  Federal Trust  $57,632,329      $57,632,329
  Grand Total for Secretary of Health and Human
  Resources  $476,288,170    $502,612,995
  $523,344,175
  General Fund Positions  21.00  21.00
  Position Level  21.00  21.00
  Fund Sources: General  $418,655,841     $444,980,666
  $465,711,846
  Federal Trust  $57,632,329      $57,632,329
     270.       Not set out.
  § 1-12. DEPARTMENT OF HEALTH (601)
     271.       Not set out.
     272.       Not set out.
     273.       Not set out.
     274.       Not set out.
     275.       Communicable Disease Prevention and Control
  (40500)  $253,718,468    $191,148,466
  $183,148,466
  Immunization Program (40502)  $62,778,087      $19,640,225
  Tuberculosis Prevention and Control (40503)  $2,520,820       $2,520,820
  Sexually Transmitted Disease Prevention and
  Control (40504)  $5,004,150       $6,004,150
  Disease Investigation and Control Services (40505)  $85,764,259      $63,987,119
  HIV/AIDS Prevention and Treatment Services
  (40506)  $81,273,631      $81,273,631
  Pharmacy Services (40507)  $16,377,521      $17,722,521
  $9,722,521
  Fund Sources: General  $15,585,003      $16,585,003
  Special  $2,900,493       $2,900,493
  Dedicated Special Revenue  $13,519,145      $13,564,145
  $5,564,145
  Federal Trust  $221,713,827     $158,098,825
  Authority: §§ 32.1-11.1, 32.1-11.2, and 32.1-35 through 32.1-73, Code of Virginia; and P.L.
  91-464, as amended, Federal Code.
  115
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    ITEM 275.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  A. Out of this appropriation, $90,000 the first year and $90,000 the second year from the
  general fund shall be used to purchase medication and supplies for individuals who have
  drug-susceptible or drug-resistant tuberculosis but who do not qualify for free or reduced
  prescription drugs and who do not have adequate income or insurance coverage to
  purchase the required prescription drugs.
  B. The requirement for testing of tuberculosis isolates set out in § 32.1-50 E, Code of
  Virginia, shall be satisfied by the submission of samples to the Division of Consolidated
  Laboratory Services, or such other laboratory as may be designated by the Board of
  Health.
  C. Out of this appropriation, $840,288 the first year and $840,288 the second year from
  nongeneral funds shall be used to purchase the Tdap (tetanus/diphtheria/pertussis) vaccine
  for children without insurance.
  D. Out of this appropriation, $200,000 the first year and $200,000 the second year from
  the general fund shall be provided to the State Pharmaceutical Assistance Program (SPAP)
  for insurance premium payments, coinsurance payments, and other out-of-pocket costs for
  individuals participating in the Virginia Medication Assistance Program (VA MAP),
  formerly AIDS Drug Assistance Program, with incomes meeting the VA MAP's current
  requirements and who are Medicare prescription drug coverage beneficiaries. These funds
  may also be used for the purchase of medications, co-insurance payments and other out-
  of-pocket costs for individuals served by the Virginia Department of Health's HIV Pre-
  Exposure Prophylaxis (PrEP) and non-occupational Post Exposure Prophylaxis (n-PEP)
  programs to prevent HIV infection.
  E. The State Health Commissioner shall monitor patients who have been removed or
  diverted from the Virginia Medication Assistance Program (VA MAP), formerly AIDS
  Drug Assistance Program, due to budget considerations. At a minimum the Commissioner
  shall monitor patients to determine if they have been successfully enrolled in a private
  Pharmacy Assistance Program or other program to receive appropriate anti-retroviral
  medications. The commissioner shall also monitor the program to assess whether a
  waiting list has developed for services provided through the VA MAP program. The
  commissioner shall report findings to the Chairmen of the House Appropriations and
  Senate Finance and Appropriations Committees annually on October 1.
  F. The Virginia Department of Health shall report for each month within 30 days after the
  end of each month, on the number of procedures approved for payment pursuant to § 32.1-
  92.2, Code of Virginia, and include a description of the nature of the fetal abnormality, to
  the extent permitted by law, as required for eligibility under § 32.1-92.2, Code of Virginia.
  The department shall report the information by letter to the Chairmen of the House
  Appropriations and Senate Finance and Appropriations Committees.
  G. Out of this appropriation, $1,600,011 the first year and $1,600,011 the second year
  shall be provided to the Virginia Department of Health from available federal funding in
  the Department of Behavioral Health and Developmental Services, including the State
  Opioid Response Grant, as available, to purchase and provide opioid reversal drugs to
  support community rescue efforts for those who deal with vulnerable populations.
  H. Out of this appropriation, $1,300,000 the first year and $1,300,000 the second year
  from the general fund shall be used to purchase opioid reversal drugs.
  I. The Virginia Department of Health shall review and update their data collection and
  reporting protocols for COVID-19 or other infectious disease data to report actual deaths
  not an extrapolated projection of deaths.
  J. The State Health Commissioner shall ensure that residents and employees of any
  nursing home or assisted living facility receive priority for testing indicating the existence
  of the COVID-19 virus in the Commonwealth. The Commissioner shall make available
  public health testing, if necessary, in order to ensure that nursing homes or assisted living
  facilities have access to testing that can provide the most rapid results in order to prevent
  or contain outbreaks of COVID-19. Such testing shall be provided, as needed, by the
  Division of Consolidated Laboratory Services or other public health testing agencies of
  the Commonwealth. Any testing costs through the public health system for employees or
  116
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    ITEM 275.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  residents of nursing homes or assisted living facilities may be billed to responsible third-
  parties.
  K. The Virginia Department of Health shall work with the Department of Behavioral Health
  and Developmental Services (DBHDS) to ensure that adequate funding, estimated at
  $2,111,670 the first year, is provided for COVID-19 testing and surveillance at DBHDS state-
  operated facilities. Any amount not expended in the first year may be appropriated in the
  second year to continue services. The Virginia Department of Health shall include such
  activity in its plan to the Centers for Disease Control and Prevention for the use of the federal
  Epidemiology and Laboratory Capacity for Prevention and Control of Emerging Infectious
  Diseases (ELC) funds received pursuant to the Coronavirus Preparedness and Response
  Supplemental Appropriations Act (P.L. 116-260). The Virginia Department of Health shall
  transfer such funds to the Department of Behavioral Health and Developmental Services as
  necessary for such activities.
  L.1. Out of this appropriation, $5,519,145 the first year and $5,519,145 the second year from
  the Commonwealth Opioid Abatement and Remediation fund shall be provided for the
  purchase and distribution of opioid reversal agents and test kits and for the development of
  tracking software.
  2. Of the amounts provided in L.1., $1,000,000 the first year and $1,000,000 the second year
  shall be provided to purchase and distribute eight milligram naloxone nasal spray.
  M. Out of this appropriation, $100,000 the second year from the Commonwealth Opioid and
  Abatement and Remediation fund shall be provided for the purchase and distribution of
  additional opioid reversal agents for public school divisions by the Virginia Department of
  Health.
  N.1. The Virginia Department of Health shall establish and execute the Opioid Overdose
  Reversal Agent Program, a manufacturing program for a quality, lowest sustainable cost,
  opioid overdose reversal agent. Out of this appropriation, $8,000,000 the first year and
  $8,000,000 the second year from the Commonwealth Opioid Abatement and Remediation
  fund shall be provided to administer the Program. The Virginia Department of Health shall
  coordinate the Program with the Virginia Opioid Abatement Authority. Key objectives of the
  Program shall be: (i) providing a long-term, sustainable supply of opioid overdose reversal
  agent to help combat Virginia's opioid epidemic; (ii) providing pricing stability and increase
  access for this critical life-saving medication; and, (iii) leveraging, when possible, existing
  federal and state investments building the advanced pharmaceutical development and
  manufacturing CAMPUS in Petersburg.
  2. The Program shall contract with the private sector to lead an end-to-end opioid overdose
  reversal agent nasal spray development program to provide a new FDA-approved generic
  version resulting in a lower cost product to help drive down state and locality budgets for
  opioid overdose reversal agent and improve access, quality, and availability through a
  domestic supply. Funding provided to the contracting entity may be used for: (i) investment in
  research and development activities supporting an opioid overdose reversal agent API,
  formulation development, manufacturing process qualification and validation, and regulatory
  approval; and (ii) capital expenditures, including custom machinery for assembly of the
  drug/device combination product and semi-automated packaging. All intellectual property
  developed by the program would be owned by the private entity and all capital expenditures,
  including custom equipment, would be owned by the Authority or partner agency.
     276.       Not set out.
     277.       Not set out.
     278.       Not set out.
     279.       Not set out.
     280.       Not set out.
  117
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  Item Details($)  Appropriations($)
    ITEM 281.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
     281.       Not set out.
     282.       Not set out.
     283.       Not set out.
  Total for Department of Health  $1,169,523,250   $1,081,181,890
  $1,073,181,890
  General Fund Positions  1,614.50  1,615.50
  Nongeneral Fund Positions  2,271.00  2,271.00
  Position Level  3,885.50  3,886.50
  Fund Sources: General  $326,633,728      $309,700,157
  Special  $188,055,424      $188,477,104
  Dedicated Special Revenue  $128,857,858      $128,602,858
  $120,602,858
  Federal Trust  $525,976,240      $454,401,771
     284.       Not set out.
     285.       Not set out.
  § 1-13. DEPARTMENT OF MEDICAL ASSISTANCE SERVICES (602)
     286.       Not set out.
     287.       Children's Health Insurance Program Delivery
  (44600)  $448,492,560     $477,247,425
  $529,957,554
  Reimbursements for Medical Services Provided
  Under the Family Access to Medical Insurance
  Security Plan (44602)  $447,842,497      $476,531,297
  $529,261,990
  CHIP Health Services Initiatives for Family
  Access to Medical Insurance Security Medical
  Services (44636)  $650,063  $716,128
  $695,564
  Fund Sources: General  $138,300,003      $149,922,961
  $166,116,577
  Dedicated Special Revenue  $14,065,627       $14,065,627
  Federal Trust  $296,126,930      $313,258,837
  $349,775,350
  Authority: Title 32.1, Chapter 13, Code of Virginia; Title XXI, Social Security Act,
  Federal Code.
  A. Pursuant to Chapter 679, Acts of Assembly of 1997, the State Corporation Commission
  shall annually, on or before June 30, 1998, and each year thereafter, calculate the premium
  differential between: (i) 0.75 percent of the direct gross subscriber fee income derived
  from eligible contracts and (ii) the amount of license tax revenue generated pursuant to
  subdivision A 4 of § 58.1-2501 for the immediately preceding taxable year and notify the
  Comptroller of the Commonwealth to transfer such amounts to the Family Access to
  Medical Insurance Security Plan Trust Fund as established on the books of the State
  Comptroller.
  B. As a condition of this appropriation, revenues from the Family Access to Medical
  Insurance Security Plan Trust Fund, shall be used to match federal funds for the Children's
  Health Insurance Program.
  C. Every eligible applicant for health insurance as provided for in Title 32.1, Chapter 13,
  Code of Virginia, shall be enrolled and served in the program.
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    ITEM 287.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  D. To the extent that appropriations in this Item are insufficient, the Department of Planning
  and Budget shall transfer general fund appropriation, as needed, from Medicaid Program
  Services (45600) and Medical Assistance Services for Low Income Children (46600), if
  available, into this Item to be used as state match for federal Title XXI funds.
  E. The Department of Medical Assistance Services shall make the monthly capitation
  payment to managed care organizations for the member months of each month in the first
  week of the subsequent month.
  F. If any part, section, subsection, paragraph, clause, or phrase of this Item or the application
  thereof is declared by the United States Department of Health and Human Services or the
  Centers for Medicare and Medicaid Services to be in conflict with a federal law or regulation,
  such decisions shall not affect the validity of the remaining portions of this Item, which shall
  remain in force as if this Item had passed without the conflicting part, section, subsection,
  paragraph, clause, or phrase. Further, if the United States Department of Health and Human
  Services or the Centers for Medicare and Medicaid Services determines that the process for
  accomplishing the intent of a part, section, subsection, paragraph, clause, or phrase of this
  Item is out of compliance or in conflict with federal law and regulation and recommends
  another method of accomplishing the same intent, the Director, Department of Medical
  Assistance Services, after consultation with the Attorney General, is authorized to pursue the
  alternative method.
  G. The Department of Medical Assistance Services shall seek federal authority through
  waiver and State Plan amendments under Titles XIX and XXI of the Social Security Act to
  offer medically necessary treatment for substance use disorder in an Institution for Mental
  Diseases (IMD) for individuals enrolled in FAMIS MOMS, equivalent to such benefits
  offered to pregnant women under the Medicaid state plan and 1115 substance use disorder
  demonstration waiver. The department shall have the authority to promulgate emergency
  regulations to implement these amendments within 280 days or less from the enactment of
  this Act.
  H. The Department of Medical Assistance Services shall amend the Virginia Family Access
  to Medical Insurance Security (FAMIS) State Plan to allow for the payment of prenatal, labor
  and delivery, and postpartum care pursuant to provisions in Title XXI of the federal 2009
  CHIP Reauthorization Act that includes care of all children who upon birth will be U.S.
  citizens, U.S. nationals, or qualified aliens. The Department shall have the authority to
  implement this change effective July 1, 2021, or consistent with the effective date in the State
  Plan Amendment approved by the Centers for Medicare and Medicaid Services (CMS), and
  prior to completion of any regulatory process.
  I. 1. The Department of Medical Assistance Services is authorized to amend the FAMIS
  MOMS and FAMIS Select demonstration waiver (No. 21-W-00058/3) for FAMIS MOMS
  enrollees to add coverage for dental services to align with pregnant women's coverage under
  Medicaid.
  2. The Department of Medical Assistance Services is authorized to amend the State Plan
  under Title XXI of the Social Security Act to plan to allow enrollment for dependent children
  of state employees who are otherwise eligible for coverage.
  3. The department shall have authority to implement necessary changes upon federal approval
  and prior to the completion of any regulatory process undertaken in order to effect such
  changes.
     288.       Medicaid Program Services (45600)  $25,132,314,024 $26,316,442,804
  $27,463,112,546
  Payments for Graduate Medical Education
  Residencies (45606)  $11,700,000        $11,700,000
  Reimbursements to State-Owned Mental Health and
  Intellectual Disabilities Facilities (45607)  $59,169,094        $59,169,094
  Reimbursements for Behavioral Health Services
  (45608)  $41,620,380    $51,309,093
  $42,318,154
  Reimbursements for Medical Services (45609)  $13,824,223,326 $14,205,862,824
  $15,933,123,076
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  Reimbursements for Long-Term Care Services
  (45610)  $2,715,130,659     $2,968,979,072
  $2,943,600,622
  Payments for Healthcare Coverage for Low-
  Income Uninsured Adults (45611)  $8,480,470,565     $9,019,422,721
  $8,473,201,600
  Fund Sources: General  $6,857,733,973  $7,240,645,423
  $7,649,272,626
  Dedicated Special Revenue  $2,259,799,827 $2,291,018,540
  $2,669,340,790
  Federal Trust  $16,014,780,224 $16,784,778,841
  $17,144,499,130
  Authority: Title 32.1, Chapters 9 and 10, Code of Virginia; P.L. 89-97, as amended, Title
  XIX, Social Security Act, Federal Code.
  A. Out of this appropriation, $28,964,751 the first year and $28,998,773 the second year
  from the general fund and $30,204,343 the first year and $30,170,321 the second year
  from the federal trust fund is provided for reimbursement to the institutions within the
  Department of Behavioral Health and Developmental Services.
  B.1. Included in this appropriation is $2,095,498 the first year and $4,422,228 the second
  year from the general fund and $21,798,953 the first year and $24,169,583 the second year
  from nongeneral funds to reimburse the Virginia Commonwealth University Health
  System for indigent health care costs as reported by the hospital and adjusted by the
  department for indigent care savings related to Medicaid expansion. This funding is
  composed of disproportionate share hospital (DSH) payments, indirect medical education
  (IME) payments, and any Medicaid profits realized by the Health System. Payments made
  from the federal DSH fund shall be made in accordance with 42 USC 1396r-4.
  2. Included in this appropriation is $13,916,579 the first year and $14,900,252$31,948,398
  the second year from the general fund and $29,552,860 the first year and
  $30,508,352$48,245,241 the second year from nongeneral funds to reimburse the
  University of Virginia Health System for indigent health care costs as reported by the
  hospital and adjusted by the department for indigent care savings related to Medicaid
  expansion. This funding is comprised of disproportionate share hospital (DSH) payments,
  indirect medical education (IME) payments, and any Medicaid profits realized by the
  Health System. Payments made from the federal DSH fund shall be made in accordance
  with 42 USC 1396r-4.
  3. The general fund amounts for the state teaching hospitals have been reduced to mirror
  the general fund impact of reduced and no inflation for inpatient services in prior years. It
  also includes reductions associated with prior year indigent care reductions. However, the
  nongeneral funds are appropriated. In order to receive the nongeneral funds in excess of
  the amount of the general fund appropriated, the health systems shall certify the public
  expenditures.
  4. The Department of Medical Assistance Service shall have the authority to increase
  Medicaid payments for Type One hospitals and physicians consistent with the
  appropriations to compensate for limits on disproportionate share hospital (DSH)
  payments to Type One hospitals that the department would otherwise make. In particular,
  the department shall have the authority to amend the State Plan for Medical Assistance to
  increase physician supplemental payments for physician practice plans affiliated with
  Type One hospitals up to the average commercial rate as demonstrated by University of
  Virginia Health System and Virginia Commonwealth University Health System, to change
  reimbursement for Graduate Medical Education to cover costs for Type One hospitals, to
  case mix adjust the formula for indirect medical education reimbursement for HMO
  discharges for Type One hospitals and to increase the adjustment factor for Type One
  hospitals to 1.0. The department shall have the authority to implement these changes prior
  to completion of any regulatory process undertaken in order to effect such change.
  5. Effective July 1, 2022, any hospitals acquired by or that become fully-owned by
  designated Type One hospitals shall be considered Type Two facilities for reimbursement
  including, but not limited to: Indirect Medical Education payments, Graduate Medical
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  Education Payments, Direct Medical Education payments, Disproportionate Share Hospital
  payments, hospital rate-setting purposes, aggregated cost settlements, and physician
  supplemental payments. Facilities acquired prior to July 1, 2022, by Type One hospitals shall
  continue to be designated as Type One hospitals for reimbursement purposes.
  C.1. The estimated revenue for the Virginia Health Care Fund is $500,515,662 the first year
  and $440,500,000$435,930,462 the second year, to be used pursuant to the uses stated in §
  32.1-367, Code of Virginia.
  2. Notwithstanding any other provision of law, revenues deposited to the Virginia Health Care
  Fund shall only be used as the state share of Medicaid unless specifically authorized by this
  Act.
  3. Notwithstanding § 32.1-366, Code of Virginia, the State Comptroller shall deposit 41.5
  percent of the Commonwealth's allocation of the Master Settlement Agreement with tobacco
  product manufacturers, as defined in § 3.2-3100, Code of Virginia, to the Virginia Health
  Care Fund.
  4. The state share, not including hospital assessment dollars, of any repayment by managed
  care organizations resulting from exceeding their profit caps for not meeting the medical loss
  ratios pursuant to their contracts with the Department of Medical Assistance Services, shall be
  deposited to the Health Care Fund.
  D. If any part, section, subsection, paragraph, clause, or phrase of this Item or the application
  thereof is declared by the United States Department of Health and Human Services or the
  Centers for Medicare and Medicaid Services to be in conflict with a federal law or regulation,
  such decisions shall not affect the validity of the remaining portions of this Item, which shall
  remain in force as if this Item had passed without the conflicting part, section, subsection,
  paragraph, clause, or phrase. Further, if the United States Department of Health and Human
  Services or the Centers for Medicare and Medicaid Services determines that the process for
  accomplishing the intent of a part, section, subsection, paragraph, clause, or phrase of this
  Item is out of compliance or in conflict with federal law and regulation and recommends
  another method of accomplishing the same intent, the Director, Department of Medical
  Assistance Services, after consultation with the Attorney General, is authorized to pursue the
  alternative method.
  E. At least 45 days prior to the submission of any State Plan or waiver amendment or renewal
  of such, to the Centers for Medicare and Medicaid Services (CMS) or change in the contracts
  with managed care organizations (MCO) that may impact the capitation rates, the Department
  of Medical Assistance Services (DMAS) shall provide written notification to the Director,
  Department of Planning and Budget as to the purpose of such change. This notice shall also
  assess whether the amendment will require any future state regulatory action or expenditure
  beyond that which is appropriated in this Act. If the Department of Planning and Budget, after
  review of the proposed change, determines that it may likely result in a material fiscal impact
  on the general fund, for which no legislative appropriation has been provided, then the
  Department of Medical Assistance Services shall delay the proposed change until the General
  Assembly authorizes such action and notify the Chairs of the House Appropriations and
  Senate Finance and Appropriations Committees of such action.
  F.1. The Director, Department of Medical Assistance Services shall seek the necessary
  waivers from the United States Department of Health and Human Services to authorize the
  Commonwealth to cover health care services and delivery systems, as may be permitted by
  Title XIX of the Social Security Act, which may provide less expensive alternatives to the
  State Plan for Medical Assistance.
  2. At least 30 days prior to the submission of an application for any new waiver of Title XIX
  or Title XXI of the Social Security Act, the Department of Medical Assistance Services shall
  notify the Chairmen of the House Appropriations and Senate Finance and Appropriations
  Committees of such pending application and provide information on the purpose and
  justification for the waiver along with any fiscal impact. If the department receives an official
  letter from either Chairmen raising an objection about the waiver during the 30-day period,
  the department shall not submit the waiver application and shall request authority for such
  waiver as part of the normal legislative or budgetary process. If the department receives no
  objection, then the application may be submitted. Any waiver specifically authorized
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  elsewhere in this Item is not subject to this provision. Waiver renewals are not subject to
  the provisions of this paragraph.
  3. The director shall promulgate such regulations as may be necessary to implement those
  programs which may be permitted by Titles XIX and XXI of the Social Security Act, in
  conformance with all requirements of the Administrative Process Act.
  G. To the extent that appropriations in this Item are insufficient, the Department of
  Planning and Budget shall transfer general fund appropriation, as needed, from Children's
  Health Insurance Program Delivery (44600) and Medical Assistance Services for Low
  Income Children (46600), if available, into this Item to be used as state match for federal
  Title XIX funds.
  H. Notwithstanding any other provision of law, any unexpended general fund
  appropriation remaining in this Item on the last day of each fiscal year shall revert to the
  general fund and shall not be reappropriated in the following fiscal year.
  I.1. The Department of Medical Assistance Services shall delay the last quarterly payment
  of certain quarterly amounts paid to hospitals, from the end of each state fiscal year to the
  first quarter of the following year. Quarterly payments that shall be delayed from each
  June to each July shall be Disproportionate Share Hospital payments, Indirect Medical
  Education payments, and Direct Medical Education payments. The department shall have
  the authority to implement this reimbursement change effective upon passage of this Act,
  and prior to the completion of any regulatory process undertaken in order to effect such
  change.
  2. The Department of Medical Assistance Services shall make the monthly capitation
  payment to managed care organizations for the member months of each month in the first
  week of the subsequent month. The department shall have the authority to implement this
  reimbursement schedule change effective upon passage of this Act, and prior to the
  completion of any regulatory process undertaken in order to effect such change.
  3. In every June, the remittance that would normally be paid to providers on the last
  remittance date of the state fiscal year shall be delayed one week longer than is normally
  the practice. This change shall apply to the remittances of Medicaid and FAMIS providers.
  This change does not apply to providers who are paid a per-month capitation payment.
  The department shall have the authority to implement this reimbursement change effective
  upon passage of this Act, and prior to the completion of any regulatory process undertaken
  in order to effect such change.
  J.1. Notwithstanding § 30-347, Code of Virginia, or any other provision of law, the
  Department of Medical Assistance Services shall have the authority to amend the State
  Plan for Medical Assistance under Title XIX of the Social Security Act, and any waivers
  thereof, to implement coverage for newly eligible individuals pursuant to 42 U.S.C. §
  1396d(y)(1)[2010] of the Patient Protection and Affordable Care Act (PPACA).
  2. In the event that the increased federal medical assistance percentages for newly eligible
  individuals included in 42 U.S.C. § 1396d(y)(1)[2010] of the PPACA are modified
  through federal law or regulation from the methodology in effect on January 1, 2014,
  resulting in a reduction in federal medical assistance as determined by the department in
  consultation with the Department of Planning and Budget, the Department of Medical
  Assistance Services shall disenroll and eliminate coverage for individuals who obtained
  coverage through 42 U.S.C. § 1396d(y)(1) [2010] of the PPACA. The disenrollment
  process shall include written notification to affected Medicaid beneficiaries, Medicaid
  managed care plans, and other providers that coverage will cease as soon as allowable
  under federal law following the date the department is notified of a reduction in Federal
  Medical Assistance Percentage.
  K. The Department of Medical Assistance Services shall adjust the medically needy
  income limits for the Medicaid program annually to account for changes in the Consumer
  Price Index.
  L.1.a. As of July 1, 2024, the Community Living (CL) waiver authorizes 12,176 slots.
  b. As of July 1, 2024, the Family and Individuals Support (FIS) waiver authorizes 5,463
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  slots.
  c. As of July 1, 2021, the Building Independence (BI) waiver authorizes 400 slots.
  2. Notwithstanding Chapters 228 and 303 of the 2009 Virginia Acts of Assembly and §32.1-
  323.2 of the Code of Virginia, the Department of Medical Assistance Services shall not add
  any slots to the Intellectual Disabilities Medicaid Waiver or the Individual and Family
  Developmental Disabilities and Support Medicaid Waiver other than those slots authorized
  specifically to support the Money Follows the Person Demonstration, individuals who are
  exiting state institutions, any slots authorized under Chapters 724 and 729 of the 2011
  Virginia Acts of Assembly or §37.2-319, Code of Virginia, or authorized elsewhere in this
  Act.
  3. Upon approval by the Centers for Medicare and Medicaid Services of the application for
  renewal of the CL, FIS and BI waivers, expeditious implementation of any revisions shall be
  deemed an emergency situation pursuant to § 2.2-4002 of the Administrative Process Act.
  Therefore, to meet this emergency situation, the Department of Medical Assistance Services
  shall promulgate emergency regulations to implement the provisions of this Act.
  4.a. The Department of Medical Assistance Services (DMAS) shall amend the CL waiver to
  add 172 slots in fiscal year 2025 and 172 slots in fiscal year 2026. Effective July 1, 2024, 172
  slots shall be phased in with 43 slots added each quarter beginning on July 1, 2024. Effective
  July 1, 2025, 172 slots shall be phased in with 43 slots added each quarter beginning on July
  1, 2025. An amount estimated at $6,614,153 the first year and $17,196,797 the second year
  from the general fund and $6,881,364 the first year and $17,891,546 the second year from
  nongeneral funds is provided to cover the anticipated costs of the new slots.
  b. The Department of Medical Assistance Services (DMAS) shall amend the FIS waiver to
  add 1,548 slots in fiscal year 2025 and 1,548 slots in fiscal year 2026. Effective July 1, 2024,
  1,548 slots shall be phased in with 387 slots added each quarter beginning on July 1, 2024.
  Effective July 1, 2025, 1,548 slots shall be phased in with 387 slots added each quarter
  beginning on July 1, 2025. An amount estimated at $25,504,080 the first year and
  $71,882,928 the second year from the general fund and $26,534,443 the first year and
  $74,786,992 the second year from nongeneral funds is provided to cover the anticipated costs
  of the new slots.
  c. The Department of Medical Assistance Services, in collaboration with the Department of
  Behavioral Health and Developmental Services, shall separately track all costs associated
  with the additional slots added in paragraphs 4.a. and 4.b. above. By December 1 of each
  year, the department shall report this data to the Chairmen of the House Appropriations and
  Senate Finance and Appropriations Committees and the Director, Department of Planning and
  Budget.
  M. The Department of Medical Assistance Services shall seek federal authority through the
  necessary waiver(s) and/or State Plan authorization under Titles XIX and XXI of the Social
  Security Act to merge the Commonwealth Coordinated Care Plus and Medallion 4.0 managed
  care programs, effective July 1, 2022, into a single, streamlined managed care program that
  links seamlessly with the fee-for-service program, ensuring an efficient and well-coordinated
  Virginia Medicaid delivery system that provides high-quality care to its members and adds
  value for providers and the Commonwealth. The department shall have the authority to
  promulgate emergency regulations to implement these amendments within 280 days or less
  from the enactment of this Act. The department shall have authority to implement necessary
  changes upon federal approval and prior to the completion of any regulatory process
  undertaken in order to effect such change.
  N. Effective July 1, 2024, the Department of Medical Assistance Services shall have the
  authority to include modifications to the Cardinal Care Managed Care Contract as necessary
  to implement actions specifically authorized through language included in this Act.
  O. The department shall track and report on compliance with NCQA response time standards
  for each MCO, broken down by service type. Such tracking shall include: (i) How often total
  response time, from initial submittal until service authorization or denial, exceeds the NCQA
  standards; and (ii) How often appeals are filed, and of those, how often are services
  subsequently approved and how often they are denied. The department shall publish the data
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  on these items on a quarterly basis to the department's website.
  P. The Department of Medical Assistance Services shall modify its contracts with
  managed care organizations to require annual reporting with regard to Medicaid
  Community Mental Health Rehabilitation Services on: (i) the number of providers in their
  network and their geographic locations; (ii) the total number of provider terminations by
  year since fiscal year 2018 and the number terminated with and without cause; (iii) the
  localities the terminated providers served; and (iv) the number of Medicaid members the
  providers were serving prior to termination of their provider contract. The department
  shall report this data annually, not later than November 1, to the Joint Subcommittee for
  Health and Human Resources Oversight.
  Q. Cardinal Care Managed Care plans shall upgrade their Medicare Dual Special Needs
  Plans (D-SNPs) to Fully Integrated Dual Eligible Special Needs Plans (FIDE-SNPS),
  unless otherwise prohibited to do so by federal rule.
  R.1. Effective January 1, 2018, the Department of Medical Assistance Services shall
  include in all its contracts with managed care organizations (MCO) the following:
  a. A provision requiring the MCOs to return one-half of the underwriting gain in excess of
  three percent of Medicaid premium income up to 10 percent. The MCOs shall return 100
  percent of the underwriting gain above 10 percent.
  b. A requirement for detailed financial and utilization reporting. The reported data shall
  include: (i) income statements that show expenses by service category; (ii) balance sheets;
  (iii) information about related-party transactions; and (iv) information on service
  utilization metrics.
  c. Upon the inclusion of behavioral health care in managed care, behavioral health-
  specific metrics to identify undesirable trends in service utilization.
  d. Upon the inclusion of behavioral health care in managed care, a report on their policies
  and processes for identifying behavioral health providers who provide inappropriate
  services and the number of such providers that are disenrolled.
  2. For rate periods effective January 1, 2018 and thereafter, the Department of Medical
  Assistance Services shall direct its actuary as part of the rate setting process to:
  a. Identify potential inefficiencies in the Cardinal Care program and adjust capitation rates
  for expected efficiencies. The department is authorized to phase-in this adjustment over
  time based on the portion of identified inefficiencies that MCOs can reasonably reduce
  each year.
  b. Monitor medical spending for related-party arrangements and adjust historical medical
  spending when deemed necessary to ensure that capitation rates do not cover excessively
  high spending as compared to benchmarks. Related-party arrangements shall mean those
  in which there is common ownership or control between the entities, and shall not include
  Medicaid payments otherwise authorized in this Item.
  c. Adjust capitation rates in the Cardinal Care program to account for a portion of
  expected savings from required initiatives.
  d. Allow negative historical trends in medical spending to be carried forward when setting
  capitation rates.
  e. Annually rebase administrative expenses per member per month for projected
  enrollment changes.
  f. Annually incorporate findings on unallowable administrative expenses from audits of
  MCOs into its calculations of underwriting gain and administrative loss ratios for the
  purposes of ongoing financial monitoring, including enforcement of the underwriting gain
  cap.
  g. Adjust calculations of underwriting gain and medical loss ratio by classifying as profit
  medical spending that is excessively high due to related-party arrangements.
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  3. The Department of Medical Assistance Services shall report to the General Assembly on
  spending and utilization trends within Medicaid managed care, with detailed population and
  service information and include an analysis and report on the underlying reasons for these
  trends, the agency's and MCOs' initiatives to address undesirable trends, and the impact of
  those initiatives. The report shall be submitted each year by September 1.
  S. The Department of Medical Assistance Services (DMAS) shall amend its July 1, 2016,
  managed care contracts in order to conform to the requirement pursuant to House Bill 1942 /
  Senate Bill 1262, passed during the 2015 Regular Session, for prior authorization of drug
  benefits.
  T.1. The Department of Medical Assistance Services is authorized to reprocure or amend the
  Commonwealth's managed care service delivery system through a single managed care
  contract with the selected managed care organizations with an effective date of July 1, 2025.
  2. The managed care contract with the selected managed care organizations shall not include
  the following services, which shall remain in fee-for-service: (i) dental services; (ii)
  developmental disability waiver services; (iii) and other services currently excluded from the
  managed care contracts. DMAS shall not include any new services in the contract unless
  explicitly authorized by the General Assembly.
  3. The department shall ensure that the cost of any programmatic and/or contractual changes
  are fully accounted for in the Appropriation Act. Contract and program changes associated
  with this reprocurement or amendments shall not create any future funding commitments
  unless authorized by the General Assembly.
  4. The department shall have its contracted actuary review the new managed care contract and
  report on all program changes as compared to the existing contract and estimate any fiscal
  impact of such changes no later than 30 days prior to the effective date of the contract.
  5. The department shall provide regular updates on efforts to reprocure the new managed care
  contract on a quarterly basis to the Chairs of the House Appropriations and Senate Finance
  and Appropriations Committees.
  6.a. As part of the reprocured or amended Cardinal Care Managed Care Contract, DMAS
  shall be authorized to include the following changes provided such modifications do not alter
  cost factors, increase costs used in managed care rate development, or add future costs to the
  Commonwealth. Prior to implementation, DMAS shall have its actuarial contractor review
  these changes to ensure that the provisions of this paragraph are met.
  1) Revise managed care organization staffing requirements.
  2) Require DSNPs to operate with exclusively aligned enrollment starting January 1, 2025.
  3) Make changes to member intelligent assignment process, however under a reprocurement
  no members shall be reassigned from their existing managed care plan unless the member so
  chooses. Members in a managed care plan not awarded a new contract shall be assigned by
  DMAS to other plans that are in the best interest of the member. DMAS may suspend random
  assignments to a managed care organization if the MCO has 40 percent of enrolled lives
  within an operational region. DMAS shall make no changes in the reassignment methodology
  unless specifically authorized by the General Assembly.
  4) Require managed care organizations to collaborate with DMAS as part of community and
  programmatic initiatives, however any locality partnership initiatives must be specifically
  authorized by the General Assembly through a general appropriation act.
  5) Add language related to readiness review requirements.
  6) Add a foster care specialty plan via a competitive procurement process among the current
  contractors.
  7) Require managed care organizations to invite ombudsman representatives to advisory
  committee meetings.
  8) Revise EPSDT sections to increase care coordination, reporting, member outreach and
  monitoring, working with community stakeholders to ensure quality of care and monitoring or
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  providers.
  9) Require managed care organizations to use the Council for Affordable Quality
  Healthcare (CAQH) standardized credentialing form if available for their provider type.
  10) Add requirement that managed care organizations inform providers 30 priors to any
  policy or procedure change and must train providers on changes.
  11) Increase MCO care coordination screening requirements for Health-Related Social
  Needs, Behavioral Health and Cancer.
  12) Add language requiring managed care organizations to account for specific needs and
  actions in the plan for identifying, assessing and engaging members on Health-Related
  Social Needs as part of care coordination activities.
  13) Increase value-based payment models and requirements.
  14) Revise quality withhold program including but not limited to increasing withhold
  amount from one percent to three percent as well as DMAS internal processes and
  reporting responsibilities, however the withhold amount shall not exceed one percent in
  the first and second years of the contract. In years three and four of the contract the
  withhold amount shall not exceed two percent. Beginning in year five of the contract, the
  withhold shall not exceed three percent.
  15) Revise underwriting gain section to add that if managed care organization
  underwriting gain percentage exceeds three percent up to six percent the MCO must return
  50 percent of the Medicaid adjusted premium revenue, if the underwriting gain percentage
  exceeds six percent the MCO must return 75 percent of the Medicaid adjusted premium
  revenue up to eight percent, and 100 percent of Medicaid adjusted premium revenue
  above eight percent will be returned.
  16) Make changes as required by the Virginia Information Technology Agencies and
  Office of Attorney General high-risk reviews.
  17) Make technical changes necessary to implement behavioral health policies and
  processes that are authorized and appropriated in this Act.
  b. In addition, DMAS shall have the authority to include the following changes in the
  reprocured or amended managed care contract.
  1) Add requirement for timely processing of clean claims.
  2) Require managed care organizations to work with DMAS on future locality
  partnerships if the General Assembly has specifically authorized such work in a specific
  locality through a general appropriation act.
  3) Implement changes to the Maternal and Child Health policies and processes, including,
  implementing CMS' Maternal Core Quality Measure set, increase VBP targets, require
  MCO outreach to members.
  4) Require an annual plan on how managed care organizations are going to coordinate
  with the dental benefit administrator.
  5) Add network adequacy/access reporting requirement.
  7. Effective for the July 1, 2024, through June 30, 2025, contract year, the Department of
  Medical Assistance Services shall amend its contracts with managed care organizations
  (MCOs) to suspend the requirements for the Performance Withhold Program and the
  Clinical Efficiencies program, such that the withhold amounts shall be fully paid to the
  MCO's for this period; however any data reporting required under these programs shall be
  submitted in accordance with contractual requirements.
  U. The Department of Medical Assistance Services shall implement continued
  enhancements to the drug utilization review (DUR) program. The department shall
  continue the Pharmacy Liaison Committee and the DUR Board. The department shall
  continue to work with the Pharmacy Liaison Committee, meeting at least semi-annually,
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  to implement initiatives for the promotion of cost-effective services delivery as may be
  appropriate. The department shall solicit input from the Pharmacy Liaison Committee
  regarding pharmacy provisions in the development and enforcement of all managed care
  contracts. The Pharmacy Liaison Committee shall include a representative from the Virginia
  Community Healthcare Association to represent pharmacy operations and issues at federally
  qualified health centers in Virginia. The department shall report on the Pharmacy Liaison
  Committee's and the DUR Board's activities to the Board of Medical Assistance Services and
  to the Chairmen of the House Appropriations and Senate Finance and Appropriations
  Committees and the Department of Planning and Budget no later than December 15 each year
  of the biennium.
  V.1. The Department of Medical Assistance Services shall develop and pursue cost saving
  strategies internally and with the cooperation of the Department of Social Services, Virginia
  Department of Health, Office of the Attorney General, Children's Services Act program,
  Department of Education, Department of Juvenile Justice, Department of Behavioral Health
  and Developmental Services, Department for Aging and Rehabilitative Services, Department
  of the Treasury, University of Virginia Health System, Virginia Commonwealth University
  Health System Authority, Department of Corrections, federally qualified health centers, local
  health departments, local school divisions, community service boards, local hospitals, and
  local governments, that focus on optimizing Medicaid claims and cost recoveries. Any
  revenues generated through these activities shall be transferred to the Virginia Health Care
  Fund to be used for the purposes specified in this Item.
  2. The Department of Medical Assistance Services shall retain the savings necessary to
  reimburse a vendor for its efforts to implement paragraph V.1. of this Item. However, prior to
  reimbursement, the department shall identify for the Secretary of Health and Human
  Resources each of the vendor's revenue maximization efforts and the manner in which each
  vendor would be reimbursed. No reimbursement shall be made to the vendor without the prior
  approval of the above plan by the Secretary.
  W. The Department of Medical Assistance Services shall have the authority to pay
  contingency fee contractors, engaged in cost recovery activities, from the recoveries that are
  generated by those activities. All recoveries from these contractors shall be deposited to a
  special fund. After payment of the contingency fee any prior year recoveries shall be
  transferred to the Virginia Health Care Fund. The Director, Department of Medical Assistance
  Services, shall report to the Chairmen of the House Appropriations and Senate Finance and
  Appropriations Committees the increase in recoveries associated with this program as well as
  the areas of audit targeted by contractors by November 1 each year.
  X.1. The Department of Medical Assistance Services shall reimburse school divisions who
  sign an agreement to provide administrative support to the Medicaid program and who
  provide documentation of administrative expenses related to the Medicaid program 50 percent
  of the Federal Financial Participation by the department.
  2. The Department of Medical Assistance Services shall retain five percent of the Federal
  Financial Participation for reimbursement to school divisions for medical and transportation
  services.
  3. The Department shall amend the State Plan for Medical Assistance to allow payment of
  medical assistance services delivered to Medicaid-eligible students when such services
  qualify for reimbursement by the Virginia Medicaid program and may be provided by school
  divisions, regardless of whether the student receiving care has an individualized education
  program or whether the health care service is included in a student's individualized education
  program. Such services shall include those covered under the State Plan for medical
  assistance services or by the Early and Periodic Screening, Diagnostic, and Treatment
  (EPSDT) benefit as specified in § 1905(r) of the federal Social Security Act, and shall include
  a provision for payment of medical assistance for health care services provided through
  telemedicine services, as defined in § 38.2-3418.16. No health care provider who provides
  health care services through telemedicine shall be required to use proprietary technology or
  applications in order to be reimbursed for providing telemedicine services.
  Y. The Department of Medical Assistance Services shall impose an assessment equal to 6.0
  percent of revenue on all ICF-ID providers. The department shall determine procedures for
  collecting the assessment, including penalties for non-compliance. The department shall have
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  the authority to adjust interim rates to cover new Medicaid costs as a result of this
  assessment.
  Z. The Department of Medical Assistance Services shall amend the State Plan for Medical
  Assistance Services to implement a modified emergency room utilization program,
  consistent with the requirements necessary for approval by the Centers for Medicare and
  Medicaid Services, effective January 1, 2024. The department shall have the authority to
  implement this change effective January 1, 2024, and prior to the completion of any
  regulatory process undertaken in order to effect such change.
  AA. The Department of Medical Assistance Services shall amend the State Plan for
  Medical Assistance Services under Title XIX to modify the definition of readmissions to
  include cases when patients are readmitted to a hospital for the same or a similar diagnosis
  within 30 days of discharge, excluding planned readmissions, obstetrical readmissions,
  admissions to critical access hospitals, or in any case where the patient was originally
  discharged against medical advice. If the patient is readmitted to the same hospital for a
  potentially preventable readmission then the payment for such cases shall be paid at 50
  percent of the normal rate, except that a readmission within five days of discharge shall be
  considered a continuation of the same stay and shall not be treated as a new case. Similar
  diagnoses shall be defined as ICD diagnosis codes possessing the same first three digits.
  The department shall have the authority to implement this reimbursement change effective
  July 1, 2020, and prior to the completion of any regulatory process undertaken in order to
  effect such change. The department shall report quarterly on the number of hospital
  readmissions, the cost, and the primary diagnosis of such readmissions to the Joint
  Subcommittee for Health and Human Resources Oversight.
  BB. Free-standing emergency departments, also referred to as dedicated emergency
  departments as defined in 42 C.F.R. § 489.24(b) that operate as a department of a hospital
  subject to requirements of the federal Emergency Medical Treatment and Labor Act (42
  U.S.C.§ 1395dd), and is located off the main hospital campus or in an independent
  facility, shall submit to the payor upon billing for services rendered (i) the campus
  location in which their services were rendered, and (ii) an indicator specifying that the
  services were rendered in a free-standing emergency department.
  CC.1. Notwithstanding § 32.1-331.12 et seq., Code of Virginia, the Department of
  Medical Assistance Services, in consultation with the Department of Behavioral Health
  and Developmental Services, shall amend the State Plan for Medical Assistance Services
  to modify the delivery system of pharmaceutical products to include a Preferred Drug List.
  In developing the modifications, the department shall consider input from physicians,
  pharmacists, pharmaceutical manufacturers, patient advocates, and others, as appropriate.
  2.a. The department shall utilize a Pharmacy and Therapeutics Committee to assist in the
  development and ongoing administration of the Preferred Drug List program. The
  Pharmacy and Therapeutics Committee shall be composed of 8 to 16 members, including
  the Commissioner, Department of Behavioral Health and Developmental Services, or his
  designee. Other members shall be selected or approved by the department and shall
  include one physician from each contracted managed care organization. The membership
  shall include a ratio of physicians to pharmacists of 2:1 and the department shall ensure
  that at least one-half of the physicians and pharmacists are either direct providers or are
  employed with organizations that serve recipients for all segments of the Medicaid
  population. Physicians on the committee shall be licensed in Virginia, one of whom shall
  be a psychiatrist, and one of whom specializes in care for the aging. Pharmacists on the
  committee shall be licensed in Virginia, one of whom shall have clinical expertise in
  mental health drugs, and one of whom has clinical expertise in community-based mental
  health treatment. The Pharmacy and Therapeutics Committee shall recommend to the
  department (i) which therapeutic classes of drugs should be subject to the Preferred Drug
  List program and prior authorization requirements; (ii) specific drugs within each
  therapeutic class to be included on the preferred drug list; (iii) appropriate exclusions for
  medications, including atypical anti-psychotics, used for the treatment of serious mental
  illnesses such as bi-polar disorders, schizophrenia, and depression; (iv) appropriate
  exclusions for medications used for the treatment of brain disorders, cancer and HIV-
  related conditions; (v) appropriate exclusions for therapeutic classes in which there is only
  one drug in the therapeutic class or there is very low utilization, or for which it is not cost-
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  effective to include in the Preferred Drug List program; and (vi) appropriate grandfather
  clauses when prior authorization would interfere with established complex drug regimens that
  have proven to be clinically effective. In developing and maintaining the preferred drug list,
  the cost effectiveness of any given drug shall be considered only after it is determined to be
  safe and clinically effective.
  b. The Pharmacy and Therapeutics Committee shall schedule meetings at least semi-annually
  and may meet at other times at the discretion of the chairperson and members. At the
  meetings, the Pharmacy and Therapeutics committee shall review any drug in a class subject
  to the Preferred Drug List that is newly approved by the Federal Food and Drug
  Administration, provided there is at least thirty (30) days notice of such approval prior to the
  date of the quarterly meeting.
  3. The department shall establish a process for acting on the recommendations made by the
  Pharmacy and Therapeutics Committee, including documentation of any decisions which
  deviate from the recommendations of the committee.
  4. The Preferred Drug List program shall include provisions for (i) the dispensing of a 72-
  hour emergency supply of the prescribed drug when requested by a physician and a
  dispensing fee to be paid to the pharmacy for such supply; (ii) prior authorization decisions to
  be made within 24 hours and timely notification of the recipient and/or the prescribing
  physician of any delays or negative decisions; (iii) an expedited review process of denials by
  the department; and (iv) consumer and provider education, training and information regarding
  the Preferred Drug List prior to implementation, and ongoing communications to include
  computer access to information and multilingual material.
  5. The Preferred Drug List program shall generate savings as determined by the department
  that are net of any administrative expenses to implement and administer the program.
  6. Notwithstanding § 32.1-331.12 et seq., Code of Virginia, to implement these changes, the
  Department of Medical Assistance Services shall promulgate emergency regulations to
  become effective within 280 days or less from the enactment of this Act. With respect to such
  State Plan amendments and regulations, the provisions of § 32.1-331.12 et seq., Code of
  Virginia, shall not apply. In addition, the department shall work with the Department of
  Behavioral Health and Development Services to consider utilizing a Preferred Drug List
  program for its non-Medicaid clients.
  7. The Department of Medical Assistance Services shall (i) continually review utilization of
  behavioral health medications under the State Medicaid Program for Medicaid recipients; and
  (ii) ensure appropriate use of these medications according to federal Food and Drug
  Administration (FDA) approved indications and dosage levels. The department may also
  require retrospective clinical justification according to FDA approved indications and dosage
  levels for the use of multiple behavioral health drugs for a Medicaid patient. For individuals
  18 years of age and younger who are prescribed three or more behavioral health drugs, the
  department may implement clinical edits that target inefficient, ineffective, or potentially
  harmful prescribing patterns in accordance with FDA-approved indications and dosage levels.
  8. The Department of Medical Assistance Services shall ensure that in the process of
  developing the Preferred Drug List, the Pharmacy and Therapeutics Committee considers the
  value of including those prescription medications which improve drug regimen compliance,
  reduce medication errors, or decrease medication abuse through the use of medication
  delivery systems that include, but are not limited to, transdermal and injectable delivery
  systems.
  9. The Pharmacy and Therapeutics Committee shall ensure that when making
  recommendations to the Department of Medical Assistance Services related to any non opioid
  drug approved by the federal Food and Drug Administration for the treatment or management
  of pain, the drug shall be considered for safety and clinical efficacy, as supported by available
  clinical data, and cost effectiveness pursuant to 12VAC30-13-1000 of the Virginia
  Administrative Code.
  10. Recommendations made by the Pharmacy and Therapeutics Committee that result in
  changes to the Common Core Formulary shall not be implemented by the Department of
  Medical Assistance Services until a fiscal impact review is conducted by the agency's fiscal
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  division and is reviewed by the Chief Financial Officer and the Director.
  DD.1. The Department of Medical Assistance Services may amend the State Plan for
  Medical Assistance Services to modify the delivery system of pharmaceutical products to
  include a specialty drug program. In developing the modifications, the department shall
  consider input from physicians, pharmacists, pharmaceutical manufacturers, patient
  advocates, the Pharmacy Liaison Committee, and others as appropriate.
  2. In developing the specialty drug program to implement appropriate care management
  and control drug expenditures, the department shall contract with a vendor who will
  develop a methodology for the reimbursement and utilization through appropriate case
  management of specialty drugs and distribute the list of specialty drug rates, authorized
  drugs and utilization guidelines to medical and pharmacy providers in a timely manner
  prior to the implementation of the specialty drug program and publish the same on the
  department's website.
  3. In the event that the Department of Medical Assistance Services contracts with a
  vendor, the department shall establish the fee paid to any such contractor based on the
  reasonable cost of services provided. The department may not offer or pay directly or
  indirectly any material inducement, bonus, or other financial incentive to a program
  contractor based on the denial or administrative delay of medically appropriate
  prescription drug therapy, or on the decreased use of a particular drug or class of drugs, or
  a reduction in the proportion of beneficiaries who receive prescription drug therapy under
  the Medicaid program. Bonuses cannot be based on the percentage of cost savings
  generated under the benefit management of services.
  4. The department shall: (i) review, update and publish the list of authorized specialty
  drugs, utilization guidelines, and rates at least quarterly; (ii) implement and maintain a
  procedure to revise the list or modify specialty drug program utilization guidelines and
  rates, consistent with changes in the marketplace; and (iii) provide an administrative
  appeals procedure to allow dispensing or prescribing providers to contest the listed
  specialty drugs and rates.
  5. The department shall have authority to enact emergency regulations under § 2.2-4011 of
  the Administrative Process Act to effect these provisions.
  EE. In the event that the Department of Medical Assistance Services decides to contract
  for pharmaceutical benefit management services to administer, develop, manage, or
  implement Medicaid pharmacy benefits, the department shall establish the fee paid to any
  such contractor based on the reasonable cost of services provided. The department may
  not offer or pay directly or indirectly any material inducement, bonus, or other financial
  incentive to a program contractor based on the denial or administrative delay of medically
  appropriate prescription drug therapy, or on the decreased use of a particular drug or class
  of drugs, or a reduction in the proportion of beneficiaries who receive prescription drug
  therapy under the Medicaid program. Bonuses cannot be based on the percentage of cost
  savings generated under the benefit management of services.
  FF. The Department of Medical Assistance Services, in cooperation with the Department
  of Social Services' Division of Child Support Enforcement (DSCE), shall identify and
  report third party coverage where a medical support order has required a custodial or
  noncustodial parent to enroll a child in a health insurance plan. The Department of
  Medical Assistance Services shall also report to the DCSE third party information that has
  been identified through their third party identification processes for children handled by
  DCSE.
  GG.1. Notwithstanding the provisions of § 32.1-325.1:1, Code of Virginia, upon
  identifying that an overpayment for medical assistance services has been made to a
  provider, the Director, Department of Medical Assistance Services shall notify the
  provider of the amount of the overpayment. Such notification of overpayment shall be
  issued within the earlier of (i) four years after payment of the claim or other payment
  request, or (ii) four years after filing by the provider of the complete cost report as defined
  in the Department of Medical Assistance Services' regulations, or (iii) 15 months after
  filing by the provider of the final complete cost report as defined in the Department of
  Medical Assistance Services' regulations subsequent to sale of the facility or termination
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  of the provider.
  2. Notwithstanding the provisions of § 32.1-325.1, Code of Virginia, the director shall issue
  an informal fact-finding conference decision concerning provider reimbursement in
  accordance with the State Plan for Medical Assistance, the provisions of § 2.2-4019, Code of
  Virginia, and applicable federal law. The informal fact-finding conference decision shall be
  issued within 180 days of the receipt of the appeal request, except as provided herein. If the
  agency does not render an informal fact-finding conference decision within 180 days of the
  receipt of the appeal request or, in the case of a joint agreement to stay the appeal decision as
  detailed below, within the time remaining after the stay expires and the appeal timeframes
  resume, the decision is deemed to be in favor of the provider. An appeal of the director's
  informal fact-finding conference decision concerning provider reimbursement shall be heard
  in accordance with § 2.2-4020 of the Administrative Process Act (§ 2.2-4020 et seq.) and the
  State Plan for Medical Assistance provided for in § 32.1-325, Code of Virginia. The
  Department of Medical Assistance Services and the provider may jointly agree to stay the
  deadline for the informal appeal decision or for the formal appeal recommended decision of
  the Hearing Officer for a period of up to sixty (60) days to facilitate settlement discussions. If
  the parties reach a resolution as reflected by a written settlement agreement within the sixty-
  day period, then the stay shall be extended for such additional time as may be necessary for
  review and approval of the settlement agreement in accordance § 2.2-514 of the Code of
  Virginia. Once a final agency case decision has been made, the director shall undertake full
  recovery of such overpayment whether or not the provider disputes, in whole or in part, the
  informal fact-finding conference decision or the final agency case decision. Interest charges
  on the unpaid balance of any overpayment shall accrue pursuant to § 32.1-313, Code of
  Virginia, from the date the Director's agency case decision becomes final.
  HH.1. Effective July 1, 2021, the Department of Medical Assistance Services shall amend the
  State Plan for Medical Assistance to revise per diem rates paid to psychiatric residential
  treatment facilities (PRTF) using the provider's audited cost per day from the facility's cost
  report for provider fiscal years ending in state fiscal year 2018. New Virginia-based
  residential psychiatric facilities must submit proforma cost report data, which will be used to
  set the initial per diem rate for up to two years. After this period, the department shall
  establish a per diem rate based on an audited cost report for a 12-month period within the first
  two years of operation. Providers that do not submit cost reports shall be paid at 75% of the
  established rate ceiling. If necessary to enroll out-of-state providers for network adequacy, the
  department shall negotiate rates. If there is sufficient utilization, the department may require
  out-of-state providers to submit a cost report to establish a per diem rate. In-state and out-of-
  state provider per diem rates shall be subject to a ceiling based on the statewide weighted
  average cost per day from fiscal year 2018 cost reports. The department shall have the
  authority to implement these changes effective July 1, 2021, and prior to the completion of
  any regulatory process undertaken in order to effect such change.
  2. The Department of Medical Assistance Services shall have the authority to establish
  rebasing of PRTF rates every three years. The first rebasing of rates shall take effect July 1,
  2023. All PRTF and Addiction and Rehabilitation Treatment Services (ARTS) providers who
  offer qualifying services under 12VAC30-70-418(C) shall be required to submit cost reports
  as a part of rebasing. Out of state providers with more than 1,500 paid days for Virginia
  Medicaid members in the most recently completed state fiscal year shall also be required to
  submit a cost report. A rate ceiling shall be established based on a statewide weighted average
  cost per day. Rate ceilings shall be established independently for PRTFs and participating
  ARTS residential services. The department shall have the authority to implement these
  changes effective July 1, 2022 and prior to the completion of any regulatory process to effect
  such change.
  3. DMAS shall also establish inflation increases for each non-rebasing fiscal year for both
  PRTF and qualifying ARTS providers. Inflation rates shall be tied to the Nursing Facility
  Moving Average as established by IHS Markit (or its successor). The most recent four
  quarters will be averaged to create the PRTF inflation rate. The department shall have the
  authority to implement these changes effective July 1, 2023, and prior to the completion of
  any regulatory process to effect such change.
  4. Effective July 1, 2022, the department shall adjust PRTF rates by 8.89% to account for
  inflation since the last audited cost report of fiscal year 2018. The rate ceiling shall increase to
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  $460.89 per day. The department shall have the authority to implement these changes
  effective July 1, 2022, and prior to the completion of any regulatory process to effect such
  change.
  5. The department shall revise reimbursement methodologies for PRTF rates to implement
  inflation increases for each fiscal year to be effective July 1, 2024. Inflation rates shall be
  tied to the Nursing Facility Moving Average as established by IHS Markit (or its
  successor). The most recent four quarters will be averaged to create the PRTF inflation
  rate. The department shall have the authority to implement these changes prior to the
  completion of any regulatory process to effect such change.
  II. Effective July 1, 2013, the Department of Medical Assistance Services shall establish a
  Medicaid Physician and Managed Care Liaison Committee including, but not limited to,
  representatives from the following organizations: the Virginia Academy of Family
  Physicians; the American Academy of Pediatricians – Virginia Chapter; the Virginia
  College of Emergency Physicians; the American College of Obstetrics and Gynecology –
  Virginia Section; Virginia Chapter, American College of Radiology; the Psychiatric
  Society of Virginia; the Virginia Medical Group Management Association; and the
  Medical Society of Virginia. The committee shall also include representatives from each
  of the department's contracted managed care organizations and a representative from the
  Virginia Association of Health Plans. The committee will work with the department to
  investigate the implementation of quality, cost-effective health care initiatives, to identify
  means to increase provider participation in the Medicaid program, to remove
  administrative obstacles to quality, cost-effective patient care, and to address other matters
  as raised by the department or members of the committee. The committee shall establish
  an Emergency Department Care Coordination work group comprised of representatives
  from the committee, including the Virginia College of Emergency Physicians, the Medical
  Society of Virginia, the Virginia Hospital and Healthcare Association, the Virginia
  Academy of Family Physicians and the Virginia Association of Health Plans to review the
  following issues: (i) how to improve coordination of care across provider types of
  Medicaid "super utilizers"; (ii) the impact of primary care provider incentive funding on
  improved interoperability between hospital and provider systems; and (iii) methods for
  formalizing a statewide emergency department collaboration to improve care and
  treatment of Medicaid recipients and increase cost efficiency in the Medicaid program,
  including recognized best practices for emergency departments. The committee shall meet
  semi-annually, or more frequently if requested by the department or members of the
  committee. The department, in cooperation with the committee, shall report on the
  committee's activities annually to the Board of Medical Assistance Services and to the
  Chairmen of the House Appropriations and Senate Finance and Appropriations
  Committees and the Department of Planning and Budget no later than October 1 each
  year.
  JJ.1. The Department of Medical Assistance Services shall monitor the capacity available
  under the Upper Payment Limit (UPL) for all hospital supplemental payments and adjust
  payments accordingly when the UPL cap is reached. The department shall make an
  adjustment to stay under the UPL cap by reducing or eliminating as necessary
  supplemental payments to hospitals based on when the first supplemental payments were
  actually made so that the newest supplemental payments to hospitals would be impacted
  first and so on.
  2. The Department of Medical Assistance Services shall have the authority to implement
  reimbursement changes deemed necessary to meet the requirements of this paragraph prior
  to the completion of any regulatory process in order to effect such changes.
  KK. The Department of Medical Assistance Services shall submit a report annually on all
  supplemental payments made to hospitals through the Medicaid program. This report shall
  include information for each hospital and by type of supplemental payment
  (Disproportionate Share Hospital, Graduate Medical Education, Indirect Medical
  Education, Upper Payment Limit program, and others). The report shall include total
  Medicaid payments from all sources and calculate the percent of overall payments that are
  supplemental payments. Furthermore, it shall include a description of each type of
  supplemental payment and the methodology used to calculate the payments. Each report
  shall reflect the data for the prior three fiscal years and shall be submitted to the Chairmen
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  of the House Appropriations and Senate Finance and Appropriations Committees by
  September 1 each year.
  LL. The Department of Medical Assistance Services shall have the authority to amend the
  state plan for medical assistance services and associated regulations to remove any obsolete
  provider supplemental payments that were authorized prior to July 1, 2021. This includes any
  supplemental payments that have no qualifying providers, have sunset or for which no
  payments have ever been made. The department shall have the authority to promulgate
  emergency regulations to implement these amendments within 280 days or less from the
  enactment of this Act.
  MM. The Department of Medical Assistance Service shall have the authority to amend the
  State Plan for Medical Assistance to implement a supplemental disproportionate share
  hospital (DSH) redistribution methodology for DSH funds that allows the redistribution of
  excess DSH payments to other eligible DSH hospitals that have not met their uncompensated
  care costs. This supplemental redistribution shall be budget neutral and not use state funds in
  excess of those already appropriated for DSH payments. The department shall have the
  authority to implement these changes prior to completion of any regulatory process
  undertaken in order to effect such change.
  NN. The Disproportionate Share Hospital (DSH) per diem for Type One hospitals shall be 17
  times the DSH per diem for Type Two hospitals. The department shall have the authority to
  implement these reimbursement changes effective July 1, 2014, and prior to completion of
  any regulatory process in order to effect such changes.
  OO.1.a. There is hereby appropriated sum-sufficient nongeneral funds for the Department of
  Medical Assistance Services (DMAS) to pay the state share of supplemental payments for
  qualifying private hospital partners of Type One hospitals (consisting of state-owned teaching
  hospitals) as provided in the State Plan for Medical Assistance Services. Qualifying private
  hospitals shall consist of any hospital currently enrolled as a Virginia Medicaid provider and
  owned or operated by a private entity in which a Type One hospital has a non-majority
  interest. The supplemental payments shall be based upon the reimbursement methodology
  established for such payments in Attachments 4.19-A and 4.19-B of the State Plan for
  Medical Assistance Services. DMAS shall enter into a transfer agreement with any Type One
  hospital whose private hospital partner qualifies for such supplemental payments, under
  which the Type One hospital shall provide the state share in order to match federal Medicaid
  funds for the supplemental payments to the private hospital partner. The department shall
  have the authority to implement these reimbursement changes consistent with the effective
  date in the State Plan amendment approved by the Centers for Medicare and Medicaid
  Services (CMS) and prior to completion of any regulatory process in order to effect such
  changes.
  b. The department shall adjust capitation payments to Medicaid managed care organizations
  for the purpose of securing access to Medicaid hospital services for the qualifying private
  hospital partners of Type One hospitals (consisting of state-owned teaching hospitals). The
  department shall revise its contracts with managed care organizations to incorporate these
  supplemental capitation payments and provider payment requirements. DMAS shall enter into
  a transfer agreement with any Type One hospital whose private hospital partner qualifies for
  such supplemental payments, under which the Type One hospital shall provide the state share
  in order to match federal Medicaid funds for the supplemental payments to the private
  hospital partner. The department shall have the authority to implement these reimbursement
  changes consistent with the effective date approved by the Centers for Medicare and Medicaid
  Services (CMS). No payment shall be made without approval from CMS.
  2.a. The Department of Medical Assistance Services shall promulgate regulations to make
  supplemental payments to Medicaid physician providers with a medical school located in
  Eastern Virginia that is a political subdivision of the Commonwealth. The amount of the
  supplemental payment shall be based on the difference between the average commercial rate
  approved by CMS and the payments otherwise made to physicians. The department shall have
  the authority to implement these reimbursement changes consistent with the effective date in
  the State Plan amendment approved by CMS and prior to completion of any regulatory
  process in order to effect such changes.
  b. The department shall increase payments to Medicaid managed care organizations for the
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  purpose of securing access to Medicaid physician services in Eastern Virginia, through
  higher rates to physicians affiliated with a medical school located in Eastern Virginia that
  is a political subdivision of the Commonwealth subject to applicable limits. The
  department shall revise its contracts with managed care organizations to incorporate these
  supplemental capitation payments, and provider payment requirements, subject to
  approval by CMS. No payment shall be made without approval from CMS.
  c. Funding for the state share for these Medicaid payments is authorized in Item 171.
  3.a. The Department of Medical Assistance Services (DMAS) shall have the authority to
  amend the State Plan for Medical Assistance Services (State Plan) to implement a
  supplemental Medicaid payment for local government-owned nursing homes. The total
  supplemental Medicaid payment for local government-owned nursing homes shall be
  based on the difference between the Upper Payment Limit of 42 CFR §447.272 as
  approved by CMS and all other Medicaid payments subject to such limit made to such
  nursing homes. There is hereby appropriated sum-sufficient funds for DMAS to pay the
  state share of the supplemental Medicaid payment hereunder. However, DMAS shall not
  submit such State Plan amendment to CMS until it has entered into an intergovernmental
  agreement with eligible local government-owned nursing homes or the local government
  itself which requires them to transfer funds to DMAS for use as the state share for the
  supplemental Medicaid payment each nursing home is entitled to and to represent that
  each has the authority to transfer funds to DMAS and that the funds used will comply with
  federal law for use as the state share for the supplemental Medicaid payment. If a local
  government-owned nursing home or the local government itself is unable to comply with
  the intergovernmental agreement, DMAS shall have the authority to modify the State
  Plan. The department shall have the authority to implement the reimbursement change
  consistent with the effective date in the State Plan amendment approved by CMS and prior
  to the completion of any regulatory process undertaken in order to effect such change.
  b. If by June 30, 2017, the Department of Medical Assistance Services has not secured
  approval from the Centers for Medicare and Medicaid Services to use a minimum fee
  schedule pursuant to 42 C.F.R. § 438.6(c)(1)(iii) for local government-owned nursing
  homes participating in Cardinal Care Managed Care (Cardinal Care) at the same level as
  and in lieu of the supplemental Medicaid payments authorized in Section OO.3.a., then
  DMAS shall: (i) exclude Medicaid recipients who elect to receive nursing home services
  in local government-owned nursing homes from Cardinal Care; (ii) pay for such excluded
  recipient's nursing home services on a fee-for-service basis, including the related
  supplemental Medicaid payments as authorized herein; and (iii) prohibit Cardinal Care
  contracted health plans from in any way limiting Medicaid recipients from electing to
  receive nursing home services from local government-owned nursing homes. The
  department may include in Cardinal Care Medicaid recipients who elect to receive nursing
  home services in local government-owned nursing homes in the future when it has secured
  federal CMS approval to use a minimum fee schedule as described above.
  4. The Department of Medical Assistance Services shall have the authority to amend the
  State Plan for Medical Assistance Services to implement a supplemental payment for
  clinic services furnished by the Virginia Department of Health (VDH) effective July 1,
  2015. The total supplemental Medicaid payment shall be based on the Upper Payment
  Limit approved by the Centers for Medicare and Medicaid Services and all other Medicaid
  payments. VDH may transfer general fund to the department from funds already
  appropriated to VDH to cover the non-federal share of the Medicaid payments. The
  department shall have the authority to implement the reimbursement change effective July
  1, 2015, and prior to the completion of any regulatory process undertaken in order to
  effect such changes.
  5. The Department of Medical Assistance Services shall amend the State Plan for Medical
  Assistance to increase the supplemental physician payments for physicians employed at a
  freestanding children's hospital serving children in Planning District 8 with more than 50
  percent Medicaid inpatient utilization in fiscal year 2014 to the maximum allowed by the
  Centers for Medicare and Medicaid Services within the limit of the appropriation provided
  for this purpose. The total supplemental Medicaid payment shall be based on the Upper
  Payment Limit approved by the Centers for Medicare and Medicaid Services and all other
  Virginia Medicaid fee-for-service payments. The department shall have the authority to
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  implement these reimbursement changes effective July 1, 2016, and prior to the completion of
  any regulatory process undertaken in order to effect such change.
  6.a. The department shall amend the State plan for Medical Assistance to implement a
  supplemental inpatient and outpatient payment for Chesapeake Regional Hospital based on
  the difference between reimbursement with rates using an adjustment factor of 100% minus
  current authorized reimbursement subject to the inpatient and outpatient Upper Payment
  Limits for non-state government owned hospitals, and for managed care claims based on the
  difference between the amount included in the capitation rates for inpatient and outpatient
  services based on historical paid claims for non-state government hospitals and the maximum
  managed care directed payment supported by the department's calculations and allowed by
  CMS, subject to CMS approval under 42 C.F.R. section 438.6(c). The department shall
  include in its contracts with managed care organizations a percentage increase for Chesapeake
  Regional Hospital consistent with the approved managed care directed percentage increase.
  The department shall adjust capitation payments to Medicaid managed care organizations to
  fund this percentage increase. Both the contract changes and capitation rate adjustments shall
  be compliant with 42 C.F.R. 438.6(c)(1)(iii) and subject to CMS approval.
  b. The department shall also amend the State Plan for Medical Assistance to implement
  supplemental physician payments for practice plans employed by or under contract with
  Chesapeake Regional Hospital to the maximum allowed by the Centers for Medicare and
  Medicaid Services. The department shall increase payments to Medicaid managed care
  organizations for the purpose of providing higher rates to physicians employed by or under
  contract with Chesapeake Regional Hospital based on the maximum allowed by CMS. The
  department shall revise its contracts with managed care organizations to incorporate these
  managed care directed payments, subject to approval by CMS. The department shall have the
  authority to implement these reimbursement changes effective July 1, 2022, and prior to
  completion of any regulatory process undertaken in order to effect such change.
  c. Prior to submitting the State Plan Amendment or making the managed care contract
  changes, Chesapeake Regional Hospital shall enter into an agreement with the department to
  transfer the non-federal share for these payments. The department shall have the authority to
  implement these reimbursement changes consistent with the effective date(s) approved by the
  Centers for Medicare and Medicaid (CMS).
  7.a. There is hereby appropriated sum-sufficient nongeneral funds for the department to pay
  the state share of supplemental payments for nursing homes owned by Type One hospitals
  (consisting of state-owned teaching hospitals) as provided in the State Plan for Medical
  Assistance Services. The total supplemental payment shall be based on the difference between
  the Upper Payment Limit of 42 CFR § 447.272 as approved by CMS and all other Medicaid
  payments subject to such limit made to such nursing homes. DMAS shall enter into a transfer
  agreement with any Type One hospital whose nursing home qualifies for such supplemental
  payments, under which the Type One hospital shall provide the state share in order to match
  federal Medicaid funds for the supplemental payments. The department shall have the
  authority to implement these reimbursement changes consistent with the effective date in the
  State Plan amendment approved by CMS and prior to completion of any regulatory process in
  order to effect such changes.
  b. The department shall adjust capitation payments to Medicaid managed care organizations
  to fund a minimum fee schedule compliant with requirements in 42 C.F.R. § 438.6(c)(1)(iii)
  at a level consistent with the State Plan amendment authorized above for nursing homes
  owned by Type One hospitals. The department shall revise its contracts with managed care
  organizations to incorporate these supplemental capitation payments and provider payment
  requirements. DMAS shall enter into a transfer agreement with any Type One hospitals whose
  nursing home qualifies for such supplemental payments, under which the Type One hospital
  shall provide the state share in order to match federal Medicaid funds for the supplemental
  payments. The department shall have the authority to implement these reimbursement
  changes consistent with the effective date approved by CMS. No payment shall be made
  without approval from CMS.
  8. The department shall amend the State plan for Medical Assistance to implement a
  supplemental inpatient payment for Lake Taylor Transitional Care Hospital based on the
  difference between Medicaid reimbursement and the inpatient Upper Payment Limit for non-
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  state government owned hospitals, and for managed care claims based on the difference
  between the amount included in the capitation rates for inpatient and outpatient services
  based on historical paid claims for non-state government hospitals and the maximum
  managed care directed payment supported by the department's calculations and allowed by
  CMS, subject to CMS approval under 42 C.F.R. section 438.6(c). The department shall
  include in its contracts with managed care organizations a percentage increase for Lake
  Taylor Transitional Care Hospital consistent with the approved managed care directed fee
  for service supplemental payment percentage increase. The department shall adjust
  capitation payments to Medicaid managed care organizations to fund this percentage
  increase. Both the contract changes and capitation rate adjustments shall be compliant
  with 42 C.F.R. 438.6(c)(1)(iii) and subject to CMS approval. Prior to submitting the State
  Plan Amendment or making the managed care contract changes, Lake Taylor Transitional
  Care Hospital shall enter into an agreement with the department to transfer the non-federal
  share for these payments. The department shall have the authority to implement these
  reimbursement changes consistent with the effective date(s) approved by the Centers for
  Medicare and Medicaid (CMS). The originating funding for this program will come
  entirely from Lake Taylor.
  9.a. The Department of Medical Assistance Services shall develop a State Plan for
  Medical Assistance amendment to make supplemental payments to private hospitals and
  related health systems who intend to execute affiliation agreements with public entities
  that are capable of transferring funds to the department for purposes of covering the non-
  federal share of the authorized payments. Virginia community colleges, Virginia public
  institutions of higher education, local governments, and instrumentalities of local
  government are public entities that are authorized to transfer funds to the department for
  purposes of covering the non-federal share of the authorized payments. Such public
  entities would enter into an Interagency Agreement with the department for this purpose.
  The department shall develop a plan, that could take effect July 1, 2023, for making
  managed care directed payments or supplemental payments as follows: Physician fee-for-
  service (FFS) supplemental payments through a state plan amendment and physician
  managed care directed payments through managed care contracts up to the Average
  Commercial Rate for practice plans that are a component of the participating hospitals or
  health system. The plan shall identify the public entity who will transfer funds to the
  department, the amount and duration of such transfers, the purpose and amount of any
  supplemental payment or managed care direct payments made to private hospitals and
  related health systems, and the impact, if any, on other supplemental payment programs
  currently in effect. The plan shall also include the appropriate references that provide
  authority for such payments.
  b. The department shall have the authority to amend the State Plan for Medical Assistance
  and managed care contracts to make supplemental payments and managed care directed
  payments to private hospitals for physician services effective July 1, 2024.
  Reimbursement changes shall be effective prior to completion of any regulatory process in
  order to effect such changes. No payment shall be made without approval from CMS and
  an Interagency Agreement with a public entity capable of transferring the non-federal
  share of authorized payments to the department. The funds to be transferred must comply
  with 42 CFR 433.51 and 433.54. Such funds may not be paid from any private agreements
  with public entities that are in excess of fair market value or that alleviate pre-existing
  financial burdens of such public entities. Public entities are authorized to use general fund
  dollars to accomplish this transfer. As part of the Interagency Agreements the department
  shall require the public entities to attest to compliance with applicable CMS criteria. The
  department shall also require any private hospital and related health systems receiving
  payments under this Item to attest to compliance with applicable CMS criteria. Upon
  notification by the Department of any deferral or disallowance issued by CMS regarding
  the supplemental or managed care directed payment arrangement, the hospital provider
  will return the entire balance of the payment to the Department within 30 days of
  notification. If the hospital does not return the entire balance of the payment to the
  Department within the specified timeframe, a judgement rate of interest set forth in Title
  6.2-302 will be applied to the entire balance, regardless of whatever portion has been
  repaid. In addition, the non-federal share of the agency's administrative costs directly
  related to administration of the programs authorized in this paragraph, including staff and
  contractors, shall be funded by participating public entities. These funds shall be deposited
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  FY2025  FY2026  FY2025  FY2026
  into a special fund created by the Comptroller and used to support the administrative costs
  associated with managing this program. Any funds received for this purpose but unexpended
  at the end of the fiscal year shall remain in the fund for use in accordance with this provision.
  c. The purposes to which the additional payments authorized in paragraph OO.9.b. of this
  Item shall be applied include: (i) increasing and enhancing access to outpatient care for
  Medicaid recipients; (ii) stabilizing and supporting critical healthcare workforce needs; and
  (iii) advancing the department's health and quality improvement goals; these shall contain
  specific measurable outcomes that will be approved, and monitored by the Department
  quarterly. Payment shall be dependent on progress towards goal attainment on all three
  purposes. Participating organizations must submit quarterly updates and annual reports on
  programs no later than October 1. The department, with the assistance of the participating
  organizations, shall report to the Chairs of the House Appropriations and Senate Finance and
  Appropriations Committees by December 1 of each year on the impact of this initiative.
  d. Notwithstanding any other provision of law, due to the complexities of federal Medicaid
  financial support policies, public entities, including Virginia public institutions, Virginia       I VETO ITEM
  public institutions of higher education and Virginia community colleges, that wish to  288.OO.9.d.
  participate in the program referenced in Item 288, paragraph OO.9., may employ or retain  ON PAGE 136
  private legal counsel, in consultation with the Division of Risk Management, to advise or  /s/ Glenn Youngkin
  represent the public entity in such participation. Costs for such legal counsel shall be borne by   5-2-25
  program participants.
  10. The Department of Medical Assistance Services shall have the authority to amend the
  State Plan for Medical Assistance to make supplemental payments through an adjustment to
  the formula for indirect medical education (IME) reimbursement, using managed care
  discharge days, for an acute care hospital chain with a level one trauma center in the
  Tidewater Metropolitan Statistical Area (MSA) in 2020, upon the execution of affiliation
  agreements with public entities that are capable of transferring funds to the department for
  purposes of covering the non-federal share of the authorized payments. Such public entities
  would enter into an Interagency Agreement with the department for this purpose. Public
  entities are authorized to use general fund dollars to accomplish this transfer. The funds to be
  transferred must comply with 42 CFR 433.51 and 433.54. As part of the Interagency
  Agreements the department shall require the public entities to attest to compliance with
  applicable CMS criteria. The department shall also require any private hospital and related
  health systems receiving payments under this Item to attest to compliance with applicable
  CMS criteria. The department shall have the authority to implement these changes prior to
  completion of any regulatory process undertaken in order to effect such change.
  11. The Department of Medical Assistance Services shall periodically assess the quality
  measures that are submitted to the Centers for Medicare and Medicaid Services for
  supplemental payments to ensure that appropriate quality measures are being included for
  supplemental payments such that the additional funding is improving the Medicaid program's
  quality and delivery of health care services. The department shall report on quality measures
  and outcomes for the programs to the Joint Subcommittee for Health and Human Resources
  Oversight no later than November 15, 2024.
  PP.1. Effective July 1, 2017, the Department of Medical Assistance Services shall amend the
  State Plan for Medical Assistance to increase the formula for indirect medical education
  (IME) for freestanding children's hospitals with greater than 50 percent Medicaid utilization
  in 2009 as a substitute for disproportionate share hospital (DSH) payments. The formula for
  these hospitals for IME for inpatient hospital services provided to Medicaid patients but
  reimbursed by capitated managed care providers shall be identical to the formula for Type
  One hospitals. The IME payments shall continue to be limited such that total payments to
  freestanding children's hospitals with greater than 50 percent Medicaid utilization do not
  exceed the federal uncompensated care cost limit to which DSH payments are subject,
  excluding third party reimbursement for Medicaid eligible patients. The department shall have
  the authority to implement these changes effective July 1, 2017, and prior to completion of
  any regulatory action to effect such changes.
  2. The Department of Medical Assistance Services (DMAS) shall have the authority to create
  additional hospital supplemental payments for freestanding children's hospitals with greater
  than 50 percent Medicaid utilization in 2009 to replace payments that have been reduced due
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  FY2025  FY2026  FY2025        FY2026
  to the federal regulation on the definition of uncompensated care costs effective June 2,
  2017. Effective July 1, 2024, these new payments shall equal the greater of what would
  have been paid to the freestanding children's hospitals under the current disproportionate
  share hospital (DSH) formula or $16,000,000 annually, the average DSH that CHKD was
  due by formula prior to Medicaid expansion without regard to the uncompensated care
  cost limit. These additional hospital supplemental payments shall take precedence over
  supplemental payments for private acute care hospitals. If the federal regulation is voided,
  DMAS shall continue DSH payments to the impacted hospitals and adjust the additional
  hospital supplemental payments authorized in this paragraph accordingly. The department
  shall have the authority to implement these changes prior to completion of any regulatory
  process undertaken in order to effectuate such change.
  QQ. The Department of Medical Assistance Services shall have the authority to amend the
  State Plan for Medical Assistance to adjust the formula for indirect medical education
  (IME) reimbursement for managed care discharges for freestanding children's hospitals
  with greater than 50 percent Medicaid utilization in 2009 by increasing the case mix
  adjustment factor to the greater of 3.2962 or the most recent rebasing. Total payments for
  IME in combination with other payments for freestanding children's hospitals with greater
  than 50 percent Medicaid utilization in 2009 may not exceed the hospital's Medicaid costs.
  The department shall have the authority to implement these changes prior to completion of
  any regulatory process undertaken in order to effect such change.
  RR. The Department of Medical Assistance Services shall implement managed care
  directed payments for physician services for practice plans affiliated with a freestanding
  children's hospital with more than 50 percent Medicaid utilization in fiscal year 2009 for
  $11,050,000 annually but not to exceed the average commercial rate. The department shall
  have the authority to implement this reimbursement change effective July 1, 2023, and
  prior to the completion of any regulatory process undertaken in order to effect such
  changes. The agency shall implement this by determining at the beginning of each year the
  percent of Medicaid that will result in estimated payments of $11,050,000 annually.
  SS. The Department of Medical Assistance Services shall amend the State Plan for
  Medical Assistance to implement a supplemental disproportionate share hospital (DSH)
  payment for Chesapeake Regional Hospital up to its hospital-specific disproportionate
  share hospital limit (OBRA '93 DSH limit) as determined pursuant to 42 U.S.C. Section
  1396r-4. The payment shall be made annually based upon the hospital's disproportionate
  share limit for the most recent year for which the disproportionate share limit has been
  calculated subject to the availability of DSH funds under the federal allotment of such
  funds to the department. Prior to submitting the State Plan amendment, Chesapeake
  Regional Hospital shall enter into an agreement with the department to transfer the non-
  federal share of the supplemental DSH payment. Payment of the supplemental DSH
  payment is contingent upon receipt of intergovernmental transfer of funds or certified
  public expenditures from Chesapeake Regional Hospital. In the event that Chesapeake
  Regional Hospital is ineligible to transfer or certify necessary funds pursuant to federal
  law, the department may amend the State Plan for Medical Assistance to terminate the
  supplemental DSH payment program. The department shall have the authority to
  implement these reimbursement changes consistent with effective date(s) approved by the
  Centers for Medicare and Medicaid Services (CMS). No payments shall be made without
  CMS approval. In the event that CMS recoups supplemental DSH hospital funds from the
  department, Chesapeake Regional Hospital shall reimburse such funds to the department.
  TT. The Department of Medical Assistance Services (DMAS) is authorized to amend the
  State Plan for Medical Assistance Services to implement a supplemental Medicaid
  payment for Department of Veterans Services (DVS) state government-owned nursing
  facilities. The total supplemental Medicaid payment for DVS state government owned
  nursing homes shall be based on the difference between the Upper Payment Limit of 42
  CFR 447.272, as approved by the Centers for Medicare and Medicaid Services (CMS),
  and all other Medicaid payments subject to such limit made to such nursing homes.
  DMAS shall not submit any State Plan amendment to CMS that implements this payment
  until DMAS enters into an intergovernmental agreement with DVS. This agreement shall
  include the following provisions: 1) DVS shall transfer funds to DMAS for use as the state
  share of the full cost of the supplemental Medicaid payment for which each nursing home
  is entitled; 2) DVS must demonstrate that it has the authority and ability to transfer the
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  FY2025  FY2026  FY2025  FY2026
  necessary funds to DMAS; and, 3) DVS shall attest that any funds provided for state match
  will comply with federal law for use as the state share for the supplemental Medicaid
  payment. If DVS is unable to enter into or comply with the provisions of such an
  intergovernmental agreement, then DMAS shall immediately modify the Medicaid State Plan
  and adjust any supplemental payments accordingly. DMAS shall have the authority to
  implement the reimbursement changes consistent with the effective date in the State Plan
  amendment approved by CMS and prior to the completion of any regulatory process
  undertaken in order to effect such change.
  UU.1.a. Out of this appropriation, $5,850,000 the first year and $5,850,000 the second year
  from the general fund and $5,850,000 the first year and $5,850,000 the second year from
  nongeneral funds shall be used for supplemental payments to fund graduate medical education
  for 3 residents who began their residencies in July 2021; 18 residents who began their
  residencies in July 2022; 40 residents who began their residencies in July 2024; and 55
  residents who began their residencies in July 2025.
  b. Of the amounts appropriated in UU.1.a., $300,000 the first year and $450,000 the second
  year from the general fund and $300,000 the first year and $450,000 the second year from
  nongeneral funds shall be used for supplemental payments to fund graduate medical
  residencies for 6 psychiatric residents who began their residencies in July 2024 and 3
  additional psychiatric residents who began their residencies in July 2025. The Department of
  Medical Assistance Services shall pursue available administrative processes to initiate these
  residencies in FY 2025.
  c. Of the amounts appropriated in UU.1.a., $300,000 the first year and $400,000 the second
  year from the general fund and $300,000 the first year and $400,000 the second year from
  nongeneral funds shall be used for supplemental payments to fund graduate medical
  residencies for 6 obstetric-gynecological residents who began their residencies in July 2024
  and 2 additional obstetric-gynecological residents who began their residencies in July 2025.
  The Department of Medical Assistance Services shall work with the Virginia Health
  Workforce Development Authority to pursue available administrative processes to initiate
  these residencies in fiscal year 2025.
  2.a. The supplemental payment for each qualifying residency slot shall be $100,000 annually
  minus any Medicare residency payment for which the sponsoring institution is eligible. For
  any residency program at a facility whose number of residency slots are above the cap set by
  the Centers for Medicare and Medicaid Services or have exceeded the Upper Payment Limit
  (UPL) set by CMS, the supplemental payments for each qualifying residency slot shall be
  $50,000 from the general fund annually minus any Medicare residency payments for which
  the residency program is eligible. Supplemental payments shall be made for up to four years
  for each qualifying resident. Payments shall be made quarterly following the same schedule
  used for other medical education payments
  b. Effective July 1, 2026, and notwithstanding § 32.1-325 et seq., Code of Virginia, the
  Department of Medical Assistance Services (DMAS) is authorized to amend the Medicaid
  state plan to increase the supplemental payment for all qualifying obstetric-gynecological and
  psychiatric residencies to $150,000 annually. DMAS shall begin taking applications for these
  two specialties at the enhanced rate upon enactment of this Act. Enhanced supplemental
  payments shall not begin before July 1, 2026, and are subject to available appropriation in
  service area 45606. Should the number of applications for these two specialties exceed
  available funding, then DMAS shall request sufficient resources through the budget process.
  3.a. By July 1 of each year, the Department of Medical Assistance Services shall determine
  the number of residency slots that could be funded in the next two fiscal years within the
  resources provided in this Item. In addition, DMAS shall issue a call for applications to all
  hospitals in the Commonwealth to determine the number of residency slots, by hospital, that
  could be filled in the following fiscal year.
  b. The Department of Medical Assistance Service, in cooperation with the Virginia Health
  Workforce Development Authority, shall determine which new residency slots to fund based
  on priorities developed by the authority. Preference shall be given for residency slots located
  in underserved areas. Applications for slots that involve multiple medical care providers
  collaborating in training residents and that involve providing residents the opportunity to train
  in underserved areas are encouraged. A majority of the new residency slots funded each year
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  FY2025  FY2026  FY2025        FY2026
  shall be for primary care. The department shall adopt criteria for primary care, high need
  specialties and underserved areas as developed by the Virginia Health Workforce
  Development Authority. The department shall also review and consider applications from
  non-hospital sponsoring institutions, such as Federally Qualified Health Centers (FQHCs).
  c. By October 1 of each year, the Department of Medical Assistance Services shall
  develop a prioritized list of hospitals for which residencies are recommended. Using this
  list, DMAS shall request budget authorization for those residencies that can be supported
  with the funds as appropriated in this Item.
  4. The sponsoring institution will be eligible for the supplemental payments as long as it
  maintains the number of residency slots in total and by category as a result of the increase.
  The sponsoring institutions must certify by June 1 each year that they continue to meet the
  criteria for the supplemental payments and report any changes during the year to the
  number of residents.
  5. The department shall require all sponsoring institutions receiving Medicaid medical
  education funding to report annually by September 15 on the number of residents in total
  and by specialty/subspecialty. Medical education funding includes payments for graduate
  medical education (GME) and indirect medical education (IME). The department shall
  make the report available to the Virginia Health Workforce Development Authority to
  assist in their efforts to set priorities for and manage graduate medical education programs
  overseen by the Commonwealth.
  6.a. Effective July 1, 2021, the department shall make remaining supplemental payments
  to the following sponsoring institutions for the specified number of primary care
  residencies: Carilion Medical Center (7 residencies) and Centra Health (3 residencies).
  The department shall make supplemental payments to Sentara Norfolk General for 1
  OB/GYN residency and 1 emergency medicine residency. The department shall make
  supplemental payments to Carilion Medical Center for 2 psychiatry residencies. The
  department shall make supplemental payments to Riverside Regional Medical Center for 8
  emergency medicine residencies.
  b. Effective July 1, 2022, the department shall make remaining supplemental payments to
  the following sponsoring institutions for the specified number of primary care residencies:
  Carilion Medical Center (5 Internal Medicine residencies), Centra Health (2 Family
  Medicine residencies), and Riverside Regional Medical Center (1 Family Medicine
  residency). The department shall make supplemental payments to Carilion Medical Center
  for 2 Psychiatry residencies. The department shall make supplemental payments to
  Children's Hospital of the King's Daughters for 2 Pediatric residences. The department
  shall make supplemental payments to Sentara Norfolk General for 2 Psychiatry
  residencies. The department shall make supplemental payments to Riverside for 4
  Emergency Medicine residencies.
  c. Effective July 1, 2024, the department shall make supplemental payments to the
  following sponsoring institutions for the specified number of primary care residencies:
  Carilion Medical Center (6 Internal Medicine residencies), Centra Health (3 Family
  Medicine residencies), Riverside Regional Medical Center (1 Family Medicine residency
  and 6 Internal Medicine residencies), Sentara Norfolk General (1 Internal Medicine
  residency), University of Virginia Health System (2 Family Medicine residencies), and
  Johnston Memorial Hospital (2 family medicine residencies). The department shall make
  supplemental payments to Carilion Medical Center for 4 Psychiatry residencies. The
  department shall make supplemental payments to Children's Hospital of the King's
  Daughters for 3 Pediatric residencies and 2 Child and Adolescent Psychiatry fellowships.
  The department shall make supplemental payments to Riverside Regional Medicine
  Center for 4 Emergency Medicine residencies. The department shall make supplemental
  payments to Macon and Joan Brock Virginia Health Sciences for 1 Obstetrics and
  Gynecology residency, Virginia Commonwealth University for 2 Obstetrics and
  Gynecology residencies, and INOVA Fairfax Hospital for 3 Obstetrics and Gynecology
  residencies.
  d. Effective July 1, 2025, the department shall make supplemental payments to the
  following sponsoring institutions for the specified number of primary care residencies:
  Augusta Health (12 Internal Medicine residencies), Carilion Medical Center (7 Internal
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    ITEM 288.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  Medicine residencies), Centra Health (3 Family Medicine residencies), Mary Washington
  Healthcare (6 Family Medicine residencies), and Riverside Regional Medical Center (1
  Family Medicine residency and 13 Internal Medicine residencies). The department shall make
  supplemental payments to Carilion Medical Center for 2 Psychiatry residencies. The
  department shall make supplemental payments to Children's Hospital of the King's Daughters
  for 1 Child and Adolescent Psychiatry fellowship. The department shall make supplemental
  payments to Riverside Regional Medicine Center for 8 Emergency Medicine residencies. The
  department shall make supplemental payments to Macon and Joan Brock Virginia Health
  Sciences for 1 Obstetrics and Gynecology residency and to Riverside Regional Medical
  Center for 1 Obstetrics and Gynecology residency.
  VV.1. The Department of Medical Assistance Services shall work with stakeholders to review
  and adjust medical necessity criteria for Medicaid-funded nursing services including private
  duty nursing, skilled nursing, and home health. The department shall adjust the medical
  necessity criteria to reflect advances in medical treatment, new technologies, and use of
  integrated care models including behavioral supports. The department shall have the authority
  to amend the necessary waiver(s) and the State Plan under Titles XIX and XXI of the Social
  Security Act to include changes to services covered, provider qualifications, medical necessity
  criteria, and rates and rate methodologies for private duty nursing. The adjustments to these
  services shall meet the needs of members and maintain budget neutrality by not requiring any
  additional expenditure of general fund beyond the current projected appropriation for such
  nursing services.
  2. The department shall have authority to implement these changes to be effective July 1,
  2022. The department shall also have authority to promulgate any emergency regulations
  required to implement these necessary changes within 280 days or less from the enactment
  date of this Act. The department shall submit a report and estimates of any projected cost
  savings to the Chairmen of the House Appropriations and Senate Finance and Appropriations
  Committees 30 days prior to implementation of such changes.
  WW.1. The Department of Medical Assistance Services (DMAS) shall have the authority to
  implement programmatic changes to service definitions, prior authorization and utilization
  review criteria, provider qualifications, and reimbursement rates for the following existing
  Medicaid behavioral health services: assertive community treatment, mental health partial
  hospitalization programs, crisis intervention and crisis stabilization services.
  2. The department shall have the authority to develop new service definitions, prior
  authorization and utilization review criteria, provider qualifications, and reimbursement rates
  for the following new Medicaid behavioral health services: multi-systemic therapy, family
  functional therapy, intensive outpatient services, mobile crisis intervention services, 23 hour
  temporary observation services and residential crisis stabilization unit services.
  3. Effective on or after July 1, 2021, DMAS shall implement programmatic changes and
  reimbursement rates for the following services: assertive community treatment, multi-
  systemic therapy and family functional therapy.
  4. Effective on or after July 1, 2021, DMAS shall implement programmatic changes and
  reimbursement rates for the following services: intensive outpatient services, partial
  hospitalization programs, mobile crisis intervention services, 23 hour temporary observation
  services, crisis stabilization services and residential crisis stabilization unit services.
  5. In the development and implementation of these changes, the department shall ensure
  appropriate utilization and cost efficiency. Reimbursement rate changes shall be budget
  neutral and must not exceed the funding appropriated in the Act for these services.
  6. The Department of Medical Assistance Services shall, prior to the submission of any State
  Plan amendment or waivers to implement these paragraphs, submit a plan detailing the
  changes in provider rates, new services added and other programmatic changes to the
  Director, Department of Planning and Budget and the Chairmen of the House Appropriation
  and Senate Finance and Appropriations Committees.
  7. The department shall have the authority to promulgate emergency regulations to implement
  this amendment within 280 days or less from the enactment of this Act.
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  XX. 1. Effective July 1, 2024, the Department of Medical Assistance Services (DMAS)
  shall have the authority to modify Medicaid behavioral health services such that: (1)
  legacy services that predate the current service delivery system, including Mental Health
  Skill Building, Psychosocial Rehabilitation, Intensive In Home Services, and Therapeutic
  Day Treatment are phased out; (2) legacy youth services are replaced with the
  implementation of tiered community based supports for youth and families with and at-
  risk for behavioral health disorders appropriate for delivery in homes and schools, (3)
  legacy services for adults are replaced with a comprehensive array of psychiatric
  rehabilitative services for adults with Serious Mental Illness (SMI), including community-
  based and center-based services such as independent living and resiliency supports,
  community support teams, and psychosocial rehabilitation services, (4) legacy Targeted
  Case Management- SMI and Targeted Case Management- Serious Emotional Disturbance
  (SED) are replaced with Tiered Case Management Services. All new and modified
  services shall be evidence based and trauma informed. To facilitate this transition, DMAS
  shall have the authority to implement programmatic changes to service definitions, prior
  authorization and utilization review criteria, provider qualifications, and reimbursement
  rates for the legacy and redesigned services identified in this paragraph. DMAS shall only
  proceed with the provisions of this paragraph if the authorized Medicaid behavioral health
  modifications and programmatic changes can be implemented in a budget neutral manner
  within appropriation provided in this Act for the identified legacy services. Moreover, any
  new or modified services shall be designed such that out-year costs are in line with the
  current legacy service spending projections. No new Medicaid behavioral health services
  or rates shall be implemented until corresponding legacy services have ended.
  Implementation of the redesigned services authorized in this paragraph shall be completed
  no later than June 30, 2026January 1, 2027. The Department of Medical Assistance
  Services shall have the authority to seek federal authorization through waiver and state
  plan amendments under Titles XIX and XXI of the Social Security Act, as necessary, to
  meet the requirements of this paragraph. The department shall have authority to
  implement the changes authorized in this paragraph upon federal approval and prior to the
  completion of any regulatory process.
  2. The Department of Medical Assistance Services, in collaboration with the Department
  of Behavioral Health and Developmental Services, shall continue efforts to qualify for a
  section 1115 serious mental illness (SMI) waiver. The department is authorized to develop
  an 1115 SMI waiver application at the appropriate time. In addition to the waiver
  application, the department shall maintain a plan that includes any proposed service
  modifications, all potential fiscal implications (including cost savings) and a timeline for
  implementation. DMAS shall not implement any aspect of this proposed 1115 waiver
  without direct authorization by the General Assembly. The department shall provide the
  current version of the waiver plan by September 1 of each year to the Director,
  Department of Planning and Budget and Chairs of the House Appropriations and Senate
  Finance and Appropriations Committees.
  3. The Department of Medical Assistance Services shall have the authority to add
  coverage for services provided to Medicaid beneficiaries (ages 21 through 64) during
  short term stays (not to exceed 60 days) for acute care in psychiatric hospitals or
  residential treatment settings that qualify as Institutes of Mental Disease through an 1115
  serious mental illness waiver. The department shall have the authority to implement these
  changes consistent with the effective date in the state plan amendment approved by the
  Centers for Medicare and Medicaid Services and prior to completion of any regulatory
  process in order to effect such changes.
  4. The Department of Medical Assistance Services shall review and report on all monthly
  expenditures associated with services provided through the 1115 serious mental illness
  waiver. The department shall post this information on its website on a quarterly basis.
  Data should include, but not be limited to, expenditures by service for all services
  provided through state-run freestanding psychiatric hospitals, private freestanding
  psychiatric hospitals, and residential crisis stabilization units. In addition, data should
  include the number of individuals served and expenditures by facility.
  YY.1. Effective January 1, 2021, the Department of Medical Assistance Services shall
  develop and implement an actuarially sound risk adjustment model that addresses the
  behavioral health acuity differences among the Medicaid managed care organizations for
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  the community well population of individuals who are dually eligible for Medicare and
  Medicaid currently served through the Cardinal Care program. Behavioral health services
  shall be defined to include the following: case management services, community behavioral
  health, early intervention services, and addiction and recovery treatment services. The risk
  adjustment shall be based on nationally accepted models, such as the Chronic Illness and
  Disability Payment System (COPS) or Clinical Classifications Software Refined (CCSR) and
  shall incorporate variables predictive of behavioral health service utilization. Managed care
  experience shall be utilized as the basis for the risk adjustment.
  2. Effective January 1, 2021, the Department of Medical Assistance Services shall develop
  and implement differential capitation rates for members in behavioral health treatment versus
  those who are not, for the community well population of individuals who are dually eligible
  for Medicare and Medicaid currently served through the Cardinal Care program. The rates
  shall be actuarially sound and the behavioral health rates shall additionally incorporate risk
  adjustment to account for acuity differences amongst the managed care organizations.
  Behavioral health services shall be defined to include the following: case management
  services, community behavioral health, early intervention services, and addiction and
  recovery treatment services. The risk adjustment shall be based on nationally accepted
  models, such as The Chronic Illness and Disability Payment System (COPS) or Clinical
  Classifications Software Refined (CCSR), and shall incorporate variables predictive of
  behavioral health service utilization. Managed care experience shall be utilized as the basis
  for the establishment of the capitation rates and the risk adjustment.
  3. The risk adjustment model and differential capitation rates in these paragraphs shall be
  implemented such that the impact is budget neutral.
  ZZ. The Department of Medical Assistance Services shall update its regulations to reflect the
  Department of Behavioral Health and Developmental Services licensing criteria for the
  American Society of Addiction Medicine (ASAM) Level of Care 4.0. The Department shall
  have the authority to promulgate emergency regulations to implement this amendment within
  280 days or less from the enactment of this Act. The department shall have the authority to
  implement these changes prior to completion of any regulatory process undertaken in order to
  effect such change.
  AAA. The Department of Medical Assistance Services is authorized to amend the State Plan
  under Title XIX of the Social Security Act to add coverage for the current procedural
  terminology (CPT) codes for Applied Behavioral Analysis that were added to the CPT list in
  January 2019, or any future updates to these CPT codes. The department shall have the
  authority to implement related programmatic changes to service definitions, prior
  authorization and utilization review criteria, provider qualifications, and reimbursement rates
  for the Behavioral Therapy Program. The department shall have the authority to implement
  these changes effective December 1, 2021, and prior to completion of any regulatory process
  to effect such changes.
  BBB. Effective July 1, 2021, the Department of Medical Assistance Services shall seek
  federal authority through waiver and State Plan amendments under Titles XIX and XXI of the
  Social Security Act, as necessary, to provide continuous coverage to enrollees for the duration
  of pregnancy and through 12 months postpartum. The department shall have the authority to
  promulgate emergency regulations to implement these amendments within 280 days or less
  from the enactment of this Act. The department shall have authority to implement these
  amendments upon federal approval and prior to the completion of any regulatory process.
  CCC. Effective July 1, 2021, the Department of Medical Assistance Services shall increase
  rates by 14.7 percent for psychiatric services to the equivalent of 110 percent of Medicare
  rates. The department shall have the authority to implement these reimbursement changes
  prior to the completion of any regulatory process to effect such changes.
  DDD. Effective on and after July 1, 2021, the Department of Medical Assistance Services
  shall amend the State Plan for Medical Assistance to modify reimbursement for nursing
  facility services such that the direct peer group price percentage shall be increased to 109.3
  percent and the indirect peer group price percentage shall be increased to 103.3 percent. The
  department shall have the authority to implement these changes effective July 1, 2021 and
  prior to the completion of any regulatory process undertaken in order to effect such change.
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  EEE. The Department of Medical Assistance Services shall amend the State Plan for
  Medical Assistance to provide that any nursing facility which thereafter loses its Medicaid
  capital reimbursement status as a hospital-based nursing facility because a replacement
  hospital was built at a different location and Medicare rules no longer allow the nursing
  home's cost to be included on the hospital's Medicare cost report shall have its first fair
  rental value (FRV) capital payment rate set at the maximum FRV rental rate for a new
  free-standing nursing facility with the date of acquisition for its capital assets being the
  date the replacement hospital is licensed. The department shall have the authority to
  implement these reimbursement changes effective July 1, 2021 and prior to the completion
  of the regulatory process.
  FFF. Effective July 1, 2022, the department shall amend the State Plan for Medical
  Assistance to establish a new direct and indirect care peer group for nursing facilities
  operating with at least 80% of the resident population having one or more of the following
  diagnoses: quadriplegia, traumatic brain injury, multiple sclerosis, paraplegia, or cerebral
  palsy. In addition, a qualifying facility must have at least 90% Medicaid utilization and a
  case mix index of 1.15 or higher in fiscal year 2014. The department shall utilize the data
  from the most recent rebasing to make this change effective for fiscal year 2023 and
  subsequent rate years until this change is incorporated into the next scheduled rebasing.
  This change shall not affect rates established in the most recent rebasing for facilities in
  any other direct and indirect care peer groups. The department shall have the authority to
  implement this reimbursement change prior to completion of any regulatory process in
  order to effect such change. To the extent federal approval requires alternative approaches
  to achieve the same general results, the department shall have the authority to follow the
  federal guidance effecting this change.
  GGG. The Department of Medical Assistance Services shall amend the State Plan for
  Medical Assistance to establish Specialized Care operating rates for fiscal years 2021,
  2022 and 2023 by inflating the fiscal year 2020 rates using Virginia nursing home
  inflation. After fiscal year 2023, the department shall revert to the existing prospective
  methodology. The department has the authority to implement this change notwithstanding
  current regulations and consistent with the approved State Plan amendment.
  HHH. The Department of Medical Assistance Services shall require Medicaid managed
  care organizations to reimburse at no less than 90 percent of the state Medicaid program
  Durable Medical Equipment fee schedule for the same service or item of durable medical
  equipment, prosthetics, orthotics, and supplies. The department shall have the authority to
  implement this reimbursement change effective July 1, 2021 and prior to the completion
  of any regulatory process undertaken in order to effect such change.
  III. The Department of Medical Assistance Services shall adjust the post eligibility special
  earnings allowance for individuals in the CCC Plus, Community Living, Family and
  Individual Support and Building Independence waiver programs to incentivize
  employment for individuals receiving waiver services. DMAS shall lower the number of
  hours from at least eight hours but less than 20 hours per week requirement to at least four
  hours but less than 20 hours per week. The Special Earnings Allowance for waiver
  participants allows a percentage of earned income to be disregarded when calculating an
  individual's contribution to the cost of their waiver services when earning income. The
  current requirement is at least eight hours but less than 20 hours per week for a disregard
  of up to 200 percent of Supplemental Security Income (SSI) and a disregard of up to 300
  percent for individuals that work 20 hours or more per week.
  JJJ.1. Effective May 1, 2021, the Department of Medical Assistance Services shall
  increase the rates for agency- and consumer-directed personal care, respite and companion
  services in the home and community-based services waivers and Early Periodic Screening,
  and Diagnosis and Treatment (EPSDT) program by 6.4 percent. The department shall
  have the authority to implement these changes prior to completion of any regulatory
  process undertaken in order to effect such change.
  2. Effective January 1, 2022, the Department of Medical Assistance Services shall
  increase the rates for agency- and consumer-directed personal care, respite and companion
  services in the home and community-based services waivers and Early Periodic Screening,
  and Diagnosis and Treatment (EPSDT) program by 12.5 percent. The department shall
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  have the authority to implement these changes prior to completion of any regulatory process
  undertaken in order to effect such change.
  KKK. Effective July 1, 2021, the Department of Medical Assistance Services shall amend the
  State Plan for Medical Assistance to increase the practitioner rates for anesthesiologists to
  reflect the equivalent of 70 percent of the 2019 Medicare rates. The department shall ensure
  through its contracts with managed care organizations that the rate increase is reflected in
  their rates to providers. The department shall have the authority to implement these
  reimbursement changes prior to the completion of any regulatory process undertaken in order
  to effect such changes.
  LLL. The Department of Medical Assistance Services shall have the authority to amend the
  State Plan for Medical Assistance or any waiver under Title XIX of the Social Security Act to
  increase the income eligibility for participation in the Medicaid Works program to 138
  percent of the Federal Poverty Level. The department shall have the authority to implement
  this change prior to the completion of the regulatory process necessary to implement such
  change.
  MMM. Effective July 1, 2021, the Department of Medical Assistance Services shall increase
  rates for skilled and private duty nursing services to 80 percent of the benchmark rate
  developed by the department and consistent with the appropriation available for this purpose.
  The department shall have the authority to implement these changes prior to the completion of
  any regulatory process to effect such changes.
  NNN. Effective, January 1, 2021, the Department of Medical Assistance Services shall amend
  the State Plan for Medical Assistance under Title XIX of the Social Security Act, and any
  necessary waivers, to authorize time and a half up to eight hours and effective July 1, 2021,
  up to 16 hours for a single attendant who works more than 40 hours per week for attendants
  providing Medicaid-reimbursed consumer-directed (CD) personal assistance, respite and
  companion services. The department shall have authority to implement this provision prior to
  the completion of any regulatory process undertaken in order to effect such change.
  OOO. Effective July 1, 2021, the Department of Medical Assistance Services shall have the
  authority to amend the State Plan of Medical Assistance under Title XIX of the Social
  Security Act to provide a comprehensive dental benefit to adults. The department shall work
  with its Dental Advisory Committee, including members of the Virginia Dental Association,
  the Virginia Health Catalyst, the Virginia Commonwealth University School of Dentistry, the
  Virginia Dental Hygienists Association, the Virginia Health Care Association, a
  representative of the developmental and intellectual disability community, the Virginia
  Department of Health and the administrator of the Smiles for Children program to develop the
  benefit. The benefit shall be modeled after the existing benefit for pregnant women. The
  benefit shall include preventive and restorative services and shall not include any cosmetic
  services or orthodontic services. The Dental Advisory Committee shall design a benefit that
  does not exceed the appropriated funds to provide such services. The department shall work
  with its dental benefit administrator, the Virginia Dental Association, the Virginia Association
  of Free and Charitable Clinics, the Virginia Community Healthcare Association and other
  stakeholders to ensure an adequate network of providers and awareness among beneficiaries.
  The department shall have authority to promulgate emergency regulations to implement these
  changes within 280 days or less from the enactment date of this Act.
  PPP. The Department of Medical Assistance Services, in collaboration with the Virginia
  Department of Social Services, state workforce agencies and programs, and appropriate
  stakeholders, shall develop a referral system designed to connect current and newly eligible
  Medicaid enrollees to employment, training, education assistance and other support services.
  The department shall review current federal law and regulations that may allow, through State
  Plan amendments, contracts, or other policy changes, the department to support such a referral
  program. The department shall provide new enrollees in the Medicaid program, that have
  been identified as being potentially unemployed or underemployed with information on all
  available state and federal programs available to them that offer training, education assistance
  or other types of employment support services. The department shall work with its contracted
  managed care organizations to facilitate referrals to employment related services. To the
  degree that resources are available in other state agencies or from federal grants to support the
  referral program and existing authority permits such use, the department shall coordinate the
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  use of such programs to provide assistance to Medicaid enrollees.
  QQQ.1. The Department of Medical Assistance Services shall increase nursing home and
  specialized care per diem rates by $20 per day per patient effective until June 30, 2021,
  and by $15 per day effective July 1, 2021. Such adjustment shall be made through existing
  managed care capitation rates as a mandated specified rate increase. DMAS shall adjust
  capitation rates to account for the nursing facility rate increase. The department shall have
  the authority to file all necessary regulatory authorities without delay, make any necessary
  contract changes, and implement these reimbursement changes without regard to existing
  regulations. The specified rate increase in this paragraph applies across fee-for-service and
  Medicaid managed care.
  2.a. The Department of Medical Assistance Services (DMAS) shall work with appropriate
  nursing facility (NF) stakeholders and the Cardinal Care managed care organizations
  (MCOs) to develop a unified, value-based purchasing (VBP) program that includes
  enhanced funding for facilities that meet or exceed performance and/or improvement
  thresholds as developed, reported, and consistently measured by DMAS in cooperation
  with participating facilities. The methodology and timing for the Virginia nursing facility
  VBP program, including structures for nursing facility performance accountability and
  disbursement of earned financial incentives, shall be completed no later than December
  31, 2021, with the program targeted to begin no later than July 1, 2022. Nursing facility
  performance evaluation under the program shall prioritize maintenance of adequate
  staffing levels and avoidance of negative care events, such as hospital admissions and
  emergency department visits. The program may also consider performance evaluation in
  the areas of preventive care, utilization of home and community-based services, including
  community transitions, and other relevant domains of care.
  b. During the first year of this program, half of the available funding shall be distributed to
  participating nursing facilities to be invested in functions, staffing, and other efforts
  necessary to build their capacity to enhance the quality of care furnished to Medicaid
  members. This funding shall be administered as a Medicaid rate add-on in the same
  manner as in paragraph 1. above. The remaining funding shall be allocated based on
  performance criteria as designated under the nursing facility VBP program. The amount of
  funding devoted to nursing facility quality of care investments shall be 25 percent of
  available funding in the second year of the program before the program transitions to
  payments based solely on nursing facility performance criteria in the third year of the
  program. In the third year of this program, such funds as appropriated for this purpose
  shall be fully disbursed according to the aforementioned unified VBP arrangement to
  participating nursing facilities that qualify for the enhanced funding.
  c. The department shall convene the stakeholders no less than annually through at least the
  first two years of the program to review program progress and discuss potential
  modifications to components of the arrangement, including, but not limited to, timing of
  enhanced payments, performance metrics, and threshold determinations. The department
  shall implement the necessary regulatory changes and other necessary measures to be
  consistent with federal approval of any appropriate changes to the State Plan or relevant
  waivers thereof, and prior to the completion of any regulatory process undertaken to effect
  such change.
  d. Out of this appropriation, $20,000,000 the first year and $20,000,000 the second year
  from the general fund and $20,807,998 the first year and $20,807,998 the second year
  from nongeneral funds shall be provided to increase nursing facility value-based payments
  effective July 1, 2024 pursuant to paragraph QQQ.2.b. in this item. To the extent that this
  increase each year meets or exceeds the amount otherwise required under clause 3 of
  Chapters 482 and 438 of the 2023 Acts of Assembly, this increase shall be considered to
  satisfy that requirement.
  e. The department shall work with stakeholders to develop recommendations on
  modifying the timing and structure of the value-based payment (VBP) program's metric-
  based payment methodology. Recommendations will consider alternatives to the existing
  annual retrospective lump sum payment arrangement. These will include, but are not
  limited to, the structure and frequency of payments to ensure that the annual appropriation
  to the VBP program will not be overspent. The department's work with stakeholders shall
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  be completed by November 1, 2025, and the department shall report its findings to the
  Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations
  Committees by December 15, 2025.
  RRR. The Department of Medical Assistance Services shall seek federal authority through
  waiver and State Plan amendments under Titles XIX and XXI of the Social Security Act to
  expand the definition of durable medical equipment per 42 CFR 440.70 (b) (3), so that the
  definition is no longer limited to items primarily used in the home but also extends to any
  setting where normal activities take place. The Department shall have the authority to
  promulgate emergency regulations to implement this amendment within 280 days or less from
  the enactment of this Act. The department shall have the authority to implement these changes
  prior to completion of any regulatory process undertaken in order to effect such change.
  SSS. The Department of Medical Assistance Services shall amend the State Plan for Medical
  Assistance to authorize the reimbursement, using a budget neutral methodology, of pharmacy-
  administered immunizations for all vaccinations covered under the medical benefit for
  Medicaid members. Reimbursement for fee-for-service members shall be the cost of the
  vaccine plus an administration fee not to exceed $16. Reimbursement for pharmacy-
  administered vaccinations for pediatric Medicaid members eligible for free vaccinations
  through the Vaccines For Children (VFC) program shall include only the administration fee.
  The department is authorized to set the administration fee for COVID-19 vaccines at the same
  level as Medicare reimbursement for such vaccines. The Department shall promulgate
  regulations to become effective within 280 days or less from the enactment date of this Act to
  implement this change.
  TTT. The Department of Medical Assistance Services shall amend the State Plan for Medical
  Assistance to authorize coverage for clinically appropriate audio-only services, provider-to-
  provider consultations, store-and-forward, and virtual check-ins with patients. The
  Department shall promulgate regulations to become effective within 280 days or less from the
  enactment date of this Act to implement this change.
  UUU. The Department of Medical Assistance Services shall amend the State Plan for Medical
  Assistance to authorize coverage of community doula services for Medicaid-enrolled pregnant
  women. Services shall include up to 8 prenatal/postpartum visits, and support during labor
  and delivery. The department shall also implement up to two linkage-to-care incentive
  payments for postpartum and newborn care.
  VVV. The Department of Medical Assistance Services (DMAS) shall have the authority to
  make necessary changes to waivers and/or the Medicaid State Plan to ensure that all adult
  Medicaid members have access to COVID-19 vaccinations. The department shall have the
  authority to implement such changes effective upon passage of this Act, and prior to the
  completion of any regulatory process undertaken in order to effect such changes.
  WWW. The Department of Medical Assistance Services shall amend the Medicaid and CHIP
  State Plans to authorize prescriptions of contraceptives up to a 12-month supply for eligible
  beneficiaries in the Medicaid and CHIP programs. The department shall have the authority to
  promulgate emergency regulations to implement these amendments within 280 days or less
  from the enactment of this Act.
  XXX. The Department of Medical Assistance Services, in coordination with the Department
  of Behavioral Health and Developmental Services, shall submit a request to the Centers for
  Medicare and Medicaid Services to amend its 1915(c) Home & Community-Based Services
  (HCBS) waivers to allow telehealth and virtual and/or distance learning as a permanent
  service option and accommodation for individuals on the Community Living, Family and
  Individual Services and Building Independence Waivers. The amendment, at a minimum,
  shall include all services currently authorized for telehealth and virtual options during the
  COVID-19 pandemic. The departments shall actively work with the established
  Developmental Disability Waiver Advisory Committee and other appropriate stakeholders in
  the development of the amendment including service elements and rate methodologies. The
  department shall have the authority to implement these changes prior to the completion of the
  regulatory process.
  YYY. Effective July 1, 2022, the Department of Medical Assistance Services shall have the
  authority to increase the rates for agency- and consumer-directed personal care, respite and
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  companion services by 7.5 percent to reflect additional increases in the state minimum
  wage while maintaining the existing differential between consumer-directed and agency-
  directed rest-of-state rates as well as the northern Virginia and rest-of-state rates. The
  department shall have the authority to implement these changes prior to completion of any
  regulatory process to effect such change.
  ZZZ. Effective July 1, 2022, the Department of Medical Assistance Services shall have
  the authority to amend the State Plan under Title XIX of the Social Security Act, and any
  waivers thereof as necessary to amend coverage of preventive services for adult, full-
  benefit Medicaid individuals who are not enrolled pursuant to the Patient Protection and
  Affordable Care Act (PPACA) to align with the preventive services coverage provided
  under the PPACA. The department shall have the authority to implement these changes
  prior to the completion of any regulatory process to effect such changes.
  AAAA. The Department of Medical Assistance Services shall amend the state plans under
  Titles XIX and XXI of the Social Security Act, and any waivers thereof as necessary to
  remove all cost sharing, including co-payments, co-insurance, and deductibles for
  enrollees. Such change shall be effective April 1, 2022, or upon expiration of the federal
  public health emergency related to the Coronavirus Disease 2019 (COVID-19) pandemic,
  whichever is earlier. The department shall have the authority to implement this change
  prior to the completion of any regulatory process to effect such changes.
  BBBB.1. Effective July 1, 2022, the Department of Medical Assistance Services (DMAS)
  shall have the authority to increase Medicaid Title XIX and CHIP Title XXI
  reimbursement rates for dental services by 30 percent. The department shall have the
  authority to implement these reimbursement changes prior to the completion of any
  regulatory process to effect such changes.
  2. Effective July 1, 2024, the Department of Medical Assistance Services shall have the
  authority to increase Medicaid Title XIX and CHIP Title XXI reimbursement rates for
  dental services by three percent. The department shall have the authority to implement
  these changes prior to completion of any regulatory process undertaken in order to effect
  such change.
  CCCC. Effective July 1, 2022, the Department of Medical Assistance Services shall have
  the authority to increase Medicaid Title XIX and CHIP Title XXI reimbursement rates for
  physician primary care services, excluding those provided in emergency departments, to
  80 percent of the federal FY 2021 Medicare equivalent as calculated by the department
  and consistent with the appropriation available for this purpose. The department shall have
  the authority to implement these changes prior to the completion of any regulatory process
  to effect such changes.
  DDDD.1. Appropriation amounting to $175,793,045 in FY 2023 and $201,197,348 in FY
  2024 from the general fund and $182,060,495 in FY 2023 and $208,539,425 in FY 2024
  from nongeneral funds was provided to increase Developmental Disability (DD) waiver
  rates set forth in the following paragraph.
  2. Effective July 1, 2022, the Department of Medical Assistance Services shall have the
  authority to update the rates for DD waiver services using the most recent rebasing
  estimates, based on their review of the model assumptions as appropriate and consistent
  with efficiency, economy, quality and sufficiency of care and reported no later than July 1,
  2022. Rates shall be increased according to Tiered payments contained in the rebasing
  model, where appropriate for the type of service provided. Rates shall be increased for
  Group Homes, Sponsored Residential, Supported Living, Independent Living Supports,
  In-home Supports, Community Engagement, Community Coaching, Therapeutic
  Consultation, Private Duty and Skilled Nursing, Group Day Support, Group Supported
  Employment, Workplace Assistance, Community Guide, DD Case Management and
  Benefits Planning. The department shall have the authority to implement these changes
  prior to completion of any regulatory process to effect such change.
  EEEE. Effective July 1, 2022, the Department of Medical Assistance Services (DMAS)
  shall have the authority to increase Medicaid Title XIX and CHIP Title XXI
  reimbursement rates for obstetrics and gynecology covered services by 15 percent. The
  department shall have the authority to implement these reimbursement changes prior to
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  the completion of any regulatory process to effect such changes.
  FFFF. Effective July 1, 2022, the Department of Medical Assistance Services (DMAS) shall
  have the authority to increase reimbursement rates for children's covered vision services for
  Medicaid Title XIX and CHIP XXI programs by 30 percent. The department shall have the
  authority to implement these reimbursement changes prior to the completion of any regulatory
  process to effect such changes.
  GGGG.1. The Department of Medical Assistance Services shall seek federal authority
  through waiver and State Plan amendments under Titles XIX and XXI of the Social Security
  Act to allow enrollment in a Medicaid managed care plan for individuals who are Medicaid
  eligible 30 days prior to release from incarceration. The department shall modify its contracts
  with managed care organizations to require a video or telephone conference with incarcerated
  individuals that are enrolled in a managed care plan in order to create a transition plan during
  the 30 days prior to release from incarceration. The department shall have the authority to
  promulgate emergency regulations to implement this amendment within 280 days or less from
  the enactment of this Act.
  2. The Department of Medical Assistance Services shall have the authority to make any
  necessary managed care contract changes and to amend the state plans under Titles XIX and
  XXI of the Social Security Act, and any waivers thereof, as necessary to provide covered
  services, including screenings, diagnostic services, and targeted case management, in the 30
  days pre-release and immediately post-release to eligible incarcerated youth and young adults
  in accordance with section 5121 of the federal Consolidated Appropriations Act of 2023. The
  department shall have the authority to implement this change prior to the completion of any
  regulatory process.
  HHHH. The Department of Medical Assistance Services shall amend the State Plan for
  Medical Assistance to authorize coverage for medically necessary general anesthesia and
  hospitalization or facility charges of a facility licensed to provide outpatient surgical
  procedures for dental care provided to a Medicaid enrollee who is determined by a licensed
  dentist in consultation with the enrollee's treating physician to require general anesthesia and
  admission to a hospital or outpatient surgery facility to effectively and safely provide dental
  care to an enrollee age ten or younger. The department shall have the authority to implement
  this change effective July 1, 2022 and prior to the completion of any regulatory process to
  effect such change.
  IIII. Effective July 1, 2022, the Department of Medical Assistance Services shall increase
  Medicaid rates for peer recovery and family support services in private and public
  community-based recovery services settings from $6.50 to $13.00 per 15 minutes for
  individuals and from $2.70 to $5.40 per 15 minutes for groups.
  JJJJ. Effective July 1, 2022, the Department of Medical Assistance Services is authorized to
  increase rates by 12.5%, relative to the rates in effect prior to July 1, 2021, for: (i) adult day
  health care; (ii) consumer-directed facilitation services; (iii) crisis supervision, crisis
  stabilization and crisis support services; (v) transition coordinator services; (vi) mental health
  and early intervention case management services; and (vii) community behavioral health and
  habilitation services. The department shall have the authority to implement these changes
  prior to the completion of any regulatory process undertaken in order to effect such change.
  The department shall include any and all Early Periodic Screening Diagnosis and Treatment
  (EPSDT) Therapeutic Group Homes in such rate increase effective January 1, 2024,
  regardless of the number of providers and whether or not such facilities were previously
  included in the list of eligible procedure and revenue codes provided in the Medicaid Bulletin
  to Providers of Home and Community Based Services Waivers (HCBS) and EPSDT services
  participating in Virginia Medical Assistance Programs and Medicaid Managed Care
  Organizations (MCOs) dated October 16, 2021. The department shall have the authority to
  implement these changes prior to completion of any regulatory process undertaken in order to
  effect such change.
  KKKK. Contingent on approval by the Centers for Medicare and Medicaid Services (CMS),
  the Department of Medical Assistance Services (DMAS) shall allow legally responsible
  individuals (parents of children under age 18 and spouses) to provide personal care/personal
  assistance services and be paid for those services. Any legally responsible individual who is a
  paid aide or attendant for personal care/personal assistance services shall meet all the same
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    ITEM 288.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  requirements as other aides or attendants. The department shall have the authority to
  implement these changes effective July 1, 2022 and prior to completion of any regulatory
  process to effect such change.
  LLLL. Effective for dates of service on or after January 1, 2024, the Department of
  Medical Assistance Services shall increase the reimbursement rates for Early Intervention
  services, excluding case management, by 12.5 percent for all children under age three
  enrolled in Early Intervention in Virginia Medicaid.
  MMMM.1. Effective January 1, 2024, the Department of Medical Assistance Services
  shall increase rates by 10 percent for the following Medicaid-funded community-based
  services: Intensive In-Home, Mental Health Skill Building, Psychosocial Rehabilitation,
  Therapeutic Day Treatment, Outpatient Psychotherapy, Peer Recovery Support Services --
  Mental Health.
  2. Effective January 1, 2024, the Department of Medical Assistance Services shall
  increase rates by 10 percent for the following Medicaid-funded community-based
  services: Comprehensive Crisis Services (which include 23-hour Crisis Stabilization,
  Community Stabilization, Crisis Intervention, Mobile Crisis Response, and Residential
  Crisis Stabilization), Assertive Community Treatment, Mental Health - Intensive
  Outpatient, Mental Health - Partial Hospitalization, Family Functional Therapy and
  Multisystemic Therapy.
  NNNN. The Department of Medical Assistance Services shall increase the rates for mental
  health partial hospitalization from a per diem rate of $250.62 to $500.00 and shall increase
  the rate for mental health intensive outpatient programs from a per diem of $159.20 to
  $250.00. The department shall have the authority to implement this reimbursement change
  effective January 1, 2024, and prior to the completion of any regulatory process
  undertaken in order to effect such change.
  OOOO. Effective January 1, 2024, the Department of Medical Assistance Services is
  authorized to amend the State Plan for Medical Assistance Services to: (i) extend the age
  limitation for children receiving fluoride varnish from non-dental providers from "through
  age 3" to "through age 5"; (ii) remove the current limitation on the number of times a
  dentist can bill the behavioral management code when treating adults with disabilities; (iii)
  provide payment for crowns for patients who received root canal therapy prior to
  becoming a Medicaid beneficiary; and (iv) provide reimbursement for pre-treatment
  evaluations performed by dentists treating patients requiring deep sedation or general
  anesthesia to mirror the Centers for Medicare and Medicaid Services (CMS) guidelines.
  The department shall have the authority to implement these changes consistent with the
  effective date in the State Plan amendment approved by CMS and prior to the completion
  of any regulatory process undertaken in order to effect such change.
  PPPP. Effective January 1, 2024, the Department of Medical Assistance Services shall
  have the authority to increase the rates for agency and consumer-directed personal care,
  respite and companion services by five percent. The department shall have the authority to
  implement these changes prior to completion of any regulatory process to effect such
  change.
  QQQQ. The Department of Medical Assistance Services shall amend its regulations and
  guidance on weight loss drugs to require service authorization for covered weight loss
  drugs to ensure appropriate utilization. The department shall have authority to implement
  these provisions prior to the completion of any regulatory process undertaken in order to
  effect such change.
  RRRR. Effective January 1, 2024, the Department of Medical Assistance Services shall
  have the authority to amend the State Plan under Title XIX of the Social Security Act to
  provide reimbursement for the provision of behavioral health services that are classified
  by a Current Procedural Terminology code as collaborative care management services.
  SSSS. Effective for dates of service on or after July 1, 2024, the Department of Medical
  Assistance Services shall update the reimbursement methodology for outpatient
  rehabilitation services to the Resource Based Relative Value Scale. Any changes to the
  reimbursement methodology shall be budget neutral. To ensure and maintain budget
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    ITEM 288.  First Year     Second Year    First Year    Second Year
  FY2025  FY2026       FY2025  FY2026
  neutrality, a budget neutrality factor shall be applied to any rate calculations.
  TTTT.1. Effective July 1, 2024, pursuant to the authority granted in 42 USC 1396r-8
  Payment for Covered Outpatient Drugs, the Department of Medical Assistance Services shall
  amend the State Plan for Medical Assistance Services and 12VAC30-50-520 to no longer
  cover weight loss medication when prescribed for weight loss except: (i) in those instances
  where an individual has a body mass index (BMI) greater than 40; (ii) in those instances
  where an individual has a BMI greater than 37 and has at least one of the following weight-
  related comorbid conditions: hypertension, Type II Diabetes Mellitus, or Dyslipidemia; or
  (iii) if it is a traditional weight loss medication prescribed for weight loss as FDA approved,
  excluding Glucagon-like peptide-1 drugs and any other newer weight loss medications. The
  department shall have the authority to promulgate emergency regulations to implement this
  amendment within 280 days or less from the enactment of this act. The department shall have
  authority to implement this amendment upon federal approval and prior to the completion of
  any regulatory process undertaken in order to effect such change.
  TTTT.2. Effective July 1, 2025, pursuant to the authority granted in 42 USC 1396r-8 Payment
  for Covered Outpatient Drugs, the Department of Medical Assistance Services shall amend
  the State Plan for Medical Assistance Services and 12VAC30-50-520 to cover weight loss
  medication when prescribed for weight loss (i) in those instances where an individual has a
  body mass index (BMI) of 35 or greater at the time at the time of being prescribed the
  requested weight loss drug; or (ii) in those instances where an individual has a BMI greater
  than 30 at the time of being prescribed the requested weight loss drug and has at least one of
  the following weight-related comorbid conditions: hypertension, Type II Diabetes Mellitus, or
  Dyslipidemia; and the individual has tried but was unsuccessful losing weight through a
  comprehensive lifestyle program for at least six months prior to the request for drug therapy,
  that included a calorie deficit of approximately 30 percent for at least six months, and an
  exercise goal of completing 150 minutes of exercise per week has been achieved for at least
  six months (or exercise requirements cannot be met due to clinical limitations); and the
  individual was unable to achieve at least a five percent weight reduction with calorie deficit
  goals, exercise goals, and behavior therapy. The department shall have the authority to
  promulgate emergency regulations to implement this amendment within 280 days or less from
  the enactment of this act. The department shall have authority to implement this amendment
  upon federal approval and prior to the completion of any regulatory process undertaken in
  order to effect such change.
  UUUU. The Department of Medical Assistance Services (DMAS) shall seek federal authority
  through waiver and State Plan amendments under Titles XIX and XXI of the Social Security
  Act to implement telehealth service delivery options under the Developmental Disability
  Waivers for the following services: Benefits Planning, Community Coaching, Community
  Engagement, Community Guide, Group Day Services, Group and Individual Supported
  Employment, Independent Living Supports, Individual and family/caregiver training, In-home
  Support Services, Peer Mentoring, Service Facilitation, Therapeutic Consultation, and
  Workplace Assistance services. However, DMAS authority is limited to those regulatory
  changes needed to define service delivery and claims processing requirements for those
  virtual support services currently authorized by the Appropriation Act or Code of Virginia.
  Moreover, any such changes shall be budget neutral and not increase costs. The department
  shall have the authority to amend the Developmental Disability Waivers through the Centers
  for Medicare and Medicaid Services and to promulgate emergency regulations to implement
  these changes within 280 days or less from the enactment of this Act.
  VVVV. The Department of Medical Assistance Services (DMAS) shall seek federal authority
  through State Plan amendments under Titles XIX and XXI of the Social Security Act to
  expand provider qualifications such that individuals working on their required hours of
  supervision for certification through the Department of Behavioral Health and Developmental
  Services (DBHDS) to be eligible for registration through the Department of Health
  Professions (DHP), may be approved as Medicaid provider type for the provision of mental
  health and substance use disorder peer supported services. In addition, to increase access to
  peer recovery services, DMAS is authorized to adjust caseload limits for peer recovery
  specialists to align with DBHDS and DHP and revised policies to reflect the need to operate
  within a crisis or emergency room setting. DMAS shall ensure that any provider caseload
  limit increase does not have any adverse impact on quality of care or program integrity. The
  department shall have the authority to promulgate emergency regulations to implement these
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    ITEM 288.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  changes within 280 days or less from the enactment of this Act.
  WWWW. The Department of Medical Assistance Services (DMAS) shall implement a
  process no later than January 1, 2025 for Federally Qualified Health Centers (FQHCs) to
  notify the department of any changes in the scope of services offered by a FQHC,
  pursuant to Section 1902(bb)(3) of 42 U.S.C. 1396a. Notifications of changes in the scope
  of services shall be submitted no later than October 1, 2024 for timely filing allowed by
  applicable federal law. Thereafter, notification must be received within 12 months of the
  increase or decrease in the scope of services by the FQHC. The department is authorized
  to reimburse FQHCs for unreimbursed costs, as allowed by the applicable federal law,
  prior to an initial request for a change in scope under the new process.
  XXXX. Effective July 1, 2024, the Department of Medical Assistance Services shall have
  the authority to update the rates for consumer-directed facilitation services based on the
  most recent rebasing estimates as follows: Consumer Directed (CD) Management
  Training shall be increased to $90.14 per hour in Northern Virginia and to $80.91 per hour
  in the rest of the state; CD Initial Comprehensive Visit shall be increased to $360.54 per
  visit in Northern Virginia and to $323.64 per visit in the rest of the state; CD Routine Visit
  shall be increased to $112.67 per visit in Northern Virginia and to $101.14 per visit in the
  rest of the state; and CD Reassessment Visit shall be increased to $180.27 per visit in
  Northern Virginia and to $161.82 per visit in the rest of the state. The department shall
  have the authority to implement these changes prior to completion of any regulatory
  process to effect such change.
  YYYY. Effective July 1, 2024, the Department of Medical Assistance Services (DMAS)
  shall set the reimbursement rate to 100 percent of the Medicare rural rates or 100 percent
  of non-rural rates if a rural rate does not exist for specific Durable Medical Equipment
  (DME) products, including enteral products and supplies and in the following categories
  in the DMAS fee schedule for Feeding Kits and Tubes and Nutrition Kits/Feeding Tubes.
  DMAS shall have the authority to implement these changes prior to completion of any
  regulatory process undertaken in order to effect such change.
  ZZZZ. Effective July 1, 2024, the Department of Medical Assistance Services shall
  increase the rates for peer mentoring consistent with the most recent rate study by Burns
  and Associates.
  AAAAA. The Department of Medical Assistance Services shall develop guidelines for a
  statewide Collaborative Care Model program. The department shall submit a report on
  progress developing and implementing the guidelines annually by October 1 to the Joint
  Commission on Health Care and the Chairs of the House Appropriations and Senate
  Finance and Appropriations Committees.
  BBBBB. Out of this appropriation, $95,000,000 from the general fund the first year is
  authorized to be provided to the Department of Medical Assistance Services (DMAS) if
  the general fund amounts in Item 288 of this act are insufficient to pay all Medicaid costs
  in the fiscal year due to higher than expected program enrollment. The Director,
  Department of Planning and Budget (DPB), shall unallot this appropriation until such time
  the Director of DMAS can demonstrate that the general fund appropriation is insufficient
  to meet all obligations for the fiscal year. In the first year, if the Director of DMAS
  notifies DPB that payments in the Medicaid program were delayed from fiscal year 2024
  into fiscal year 2025 due to insufficient funding, the Director of DPB shall have the
  authority to allot the general fund share of that shortfall to cover those payments in fiscal
  year 2025. The Director of DPB shall notify the Chairs of the House Appropriations and
  Senate Finance and Appropriations Committee within five days of any allotment of
  appropriation pursuant to these provisions.
  CCCCC. The Department of Medical Assistance Services (DMAS) shall modify
  requirements for Consumer-Directed Services Facilitators to eliminate the requirement
  that individuals providing these services have an Associate's or Bachelor's Degree in order
  to provide services. Work experience shall be listed as sufficient in the list of
  requirements. The department shall have the authority to implement these changes prior to
  completion of any regulatory process undertaken in order to effect such change.
  DDDDD. The Department of Medicaid Assistance Services shall have the authority to
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    ITEM 288.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  draw down federal funds to cover unreimbursed Medicaid costs for services provided by
  nonstate government-owned nursing facilities as certified by the provider through cost reports
  not to exceed the upper payment limit for each nursing facility. The department shall have the
  authority to implement this reimbursement change prior to completion of any regulatory
  process in order to effect such change.
  EEEEE. Effective July 1, 2024, the Department of Medical Assistance Services (DMAS) shall
  have the authority to amend the State Plan for Medical Assistance to increase the per diem
  rates paid to therapeutic group homes (TGH) that accept children requiring early and periodic
  screening, diagnosis, and treatment (EPSDT) services by 50 percent.
  FFFFF.1. Effective July 1, 2024, the Department of Medical Assistance Services shall have
  the authority to update the rates for DD waiver services by three percent for Group Homes,
  Sponsored Residential, Supported Living, Independent Living Supports, In-home Supports,
  Community Engagement, Community Coaching, Therapeutic Consultation, Private Duty and
  Skilled Nursing, Group Day Support, Group Supported Employment, Workplace Assistance,
  Community Guide, and Benefits Planning. The department shall have the authority to
  implement these changes prior to completion of any regulatory process to effect such change.
  2. Effective July 1, 2025, the Department of Medical Assistance Services shall have the
  authority to update the rates for DD waiver services by three percent for Group Homes,
  Sponsored Residential, Supported Living, Independent Living Supports, In-home Supports,
  Community Engagement, Community Coaching, Therapeutic Consultation, Private Duty and
  Skilled Nursing, Group Day Support, Group Supported Employment, Workplace Assistance,
  Community Guide, and Benefits Planning. The department shall have the authority to
  implement these changes prior to completion of any regulatory process to effect such change.
  GGGGG.1. Effective July 1, 2024, DMAS shall increase the rates for agency- and consumer-
  directed personal care, respite and companion services in the home and community-based
  services waivers and Early Periodic Screening, and Diagnosis and Treatment (EPSDT)
  program by two percent. The department shall have the authority to implement these changes
  prior to completion of any regulatory process undertaken in order to effect such change.
  2. Effective July 1, 2025, DMAS shall increase the rates for agency- and consumer-directed
  personal care, respite and companion services in the home and community-based services
  waivers and Early Periodic Screening, and Diagnosis and Treatment (EPSDT) program by
  two percent. The department shall have the authority to implement these changes prior to
  completion of any regulatory process undertaken in order to effect such change.
  HHHHH. The Department of Medical Assistance Services shall have the authority to change
  the reimbursement methodology for adult day health care from a daily rate to an hourly rate,
  however, such reimbursement is limited to no more than six hours per day. Any such
  reimbursement rate adjustment must be budget neutral and not increase the cost of this
  service. The department shall have the authority to implement this change prior to the
  completion of any regulatory process to effect such changes.
  IIIII. The Department of Medical Assistance Services shall modify the nursing facility
  reimbursement methodology described in 12 VAC 30-90-44 to use the Patient-Driven
  Payment Model (PDPM) instead of Resource Utilization Groups (RUG). This change to
  reimbursement methodology shall be implemented in a budget neutral manner no later than
  October 1, 2025. The department shall have the authority to implement this change prior to
  the completion of any regulatory process to effect such changes.
  JJJJJ. The Department of Medical Assistance Services (DMAS) shall have the authority to
  submit final exempt regulatory packages to repeal existing provider reimbursement
  regulations in 12 VAC 30-70, 12 VAC 30-80, and 12 VAC 30-90 and replace them with new
  sections containing text that is identical to the Medicaid state plan as it was in effect on March
  1, 2025. Changes shall not impact any aspect of the Medicaid program or increase costs.
  These regulatory packages shall be promulgated according to the following schedule: Chapter
  70 sections shall be submitted for executive branch review within 30 days from the enactment
  date of this Act; Chapter 80 sections shall be submitted for executive branch review within 60
  days from the enactment date of this Act; Chapter 90 sections shall be submitted for executive
  branch review within 90 days from the enactment date of this Act.
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    ITEM 288.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  KKKKK. The Department of Medical Assistance Services shall require that liable third-
  party payers are barred from refusing payment for an item or service solely on the basis
  that such item or service did not receive prior authorization under the third-party payer's
  rules.
  LLLLL. The Department of Medical Assistance Services shall amend the state plans under
  Titles XIX and XXI of the Social Security Act, and any waivers thereof, and make any
  changes to managed care contracts as necessary to enable children served in psychiatric
  residential treatment facilities (PRTF) to maintain their enrollment in managed care during
  their treatment. The payment for PRTF per diem payments and PRTF required services
  shall be carved out of managed care and paid as a fee-for-service benefit. Required
  services include assessment and diagnosis, physician medication management and
  supervision, urine testing and psychological professional services when delivered by
  facility staff or contractors. Any service eligible for reimbursement through the Children's
  Services Act shall not be included in managed care. The department shall have the
  authority to create a new capitation payment structure to reflect this change in managed
  care service delivery. Costs associated with any carved-out services shall be excluded
  from managed care payment methodologies. The department shall have the authority to
  implement this change effective July 1, 2025 and prior to the completion of any regulatory
  process.
  MMMMM. Effective July 1, 2025, the Department of Medical Assistance Services shall
  amend the state plan for medical assistance services to include a provision for payment of
  medical assistance for FDA approved long-acting injectable or extended-release
  medications administered for a serious mental illness or substance use disorder in any
  hospital emergency department or hospital inpatient setting. This payment shall be
  unbundled from the hospital daily rate.
  NNNNN. The Department of Medical Assistance Services shall convene a workgroup
  with staff designees from the Department of Planning and Budget and the House
  Appropriations and Senate Finance and Appropriations Committees to evaluate options
  for developing a process that recognizes the true costs of policy changes to the Medicaid
  program and how to integrate such process as part of the development of the state budget.
  OOOOO.1. Effective July 1, 2025, the Department of Medical Assistance Services shall
  amend the State Plan for Medical Assistance to authorize coverage for a continuous
  glucose monitor (CGM) and related supplies for the treatment of a Medicaid enrollee
  under the Medicaid medical and pharmacy benefit if the enrollee: (i) has been diagnosed
  with diabetes by his or her primary care physician, or another licensed health care
  practitioner authorized to make such a diagnosis; (ii) is being treated with insulin; and/or
  (iii) has a history of problematic hypoglycemia; (iv) the enrollee's treating practitioner has
  concluded that the enrollee (or enrollee's caregiver) has sufficient training using the CGM
  prescribed as evidenced by providing a prescription; and (v) the CGM is prescribed in
  accordance with the Food and Drug Administration indications for use.
  2. Coverage shall include the cost of any necessary repairs or replacement parts for the
  continuous glucose monitor.
  3. To qualify for continued coverage under this section, the Medicaid enrollee must
  participate in follow-up care with his or her treating health care practitioner, in-person or
  through telehealth, at least once every six months during the first 18 months after the first
  prescription of the continuous glucose monitor for the recipient has been issued under this
  section, to assess the efficacy of using the monitor for treatment of diabetes. After the first
  18 months, such follow-up care must occur at least once every 12 months.
  PPPPP. The Department of Medical Assistance Services shall ensure the reimbursement
  for a service provided by a licensed certified midwife or licensed midwife shall be in the
  same amount as the Medicaid reimbursement paid a licensed physician or certified nurse
  midwife, whichever is higher, for performing such service in the area served.
  QQQQQ.1. Effective, January 1, 2026, the Department of Medical Assistance Services
  (DMAS) is authorized to establish objective and measurable performance measures for
  acute care hospitals that are receiving private acute care hospital enhanced payments
  authorized in § 3-5.15 of this act. These measures shall assess whether the additional
  154
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    ITEM 288.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  payments improve services for Medicaid members. Specifically, DMAS shall include
  requirements to ensure access to care by Medicaid members through network adequacy
  requirements to prevent a hospital from reducing its service offerings in a manner that would
  have an adverse impact on Medicaid members in the community. In addition, DMAS shall
  include requirements to ensure improved coordination of care for behavioral health patients,
  including continued participation by hospitals in the acute bed registry. DMAS shall establish
  a process for measuring progress and may include a process to allow for corrective actions
  required for hospitals that do not achieve the specific performance measures established by
  DMAS. DMAS is authorized to measure progress toward these performance measures on a
  quarterly basis, unless DMAS determines that a specific measure is more appropriately
  measured on a longer timeframe. DMAS shall consult with impacted stakeholders in
  developing the performance measures and associated processes. A hospital that does not
  achieve the specific performance measures established by DMAS and is not able to fulfill the
  necessary corrective actions in the timeframe required by DMAS, shall lose eligibility for
  private acute care hospital enhanced payments for the associated period as determined by
  DMAS. DMAS shall submit a report to the Chairs of the House Appropriations and Senate
  Finance and Appropriations Committees on the measures established and associated processes
  by November 15, 2025.
  2. DMAS shall have the authority to seek necessary federal approval for state plan
  amendments and changes to the preprint to the Centers for Medicare and Medicaid Services to
  effectuate the provisions of paragraph QQQQQ.1.
  RRRRR. The Department of Medical Assistance Services shall have the authority to amend
  the State Plan for Medical Assistance to make supplemental payments through an adjustment
  to the formula for indirect medical education (IME) reimbursement, using managed care
  discharge days, not to exceed $30,000,000 total computable for teaching hospitals affiliated
  with Virginia Tech Carilion School of Medicine. The public entity shall transfer the non-
  federal share of the authorized supplemental payments. The funds to be transferred must
  comply with 42 CFR 433.51 and 433.54. Such funds may not be paid from any private
  agreements with Virginia Tech Carilion School of Medicine that are in excess of fair market
  value or that alleviate pre-existing financial burdens of the school. The Virginia Tech Carilion
  School of Medicine is authorized to use general fund dollars to accomplish this transfer. The
  Virginia Tech Carilion School of Medicine would enter into an Interagency Agreement with
  the department for this purpose and must attest to compliance with applicable CMS criteria.
  The department shall have the authority to implement these changes prior to completion of
  any regulatory process undertaken in order to effect such change.
  SSSSS. The Department of Medical Assistance Services shall seek the appropriate waiver
  authority for a demonstration project to add neurobehavioral and neurorehabilitation facilities
  to support 20 individuals with traumatic brain injuries and neurocognitive disorders by
  January 1, 2026. The neurobehavioral and neurorehabilitation facilities shall be considered as
  a specialized institutional placement for individuals with a traumatic brain injury diagnosis.
  The department shall set service definitions, administrative structure, eligibility criteria,
  eligibility and enrollment processes, and reimbursement rates required for administration of a
  program for such facilities. The department shall have authority to implement these changes
  prior to the completion of any regulatory process undertaken in order to effect such change.
  TTTTT. The Department of Medical Assistance Services (DMAS) is authorized to reimburse
  at the applicable Indian Health Services (IHS) outpatient all-inclusive rate published annually
  in the Federal Register for clinic services or federally qualified health center (FQHC) services
  provided to Medicaid-eligible American Indians and Alaska Natives (AI/AN) by facilities
  operated by Tribal Health Clinics and tribal FQHCs funded by Title I or V of the Indian Self
  Determination and Education Assistance Act, also known as Tribal 638 facilities, provided
  such payments are eligible for reimbursement at a federal medical assistance percentage
  (FMAP) of 100 percent. Any services provided by IHS or Tribal 638 facilities that are not
  eligible for reimbursement at a 100 percent FMAP shall be reimbursed at standard Medicaid
  rates (the rates otherwise paid to non-tribal facilities for the same services) and not at the IHS
  outpatient all-inclusive rate. DMAS is authorized to make any necessary managed care
  contract changes and seek all necessary federal authority through state plan or waiver
  amendments submitted to the Centers for Medicare and Medicaid Services under Titles XIX
  and XXI of the Social Security Act to implement the provisions of this paragraph. The
  department shall implement this reimbursement change consistent with the effective date of
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  FY2025  FY2026  FY2025        FY2026
  the appropriate federal authority, and prior to the completion of any regulatory process. If
  the above rate structure is not approved by the Centers for Medicare and Medicaid
  Services, then DMAS shall seek approval to reimburse IHS facilities, tribal clinics and
  tribal FQHCs at the standard Medicaid rate for all services.
  UUUUU. Effective July 1, 2025, the Department of Medical Assistance services shall
  increase the rates by 6.5 percent for Office Based Addiction Treatment, Opioid Treatment
  Services, Partial Hospitalization Services, and Intensive Outpatient Services.
  VVVVV. Effective July 1, 2025, the department shall modify nursing facility direct care
  base rates by redetermining each of the regional peer group prices under the existing
  methodology, except by using the cost of the relevant facility with the 59th percentile day
  in place of the cost of the currently mandated facility with the 50th percentile day, or
  “day-weighted median," cost. This shall be applied using the rebasing model implemented
  for fiscal year 2025 rates, with resulting direct care rates adjusted for this change and
  inflated to fiscal year 2026 per existing policy. This methodology change shall be
  maintained until the next rebasing. The department shall have the authority to implement
  these changes upon federal approval and prior to the completion of any regulatory process.
  WWWWW. The Department of Medical Assistance Services (DMAS) shall amend the
  Medicaid State Plan for Medical Assistance and regulations to provide supplemental
  payments for dentists employed by or contracted with Virginia Commonwealth
  University's School of Dentistry. The total supplemental payment shall be based on the
  average commercial rate as approved by the federal Centers for Medicare and Medicaid
  (CMS) and all other Medicaid payments subject to such limit made to such dentists.
  DMAS shall enter into a transfer agreement with Virginia Commonwealth University for
  such supplemental payments, in which the University shall provide the non-federal share
  in order to match federal Medicaid funds for the supplemental payments. The department
  shall have the authority to implement these reimbursement changes consistent with the
  effective date in the State Plan amendment approved by CMS and prior to completion of
  any regulatory process in order to effect such changes.
     289.       Not set out.
     290.       Medical Assistance Services for Low Income
  Children (46600)  $311,181,127   $335,777,427
  $316,975,150
  Reimbursements for Medical Services Provided to
  Low-Income Children (46601)  $311,181,127       $335,777,427
  $316,975,150
  Fund Sources: General  $104,833,980       $114,503,632
  $105,581,244
  Federal Trust  $206,347,147       $221,273,795
  $211,393,906
  Authority: Title 32.1, Chapters 9, 10 and 13, Code of Virginia; P.L. 89-97, as amended,
  Titles XIX and XXI, Social Security Act, Federal Code.
  To the extent that appropriations in this Item are insufficient, the Department of Planning
  and Budget shall transfer general fund appropriation, as needed, from Children's Health
  Insurance Program Delivery (44600) and Medicaid Program Services (45600), if
  available, into this Item to be used as state match for federal Title XXI funds.
     291.       Not set out.
     292.       Administrative and Support Services (49900)  $320,635,151   $356,653,548
  $359,153,548
  General Management and Direction (49901)  $301,948,415       $337,966,812
  $340,466,812
  Administrative Support for the Family Access to
  Medical Insurance Security Plan (49932)  $16,186,736      $16,186,736
  CHIP Health Services Initiatives (49936)  $2,500,000       $2,500,000
  Fund Sources: General  $81,923,962      $88,379,375
  156
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  Special  $7,329,800        $7,329,800
  Dedicated Special Revenue  $10,249,348       $10,257,513
  $10,882,513
  Federal Trust  $221,132,041      $250,686,860
  $252,561,860
  Authority: Title 32.1, Chapters 9 and 10, Code of Virginia; P.L. 89-97, as amended, Titles
  XIX and XXI, Social Security Act, Federal Code.
  A.1.a. Notwithstanding any other provision of law, by November 1 of each year, the
  Department of Medical Assistance Services (DMAS) shall prepare and submit a forecast of
  Medicaid expenditures, upon which the Governor's budget recommendations will be based,
  for the current and subsequent two years to the Director, Department of Planning and Budget
  (DPB) and the Chairmen of the House Appropriations and Senate Finance and Appropriations
  Committees.
  b. The forecast shall be based on current state and federal laws and regulations.
  c. The forecast shall reflect only expenditures for medical services provided in Program
  45600 and shall exclude service area 45606, service area 45607, and administrative
  expenditures.
  d. Rebasing and inflation estimates that are required by existing law or regulation for any
  Medicaid provider shall be included in the forecast.
  e. The forecast shall include a projection of the increases or decreases in managed care costs,
  including the rates that will be reflected in the upcoming July 1 contracts as well as changes in
  managed care rates for a three-year period including the current year.
  f. In preparing for each year's forecast of the managed care portions of the budget, DMAS
  shall submit to its actuarial contractor a letter of request, with a copy sent to the Director,
  DPB and the Chairmen of the House Appropriations and Senate Finance and Appropriations
  Committees. This letter shall document the department's request for a point estimate of
  managed care rates and changes in rates, based on the application of actuarial principals and
  methodologies and information available at the time of the forecast. The letter also shall
  require that the contractor reflect the years being forecasted, and shall specify the population
  groupings for which estimates are requested. The department shall request that the contractor
  reply in writing with a copy to all parties copied on the department's letter of request.
  2. In addition to the November 1 forecast submission, DMAS shall provide: 1) a separate
  accounting of forecasted expenditures by caseload/utilization, inflation and policy changes;
  and 2) an enrollment forecast for the same period of the forecast.
  3. In the development and execution of the official forecast, DMAS shall collaborate with
  staff from the Department of Planning and Budget (DPB), House Appropriations Committee
  and Senate Finance and Appropriations Committee. Further, DMAS shall consult with DPB
  and money committee staff throughout the year, as necessary, to review any issues that may
  influence the current or upcoming forecasts. Upon request from such staff, DMAS shall
  provide the information necessary to evaluate factors that may affect the Medicaid forecast;
  including, but not limited to, program utilization, enrollment, lump sum payments, and rate
  changes. At a minimum, DMAS shall provide such staff with program updates within 30 days
  after the end of each General Assembly session and fiscal year. By October 15 of each year,
  DMAS shall make a preliminary forecast of Medicaid expenditures available for review to
  staff from DPB and the House Appropriations and Senate Finance and Appropriations
  Committees. DMAS shall consider feedback generated from this review in the official
  November 1 forecast.
  B.1. The Department of Medical Assistance Services (DMAS) shall submit monthly
  expenditure reports of the Medicaid program by service that shall compare expenditures to the
  official Medicaid forecast, adjusted to reflect budget actions from each General Assembly
  Session. In addition, the department shall include information on service level detail,
  including explanations of budget and expenditure variances. The monthly report shall be
  submitted to the Department of Planning and Budget and the Chairmen of the House
  Appropriations and Senate Finance and Appropriations Committees within 20 days after the
  end of each month.
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  2. The Department of Medical Assistance Services shall prepare a quarterly report
  summarizing managed care expenditures by program and service category through the
  most recent quarter with three months of runout. The report shall summarize the data by
  service date for each quarter in the current fiscal year and the previous two fiscal years and
  update prior quarter expenditures. The department shall publish the report on the
  department's website no later than 30 days after the end of each quarter and shall notify
  the Department of Planning and Budget and the Chairmen of the House Appropriations
  and Senate Finance and Appropriations Committees. The department shall include in such
  notification information on unexpected trends that may have a significant budgetary
  impact.
  3. The Department of Medical Assistance Services shall track expenditures for the prior
  fiscal year that ended on June 30, that includes the expenditures associated with changes
  in services and eligibility made in the Medicaid and FAMIS programs adopted by the
  General Assembly in the past session(s). Expenditures related to changes in services and
  eligibility adopted in a General Assembly Session shall be included in the report for five
  fiscal years beginning from the first year the policy impacted expenditures in the Medicaid
  and FAMIS programs. The department shall report the expenditures of each funding
  change separately and show the impact by fiscal year. The report shall be submitted to the
  Department of Planning and Budget and the Chairmen of the House Appropriations and
  Senate Finance and Appropriations Committees by December 1 of each year.
  4. The Department of Medical Assistance Services (DMAS) shall convene a meeting
  three times each fiscal year with the Secretary of Finance, Secretary of Health and Human
  Resources, or their designees, and appropriate staff from the Department of Planning and
  Budget, House Appropriations and Senate Finance and Appropriations Committees, and
  Joint Legislative Audit and Review Commission, to monitor Medicaid expenditures and
  enrollment growth to determine the program's financial status. At each meeting, DMAS
  shall report on expenditures (at the service level of detail) and enrollment in the Medicaid
  and children's health insurance programs to explain any material differences in
  expenditures compared to the official Medicaid forecast or children's health insurance
  programs forecasts, adjusted to reflect budget actions from each General Assembly
  Session. In addition, DMAS shall report on enrollment trends by eligibility category and
  indicate differences in actual enrollment as compared to the most recent forecast of
  enrollment. If expenditures are exceeding the budget for Medicaid or the children's health
  insurance programs, the department shall provide options to bring expenditures in line
  with available resources. At each meeting, DMAS shall provide an update on any changes
  to the managed care programs, or contracts with managed care organizations, that includes
  detailed information and analysis on any such changes that may have an impact on the
  capitation rates or overall fiscal impact of the programs, including changes that may result
  in savings. In addition, DMAS shall provide an analysis at each meeting on spending and
  utilization trends within the the managed care programs with a focus on trends that
  indicate higher growth than was anticipated in the capitation rates. During each fiscal year,
  the meetings shall be held in April, July, and October of each year to review the time
  period since the last meeting.
  5. DMAS shall monitor the Medicaid and children's health insurance programs to ensure
  cost-effectiveness of these programs in the delivery of health care services and develop
  strategies to achieve such cost-effectiveness and report on such strategies to the Governor
  and the General Assembly on an annual basis, by no later than September 1 of each year.
  6. DMAS may only implement policy or programmatic changes to the Medicaid or
  children's health insurance programs after performing an analysis of potential costs to the
  Commonwealth. Any policy or programmatic change with a fiscal impact, for which no
  appropriation has been provided, shall only be implemented if it has been specifically
  authorized by the General Assembly through a general appropriation act, a statutory
  requirement, or is otherwise required by federal law. At least 15 days prior to the
  implementation of any change that may have a cost for which the agency does not have
  legislative appropriation, DMAS shall notify the Director, Department of Planning and
  Budget, and the Chairs of the House Appropriations and Senate Finance and
  Appropriations Committees.
  C. The Department of Medical Assistance Services shall report a detailed accounting,
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  annually, of the agency's organization and operations. This report shall include an
  organizational chart that shows all full- and part-time positions (by job title) employed by the
  agency as well as the current management structure and unit responsibilities. The report shall
  also provide a summary of organization changes implemented over the previous year. The
  report shall be made available on the department's website by August 15 of each year.
  D. The Department of Medical Assistance Services shall, within 15 days of receiving a
  deferral of federal grant funds, or release of a deferral, or a disallowance letter, notify the
  Director, Department of Planning and Budget, and the Chairmen of the House Appropriations
  and Senate Finance and Appropriations Committees of such deferral action or disallowance.
  The notice shall include the amount of the deferral or disallowance and a detailed explanation
  of the federal rationale for the action. Any federal documentation received by the department
  shall be attached to the notification.
  E.1. It is the intent of the General Assembly that the Department of Medical Assistance
  Services provide data regarding Medicaid and other programs operated by the department on
  their public website. The department shall maintain a central website that consolidates data
  and statistical information to make the information readily available to the general public. At
  a minimum the information included on such website shall include (i) monthly enrollment
  data; (ii) expenditures by service (iii) policy changes authorized by the General Assembly in
  the prior fiscal year, including the amount appropriated to address the fiscal impact and a 6-
  year projection of costs; and (iv) a list of programmatic and policy changes, including but not
  limited to, state plan amendments, federal waiver renewals and amendments, regulatory
  changes, guidance document changes, provider manuals and memos, managed care contract
  changes, technical assistance manual changes, or any other communication of official policy
  proposed by DMAS. The list shall include a brief description of the change, the authority for
  the change, an assessment of potential costs or savings, and other relevant data.
  2. The department shall make Medicaid and other agency data stored in the agency's data
  warehouse available through the department's website that includes, at a minimum, interactive
  tools for the user to select, display, manipulate and export requested data.
  3. The Department of Medical Assistance Services shall post on its website the complete State
  Plan for Medical Assistance along with all amendments in an easily searchable format to be
  accessible to the public.
  4. Within five days of any submission of a State Plan amendment to the Centers for Medicare
  and Medicaid Services, the Department of Medical Assistance Services shall post such
  submission on its website. The department shall also post any federal approval documents
  once the State Plan amendment is approved.
  F. The Department of Medical Assistance Services shall notify the Director, Department of
  Planning and Budget, and the Chairmen of the House Appropriations and Senate Finance and
  Appropriations Committees at least 30 days prior to any change in capitated rates for
  managed care companies. The notification shall include the amount of the rate increase or
  decrease, and the projected impact on the state budget.
  G. The Department of Medical Assistance Services, to the extent permissible under federal
  law, shall enter into an agreement with the Department of Behavioral Health and
  Developmental Services to share Medicaid claims and expenditure data on all Medicaid-
  reimbursed mental health, intellectual disability and substance abuse services, and any new or
  expanded mental health, intellectual disability and substance abuse services that are covered
  by the State Plan for Medical Assistance. The information shall be used to increase the
  effective and efficient delivery of publicly funded mental health, intellectual disability and
  substance abuse services.
  H. The Department of Medical Assistance Services (DMAS) shall collect and provide to the
  Office of Children's Services (OCS) all information and data necessary to ensure the
  continued collection of local matching dollars associated with payments for Medicaid eligible
  services provided to children through the Children's Services Act. This information and data
  shall be collected by DMAS and provided to OCS on a monthly basis.
  I. The Department of Medical Assistance Services in cooperation with the State Executive
  Council, shall provide semi-annual training to local Children's Services Act teams on the
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  procedures for use of Medicaid for residential treatment and treatment foster care services,
  including, but not limited to, procedures for determining eligibility, billing,
  reimbursement, and related reporting requirements. The department shall include in this
  training information on the proper utilization of inpatient and outpatient mental health
  services as covered by the Medicaid State Plan.
  J. The Departments of Medical Assistance Services (DMAS) and Social Services (DSS)
  shall collaborate with the League of Social Services Executives, and other stakeholders to
  analyze and report data that demonstrates the accuracy, efficiency, compliance, quality of
  customer service, and timeliness of determining eligibility for the Medicaid and CHIP
  programs. Based on this collaboration, the departments shall develop meaningful
  performance metrics on data in agency systems that shall be used to monitor eligibility
  trends, address potential compliance problem areas and implement best practices. DMAS
  shall maintain on its website a public dashboard on eligibility performance that includes
  performance metrics developed through collaborative efforts as well as the performance of
  local departments of social services and any centralized eligibility-processing unit.
  Effective August 1, 2018 this dashboard shall be updated for the previous quarter and 30
  days following the end of each quarter thereafter.
  K. In addition to any regional offices that may be located across the Commonwealth, any
  statewide, centralized call center facility that operates in conjunction with a brokerage
  transportation program for persons enrolled in Medicaid or the Family Access to Medical
  Insurance Security plan shall be located in Norton, Virginia.
  L. The Department of Medical Assistance Services, in collaboration with the Department
  of Social Services, shall require Medicaid eligibility workers to search for unreported
  assets at the time of initial eligibility determination and renewal, using all currently
  available sources of electronic data, including local real estate property databases and the
  Department of Motor Vehicles for all Medicaid applicants and recipients whose assets are
  subject to an asset limit under Medicaid eligibility requirements.
  M.1. The Department of Medical Assistance Services shall require eligibility workers to
  verify income, using currently available Virginia Employment Commission data, for
  applicants and recipients who report no earned or unearned income. The Department shall
  require all Medicaid eligibility workers to apply the same protocols when verifying
  income for all applicants and recipients, including those who report no earned or unearned
  income.
  2. The Department shall amend the Virginia Medicaid application, upon approval of the
  federal Centers for Medicare and Medicaid Services, to require a Medicaid applicant to
  opt out if such applicant does not want to grant permission to the state to use his federal
  tax returns for the purposes of renewing eligibility. The department shall implement the
  necessary regulatory changes and other necessary measures to be consistent with federal
  approval of any appropriate State Plan changes, and prior to the completion of any
  regulatory process undertaken in order to effect such change.
  N.1. The Department of Medical Assistance Services shall report on the operations and
  costs of the Medicaid call center (also known as the Cover Virginia Call Center). This
  report shall include the number of calls received on a monthly basis, the purpose of the
  call, the number of applications for Medicaid submitted through the call center, and the
  costs of the contract. The department shall submit the report by August 15 of each year to
  the Director, Department of Planning and Budget and the Chairmen of the House
  Appropriations and Senate Finance and Appropriations Committees.
  2. Out of this appropriation, $3,889,800 the first year and $3,889,800 the second year from
  the general fund and $10,868,700 the first year and $10,868,700 the second year from
  nongeneral funds is provided for the enhanced operation of the Cover Virginia Call Center
  as a centralized eligibility processing unit (CPU) that shall be limited to processing
  Medicaid applications received from the Federally Facilitated Marketplace, telephonic
  applications through the call center, or electronically submitted Medicaid-only
  applications. The department shall report the number of applications processed on a
  monthly basis and payments made to the contractor to the Director, Department of
  Planning and Budget and the Chairman of the House Appropriations and Senate Finance
  and Appropriations Committees. The report shall be submitted no later than 60 days after
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  FY2025  FY2026  FY2025  FY2026
  the end of each quarter of the fiscal year.
  O. Out of this appropriation, $15,462,264 the first year and $15,462,264 the second year from
  the general fund and $62,407,632 the first year and $62,407,632 the second year from
  nongeneral funds shall be provided to maintain and operate the Medicaid Enterprise System.
  P.1. Out of this appropriation, $6,035,000 the first year and $6,035,000 the second year from
  special funds is appropriated to the Department of Medical Assistance Services (DMAS) for
  the disbursement of civil money penalties (CMP) levied against and collected from Medicaid
  nursing facilities for violations of rules identified during survey and certification as required
  by federal law and regulation. Based on the nature and seriousness of the deficiency, the
  agency or the Centers for Medicare and Medicaid Services may impose a civil money penalty,
  consistent with the severity of the violations, for the number of days a facility is not in
  substantial compliance with the facility's Medicaid participation agreement. Civil money
  penalties collected by the Commonwealth must be applied to the protection of the health or
  property of residents of nursing facilities found to be deficient. Penalties collected are to be
  used for (1) the payment of costs incurred by the Commonwealth for relocating residents to
  other facilities; (2) payment of costs incurred by the Commonwealth related to operation of
  the facility pending correction of the deficiency or closure of the facility; and (3)
  reimbursement of residents for personal funds or property lost at a facility as a result of
  actions by the facility or individuals used by the facility to provide services to residents.
  These funds are to be administered in accordance with the revised federal regulations and law,
  42 CFR 488.400 and the Social Security Act § 1919(h), for Enforcement of Compliance for
  Long-Term Care Facilities with Deficiencies. Any special fund revenue received for this
  purpose, but unexpended at the end of the fiscal year, shall remain in the fund for use in
  accordance with this provision.
  2. Of the amounts appropriated in P.1. of this Item, up to $225,000 the first year and $225,000
  the second year from special funds may be used for the costs associated with administering
  CMP funds.
  3. Of the amounts appropriated in P.1. of this Item, up to $2,310,000 the first year and
  $2,310,000 the second year from the special funds may be used for special projects that
  benefit residents and improve the quality of nursing facilities.
  4. Out of the amounts appropriated in P.1. of this Item, $3,500,000 the first year and
  $3,500,000 the second year from special funds shall be used for a quality improvement
  program addressing nursing facility capacity building. The program design may be based on
  the results of the Virginia Gold Quality Improvement Program pilot project, to include peer
  mentoring, job-related and interpersonal skills training, and work-related benefits. The
  Department of Medical Assistance Services shall seek approval from the Centers for
  Medicare & Medicaid Services (CMS) to implement the program.
  5. By October 1 of each year, the department shall provide an annual report of the previous
  fiscal year that includes the amount of revenue collected and spending activities to the
  Chairmen of the House Appropriations and Senate Finance and Appropriations Committees
  and the Director, Department of Planning and Budget.
  6. No spending or activity authorized under the provisions of paragraph P. of this Item shall
  necessitate general fund spending or require future obligations to the Commonwealth.
  7. The department shall maintain a CMP special fund balance of at least $1.0 million to
  address emergency situations in Virginia's nursing facilities.
  8. The Department of Medical Assistance Services is authorized to administratively request
  up to $2,000,000 of additional special fund appropriation for special projects if 1) the
  appropriated amounts in P.3. are insufficient; and 2) such projects and costs are approved by
  the Centers for Medicare and Medicaid Services (CMS) for the Civil Money Penalty
  Reinvestment State Plan. The Department of Planning Budget shall approve such requests
  provided the required conditions are met.
  Q. Out of this appropriation, $100,000 the first year and $100,000 the second year from the
  general fund shall be provided to contract with the Virginia Center for Health Innovation for
  research, development and tracking of innovative approaches to healthcare delivery.
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  R. The Department of Medical Assistance Services shall, prior to the end of each fiscal
  quarter, determine and properly reflect in the accounting system whether pharmacy
  rebates received in the quarter are related to fee-for-service or managed care expenditures
  and whether or not the rebates are prior year recoveries or expenditure refunds for the
  current year. The state share of pharmacy rebates for the quarter determined to be prior
  year revenue shall be deposited to the Virginia Health Care Fund before the end of the
  fiscal quarter. The department shall create and use a separate revenue source code to
  account for pharmacy rebates in the Virginia Health Care Fund.
  S. Out of this appropriation, $87,500 the first year and $87,500 the second year from the
  general fund and $262,500 the first year and $262,500 second year from nongeneral funds
  shall be provided for support of the All Payer Claims Database operated by Virginia
  Health Information. This appropriation is contingent on federal approval of an Operational
  Advanced Planning Document.
  T. Out of this appropriation, $875,000 the first year and $875,000 the second year from
  the general fund and $1,625,000 the first year and $1,625,000 the second year from
  nongeneral funds is provided for the Department of Medical Assistance Services to amend
  the State Plan and any waivers under Title XXI to fund $2,500,000 annually for
  two Poison Control centers serving Virginia as part of a Health Services Initiative. The
  department shall have the authority to promulgate emergency regulations to implement
  these amendments within 280 days or less from the enactment of this Act.
  U. Notwithstanding any other provision of law, the Department of Medical Assistance
  Services (DMAS) shall have the authority to adjust the date of any agency payments
  should doing so allow the agency to maximize federal reimbursement. This language shall
  only apply to the extent that any impacted payments or reimbursements are allowable and
  appropriate under state and federal rules.
  V. The Department of Medical Assistance Services shall amend regulations to clarify (i)
  the burden of proof in client appeals; (ii) the scope of review for de novo hearings in client
  appeals, and (iii) the timeframes for submission of documents and decision deadlines for
  de novo client hearings. The department shall have the authority to promulgate emergency
  regulations to implement these amendments within 280 days or less from the enactment of
  this Act.
  W. Out of this appropriation, $447,700 the first year and $447,700 the second year from
  the general fund and $1,212,666 the first year and $1,212,666 the second year from
  nongeneral funds is provided to implement the Virginia Facilitated Enrollment Program.
  X. Out of this appropriation, $1,319,515 the first year and $1,319,515 the second year
  from the general fund and $3,798,129 the first year and $3,798,129 the second year from
  federal funds is provided to support the Emergency Department Care Coordination
  Program (EDCC) as allowed by the Centers for Medicare and Medicaid Services. The
  Department of Medical Assistance Services, in cooperation with the Virginia Department
  of Health, shall establish a work group comprised of the EDCC contractor, the Virginia
  Health Information, Medicaid and commercial managed care organizations, health
  systems with emergency departments and emergency department physicians to optimize
  the use of the system and any enhancements to the system to facilitate communication and
  collaboration among physicians, other healthcare providers and other clinical and care
  management personnel about patients receiving services in hospital emergency
  departments for the purpose of improving the quality of care.
  Y. Out of this appropriation, $90,000 the first year and $90,000 the second year from the
  general fund and $90,000 the first year and $90,000 the second year from federal funds
  shall be used by the agency to hire a full time employee in the provider reimbursement
  division. This employee shall have the actuarial and accounting experience necessary to
  provide ongoing expertise on nursing facility reimbursement and rate methodology issues.
  Z. Out of this appropriation, $300,000 the first year and $300,000 the second year from
  the general fund and $300,000 the first year and $300,000 the second year from federal
  funds shall be used by the agency to hire five additional full-time employees to augment
  existing staff in the agency's finance division. Specifically, the Department of Medical
  Assistance Services shall hire three additional positions in the budget division, one
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  additional position in the fiscal division and one additional position in the provider
  reimbursement division. The agency shall inform the Director, Department of Planning and
  Budget once these positions are hired. In addition, these positions shall be highlighted in the
  agency's annual organizational report.
  AA. Out of this appropriation, $551,010 the first year and $551,010 the second year from the
  general fund and $1,530,583 the first year and $1,530,583 the second year from nongeneral
  funds is provided for 17 positions to improve Third-Party Liability (TPL) recoveries. These
  additional positions shall augment the existing 17 positions currently utilized by the
  Department of Medical Assistance Services to support TPL recovery efforts. DMAS shall
  utilize a minimum of 34 positions to perform TPL recoveries. DMAS shall make information
  related to TPL activities available on the agency website. This data should be updated
  quarterly and include, but not be limited to, state and federal compliance status, backlogs and
  amounts recovered.
  BB. Out of this appropriation, $85,000 the first year and $85,000 the second year from the
  general fund and $85,000 the first year and $85,000 the second year from federal funds is
  provided for a position to support agency responsibilities associated with developmental
  disability waiver services. Effective July 1, 2023, the Department of Medical Assistance
  Services shall be fully responsible for all financial analysis, rates, and budget work associated
  with Virginia's developmental disability waiver services.
  CC. Three positions are provided to replace contractual staff in the eligibility and enrollment
  unit. The department shall utilize a minimum of four classified positions to support this unit's
  activities.
  DD. Out of this appropriation, $1,000,000 the first year and $2,200,00 the second year from
  the general fund and $8,000,000 the first year and $19,800,000 the second year from
  nongeneral funds is provided to replace the agency fiscal agent services system. The Director,
  Department of Planning and Budget, shall unallot this appropriation until the Department of
  Medical Assistance Services provides documentation of actual costs to replace the system and
  shall only allot the amounts needed for actual expenditures in each fiscal year.
  EE. Out of this appropriation, $590,000 the first year and $590,000 the second year from the
  general fund shall be provided to enhance the oversight of the Cardinal Care Managed Care
  Contract. The department shall increase the staff support for managed care contract operations
  by three positions.
  FF. The Department of Medical Assistance Services shall improve efforts to determine if
  individuals applying for and enrolled in the Medicaid and CHIP programs are eligible for
  alternative health care coverage. The department shall report on its efforts, as well as potential
  strategies to enhance coverage identifications, to the Chairmen of the House Appropriations
  and Senate Appropriations and Finance Committees and the Director, Department of Planning
  and Budget by October 1 of each year.
  GG. The Department of Medical Assistance (DMAS) shall convene a workgroup to evaluate
  the criteria for hospitals to qualify for disproportionate share hospital (DSH) payments. The
  workgroup shall evaluate current DSH criteria, including the Medicaid inpatient utilization
  rate, to determine changes that are necessary to reflect the impact from the Commonwealth's
  expansion of Medicaid in 2019. The workgroup shall recommend a new Medicaid inpatient
  utilization threshold to qualify for DSH payments to ensure that those hospitals with the
  largest uncompensated care costs are receiving appropriate DSH payments. The workgroup
  shall include representatives from DMAS, the Department of Planning and Budget, and staff
  from the House Appropriations and Senate Finance and Appropriations Committees. The
  workgroup shall report its findings to the Governor and the Chairs of the House
  Appropriations and Senate Finance and Appropriations Committees by October 1, 2024.
  HH. Out of this appropriation, $500,000 from the general fund and $500,000 from nongeneral
  funds the first year shall be provided to the Department of Medical Assistance Services
  (DMAS) to hire a consultant, with Medicaid-specific knowledge related to eligibility
  determination, process-design and information technology, to evaluate Medicaid eligibility
  determination in the Commonwealth. The consultant shall conduct a systematic review and
  evaluate all aspects of Medicaid eligibility determination as performed by DMAS and local
  departments of social services (LDSS). This review shall include, but not be limited to, the
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    ITEM 292.  First Year    Second Year       First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  following: (i) evaluate the current information technology systems; (ii) measure the
  accuracy, processing times and efficiency of current eligibility determination processes;
  (iii) determine how well the current structure and systems handle high volumes; (iv) assess
  the current level of automation and determine processes that could be streamlined; (v)
  analyze the overall cost-effectiveness of how eligibility is conducted, considering staffing
  costs and ongoing operational expenses; (vi) examine best practices in other states; and
  (vii) develop cost-effective options for enhancing eligibility determination in the
  Commonwealth including alternative delivery models. DMAS, the Department of Social
  Services, and LDSS shall provide full cooperation with the consultant and provide the
  necessary assistance to conduct the required evaluation. The consultant shall be required
  to report their findings and recommendations directly to the Governor, Department of
  Planning and Budget, and Chairs of the House Appropriations and Senate Finance and
  Appropriations Committees by December 15, 2024. The Director, Department of Planning
  and Budget, shall unallot this appropriation until the Department of Medical Assistance
  Services provides documentation of the contract's cost, and shall only allot the amount
  needed for the contract.
  II. Out of this appropriation, $162,825 the first year and $48,871 the second year from the
  general fund and $337,175 the first year and $48,871 the second year from nongeneral
  funds is provided to support the administrative cost of implementing an 1115 serious
  mental illness waiver. Any unexpended balance in this paragraph at the close of business
  on June 30, 2025 associated with unpaid implementation costs shall not revert to the
  general fund but shall be carried forward and reappropriated.
  JJ. Out of this appropriation, $250,000 the first year from the general fund and $250,000
  the first year from federal funds shall be provided to contract with the Virginia Task Force
  on Primary Care (VTFPC) to conduct research dedicated to guiding Medicaid policy as it
  relates to primary health care. By October 1, 2025, VTFPC shall provide an update to the
  Department of Medical Assistance Services (DMAS) on its research activities. DMAS
  shall provide this update to the Director, Department of Planning and Budget and the
  Chairs of the House Appropriations and Senate Finance and Appropriations Committees
  upon receipt.
  KK. Out of this appropriation, $2,104,607 the first year and $4,065,218 the second year
  from the general fund and $4,611,459 the first year and $9,070,391 the second year from
  nongeneral funds is provided for the Department of Medical Assistance Services to
  contract with a vendor to handle all mail directed to local departments of social services
  associated with medical assistance services. Any unexpended balance in this paragraph at
  the close of business on June 30, 2025 associated with unpaid implementation costs shall
  not revert to the general fund but shall be carried forward and reappropriated.
  LL. Out of this appropriation, $235,000 from the general fund and $235,000 from
  nongeneral funds the first year shall be provided to implement the provisions of House
  Bill 1804, as passed during the 2025 Regular Session. Any unexpended balances for the
  purposes specified in this paragraph which are unexpended on June 30, 2025, shall not
  revert to the general fund but shall be carried forward and reappropriated in fiscal year
  2026.
  MM.1. Out of this appropriation, $500,000 from the general fund and $500,000 from
  nongeneral funds the first year shall be provided to the Department of Medical Assistance
  Services (DMAS) to conduct a comprehensive evaluation of the potential benefits, cost
  savings, and implementation considerations associated with utilizing a single third-party
  administrator to serve as the pharmacy benefit manager (PBM) for all Medicaid pharmacy
  benefits. This evaluation shall include an analysis of financial efficiencies, improved
  transparency, and the impact on patient access to pharmacy services, including community
  critical access pharmacies, along with timelines and cost for both implementation and
  ongoing operation and maintenance. As part of this process, DMAS shall engage an
  independent consultant with direct experience: (i) advising Medicaid fraud control units;
  and (ii) working with states that have transitioned to a single PBM model, to assess best
  practices and provide guidance on structuring a model that maximizes cost savings and
  operational effectiveness. The consultant shall not be currently engaged by any managed
  care organization or by any PBM contracted with a managed care organization.
  164
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    ITEM 292.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  2. The evaluation shall also include a detailed assessment of the implementation costs
  associated with transitioning to a single PBM model. Any such implementation costs shall be
  analyzed in comparison to the projected cost savings identified in the independent evaluation
  to ensure fiscal accountability. Additionally, the evaluation shall include a review of fee-for-
  service and managed care pharmacy dispensing fees and provide recommendations for
  adjustments necessary to maintain adequate pharmacy participation and patient access.
  DMAS shall report its findings, including projected implementation and ongoing costs,
  anticipated cost savings, recommended pharmacy dispensing fees, timeline for
  implementation, and any other recommendations for improving the administration of
  Medicaid pharmacy benefits, to the Governor and the General Assembly by December 1,
  2025. Any unexpended balances for the purposes specified in paragraph MM.1. and MM.2.
  which are unexpended on June 30, 2025, shall not revert to the general fund but shall be
  carried forward and reappropriated in fiscal year 2026.
  NN. No appropriation in this item shall be used to fund any study of medical assistance
  provider rates unless the General Assembly has provided specific authorization for such
  study. This provision shall not apply to routine rate work that is necessary to administer
  medical assistance programs under existing state and federal law.
  OO. The Department of Medical Assistance Services is authorized to conduct a rate study of
  Developmental Disabilities Services required pursuant to the Permanent Injunction (Civil
  Action No. 3:12CV59-JAG). The department shall include stakeholders as part of the rate
  development process and consider their feedback in the process. The department shall submit
  a report with the recommended rates and associated fiscal impact to the Governor, the
  Director of the Department of Planning and Budget, and the Chairs of the House
  Appropriations and Senate Finance and Appropriations Committees by October 1, 2025.
  PP. Out of this appropriation, $206,889 the first year and $3,094,795 the second year from the
  general fund and $2,832,111 the first year and $16,216,115 the second year from nongeneral
  funds shall be provided for the Department of Medical Assistance Services to contract with a
  vendor to implement identified solutions to assist in timely and accurate Medicaid eligibility
  determinations and redeterminations. Solutions may include additional data checks to verify
  financial eligibility, additional data matching capability, and a portal to receive and track
  coverage corrections for enrollment requests between the 120 local departments of social
  services. Funding may be used to make enhancements to the Medicaid Management
  Information System and the Virginia Case Management System to implement the identified
  solutions. The Director of the Department of Planning and Budget shall unallot this
  appropriation until the Department of Medical Assistance Services provides documentation of
  the contract's cost and shall only allot the amount contracted for with such vendor.
  QQ. Effective upon enactment of this act, the Department of Medical Assistance Services,
  related to appeals administered by and for the department, shall have authority to amend
  regulations to require provider appeals to be filed only online through the department's appeal
  portal. Exceptions may be requested before a filing deadline by a provider for good cause for
  situations, such as lack of internet access in rural areas or other extenuating circumstances
  explained by the filing provider. The department shall have authority to promulgate
  regulations to implement these changes within 280 days or less from the enactment date of
  this act.
  RR. The Department of Medical Assistance Services shall make efforts to ensure that
  pregnant women that apply for Medicaid coverage utilize the Cover Virginia call center, to
  the maximum extent possible, in order to reduce the processing time of the application and
  expedite the applicant into coverage. The department shall collaborate with the Department of
  Social Services to ensure that local departments of social services have in place procedures
  and processes to connect pregnant women to the Cover Virginia call center to apply for
  coverage, unless such person is required to apply through a local department due to eligibility
  for other benefits programs.
  SS. The Department of Medical Assistance Services, in collaboration with the Department of
  Social Services, shall develop cost estimates for the options proposed in the "Evaluation of
  Medicaid Eligibility Determination" report to the General Assembly in December 2024 and
  report back to the Governor, the Director of the Department of Planning and Budget, and the
  Chairs of the House Appropriations and Senate Finance and Appropriations Committees by
  165
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  Item Details($)  Appropriations($)
    ITEM 292.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  September 15, 2025.
  TT. The Department of Medical Assistance Services (DMAS) and the Department of
  Social Services (DSS) shall design and institutionalize a joint Steering Committee on
  Medicaid Eligibility. The Steering Committee shall: (i) document the areas in which
  DMAS and DSS need to collaborate; (ii) develop and agree upon a charter for the
  committee that outlines the types of decision rights each agency has independently versus
  what the Steering Committee oversees, membership, meeting schedule, topics leadership
  needs routine visibility on, a process for escalating issues to the Steering Committee, a
  process for the staff to brief the Steering Committee, and a process for coordinating and
  briefing the Secretary of Health and Human Resources or other state leaders as needed;
  (iii) determine when special initiatives or task forces are required to ensure focused
  collaboration on key issues; (iv) have oversight over Medicaid eligibility improvement
  efforts; and (v) have the authority to establish a stakeholder advisory forum to inform
  improvement efforts.
  UU.1. Out of this appropriation, $1,250,000 the second year from the general fund and
  $1,250,000 the second year from nongeneral funds shall be provided to the Department of
  Medical Assistance Services, in consultation with Virginia universities and private
  businesses, to create a pilot program for mobile clinics within maternal health deserts in
  Virginia, as well as funding for data collection to measure the effectiveness of the
  program.
  2. The department shall evaluate the program’s effectiveness and options for transitioning
  it to managed care organizations. This evaluation shall be provided to the to the Governor
  and Chairs of the House Appropriations and Senate Finance and Appropriations
  Committees by September 1, 2026.
  Total for Department of Medical Assistance
  Services  $26,272,790,627 $27,548,919,470
  $28,731,997,064
  General Fund Positions  274.02  276.52
  Nongeneral Fund Positions  292.98  295.48
  Position Level  567.00  572.00
  Fund Sources: General  $7,209,890,810  $7,622,621,275
  $8,038,519,706
  Special  $7,329,800      $7,329,800
  Dedicated Special Revenue  $2,287,759,743 $2,319,107,795
  $2,698,055,045
  Federal Trust  $16,767,810,274 $17,599,860,600
  $17,988,092,513
  § 1-14. DEPARTMENT OF BEHAVIORAL HEALTH AND DEVELOPMENTAL SERVICES (720)
     293.       Not set out.
     294.       Not set out.
     295.       Not set out.
     296.       Central Office Managed Community and
  Individual Health Services (44400)  $178,884,498    $157,904,251
  Individual and Developmental Disability Services
  (44401)  $7,169,347       $10,320,331
  Mental Health Services (44402)  $169,415,151      $145,283,920
  Substance Abuse Services (44403)  $2,300,000        $2,300,000
  Fund Sources: General  $177,900,843      $156,538,191
  Special  $983,655  $983,655
  Federal Trust  $0  $382,405
  166
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    ITEM 296.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  Authority: Title 16.1, Article 18, and Title 37.2, Chapters 2, 3, 4, 5, 6 and 7, and Title 2.2,
  Chapters 26 and 53 Code of Virginia; P.L. 102-119, Federal Code.
  A. Out of this appropriation, $5,050,000 the first year and $5,050,000 the second year from
  the general fund shall be used for Developmental Disability Health Support Networks in
  regions served, or previously served, by Southside Virginia Training Center, Central Virginia
  Training Center, Northern Virginia Training Center, and Southwestern Virginia Training
  Center.
  B. Out of this appropriation, $705,000 the first year and $705,000 the second year from the
  general fund shall be used to provide community-based services to individuals transitioning
  from state training centers to community settings who are not eligible for Medicaid.
  C.1. Out of this appropriation, $27,722,785 the first year and $27,722,785 the second year
  from the general fund shall be used to address census issues at state facilities by providing
  community-based services for those individuals determined clinically ready for discharge or
  for the diversion of admissions to state facilities by purchasing acute inpatient or community-
  based psychiatric services.
  2. Out of this appropriation, $2,500,000 the first year and $2,500,000 the second year from the
  general fund is provided for the development or acquisition of clinically appropriate housing
  options to provide comprehensive community-based care for individuals in state hospitals
  who have complex and resource-intensive needs who have been clinically determined able to
  move from a hospital to a more integrated setting. In addition to the funds in this Item,
  $250,000 the first year and $250,000 the second year from the general fund is provided in
  Item 295 of this Act for a community support team to assist housing providers in addressing
  the complex needs of residents who have been discharged from state facilities or individuals
  who are at risk of institutionalization.
  D. Out of this appropriation, $770,000 the first year from the general fund is provided to
  improve clinical and financial tracking of Discharge Assistance Planning funds and Local
  Inpatient Purchase of Services funds through the purchase of an information technology
  solution.
  E.1. Out of this appropriation, $14,522,552 the first year and $18,673,707 the second year
  from the general fund shall be provided for alternative transportation for adults and children
  under a temporary detention order or involuntary commitment order and for a program of
  alternative custody for individuals under an emergency custody order, temporary detention
  order, or involuntary commitment order who are awaiting evaluation or transport to an
  inpatient bed. The Department of Behavioral Health and Developmental Services, in
  consultation with local law enforcement, community services boards, and other stakeholders
  as appropriate, shall implement a plan to provide alternative custody options for individuals
  under temporary detention orders or involuntary commitment orders to reduce the length of
  time law enforcement resources are involved and improve patient outcomes. The department
  may contract with private contractors, enter into agreements with local law enforcement
  organizations, contract with Community Services Boards, or use other methods as necessary
  to implement the program. The department shall report to the Governor and Chairmen of the
  House Appropriations and Senate Finance and Appropriations Committees on the
  effectiveness and outcomes of the program funding by October 1 of each year.
  2. Out of the amounts in E.1., up to $10,089,107 the second year from the general fund is
  provided for contracts with private hospitals or other qualified agencies to hire Special
  Conservators of the Peace, as defined in §§ 19.2-12 through 19.2-25, Code of Virginia, to
  provide capacity for emergency departments to maintain custody of individuals under
  emergency custody orders and/or temporary detention orders until the individual is ready for
  transport to the bed of temporary detention or released. The department shall prioritize this
  funding to fund contracts that provide coverage for all of Region Three and Region One and,
  to the extent that any funding is available after needs are met in Regions Three and One, the
  department may expand the program into Region Five. Notwithstanding any other provision
  of law, such contracts shall be exempt from competition as otherwise required by the Virginia
  Public Procurement Act, §§ 2.2-4300 through 2.2-4377, Code of Virginia.
  F. Out of this appropriation, $1,150,000 the first year and $1,150,000 the second year from
  the general fund shall be provided for costs of transporting individuals from state behavioral
  167
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    ITEM 296.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  health facilities to their homes after being discharged from such facility as a result from an
  admission under a temporary detention order.
  G. Out of this appropriation, $14,785,488 the first year and $14,785,488 the second year
  from the general fund shall be provided to the Department of Behavioral Health and
  Developmental Services to contract with the Virginia Mental Health Access Program to
  develop integrated mental health services for children.
  H. Out of this appropriation, $300,000 the first year and $300,000 the second year from
  the general fund shall be used to purchase and distribute additional REVIVE! kits.
  I. Out of this appropriation, $7,600,000 in the first year and $7,600,000 the second year
  from the general fund shall be used to address census issues at state facilities by providing
  community-based services for children and adolescents determined clinically ready for
  discharge or for the diversion of admissions of children and adolescents to state facilities
  by purchasing acute inpatient services, step-down services, or community-based services
  as an alternative to inpatient care.
  J. The Department of Behavioral Health and Developmental Services shall post its annual
  federal State Targeted Response Report and State Opioid Response (SOR) Report on its
  website no later than December 31 of each year. The report will describe the amount of
  any grants received from the Substance Abuse and Mental Health Services Administration
  as part of any State Opioid Response grant funding, and shall provide information on how
  the funds are distributed among programs, the number of individuals served if available,
  and any available outcome-based data specific to treatment engagement and impact on
  access.
  K. Out of this appropriation, $89,396 the first year and $89,396 the second year from the
  general fund shall be provided to the Department of Behavioral Health and Developmental
  Services to contract with the Jewish Foundation for Group Homes to expand the
  Transitioning Youth program for individuals with developmental disability who are aging
  out and exiting the school system in Loudoun County.
  L.1. Out of this appropriation, $1,950,000 the first year and $1,950,000 the second year is
  provided to make grants to recovery residences certified by the Department of Behavioral
  Health and Developmental Services for recovery support services. Grantees of these funds
  will comply in a timely manner with all requirements of the agreement entered into with
  the Department of Behavioral Health and Developmental Services as a result of this
  appropriation. Any violations of the agreement shall be reported to the Chairs of House
  Appropriations and Senate Finance and Appropriations Committees within thirty days of
  their occurrence. Grantees shall report monthly to the Department of Behavioral Health
  and Development Services providing financial and operational documentation for services
  provided. The Department of Behavioral Health and Developmental Services shall report
  annually to the Governor and the Chairmen of the House Appropriations and Senate
  Finance and Appropriations Committees by August 1 on the distribution and use of the
  funds authorized in this paragraph.
  2. The Department of Behavioral Health and Developmental Services shall monitor
  credentialed recovery homes for regulatory compliance and consult with credentialed
  entities designated in §37.2-431.1 to keep the agency's public website's list of credentialed
  recovery homes up to date.
  3. The Department of Behavioral Health and Developmental Services may expand the
  buildout of recovery residences by initiating a bidding process by entity to ensure
  coverage across the Commonwealth for this support service.
  M.1. Out of this appropriation, $3,547,000 the first year and $3,647,000 the second year
  from the general fund shall be used to support the diversion and discharge of individuals
  with a diagnosis of dementia. Priority shall be given to those individuals who would
  otherwise be served by state facilities.
  2. Of the amounts in M.1., $2,820,000 the first year and $2,820,000 the second year shall
  be used to establish contracts to support the diversion and discharge into private settings
  of individuals with a diagnosis of dementia.
  168
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  Item Details($)  Appropriations($)
    ITEM 296.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  3. Of the amounts in M.1., $727,000 the first year and $727,000 the second year shall be used
  for mobile crisis program targeted for individuals with a diagnosis of dementia.
  N. Out of this appropriation, $1,650,000 the first year and $2,650,000 the second year from I VETO ITEM 296.N.
  the general fund is provided for pilot programs for individuals with dementia or geriatric ON PAGE 168
  individuals who may otherwise be admitted to a state facility.  /s/ Glenn Youngkin
  5-2-25
  O. Out of this appropriation, $7,535,122 the first year and $7,535,122 the second year from
  the general fund is provided to divert admissions from state hospitals by purchasing acute
  inpatient or community-based psychiatric services at private facilities. This funding shall be
  allocated to Community Services Boards and a Behavioral Health Authority for such purpose
  in an efficient and effective manner so as not to disrupt local service contracts and to allow for
  expeditious reallocation of unspent funding between Community Services Boards and a
  Behavioral Health Authority.
  P.1. Out of this appropriation, $13,500,000 the first year and $13,500,000 the second year
  from the general fund is provided for the Department of Behavioral Health and
  Developmental Services (DBHDS) to pursue alternative inpatient options to state behavioral
  health hospital care or to increase capacity in the community for patients on the Extraordinary
  Barriers List through projects that will reduce census pressures on state hospitals. Proposals
  shall be evaluated on: (i) the expected impact on state hospital bed use, including the impact
  on the extraordinary barrier list; (ii) the speed by which the project can become operational;
  (iii) the start-up and ongoing costs of the project; (iv) the sustainability of the project without
  the use of ongoing general funds; (v) the alignment between the project target population and
  the population currently being admitted to state hospitals; and (vi) the applicant's history of
  success in meeting the needs of the target population. No project shall be allocated more than
  $2,500,000 each year. Projects may include public-private partnerships, to include contracts
  with private entities. The department shall give preference to projects that serve individuals
  who would otherwise be admitted to a state hospital operated by DBHDS, that can be rapidly
  implemented, and provide the best long-term outcomes for patients. Consideration may be
  given to regional projects addressing comprehensive psychiatric emergency services, complex
  medical and neuro-developmental needs of children and adolescents receiving inpatient
  behavioral health services, and addressing complex medical needs of adults receiving
  inpatient behavioral health services.
  2. Of the amounts in P.1., $1,500,000 the first year and $1,500,000 the second year may be
  utilized to pursue a pilot program to support the discharge of private hospital patients at risk
  of transfer to state mental health hospitals. The department shall prioritize assistance to
  patients who can be diverted from state hospital admission through discharge training,
  planning consultation, and/or one-time financial assistance. Financial assistance from this
  program shall only be provided as a method of last resort to assist in re-entry to the
  community.
  3. Of the amounts in P.1., $5,000,000 the first year and $5,000,000 the second year may be
  used to pursue alternative options to state behavioral health hospital care for patients
  designated as forensic who are admitted to, or at risk of admission to, state hospitals to reduce
  census pressures on state hospitals.
  4. Of the amounts in P.1., $6,000,000 the first year and $6,000,000 the second year shall be
  used for discharge assistance planning for individuals on the Extraordinary Barriers List to
  increase capacity in the community for such individuals. The department may, but is not
  limited to, pursue options such as placements in specialized group homes, assisted living
  facilities, and other models that provide support to an individual and stabilization in the
  community to help prevent rehospitalization.
  Q. The Department of Behavioral Health and Developmental Services is authorized to enter
  into a contract for use of up to eight beds of a 20-bed acute, inpatient psychiatric unit at
  Chesapeake Regional Healthcare for state purposes to increase diversion from state mental
  health hospitals. The department shall begin developing the contract after Chesapeake
  Regional Healthcare starts construction of the 20-bed acute, inpatient psychiatric unit. As part
  of the contracting process, the department shall develop an estimate of the potential cost
  savings of diversion from state hospital beds that could occur with use of the eight beds and
  provide an estimated annual state contribution to support Chesapeake Regional Healthcare.
  The department shall execute the contract contingent on an appropriation by the General
  169
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  Item Details($)  Appropriations($)
    ITEM 296.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Assembly. The department shall report to the Chairs of the House Appropriations and
  Senate Finance and Appropriations Committees by December 1 of each year on the status
  of the contract and any state contribution that has been estimated.
  R. The Department of Behavioral Health and Developmental Services is authorized to
  accept unsolicited proposals from private providers to establish a pilot project for the
  purpose of acquiring clinically appropriate housing options for individuals on the
  Extraordinary Barriers List or to prevent unnecessary hospitalizations for appropriate
  individuals to address census issues at state facilities.
  S. Out of this appropriation, $64,845,204 the first year and $42,448,718 the second year
  from the general fund shall be provided to expand and modernize the comprehensive crisis
  services system, including, but not limited to, investment in additional crisis receiving
  centers, crisis stabilization units, enhancements to existing sites, and pharmacy
  improvements. Out of this appropriation, the Department of Behavioral Health and
  Developmental Services shall award and provide $2,250,000 the first year and $2,250,000
  the second year from the general fund to support the Prince William County Youth Crisis
  Receiving Center. Any amounts remaining unexpended at year end shall be reappropriated
  in the subsequent fiscal year for this purpose.
  T. Out of this appropriation, $8,000,000 the first year and $8,000,000 the second year
  from the general fund is provided for supervised residential care for 100 individuals. The
  department shall give priority to projects that prioritize individuals on the state's
  extraordinary barriers list. Projects may include public-private partnerships, to include
  contracts with private entities. Notwithstanding any other provision of law, contracts
  entered into pursuant to this paragraph shall be exempt from competition as otherwise
  required by the Virginia Public Procurement Act, §§ 2.2-4300 through 2.2-4377, Code of
  Virginia. The Department shall report quarterly on projects awarded with details on each
  project and its projected impact on the state's extraordinary barriers list. The report shall
  be submitted to the Chairs of House Appropriations and Senate Finance and
  Appropriations Committee no later than 30 days after each quarter ends.
  U. Out of this appropriation, $10,000,000 the first year from the general fund is provided
  for the one-time costs of establishing additional mobile crisis services in underserved
  areas.
  V. Out of this appropriation, $250,000 the first year and $250,000 the second year from
  the general fund shall be provided for the Department of Behavioral Health and
  Developmental Services to contract with Specially Adapted Resources Clubs (SPARC) to
  support essential day programs for adults with profound disabilities.
  W. Out of this appropriation, $100,000 the first year and $100,000 the second year from
  the general fund shall be provided for the Department of Behavioral Health and
  Developmental Services to contract with On Our Own, a peer recovery center and
  supportive community that serves the community at no charge.
  X. Out of this appropriation, $300,000 the first year and $300,000 the second year from
  the general fund shall be provided to fund clients assigned to participate in the Bridge
  Behavioral Health program.
  Y. Out of this appropriation, $2,284,100 the second year from the general fund is provided
  for the Department of Behavioral Health and Developmental Services to contract with the
  Medical Society of Virginia to maintain the Adult Psychiatric Access Line.
  Z. Out of this appropriation, $1,500,000 the second year from the general fund is provided
  to reimburse Community Services Boards for the restoration of competency to stand trial
  evaluations, services, and supports in an outpatient setting and to provide training to
  clinicians.
  AA. On or before June 30,2026, the Director, Department of Planning and Budget, shall
  authorize the reversion to the general fund of $23,064,259 from the unexpended balances
  of this program.
  Total for Department of Behavioral Health and
  Developmental Services  $352,223,748   $339,817,218
  170
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  Item Details($)  Appropriations($)
    ITEM 296.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  General Fund Positions  521.50  562.50
  Nongeneral Fund Positions  46.75  46.75
  Position Level  568.25  609.25
  Fund Sources: General  $294,357,872    $277,985,389
  Special  $22,415,168     $22,415,168
  Dedicated Special Revenue  $4,478,113      $6,439,394
  Federal Trust  $30,972,595     $32,977,267
     297.       Not set out.
     298.       Not set out.
     299.       Not set out.
     300.       Not set out.
     301.       Not set out.
     302.       Not set out.
     303.       Not set out.
     304.       Not set out.
     305.       Not set out.
     306.       Not set out.
     307.       Not set out.
     308.       Not set out.
     309.       Not set out.
     310.       Not set out.
     311.       Not set out.
     312.       Not set out.
     313.       Not set out.
  Grand Total for Department of Behavioral Health
  and Developmental Services  $1,836,595,137   $1,845,176,854
  General Fund Positions  5,888.00  5,929.00
  Nongeneral Fund Positions  1,262.75  1,262.75
  Position Level  7,150.75  7,191.75
  Fund Sources: General  $1,576,672,559      $1,583,985,343
  Special  $123,921,052  $123,921,052
  Dedicated Special Revenue  $14,628,931  $13,893,192
  Federal Trust  $121,372,595  $123,377,267
     314.       Not set out.
     315.       Not set out.
  171
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  Item Details($)  Appropriations($)
    ITEM 315.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
     316.       Not set out.
     317.       Not set out.
     318.       Not set out.
     319.       Not set out.
     320.       Not set out.
     321.       Not set out.
     322.       Not set out.
     323.       Not set out.
  § 1-15. DEPARTMENT OF SOCIAL SERVICES (765)
     324.       Not set out.
     325.       Financial Assistance for Self-Sufficiency Programs
  and Services (45200)  $150,040,168   $249,720,830
  $247,369,995
  Temporary Assistance for Needy Families (TANF)
  Cash Assistance (45201)  $67,831,905     $57,186,832
  $57,904,956
  Temporary Assistance for Needy Families (TANF)
  Employment Services (45212)  $17,045,689     $17,045,689
  Supplemental Nutrition Assistance Program
  Employment and Training (SNAPET) Services
  (45213)  $2,205,341       $2,205,341
  Temporary Assistance for Needy Families (TANF)
  Child Care Subsidies (45214)  $45,060,443     $51,981,727
  $48,912,768
  At-Risk Child Care Subsidies (45215)  $2,864,671      $2,864,671
  Unemployed Parents Cash Assistance (45216)  $15,032,119     $13,233,570
  Summer Nutrition Benefit for Children (45221)  $0    $105,203,000
  Fund Sources: General  $89,675,743     $87,877,194
  Federal Trust  $60,364,425    $161,843,636
  $159,492,801
  Authority: Title 2.2, Chapter 54; Title 63.2, Chapters 1 through 7, Code of Virginia; Title
  VI, Subtitle B, P.L. 97-35, as amended; P.L. 103-252, as amended; P.L. 104-193, as
  amended, Federal Code.
  A. It is hereby acknowledged that as of June 30, 2024 there existed with the federal
  government an unexpended balance of $46,855,247 in federal Temporary Assistance for
  Needy Families (TANF) block grant funds which are available to the Commonwealth of
  Virginia to reimburse expenditures incurred in accordance with the adopted State Plan for
  the TANF program. Based on projected spending levels and appropriations in this Act, the
  Commonwealth's accumulated balance for authorized federal TANF block grant funds is
  estimated at $25,302,548 on June 30, 2025; $21,828,551 $28,371,637 on June 30, 2026;
  and $18,354,554 $21,122,560 on June 30, 2027.
  B. No less than 30 days prior to submitting any amendment to the federal government
  related to the State Plan for the Temporary Assistance for Needy Families program, the
  Commissioner of the Department of Social Services shall provide the Chairmen of the
  House Appropriations and Senate Finance an Appropriations Committees as well as the
  Director, Department of Planning and Budget written documentation detailing the
  172
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  Item Details($)  Appropriations($)
    ITEM 325.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  proposed policy changes. This documentation shall include an estimate of the fiscal impact of
  the proposed changes and information summarizing public comment that was received on the
  proposed changes.
  C. Notwithstanding any other provision of state law, the Department of Social Services shall
  maintain a separate state program, as that term is defined by federal regulations governing the
  Temporary Assistance for Needy Families (TANF) program, 45 C.F.R. § 260.30, for the
  purpose of providing welfare cash assistance payments to able-bodied two-parent families.
  The separate state program shall be funded by state funds and operated outside of the TANF
  program. Able-bodied two-parent families shall not be eligible for TANF cash assistance as
  defined at 45 C.F.R. § 260.31 (a)(1), but shall receive benefits under the separate state
  program provided for in this paragraph. Although various conditions and eligibility
  requirements may be different under the separate state program, the basic benefit payment for
  which two-parent families are eligible under the separate state program shall not be less than
  what they would have received under TANF. The Department of Social Services shall
  establish regulations to govern this separate state program.
  D. As a condition of this appropriation, the Department of Social Services shall disregard the
  value of one motor vehicle per assistance unit in determining eligibility for cash assistance in
  the Temporary Assistance for Needy Families (TANF) program and in the separate state
  program for able-bodied two-parent families.
  E. The Department of Social Services, in collaboration with local departments of social
  services, shall maintain minimum performance standards for all local departments of social
  services participating in the Virginia Initiative for Education and Work (VIEW) program. The
  department shall allocate VIEW funds to local departments of social services based on these
  performance standards and VIEW caseloads. The allocation formula shall be developed and
  revised in cooperation with the local social services departments and the Department of
  Planning and Budget.
  F. A participant whose Temporary Assistance for Needy Families (TANF) financial
  assistance is terminated due to the receipt of 24 months of assistance as specified in § 63.2-
  612, Code of Virginia, or due to the closure of the TANF case prior to the completion of 24
  months of TANF assistance, excluding cases closed with a sanction for noncompliance with
  the Virginia Initiative for Education and Work program, shall be eligible to receive
  employment and training assistance for up to 12 months after termination, if needed, in
  addition to other transitional services provided pursuant to § 63.2-611, Code of Virginia.
  G. Out of this appropriation, $2,647,305 the first year and $2,647,305 the second year from
  the general fund shall be provided to support state child care programs.
  H. Out of this appropriation, the Department of Social Services shall use $4,800,000 the first
  year and $4,800,000 the second year from the federal Temporary Assistance to Needy
  Families (TANF) block grant to provide to each TANF recipient with two or more children in
  the assistance unit a monthly TANF supplement equal to the amount the Division of Child
  Support Enforcement collects up to $200, less the $100 disregard passed through to such
  recipient. The TANF child support supplement shall be paid within two months following
  collection of the child support payment or payments used to determine the amount of such
  supplement. For purposes of determining eligibility for medical assistance services, the TANF
  supplement described in this paragraph shall be disregarded. In the event there are sufficient
  federal TANF funds to provide all other assistance required by the TANF State Plan, the
  Commissioner may use unobligated federal TANF block grant funds in excess of this
  appropriation to provide the TANF supplement described in this paragraph.
  I.1. The Department of Social Services (DSS) and the Department of Education (DOE) shall
  ensure that the Temporary Assistance for Needy Families (TANF) Virginia Initiative for
  Employment and Work (VIEW) mandated child care forecast is funded through a
  combination of general fund, TANF, and Child Care Development Fund (CCDF) grant
  dollars. The amount of needed CCDF dollars identified in the Memorandum of Agreement
  (MOA) between the agencies shall be transferred from DOE to DSS within the first thirty
  days of the fiscal year. DSS shall notify DOE of the required amount of the next fiscal year
  transfer upon the enrollment of the budget. This amount shall reflect the need identified in the
  official forecast as well as changes resulting from actions in the final budget.
  173
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  Item Details($)  Appropriations($)
    ITEM 325.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  2. The MOA shall reflect the full cost of the VIEW mandated child care program. From
  this amount, $45,060,443 the first year and $51,981,727 $48,912,768 the second year is
  appropriated at DSS and the balance shall be transferred from DOE from the CCDF grant
  to support the VIEW mandated child care program as specified in I.1.
  J. Out of this appropriation, $2,120,420 the first year and $2,120,420 the second year from
  the Temporary Assistance to Needy Families (TANF) block grant shall be provided for the
  Department of Social Services to implement a program so that TANF-eligible individuals
  may save funds in an individual development account established for the purposes of
  home purchase, education, starting a business, transportation, or self-sufficiency. The
  TANF funds shall be deposited to the individual development accounts at a match rate
  determined by the department.
  K. Out of this appropriation, $105,203,000 the second year from nongeneral funds shall be
  provided to the Department of Social Services for summer nutrition benefits for children.
     326.       Financial Assistance for Local Social Services
  Staff (46000)  $639,331,145   $662,264,872
  $694,061,090
  Local Staff and Operations (46010)  $639,331,145      $662,264,872
  $694,061,090
  Fund Sources: General  $172,439,387      $186,277,343
  $186,877,343
  Dedicated Special Revenue  $10,315,556     $13,033,278
  $13,343,025
  Federal Trust  $456,576,202      $462,954,251
  $493,840,722
  Authority: Title 63.2, Chapters 1 through 7 and 9 through 16, Code of Virginia; P.L. 104-
  193, Titles IV A, XIX, and XXI, Social Security Act, Federal Code, as amended.
  A. The amounts in this Item shall be expended under regulations of the Board of Social
  Services to reimburse county and city welfare/social services boards pursuant to § 63.2-
  401, Code of Virginia, and subject to the same percentage limitations for other
  administrative services performed by county and city public welfare/social services boards
  and superintendents of public welfare/social services pursuant to other provisions of the
  Code of Virginia, as amended.
  B. Pursuant to the provisions of §§ 63.2-403, 63.2-406, 63.2-407, 63.2-408, and 63.2-615
  Code of Virginia, all moneys deducted from funds otherwise payable out of the state
  treasury to the counties and cities pursuant to the provisions of § 63.2-408, Code of
  Virginia, shall be credited to the applicable general fund account.
  C. Included in this appropriation are funds to reimburse local social service agencies for
  eligibility workers who interview applicants to determine qualification for public
  assistance benefits which include but are not limited to: Temporary Assistance for Needy
  Families (TANF); Supplemental Nutrition Assistance Program (SNAP); and Medicaid.
  D. Included in this appropriation are funds to reimburse local social service agencies for
  social workers who deliver program services which include but are not limited to: child
  and adult protective services complaint investigations; foster care and adoption services;
  and adult services.
  E. Out of the federal fund appropriation for local social services staff, amounts estimated
  at $95,372,148 the first year and $95,372,148 $117,565,095 the second year shall be set
  aside for allowable local costs which exceed available general fund reimbursement and
  amounts estimated at $28,100,000 the first year and $28,100,000 $31,100,000 the second
  year shall be set aside to reimburse local governments for allowable costs incurred in
  administering public assistance programs.
  F. Out of this appropriation, $712,062 the first year and $712,062 the second year from the
  general fund and $684,138 the first year and $684,138 the second year from nongeneral
  funds shall be provided to cover the cost of the health insurance credit for retired local
  social services employees.
  174
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  Item Details($)  Appropriations($)
    ITEM 326.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  G.1. Out of this appropriation, $4,527,969 the first year and $4,527,969 the second year from
  the general fund shall be available for the reinvestment of adoption general fund savings as
  authorized in Title IV, parts B and E of the federal Social Security Act (P.L. 110-351).
  2. Of the amount in paragraph G.1. above, $1,333,031 the first year and $1,333,031 the
  second year from the general fund shall be used to provide Child Protective Services (CPS)
  assessments and investigations in response to all reports of children born exposed to
  controlled substances regardless of whether the substance had been prescribed to the mother
  when she has sought or gained substance abuse counseling or treatment.
  H. Out of this appropriation, $594,713 the first year and $594,713 the second year from the
  general fund and $4,734,573 the first year and $4,734,573 the second year from nongeneral
  funds shall be provided to implement the Virginia Facilitated Enrollment Program.
  I. Out of this appropriation, $360,000 the first year and $360,000 the second year from the
  general fund shall be used to provide a bonus payment to local departments of social services
  not to exceed $250 for each time a new child enters foster care and is placed with a kinship
  foster parent or for a child currently in foster care who transitions from a non-kinship
  placement to the care of a kinship foster parent. Payments provided under the provisions of
  this paragraph shall not exceed $360,000 per year, in aggregate.
  J. Out of this appropriation, $7,310,288 the second year from the general fund and $6,482,709
  the second year from nongeneral funds is provided to supplement existing support for
  employment and income verification services. The Department of Social Services shall
  investigate alternatives to its current employment and income verification services contract
  that may provide more cost-effective opportunities. This examination shall include, but not be
  limited to, an inventory of all potential providers of necessary data, the cost structure for
  obtaining data from potential providers, the feasibility of using data from potential providers,
  and the estimated cost of adding new providers to the agency's case management system as to
  prioritize free or low-cost providers. These alternatives shall be reported to the Chairs of the
  House Appropriations and Senate Finance and Appropriations Committees, and the Director,
  Department of Planning and Budget, in a report due by November 1, 2025. Funding provided
  in this paragraph shall be unallotted by the Department of Planning and Budget until such
  time as DSS provides documentation of biennial contract costs.
     327.       Not set out.
     328.       Adult Programs and Services (46800)  $62,727,762    $62,727,762
  Auxiliary Grants for the Aged, Blind, and Disabled
  (46801)  $40,898,009       $40,898,009
  Adult In-Home and Supportive Services (46802)  $6,822,995        $6,822,995
  Domestic Violence Prevention and Support
  Activities (46803)  $15,006,758       $15,006,758
  Fund Sources: General  $45,522,734       $45,522,734
  Federal Trust  $17,205,028       $17,205,028
  Authority: Title 63.2, Chapters 1, 16 and 22, Code of Virginia; Title XVI, federal Social
  Security Act, as amended.
  A.1. Effective January 1, 2025 2026, the Department of Social Services, in collaboration with
  the Department for Aging and Rehabilitative Services, is authorized to base approved licensed
  assisted living facility rates for individual facilities on an occupancy rate of 85 percent of
  licensed capacity, not to exceed a maximum rate of $2,103 $2,130 per month, which rate is
  also applied to approved adult foster care homes, unless modified as indicated below. The
  department may add a 15 percent differential to the maximum amount for licensed assisted
  living facilities and adult foster care homes in Planning District Eight.
  2. Effective January 1, 2024, the monthly personal care allowance for auxiliary grant
  recipients who reside in licensed assisted living facilities and approved adult foster care
  homes shall be $87 per month, unless modified as indicated below.
  3. The Department of Social Services, in collaboration with the Department for Aging and
  Rehabilitative Services, is authorized to increase the assisted living facility and adult foster
  175
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  Item Details($)  Appropriations($)
    ITEM 328.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  care home rates and/or the personal care allowance cited above on January 1 of each year
  in which the federal government increases Supplemental Security Income or Social
  Security rates or at any other time that the department determines that an increase is
  necessary to ensure that the Commonwealth continues to meet federal requirements for
  continuing eligibility for federal financial participation in the Medicaid program. Any
  such increase is subject to the prior concurrence of the Department of Planning and
  Budget. Within thirty days after its effective date, the Department of Social Services shall
  report any such increase to the Governor and the Chairmen of the House Appropriations
  and Senate Finance and Appropriations Committees with an explanation of the reasons for
  the increase.
  B. Out of this appropriation, $4,185,189 the first year and $4,185,189 in the second year
  from the federal Social Services Block Grant shall be allocated to provide adult
  companion services for low-income elderly and disabled adults.
  C. The toll-free telephone hotline operated by the Department of Social Services to
  receive child abuse and neglect complaints shall also be publicized and used by the
  department to receive complaints of adult abuse and neglect.
  D.1. Out of this appropriation, $1,423,750 the first year and $1,423,750 the second year
  from the general fund and $4,246,792 the first year and $4,246,792 the second year from
  nongeneral funds shall be provided as a grant to local domestic violence programs.
  2. Out of the amounts appropriated in D.1., $248,750 the first year and $248,750 the
  second year from the general fund and $1,346,792 the first year and $1,346,792 the
  second year from federal Temporary Assistance for Needy Families (TANF) funds shall
  be provided as a grant to local domestic violence programs for purchase of crisis and core
  services for victims of domestic violence, including 24-hour hotlines, emergency shelter,
  emergency transportation, and other crisis services as a first priority.
  3. Out of the amounts appropriated in D.1., $1,100,000 the first year and $1,100,000 the
  second year from the general fund and $2,500,000 the first year and $2,500,000 the
  second year from federal Temporary Assistance to Needy Families (TANF) funds shall be
  provided as a grant to local domestic violence programs for services.
  4. Out of the amounts appropriated in D.1., $75,000 the first year and $75,000 the second
  year from the general fund and $400,000 the first year and $400,000 the second year from
  nongeneral funds shall be provided for the purchase of services for victims of domestic
  violence as stated in § 63.2-1615, Code of Virginia, in accordance with regulations
  promulgated by the Board of Social Services.
  E. Out of this appropriation, $2,650,000 the first year and $2,650,000 the second year
  from the general fund shall be transferred to the Virginia Sexual and Domestic Violence
  Prevention Fund. Notwithstanding § 63.2-2300 of the Code of Virginia, the Department of
  Social Services shall solicit applications for funding by August 1 of each year and shall
  award the funds by no later than October 1 of each year. Funding shall be awarded for
  evidence-based services. The department shall report on the allocation of these funds to
  the Chairs of the House Appropriations and Senate Finance and Appropriations
  Committees by December 1 of each year.
  F. The Director, Department of Planning and Budget, shall, on or before June 30, 2025,
  unallot $1,000,000 from the general fund in this item, which reflects unused balances in
  the auxiliary grants program.
     329.       Child Welfare Services (46900)  $288,867,026   $293,334,091
  $284,614,005
  Foster Care Payments (46901)  $39,235,246      $42,515,744
  $41,198,312
  Supplemental Child Welfare Activities (46902)  $65,037,928        $64,737,928
  Adoption Subsidy Payments (46903)  $167,109,932       $168,596,499
  $161,193,845
  Prevention Services (46905)  $17,483,920      $17,483,920
  Fund Sources: General  $147,004,071       $149,703,135
  $145,289,520
  176
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  Item Details($)  Appropriations($)
    ITEM 329.  First Year     Second Year     First Year    Second Year
  FY2025  FY2026        FY2025  FY2026
  Special  $2,434,593        $2,434,593
  Dedicated Special Revenue  $585,265  $585,265
  Federal Trust  $138,843,097      $140,611,098
  $136,304,627
  Authority: Title 63.2, Chapters 1, 2, 4 and 8 through 15, Code of Virginia; P.L. 100-294, P.L.
  101-126, P.L. 101-226, P.L. 105-89, P.L. 110-351, P.L. 111-320, as amended, Federal Code.
  A. Expenditures meeting the criteria of Title IV-E of the Social Security Act shall be fully
  reimbursed except that expenditures otherwise subject to a standard local matching share
  under applicable state policy, including local staffing, shall continue to require local match.
  The commissioner shall ensure that local social service boards obtain reimbursement for all
  children eligible for Title IV-E coverage.
  B. The Commissioner, Department of Social Services, in cooperation with the Department of
  Planning and Budget, shall establish a reasonable, automatic adjustment for inflation each
  year to be applied to the room and board maximum rates paid to foster parents. However, this
  provision shall apply only in fiscal years following a fiscal year in which salary increases are
  provided for state employees.
  C. Out of this appropriation, $500,000 the first year and $500,000 the second year from the
  general fund shall be provided for the purchase of services for victims child abuse and neglect
  prevention activities as stated in § 63.2-1502, Code of Virginia, in accordance with
  regulations promulgated by the Board of Social Services.
  D. Out of this appropriation, $180,200 the first year and $180,200 the second year from the
  general fund and $99,800 the first year and $99,800 the second year from nongeneral funds
  shall be provided to continue respite care for foster parents.
  E. Notwithstanding the provisions of §§ 63.2-1300 through 63.2-1303, Code of Virginia,
  adoption assistance subsidies and supportive services shall not be available for children
  adopted through parental placements, except parental placements where the legal guardian is a
  child placing agency at the time of the adoption. This restriction does not apply to existing
  adoption assistance agreements.
  F.1. Out of this appropriation, $1,500,000 the first year and $1,500,000 the second year from
  the general fund shall be provided to implement pilot programs that increase the number of
  foster care children adopted.
  2. Beginning July 1, 2017, the department shall provide an annual report, not later than 45
  days after the end of the state fiscal year, on the use and effectiveness of this funding
  including, but not limited to, the additional number of special needs children adopted from
  foster care as a result of this effort and the types of ongoing supportive services provided, to
  the Governor, Chairmen of House Appropriations and Senate Finance and Appropriations
  Committees, and the Director, Department of Planning and Budget.
  G. Out of this appropriation, $14,329,747 the first year and $14,329,747 $8,418,129 the
  second year from the general fund and $7,000,000 the first year and $7,000,000 $2,250,000
  the second year from nongeneral funds shall be provided for special needs adoptions.
  H. Out of this appropriation $72,805,584 the first year and $72,894,825 $73,281,428 the
  second year from the general fund and $75,929,011 the first year and $75,839,770
  $74,881,589 the second year from nongeneral funds shall be provided for Title IV-E adoption
  subsidies.
  I. The Commissioner, Department of Social Services, shall ensure that local departments that
  provide independent living services to persons between 18 and 21 years of age make certain
  information about and counseling regarding the availability of independent living services is
  provided to any person who chooses to leave foster care or who chooses to terminate
  independent living services before his twenty-first birthday. Information shall include the
  option for restoration of independent living services following termination of independent
  living services, and the processes whereby independent living services may be restored should
  he choose to seek restoration of such services in accordance with § 63.2-905.1 of the Code of
  Virginia.
  177
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  Item Details($)  Appropriations($)
    ITEM 329.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  J.1. Notwithstanding the provisions of § 63.2-1302, Code of Virginia, the Department of
  Social Services shall negotiate all adoption assistance agreements with both existing and
  prospective adoptive parents on behalf of local departments of social services. This
  provision shall not alter the legal responsibilities of the local departments of social
  services set out in Chapter 13 of Title 63.2, Code of Virginia, nor alter the rights of the
  adoptive parents to appeal.
  2. Out of this appropriation, $342,414 the first year and $342,414 the second year from the
  general fund and $215,900 the first year and $215,900 the second year from nongeneral
  funds shall be provided for five positions to execute these negotiations.
  K.1. Out of this appropriation, $10,017,668 the first year and $10,017,668 the second year
  from the general fund and $2,500,000 the first year and $2,500,000 the second year from
  nongeneral funds shall be available for the reinvestment of adoption general fund savings
  as authorized in title IV, parts B and E of the federal Social Security Act (P.L. 110-351).
  2. Of the amounts in paragraph K.1. above, $3,078,595 the first year and $3,078,595 the
  second year from the general fund shall be used to develop a case management module for
  a comprehensive child welfare information system (CCWIS).
  L.1. Out of this appropriation, $7,121,181 the first year and $7,121,181 the second year
  from the general fund and $7,121,181 the first year and $7,121,181 the second year from
  nongeneral funds shall be available for the development of a compliant comprehensive
  child welfare information system (CCWIS). Any unexpended balances in this paragraph at
  the close of business on June 30 each fiscal year shall not revert to the general fund, but
  shall be carried forward and reappropriated for this purpose.
  2. In the development of the CCWIS, the department shall not create any future obligation
  that will require the appropriation of general fund in excess of that provided in this Item.
  Should additional appropriation, in excess of the amounts identified in paragraphs K.2.
  and L.1. above, be needed to complete development of this or any other module for the
  CCWIS, the department shall notify the Chairmen of the House Appropriations and Senate
  Finance and Appropriations Committees, and Director, Department of Planning and
  Budget.
  3. Beginning September 1, 2018, the department shall also provide semi-annual progress
  reports that includes current project summary, implementation status, accounting of
  project expenditures and future milestones. All reports shall be submitted to the Chairmen
  of the House Appropriations and Senate Finance and Appropriations Committees, and
  Director, Department of Planning and Budget by February 1 and September 1 each year.
  M.1. Out of this appropriation, $1,009,563 the first year and $1,009,563 the second year
  from nongeneral funds shall be used to fund 10 positions that support the child protective
  services hotline.
  2. Out of this appropriation, $500,000 the first year from the general fund shall be
  provided to enhance the existing interactive voice response system that is utilized by the
  state child protective services hotline. Any unexpended balance in this paragraph at the
  close of business on June 30, 2025 associated with unpaid enhancement costs shall not
  revert to the general fund but shall be carried forward and reappropriated.
  N. Out of this appropriation, $50,000 the first year and $50,000 the second year from the
  general fund and $50,000 the first year and $50,000 the second year from nongeneral
  funds shall be used to fund one position that supports Virginia Fosters.
  O. Out of this appropriation, $851,000 the first year and $851,000 the second year from
  the general fund is provided for training, consultation and technical support, and licensing
  costs associated with establishing evidence-based programming as identified in the federal
  Family First Prevention Services Act (FFPSA) Evidence-Based Programs Clearinghouse.
  P. The Department of Social Services shall develop a plan to provide access statewide to a
  Kinship Navigator Program which will provide services to kinship caregivers who are
  having trouble finding assistance for their unique needs and to help these caregivers
  navigate their locality's service system, as well as federal and state benefits. The plan shall
  be submitted to the Chairs of the House Appropriations and Senate Finance and
  178
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  Item Details($)  Appropriations($)
    ITEM 329.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  Appropriations Committees, and Director, Department of Planning and Budget by September
  1, 2024.
  Q. The Department of Social Services shall maintain an emergency approval process for
  kinship caregivers and develop foster home certification standards for kinship caregivers
  using as a guide the Model Family Foster Home Licensing Standards developed by the
  American Bar Association Center on Children and the Law, the Annie E. Casey Foundation,
  Generations United, and the National Association for Regulatory Administration. The adopted
  standards should align, as much as reasonably possible, to the Model Family Foster Home
  Licensing Standards, and should ensure that children in foster care: (i) live in safe and
  appropriate homes under local department of social services and court oversight; (ii) receive
  monthly financial assistance and supportive services to help meet their needs; and (iii) can
  access the permanency options offered by Virginia's Kinship Guardianship Assistance
  Program.
  R.1. Out of this appropriation, $12,173,560 the first year and $12,173,560 the second year
  from the general fund is provided to make relative maintenance payments.
  2. In order to ensure timely distribution of relative maintenance payments pursuant to
  legislation passed in the 2024 General Assembly and provisions thereto, the Department of
  Social Services shall have the authority to implement such changes effective upon passage of
  this act, and prior to the completion of any regulatory process undertaken in order to effect
  such changes.
  S. Out of this appropriation, $564,000 the first year and $564,000 the second year from the
  general fund is provided for the department to meet the housing support provisions of §63.2-
  905.1:1, Code of Virginia.
  T. Out of this appropriation, $246,548 the first year and $246,548 the second year from the
  general fund shall be provided to fund an increase in adult protective services calls to the
  child protective services hotline.
  U. The department shall continue to apply for and utilize federal funding for kinship navigator
  programs until such time that all available funding has been exhausted.
  V. Out of this appropriation, $310,000 the first year and $310,000 the second year from the
  general fund shall be provided to support the development and implementation of a statewide
  driver's licensing program to support foster care youth in obtaining a driver's license. Funding
  shall be made available to local departments of social services to reimburse foster care
  providers for increases to their existing motor vehicle insurance premiums that occur because
  a foster care youth in their care has been added to their insurance policy. The program may
  also reimburse foster care providers for additional coverage that provides liability protection
  should a foster care youth get into or cause a catastrophic accident. Additionally, funding
  shall be made available to foster care youth in Virginia's Fostering Futures Program to assist
  in covering the cost of obtaining motor vehicle insurance. The Department shall develop
  reimbursement policies for foster care providers and foster care youth. The Department shall
  coordinate and administer the driver's licensing program based on best practices from similar
  programs in other states, to include developing educational or training materials that educate
  foster parents, private providers, and foster youth about (i) liability issues, insurance laws, and
  common insurance practices (to include laws about renewal and cancellation, how long an
  accident can affect premiums, how to establish that a foster youth is no longer living in the
  residence, and other applicable topics); (ii) DMV requirements to obtain a learner's permit and
  driver's license; (iii) what funding and resources are available to assist in this process, to
  include, paying school lab fees for "Behind the Wheel" or paying a private driving education
  company; and (iv) why getting a driver's license on time is important for normalcy and a
  successful transition to adulthood. The Department shall provide information on how many
  foster care youth were supported by this program and any recommendations to improve the
  program to the Chairs of the House Appropriations and Senate Finance and Appropriations
  Committees annually on December 1.
  W. The Department of Social Services, in consultation with stakeholders, shall develop a
  process for Virginia localities to enter into memorandums of understanding with localities in
  surrounding states for the purposes of kinship care.
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  FY2025  FY2026  FY2025        FY2026
  X. The Department of Social Services shall assess the feasibility of requiring local
  departments to apply for benefits administered by the Social Security Administration or
  the Department of Veterans Affairs on behalf of eligible children in foster care and require
  local departments that are representative payees for children in foster care to conserve
  such federal benefits in an appropriate trust instrument. The Department shall report its
  findings to the Chairs of the House Appropriations, House Finance, and Senate Finance
  and Appropriations Committees by November 1, 2025.
  Y. Out of this appropriation, $300,000 the second year from the general fund is provided
  for the Department of Social Services to expand the existing program to find relative and
  fictive kin for youth in foster care. Any unexpended balance in this paragraph at the close
  of business on June 30, 2026, shall not revert back to the general fund but shall be carried
  forward and reappropriated for this purpose.
  Z. On or before June 30, 2026, the Director, Department of Planning and Budget, shall
  authorize the reversion to the general fund of $7,121,181 from the unexpended balances of
  this program.
     330.       Not set out.
     331.       Financial Assistance to Community Human
  Services Organizations (49200)  $72,865,691   $74,588,045
  Community Action Agencies (49201)  $23,213,048      $25,338,048
  Volunteer Services (49202)  $3,866,340       $3,866,340
  Other Payments to Human Services Organizations
  (49203)  $45,786,303      $45,383,657
  Fund Sources: General  $12,639,402      $18,036,756
  Federal Trust  $60,226,289      $56,551,289
  Authority: Title 2.2, Chapter 54; Title 63.2, Code of Virginia; Title VI, Subtitle B, P.L.
  97-35, as amended; P.L. 103-252, as amended; P.L. 104-193, as amended, Federal Code.
  A.1. All increased state or federal funds distributed to Community Action Agencies shall
  be distributed as follows: The funds shall be distributed to all local Community Action
  Agencies according to the Department of Social Services funding formula (75 percent
  based on low-income population, 20 percent based on number of jurisdictions served, and
  five percent based on square mileage served), adjusted to ensure that no agency receives
  less than 1.5 percent of any increase.
  2. Out of this appropriation, $635,725 the first year and $635,725 the second year from the
  Temporary Assistance for Needy Families (TANF) block grant shall be provided to
  contract with the Virginia Community Action Partnership to provide outreach, education
  and tax preparation services via the Virginia Earned Income Tax Coalition and other
  community non-profit organizations to citizens who may be eligible for the federal Earned
  Income Tax Credit (EITC). The contract shall require the Virginia Community Action
  Partnership to report on its efforts to expand the number of Virginians who are able to
  claim the federal EITC, including the number of individuals identified who could benefit
  from the credit, the number of individuals counseled on the availability of federal EITC,
  and the number of individuals assisted with tax preparation to claim the federal EITC. The
  annual report from the Virginia Community Action Partnership shall also detail actual
  expenditures for the program including the sub-contractors that were utilized. This report
  shall be provided to the Governor and the Chairmen of the House Appropriations and
  Senate Finance and Appropriations Committees by December 1 each year.
  3. Out of this appropriation, $9,250,000 the first year and $11,250,000 the second year
  from the Temporary Assistance for Needy Families (TANF) block grant shall be provided
  to contract with local Community Action Agencies to provide an array of services
  designed to meet the needs of low-income individuals and families, including the elderly
  and migrant workers. Services may include, but are not limited to, child care, community
  and economic development, education, employment, health and nutrition, housing, and
  transportation.
  4. Out of this appropriation, $1,125,000 the first year and $1,125,000 the second year from
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    ITEM 331.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  the Temporary Assistance to Needy Families (TANF) block grant shall be provided for
  competitive grants to Community Action Agencies for a Two-Generation/Whole Family Pilot
  Project and for evaluation of the pilot project. Applicants selected for the pilot project shall
  provide a match of no less than 20 percent of the grant, including in-kind services. The
  Department of Social Services shall report to the General Assembly annually on the progress
  of the pilot project and shall complete a final report on the project no later than six years after
  the commencement of the project.
  B. The department shall continue to fund from this Item all organizations recognized by the
  Commonwealth as community action agencies as defined in § 2.2-5400 et seq.
  C. Out of this appropriation, $9,035,501 the first year and $9,035,501 the second year from
  the Temporary Assistance for Needy Families (TANF) block grant shall be provided to
  contract with programs that follow the evidence-based Healthy Families America home
  visiting model that promotes positive parenting, improves child health and development, and
  reduces child abuse and neglect. The Department of Social Services shall use a portion of the
  funds from this item to contract with the statewide office of Prevent Child Abuse Virginia for
  providing the coordination, technical support, quality assurance, training and evaluation of the
  Virginia Healthy Families programs.
  D. Out of this appropriation, $100,000 the first year and $100,000 the second year from
  nongeneral funds shall be provided for Hugs & Kisses, a child abuse prevention play,
  administered by Virginia Repertory Theatre. The contract shall include production and live
  performances of the play that teach child safety awareness to prevent child abuse.
  E. Out of this appropriation, $70,000 the first year and $70,000 the second year from the
  general fund shall be provided to contract with the Virginia Alzheimer's Association Chapters
  to provide dementia-specific training to long-term care workers in licensed nursing facilities,
  assisted living facilities and adult day care centers who deal with Alzheimer's disease and
  related disorders.
  F.1. Out of this appropriation, $2,000,000 the first year and $2,125,000 the second year from
  the Temporary Assistance for Needy Families (TANF) block grant shall be provided to
  contract with Northern Virginia Family Services (NVFS) to provide supportive services that
  address the basic needs of families in crisis, including the provision of food, financial
  assistance to prevent homelessness, access to health services, and adult workforce
  development programs. The contract shall require NVFS to provide an intake process that
  identifies the needs and appropriate services for those in crisis. Outcomes will be measured
  utilizing surveys provided to those who receive services and NVFS will report quarterly on
  survey results.
  2. In addition to the amounts in paragraph F. 1., $500,000 the first year and $500,000 the
  second year from the TANF block grant shall be provided out of the appropriation in this item
  to Northern Virginia Family Services to deploy a neighborhood-based, mobile service
  delivery and outreach program.
  G. Out of this appropriation, $1,970,402 the first year and $4,317,756 the second year from
  the general fund and $2,136,500 the first year and $3,136,500 the second year from the
  Temporary Assistance for Needy Families (TANF) block grant shall be provided to contract
  with child advocacy centers (CAC) to provide a comprehensive, multidisciplinary team
  response to allegations of child abuse in a dedicated, child-friendly setting. The contracts shall
  require CACs to provide forensic interviews, victim support and advocacy services, medical
  evaluations, and mental health services to victims of child abuse and neglect with the
  expected outcome of reducing child abuse and neglect. The department shall allocate four
  percent to Children's Advocacy Centers of Virginia (CACVA), the recognized chapter of the
  National Children's Alliance for Virginia's Child Advocacy Centers, for the purpose of
  assisting and supporting the development, continuation, and sustainability of community-
  coordinated, child-focused services delivered by children's advocacy centers. Of the
  remaining 96 percent, (i) 65 percent shall be distributed to a baseline allocation determined by
  the accreditation status of the CAC: (a) developing and associate centers 100 percent of base;
  (b) accredited centers 150 percent of base; and (c) accredited centers with satellite facilities
  175 percent of base; and (ii) 35 percent shall be allocated according to established criteria to
  include: (a) 25 percent determined by the rate of child abuse per 1,000; (b) 25 percent
  determined by child population; and (c) 50 percent determined by the number of counties and
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    ITEM 331.  First Year    Second Year       First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  independent cities serviced.
  H.1. Out of this appropriation, $1,250,000 the first year and $1,250,000 the second year
  from the Temporary Assistance for Needy Families (TANF) block grant shall be provided
  to contract with the Virginia Early Childhood Foundation (VECF) to support the health
  and school readiness of Virginia's young children prior to school entry. These funds shall
  be matched with local public and private resources with a goal of leveraging a dollar for
  each state dollar provided.
  2. Of the amounts in paragraph H.1., $1,250,000 the first year and $1,250,000 the second
  year from the Temporary Assistance for Needy Families (TANF) block grant shall be used
  to provide information and assistance to parents and families and to facilitate partnerships
  with both public and private providers of early childhood services. VECF will track and
  report statewide and local progress on a biennial basis. The Foundation shall account for
  the expenditure of these funds by providing the Governor, Secretary of Health and Human
  Resources, and the Chairmen of the House Appropriations and Senate Finance and
  Appropriations Committees with a certified audit and full report on Foundation initiatives
  and results not later than October 1 of each year for the preceding fiscal year ending June
  30.
  3. On or before October 1 of each year, the foundation shall submit to the Governor and
  the Chairmen of the House Appropriations and Senate Finance and Appropriations
  Committees a report on the actual amount, by fiscal year, of private and local government
  funds received by the foundation.
  I. Out of this appropriation $2,000,000 the first year and $2,000,000 the second year from
  the Temporary Assistance for Needy Families (TANF) block grant shall be provided to the
  Virginia Alliance of Boys and Girls Clubs to expand community-based prevention and
  mentoring programs.
  J.1. Out of this appropriation, $7,250,000 the first year from the Temporary Assistance for
  Needy Families (TANF) block grant and $9,000,000 the second year from the general
  fund the shall be provided for competitive grants for community employment and training
  programs designed to move low-income individuals out of poverty through programs
  designed to assist TANF recipients in obtaining and retaining competitive employment
  with the prospect of a career path and wage growth and other supportive services designed
  to break the cycle of poverty and permanently move individuals out of poverty. The local
  match requirement shall be reduced to 10 percent, including in-kind services, for grant
  recipients located in Virginia counties or cities with high fiscal stress as defined by the
  Commission on Local Government fiscal stress index.
  2. Of the amounts appropriated in J.1., $2,450,000 the first year from the Temporary
  Assistance for Needy Families block grant and $2,450,000 the second year from the
  general fund shall be provided for competitive grants provided through Employment
  Services Organizations (ESOs).
  3. Of the amounts appropriated in J.1., at least $300,000 the first year from the Temporary
  Assistance for Needy Families block grant and $300,000 the second year from the general
  fund shall be provided through a contract with the City of Richmond, Office of
  Community Wealth for services provided through the Center for Workforce Innovation.
  4. The Department of Social Services shall award grants to qualifying programs through a
  memorandum of understanding which articulates performance measures and outcomes
  including the number of individuals participating in services, number of individuals hired
  into employment, the number of unique employers hiring individuals through
  organizational programs and activities, the average starting wage of individuals hired,
  reductions in the rate of poverty, as well as process measures such as how the program
  targets improvement in poverty over a three to five year period and fits in with long term
  community goals for reducing poverty. Grants shall require local matching funds of at
  least 25 percent, including in-kind services.
  5. Community employment and training programs and ESOs shall report on annual
  program performance and outcome measures contained in the memorandum of
  understanding with the Department of Social Services. The department shall report on the
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    ITEM 331.  First Year     Second Year       First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  implementation of the programs and any performance and outcome data collected through the
  memorandum of understanding by June 1 of each year.
  K. Out of this appropriation, $200,000 the first year and $200,000 the second year from the
  general fund shall be provided to contract with Youth for Tomorrow (YFT) to provide
  comprehensive residential, education and counseling services to at-risk youth of the
  Commonwealth of Virginia who have been sexually exploited, including victims of sex
  trafficking. The contract shall require YFT to provide individual assessments/individual
  service planning; individual and group counseling; room and board; coordination of medical
  and mental health services and referrals; independent living services for youth transitioning
  out of foster care; active supervision; education; and family reunification services. Youth for
  Tomorrow shall submit monthly progress reports on activities conducted and progress
  achieved on outputs, outcomes and other functions/activities during the reporting period. On
  October 1 of each year, YFT shall provide an annual report to the Governor and the Chairmen
  of the House Appropriations and Senate Finance and Appropriations Committees that details
  program services, outputs and outcomes.
  L. Out of this appropriation, $150,000 the first year and $350,000 the second year from the
  federal Temporary Assistance for Needy Families block grant shall be provided to contract
  with Visions of Truth Community Development Corporation in Portsmouth, Virginia. The
  funding will support the Students Taking Responsibility in Valuing Education (STRIVE)
  suspension/dropout prevention program.
  M. Out of this appropriation, $600,000 the first year and $600,000 the second year from the
  general fund shall be provided to contract with Early Impact Virginia to continue its work in
  support of Virginia's voluntary home visiting programs. These funds may be used to support
  three full-time staff, including a director and an evaluator, and to continue Early Impact
  Virginia's training partnerships. Early Impact Virginia shall have the authority and
  responsibility to determine, systematically track, and report annually on the key activities and
  outcomes of Virginia's home visiting programs; conduct systematic and statewide needs
  assessments for Virginia's home visiting programs at least once every three years; and to
  support continuous quality improvement, training, and coordination across Virginia's home
  visiting programs on an ongoing basis. Early Impact Virginia shall report on its findings to the
  Chairmen of the House Appropriations and Senate Finance and Appropriations Committees
  by July 1 annually.
  N. Out of this appropriation, $1,250,000 the first year and $1,250,000 the second year from
  the Temporary Assistance for Needy Families (TANF) block grant shall be provided to
  contract with the Laurel Center in Winchester to provide services to survivors of domestic
  abuse and sexual violence in Winchester, Frederick County, Clarke County, and Warren
  County.
  O. Out of this appropriation, $50,000 the first year and $50,000 the second year from the
  general fund shall be provided for the Department of Social Services to contract with
  Adoption Share, Inc. for the purpose of a pilot program to operate the Family-Match
  application, which is an online matching tool for state case workers to use in matching foster
  care children with the best families.
  P. Out of this appropriation, $350,000 the first year and $350,000 the second year from the
  Temporary Assistance for Needy Families (TANF) block grant shall be provided to FACETS
  to provide homeless assistance services in Northern Virginia.
  Q. Out of this appropriation, $3,000,000 the first year and $3,000,000 the second year from
  the Temporary Assistance for Needy Families block grant shall be provided to contract with
  the Virginia Federation of Food Banks to provide child nutrition programs.
  R. Out of this appropriation, $500,000 the first year and $500,000 the second year for the
  Temporary Assistance for Needy Families block grant shall be provided to the Virginia
  Transit Association to offer competitive grants for public transportation (as defined in
  Virginia Code §33.2-100) and public transportation demand management service fare passes.
  The Virginia Transit Association shall report on annual program performance and outcome
  measures contained in the memorandum of understanding with the Department of Social
  Services. The department shall report on any performance and outcome data collected through
  the memorandum of understanding by July 1 of each year. This report shall be provided to the
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    ITEM 331.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  Governor, Director of the Department of Planning and Budget, and the Chairmen of the
  House Appropriations and Senate Finance and Appropriations Committees, by September
  1 each year.
  S. Out of this appropriation, $1,200,000 the first year and $1,200,000 the second year
  from the Temporary Assistance for Needy Families block grant shall be provided to
  United Community to offer wrap-around services for low-income families. United
  Community shall report on annual program performance and outcome measures contained
  in the memorandum of understanding with the Department of Social Services. The
  department shall report on any performance and outcome data collected through the
  memorandum of understanding by July 1 of each year. This report shall be provided to the
  Governor, Director of the Department of Planning and Budget, and the Chairmen of the
  House Appropriations and Senate Finance and Appropriations Committees, by September
  1 each year.
  T. Out of this appropriation, $500,000 the first year and $500,000 the second year from
  the Temporary Assistance for Needy Families (TANF) block grant shall be provided to the
  Lighthouse Community Center, a nonprofit organization in Planning District 11, to
  provide housing assistance and other eligible services for individuals served by the
  organization.
  U. Out of this appropriation, $750,000 the first year and $1,000,000 the second year from
  the Temporary Assistance for Needy Families (TANF) block grant shall be provided to
  contract with Cornerstones to provide wrap-around services that solve urgent or on-going
  requirements for housing, childcare, food or financial assistance that address the needs of
  families. The contract shall require Cornerstones to report annually on outcomes.
  V. Out of this appropriation, $200,000 the first year and $200,000 the second year from
  the federal Temporary Assistance to Needy Families block grant shall be provided to
  Good Shepherd Housing and Family Services for housing, emergency services, children's
  services, budgeting, counseling and other resources for low-income families.
  W. Out of this appropriation, $500,000 the first year and $500,000 the second year from
  the general fund shall be provided to fund the Judge Swett Learning Center to promote
  vocational and educational classes for ex-offenders.
  X. Out of this appropriation, $2,000,000 the first year from the general fund shall be
  provided to Prince William County to fund a healthcare worker training program for
  members of the immigrant community.
  Y. Out of this appropriation, $2,000,000 the first year and $2,000,000 the second year
  from the general fund is provided for state agencies to facilitate and improve language
  access.
  Z. Out of this appropriation, $400,000 the first year and $400,000 the second year from
  the general fund shall be provided to the City of Chesapeake to support Buffalow Family
  and Friends to provide access to food, clothing, and basic living essentials.
  AA. Out of this appropriation, $250,000 the first year and $250,000 the second year from
  the general fund is provided to the City of Charlottesville in support of programming at
  the Tonsler League.
  BB. Out of this appropriation, $250,000 the first year from the general fund is provided to
  Prince William County for the Nepali Community Center.
  CC. Out of this appropriation, $150,000 the second year from the general fund is provided
  to Hanover County to develop and complete the Health and Human Services Master Plan
  to address the increasing need for long term planning and high-level human services
  policy setting in Hanover County and to serve as a resource to address human services
  needs for individuals in the community.
  DD. Out of this appropriation, $4,000,000 the first year from the general fund is provided    I VETO ITEM 331.DD.
  to Prince William County to support the renovation of the Prince William Welcome  ON PAGES 183-184
  Center and the Fairfax Welcome Center. Any unexpended balance in this paragraph at the        /s/ Glenn Youngkin
  close of business on June 30, 2025, shall not revert back to the general fund but shall be    3-24-2025
  184
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  Item Details($)  Appropriations($)
    ITEM 331.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  carried forward and reappropriated for this purpose.
  EE. Out of this appropriation, $300,000 the first year from the general fund shall be provided
  to the City of Williamsburg for contract with Latisha's House to provide long-term,
  transitional housing services for female survivors of sex trafficking. Any unexpended
  balances in this paragraph at the close of business on June 30, 2025, shall not revert to the
  general fund but shall be carried forward and reappropriated for this purpose.
  FF. Out of this appropriation, $200,000 the second year from the general fund is provided to
  the city of Virginia Beach to develop a multipurpose sports court for residents of the Hallow
  by Samaritan House.
  GG. Out of this appropriation, $50,000 the second year from the general fund is provided to
  Loudoun County for Anna Sudha Community Kitchens to address food insecurity.
  HH. Out of this appropriation, $200,000 the second year from the general fund is provided to
  Fairfax County in support of Lorton Community Action Center.
     332.       Not set out.
     333.       Not set out.
     334.       Administrative and Support Services (49900)  $158,254,539    $157,829,417
  $157,839,877
  General Management and Direction (49901)  $12,906,791      $16,906,791
  Information Technology Services (49902)  $104,971,105      $97,914,235
  Accounting and Budgeting Services (49903)  $10,658,162      $10,658,160
  Human Resources Services (49914)  $6,967,605       $6,967,605
  Planning and Evaluation Services (49916)  $6,651,686       $6,651,686
  Procurement and Distribution Services (49918)  $4,912,719       $5,534,469
  $5,544,929
  Public Information Services (49919)  $4,196,529       $4,596,529
  Financial and Operational Audits (49929)  $6,989,942       $8,599,942
  Fund Sources: General  $63,474,170      $63,033,173
  $63,038,403
  Special  $975,000  $975,000
  Dedicated Special Revenue  $2,000,000       $2,100,000
  Federal Trust  $91,805,369      $91,721,244
  $91,726,474
  Authority: Title 63.2, Chapter 1; § 2.2-4000 et seq., Code of Virginia; P.L. 98-502, P.L. 104-
  156, P.L. 104-193, P.L. 104-327, P.L. 105-33, as amended, P.L. 105-89, Federal Code; Titles
  IV-A, IV-B, IV-D, IV-E, XIX, XX, XXI of the federal Social Security Act, as amended.
  A. The Department of Social Services shall require localities to report all expenditures on
  designated social services, regardless of reimbursement from state and federal sources. The
  Department of Social Services is authorized to include eligible costs in its claim for
  Temporary Assistance for Needy Families Maintenance of Effort requirements.
  B. It is the intent of the General Assembly that the Commissioner, Department of Social
  Services shall work with localities that seek to voluntarily merge and consolidate their
  respective local departments of social services. No funds appropriated under this act shall be
  used to require a locality to merge or consolidate local departments of social services.
  C.1. Out of this appropriation, $936,149 the first year and $936,149 the second year from the
  general fund and $1,331,847 the first year and $1,331,847 the second year from nongeneral
  funds shall be provided to support the statewide 2-1-1 Information and Referral System which
  provides resource and referral information on many of the specialized health and human
  resource services available in the Commonwealth, including child day care availability and
  providers in localities throughout the state, and publish consumer-oriented materials for those
  interested in learning the location of child day care providers.
  2. Of the amounts appropriated in C.1., $100,000 the first year and $100,000 the second year
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    ITEM 334.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  from the general fund is provided for the Department of Social Services to increase
  interpretation and translation services to help immigrants in Virginia access local
  resources through 2-1-1, including healthcare, housing, and other social services.
  3. The Department of Social Services shall request that all state and local child-serving
  agencies within the Commonwealth be included in the Virginia Statewide Information and
  Referral System as well as any agency or entity that receives state general fund dollars and
  provides services to families and youth. The Secretary of Health and Human Resources,
  the Secretary of Education, and the Secretary of Public Safety and Homeland Security
  shall assist in this effort by requesting all affected agencies within their secretariats to
  submit information to the statewide Information and Referral System and ensure that such
  information is accurate and updated annually. Agencies shall also notify the Virginia
  Information and Referral System of any changes in services that may occur throughout the
  year.
  4. The Department of Social Services shall communicate with child-serving agencies
  within the Commonwealth about the availability of the statewide Information and Referral
  System. This information shall also be communicated via the Department of Social
  Services' broadcast system on their agency-wide Intranet so that all local and regional
  offices can be better informed about the Statewide Information and Referral System.
  Information on the Statewide Information and Referral System shall also be included
  within the department's electronic mailings to all local and regional offices at least
  biannually.
  5. Out of this appropriation, $500,000 the second year from the general fund and $500,000
  the second year from nongeneral funds shall be used to support one-time costs associated
  with modernizing the statewide 2-1-1 Information and Referral System. As part of the
  required modernization, the Department of Social Services (DSS) shall integrate
  information that is required to be included in the Opioid Impact Reduction Registry at the
  Virginia Department of Health (VDH). VDH shall provide DSS with all necessary
  information and support to accomplish this integration.
  D.1. Within 30 days of awarding or amending any contract related to the Virginia Case
  Management System (VaCMS), the Department of Social Services (DSS) shall provide
  the Chairmen of the House Appropriations and Senate Finance and Appropriations
  Committees, and Director, Department of Planning and Budget with a copy of the
  contract, including any fiscal implications.
  2. Prior to the award of any contract that will potentially obligate the Commonwealth to
  future unappropriated spending, the department shall receive prior written concurrence
  from Director, Department of Planning and Budget. Any approved increases in funding
  requests shall be reported by DSS to the Chairmen of House Appropriations and Senate
  Finance and Appropriations Committees within 30 days.
  E. At least 60 days prior to the modification of any public guidance document, handbook,
  manual, or state plan, the Department of Social Services (DSS) shall provide written
  notification to the Governor and the Director of the Department of Planning and Budget as
  to the purpose of such change. This notice shall also assess whether the amendment may
  require any 1) future state regulatory action; 2) increase in local costs; and/or 3) any state
  expenditure beyond that which is appropriated in this Act. This notice does not exempt the
  agency from any requirements set forth within § 4-5.03 of this Act.
  F. The Department of Social Services shall report a detailed accounting, annually, of the
  agency's organization and operations. This report shall include an organizational chart that
  shows all full- and part-time positions (by job title) employed by the agency as well as the
  current management structure and unit responsibilities. The report shall also provide a
  summary of organization changes implemented over the previous year. The report shall be
  made available on the department's website by August 15 of each year.
  G. Out of this appropriation, $3,500,000 the first year and $350,000 the second year from
  the general fund and $3,500,000 the first year and $350,000 the second year from
  nongeneral funds shall be available for the development of an integrated benefits system
  and replacement for CommonHelp. Any unexpended balances in this paragraph at the
  close of business on June 30 of each fiscal year shall not revert to the general fund but
  186
_
  Item Details($)  Appropriations($)
    ITEM 334.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  shall be carried forward and reappropriated for this purpose.
  H. Out of this appropriation, $805,000 the second year from the general fund and $805,000
  the second year from nongeneral funds are provided to implement enhanced electronic
  identity validation services. The department shall report the impact of these services to the
  Director, Department of Planning and Budget and the Chairs of the House Appropriations and
  Senate Finance and Appropriations Committees by October 1 of each year.
  I. Out of this appropriation, $400,000 the second year from the Commonwealth Opioid
  Abatement and Remediation Fund shall be provided to the Department of Social Services to
  create an Addiction Treatment Navigator that will allow members of the public seeking care
  to determine the proper level of care, access providers in their area, determine insurance
  coverage, and view provider quality metrics.
  J. Out of this appropriation, $1,500,000 the second year from the general fund and $1,500,000
  the second year from nongeneral funds shall be provided to transition electronic benefits
  transfer cards to chip cards to combat fraud.
     335.       Not set out.
     336.       Not set out.
  Total for Department of Social Services  $2,495,071,206   $2,605,105,570
  $2,625,841,327
  General Fund Positions  676.50  683.50
  Nongeneral Fund Positions  1,080.00  1,082.00
  Position Level  1,756.50  1,765.50
  Fund Sources: General  $581,856,058     $604,002,217
  $600,193,832
  Special  $687,743,221     $681,198,662
  Dedicated Special Revenue  $135,168,543     $135,568,543
  $135,878,290
  Federal Trust  $1,090,303,384     $1,184,336,148
  $1,208,570,543
     337.       Not set out.
     338.       Not set out.
     339.       Not set out.
     340.       Not set out.
     341.       Not set out.
     342.       Not set out.
     343.       Not set out.
     344.       Not set out.
     345.       Not set out.
     346.       Not set out.
     347.       Not set out.
  187
_
  Item Details($)  Appropriations($)
    ITEM 347.  First Year    Second Year      First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  TOTAL FOR OFFICE OF HEALTH AND
  HUMAN RESOURCES  $32,681,296,278 $34,032,105,359
  $35,248,649,890
  General Fund Positions  8,709.55        8,762.05
  Nongeneral Fund Positions  6,412.22        6,420.72
  Position Level  15,121.77       15,182.77
  Fund Sources: General  $10,208,761,254 $10,663,585,800
  $11,096,407,026
  Special  $1,025,724,151 $1,022,430,726
  Enterprise  $60,018,966     $65,511,486
  Trust and Agency  $2,088,900      $2,088,900
  Dedicated Special Revenue    $2,616,454,285 $2,647,211,598
  $3,018,468,595
  Federal Trust  $18,768,248,722 $19,631,276,849
  $20,043,743,157
  188
_
  Item Details($)  Appropriations($)
    ITEM 348.  First Year     Second Year      First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  OFFICE OF LABOR
     348.       Not set out.
     349.       Not set out.
     350.       Not set out.
     351.       Not set out.
     352.       Not set out.
     353.       Not set out.
     354.       Not set out.
     355.       Not set out.
     356.       Not set out.
     357.       Not set out.
  TOTAL FOR OFFICE OF LABOR  $777,123,848    $788,068,834
  General Fund Positions  146.90  151.90
  Nongeneral Fund Positions  1,173.10        1,173.10
  Position Level  1,320.00        1,325.00
  Fund Sources: General  $20,187,554     $19,288,489
  Special  $13,920,984     $27,458,179
  Trust and Agency  $704,608,310    $704,070,672
  Dedicated Special Revenue  $31,556,123     $30,400,617
  Federal Trust  $6,850,877      $6,850,877
  189
_
  Item Details($)  Appropriations($)
    ITEM 358.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  NATURAL AND HISTORIC RESOURCES
     358.       Not set out.
     359.       Not set out.
     360.       Not set out.
     361.       Not set out.
  § 1-16. DEPARTMENT OF ENVIRONMENTAL QUALITY (440)
     362.       Not set out.
     363.       Not set out.
     364.       Not set out.
     365.       Environmental Financial Assistance (51500)  $216,763,554   $101,517,698
  Financial Assistance for Environmental Resources
  Management (51502)  $111,217,434       $13,453,684
  Virginia Water Facilities Revolving Fund Loans
  and Grants (51503)  $74,086,863     $56,604,757
  Financial Assistance for Coastal Resources
  Management (51507)  $1,924,500      $1,924,500
  Litter Control and Recycling Grants (51509)  $4,200,000      $4,200,000
  Petroleum Tank Reimbursement (51511)  $25,334,757     $25,334,757
  Fund Sources: General  $155,813,055       $40,080,949
  Trust and Agency  $25,334,757       $25,334,757
  Dedicated Special Revenue  $28,355,097       $28,355,097
  Federal Trust  $7,260,645        $7,746,895
  Authority: Title 10.1, Chapters 11.1, 14, 21.1, and 25 and Title 62.1, Chapters 3.1, 22,
  23.2, and 24, Code of Virginia.
  A. To the extent available, the authorization included in Chapter 781, 2009 Acts of
  Assembly, Item 368, paragraph E, is hereby continued for the Virginia Public Building
  Authority to issue revenue bonds in order to finance Virginia Water Quality Improvement
  Grants, pursuant to Chapter 851, 2007 Acts of Assembly.
  B. To the extent available, the authorization included in Chapter 806, 2013 Acts of
  Assembly, Item C-39.40, is hereby continued for the Virginia Public Building Authority to
  issue revenue bonds in order to finance the Stormwater Local Assistance Fund, the
  Combined Sewer Overflow Matching Fund, Nutrient Removal Grants, and the Hopewell
  Regional Wastewater Treatment Authority. The administration of several of the water
  quality programs, including the Stormwater Local Assistance Fund, transferred to the
  Department of Environmental Quality per Chapter 756, 2013 Acts of Assembly.
  C.1. The State Comptroller is authorized to continue the Stormwater Local Assistance
  Fund as established in Item 360, Chapter 806, 2013 Acts of Assembly. The fund shall
  consist of bond proceeds from bonds authorized by the General Assembly and issued
  pursuant to Item C-39.40 in Chapter 806, 2013 Acts of Assembly, Item C-43 of Chapter
  665, 2015 Acts of Assembly, Chapter 759, 2016 Acts of Assembly, Item C-48.10 in
  Chapter 854, 2019 Acts of Assembly, Item C-70, Chapter 1289, 2020 Acts of Assembly,
  and Item C-80 in Chapter 2, 2022 Acts of Assembly, Special Session I; sums appropriated
  to it by the General Assembly; and other grants, gifts, and moneys as may be made
  available to it from any other source, public or private. Interest earned on the moneys in
  the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the
  Fund, including interest thereon, at the end of each fiscal year shall not revert to the
  190
_
  Item Details($)  Appropriations($)
    ITEM 365.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  general fund but shall remain in the Fund.
  2. The purpose of the Fund is to provide matching grants to local governments for the
  planning, design, and implementation of stormwater best management practices that address
  cost efficiency and commitments related to reducing water quality pollutant loads. Moneys in
  the Fund shall be used to meet: i) obligations related to the Chesapeake Bay total maximum
  daily load (TMDL) requirements; ii) requirements for local impaired stream TMDLs; iii)
  water quality requirements of the Chesapeake Bay Watershed Implementation Plan (WIP);
  and iv) water quality requirements related to the permitting of small municipal stormwater
  sewer systems. The grants shall be used only for the acquisition of certified nonpoint nutrient
  credits and capital projects meeting all pre-requirements for implementation, including but not
  limited to: i) new stormwater best management practices; ii) stormwater best management
  practice retrofits; iii) stream restoration; iv) low impact development projects; v) buffer
  restoration; vi) pond retrofits; and vii) wetlands restoration.
  D. The grants shall be used only for the acquisition of certified nonpoint nutrient credits and
  capital projects meeting all pre-requirements for implementation, including but not limited to:
  i) new stormwater best management practices; ii) stormwater best management practice
  retrofits; iii) stream restoration; iv) low impact development projects; v) buffer restoration; vi)
  pond retrofits; and vii) wetlands restoration. Such grants shall be in accordance with
  eligibility determinations made by the State Water Control Board under the authority of the
  Department of Environmental Quality.
  E. Out of such funds available in this Item, the Department shall provide funding to the
  Virginia Geographic Information Network in an amount necessary to implement statewide
  digital orthography to improve land coverage data necessary to assist localities in planning
  and implementing stormwater management programs. As part of this authorization, the
  Department shall also include data to update prior LIDAR surveys of elevations along coastal
  areas to support activities related to management of recurrent coastal flooding.
  F. Out of the amounts appropriated for Financial Assistance for Environmental Resources
  Management, $3,292,479 the first year and $3,292,479 the second year from federal funds is
  provided to implement stormwater management activities.
  G. The Auditor of Public Accounts shall include in the Specifications for Audits of Counties,
  Cities, and Towns regulations for all local governments establishing a utility or enacting a
  system of service charges to support a local stormwater management program pursuant to §
  15.2-2114, Code of Virginia, a requirement to ensure that each impacted local government is
  in compliance with the provisions of § 15.2-2114 A., Code of Virginia. Any such adjustment
  to the Specifications for Audits of Counties, Cities, and Towns regulations shall be exempt
  from the Administrative Process Act and shall be required for all audits completed after July
  1, 2014.
  H. Out of the amounts in this Item, $8,015,880 the first year and $8,015,880 the second year
  from the general fund is provided for the Department to meet matching requirements
  corresponding to anticipated federal funding available through the Virginia Clean Water
  Revolving Loan Fund as a result of the Infrastructure Investment and Jobs Act.
  I. Grantee owners of Enhanced Nutrient Removal Certainty (ENRC) Program and other Water
  Quality Improvement Fund projects subject to a grant agreement with the Department shall
  submit a forecast of projected quarterly grant disbursements covering each quarter of the
  current fiscal year and the next fiscal year thereafter. The Department shall compile the
  grantee-supplied forecasts of projected quarterly grant disbursements and compare expected
  disbursements to available appropriations to provide advance notice of any potential shortfall.
  The Department shall submit each forecast to the Chairs of the House Appropriations
  Committee and the Senate Finance and Appropriations Committee on a quarterly basis.
  J.1.Out of the amounts in this Item, $26,500,000 the first year from the general fund is
  provided for the City of Bristol to address ongoing health, environmental, and quality of life
  issues with its landfill. Funding is contingent upon the execution of a memorandum of
  understanding between the locality and the Department. Any balances for the purposes
  specified in this paragraph which are unexpended on June 30, 2025, shall not revert to the
  general fund but shall be carried forward and reappropriated.
  191
_
  Item Details($)  Appropriations($)
    ITEM 365.  First Year    Second Year        First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  2. The Department shall provide technical assistance to the City of Bristol in resolving
  ongoing health, environmental, and quality of life issues with its landfill and to facilitate a
  long-term plan for the operational status of the landfill following the completion of
  mitigation efforts.
  K. Out of the amounts in this Item, $25,000,000 the first year and $25,000,000 the second
  year from the general fund is provided to the City of Richmond to pay a portion of the
  costs of its combined sewer overflow control project. Any balances for the purposes
  specified in this paragraph which are unexpended at year-end shall not revert to the
  general fund but shall be carried forward and reappropriated.
  L. Out of the amounts in this item, $20,000,000 the first year from the general fund is
  provided for the establishment of a pay-for-outcomes pilot program in the Chesapeake
  Bay watershed. The Department shall issue requests for nonpoint source pollution
  reduction proposals, conduct a transparent proposal selection process based on project
  ranking criteria, execute contracts with selected entities, verify that the promised nonpoint
  source pollutant reductions are being achieved, and make payments when contractually
  defined terms are verified. The project ranking criteria shall include cost per pound of
  nutrients removed, the level of assurance that nutrient reductions shall be provided, habitat
  and resilience benefits, readiness to proceed, local government coordination, the provision
  of long-term maintenance and applicability to locally impaired waters. Any balances for
  the purposes specified in this paragraph which are unexpended at year-end shall not revert
  to the general fund but shall be carried forward and reappropriated.
  M. Out of the amounts in this item, $91,506 the first year from the general fund is
  provided to the Town of Cleveland for wastewater treatment upgrades.
  N.1. Notwithstanding § 10.1-2129 A., Code of Virginia, and any other provision of law,
  $17,390,600 the first year from the general fund shall be deposited into the Virginia Water
  Quality Improvement Fund. This amount is provided to reimburse eligible entities for
  costs incurred in implementing the Enhanced Nutrient Removal Certainty Program as
  provided for in § 62.1-44.19:14, Code of Virginia.
  2. Notwithstanding § 10.1-2129 A., Code of Virginia, and any other provision of law,
  $50,000,000 the first year from the general fund is provided for the City of Richmond's
  Combined Sewer Overflow project. Any balances for the purposes specified in this
  paragraph which are unexpended at year-end shall not revert to the general fund but shall
  be carried forward and reappropriated.
  3. The appropriations made in subparagraph N.1., N.2., and Item 359 meet the mandatory
  deposit requirements associated with the fiscal year 2024 excess general fund revenue
  collections and discretionary year-end general fund balances.
  O. Out of the amounts in this item, $1,500,000 the first year from the general fund is
  provided to the Town of Richlands for water treatment plant upgrades.
  P. Notwithstanding § 62.1-44.19:14 G. 1., Code of Virginia, the compliance schedule
  deadline for the Spotsylvania Co.-FMC WWTF and Spotsylvania Co.-Massaponax
  WWTF projects shall be January 1, 2027, and for the Fredericksburg WWTF project shall
  be January 1, 2030. For each compliance year from January 1, 2026, until such deadline
  that each project does not achieve the nutrient removal technology concentration specified
  in § 62.1-44.19:14 G. 1., Code of Virginia, the facility owner shall be responsible for
  acquiring sufficient point source credits to comply with its total nitrogen and total
  phosphorus waste load allocations applicable to that compliance year. In addition, for the
  Fredericksburg WWTF project, the City of Fredericksburg shall commence construction
  by July 1, 2025, report its progress to the Department on February 1 and August 1 each
  year until completion, and place nutrient removal technology in service as soon as
  practical prior to January 1, 2030. By July 1, 2025, or as soon as possible thereafter, the
  Department of Environmental Quality shall (a) modify the Virginia Pollutant Discharge
  Elimination System permits for each facility consistent with the deadlines and
  requirements of this paragraph and (b) amend any existing water quality improvement
  agreement pursuant to § 10.1-2131, Code of Virginia, for each project in a manner
  consistent with the requirements and deadlines of this paragraph.
  192
_
  Item Details($)  Appropriations($)
    ITEM 365.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  Q. Pending further action in subsequent General Assembly sessions and prior to public
  comment and approval of future Water Quality Improvement Fund (WQIF) eligible projects
  that exceed unobligated balances held by the Department, the Department shall report
  qualified WQIF projects to the Governor, the Chairs of the House Appropriations and Senate
  Finance and Appropriations Committees for funding consideration no later than October 1st
  annually. As such, the Department shall establish a WQIF solicitation period to determine
  project demand, as well as criteria to prioritize eligible projects based on quantifiable
  nutrient reduction impact, cost-effectiveness of the project, impact on cost shared projects
  with multiple funding sources, funding need of the requesting entity, and project readiness.
  Grant agreements for awarded projects shall be fully executed before project construction
  costs are incurred, and no amount shall be awarded for a grantee to backfill project costs met
  with any type of taxable debt.
  R. All agencies or authorities of the Commonwealth with responsibilities identified in § 10.1-
  1330 of the Code of Virginia, shall take all actions necessary to rejoin the Regional
  Greenhouse Gas Initiative, as defined in § 10.1-1329 of the Code of Virginia, and resume
  participation therein. Such required actions include (i) repealing or otherwise nullifying the
  final regulation titled 9VAC5-140, Regulation for Emissions Trading Programs, published in
  the Virginia Register of Regulations on July 31, 2023, no later than 90 days from the effective
  date of this act; (ii) reissuing or otherwise reinstating the final regulation titled 9VAC5-140,
  Regulation for Emissions Trading Programs, published in the Virginia Register of
  Regulations on August 3, 2020, including any amendments necessary to account for the time
  such regulation was not in effect, no later than 90 days from the effective date of this act; (iii)
  no later than January 1, 2027, updating, amending, or revising the regulation to align with
  the latest Regional Greenhouse Gas Initiative program review and revised model rule; (iv)
  entering into a contractual agreement with the Regional Greenhouse Gas Initiative, Inc. to
  rejoin the program, which the Director shall sign, and selling the allowances generated by
  the reissued regulatory program through auctions run by the Regional Greenhouse Gas
  Initiative, Inc.; (v) transferring auction proceeds, and any interest thereon, in accordance
  with subsection B of § 10.1-1330 of Code of Virginia with the responsible agencies disbursing
  such funds as expeditiously as possible; and (vi) providing annual reporting in accordance
  with subsection C of § 10.1-1330 of Code of Virginia. Any regulatory actions necessary to
  effectuate the requirements of this item are hereby exempted from the provisions of the
  Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia). The Department of
  Environmental Quality shall complete such regulatory actions without further action by the
  State Air Pollution Control Board.
     366.       Not set out.
  Total for Department of Environmental Quality  $374,132,608    $256,093,294
  General Fund Positions  422.50  423.50
  Nongeneral Fund Positions  564.50  564.50
  Position Level  987.00  988.00
  Fund Sources: General  $215,505,704       $96,877,198
  Special  $15,919,848       $15,919,848
  Enterprise  $14,322,062       $14,322,062
  Trust and Agency  $39,056,798       $39,056,798
  Dedicated Special Revenue  $58,432,952       $58,432,952
  Federal Trust  $30,895,244       $31,484,436
     367.       Not set out.
     368.       Not set out.
     369.       Not set out.
     370.       Not set out.
     371.       Not set out.
  193
_
  Item Details($)  Appropriations($)
    ITEM 372.  First Year    Second Year    First Year  Second Year
  FY2025  FY2026       FY2025        FY2026
     372.       Not set out.
     373.       Not set out.
     374.       Not set out.
     375.       Not set out.
     376.       Not set out.
  TOTAL FOR NATURAL AND HISTORIC
  RESOURCES  $1,230,302,223   $647,356,338
  General Fund Positions  1,125.50       1,130.50
  Nongeneral Fund Positions  1,164.00       1,169.00
  Position Level  2,289.50       2,299.50
  Fund Sources: General  $757,915,669   $237,592,587
  Special  $61,217,661    $61,307,732
  Commonwealth Transportation  $590,550      $590,550
  Enterprise  $14,322,062    $14,322,062
  Trust and Agency  $107,056,798    $39,056,798
  Dedicated Special Revenue       $220,306,675   $225,124,609
  Federal Trust  $68,892,808    $69,362,000
  194
_
  Item Details($)  Appropriations($)
    ITEM 377.  First Year     Second Year        First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
  OFFICE OF PUBLIC SAFETY AND HOMELAND SECURITY
     377.       Not set out.
     378.       Not set out.
     379.       Not set out.
     380.       Not set out.
     381.       Not set out.
     382.       Not set out.
  § 1-17. DEPARTMENT OF CORRECTIONS (799)
     383.       Not set out.
     384.       Not set out.
     385.       Not set out.
     386.       Not set out.
     387.       Not set out.
     388.       Not set out.
     389.       Prison Medical and Clinical Services (39700)  $270,781,966    $275,309,979
  $300,215,537
  Offsite Healthcare Costs (39702)  $67,011,171     $70,124,356
  $75,673,504
  Pharmaceutical Costs (39703)  $57,965,066     $58,899,969
  $63,096,241
  Department of Corrections-managed Facility
  Healthcare Costs (39704)  $145,805,729    $146,285,654
  $161,445,792
  Fund Sources: General  $267,915,789    $272,443,802
  $297,349,360
  Special  $566,137        $566,137
  Federal Trust  $2,300,040      $2,300,040
  Authority: §§ 53.1-1, 53.1-5, 53.1-8, and 53.1-10, Code of Virginia.
  A. Out of this appropriation, $2,300,040 the first year and $2,300,040 the second year from
  nongeneral funds is included for inmate medical costs. The source of the nongeneral funds is
  an award from the State Criminal Alien Assistance Program, administered by the U.S.
  Department of Justice.
  B. The Department of Corrections shall continue to coordinate with the Department of
  Medical Assistance Services and the Department of Social Services to enroll eligible inmates
  in Medicaid. To the extent possible, the Department of Corrections shall work to identify
  potentially eligible inmates on a proactive basis, prior to the time inpatient hospitalization
  occurs. Procedures shall also include provisions for medical providers to bill the Department
  of Medical Assistance Services, rather than the Department of Corrections, for eligible inmate
  inpatient medical expenses. Due to the multiple payor sources associated with inpatient and
  outpatient health care services, the Department of Corrections and the Department of Medical
  Assistance Services shall consult with the applicable provider community to ensure that
  administrative burdens are minimized and payment for health care services is rendered in a
  195
_
  Item Details($)  Appropriations($)
    ITEM 389.  First Year    Second Year  First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  prompt manner.
  C. Included in the appropriation for this item is funding for the first year and the second
  year from the general fund for six medical contract monitors. The persons filling these
  positions shall have the responsibility of closely monitoring the adequacy and quality of
  inmate medical services in Department of Corrections' facilities.
  D. The workgroup convened pursuant to Item 390, Paragraph R of Chapter 854, 2019 Acts
  of Assembly, shall be continued. The workgroup shall annually report on the progress and
  outcomes of the university medical pilots authorized in this Item. The report shall be
  provided to the Chairs of the House Appropriations and Senate Finance and
  Appropriations Committees no later than October 15 of each year.
     390.       Not set out.
  Total for Department of Corrections  $1,580,611,897   $1,563,330,896
  $1,588,236,454
  General Fund Positions  13,132.00        13,132.00
  Nongeneral Fund Positions  218.50  218.50
  Position Level  13,350.50        13,350.50
  Fund Sources: General  $1,505,814,397     $1,487,533,396
  $1,512,438,954
  Special  $67,469,797      $68,469,797
  Dedicated Special Revenue  $3,117,385       $3,117,385
  Federal Trust  $4,210,318       $4,210,318
     391.       Not set out.
     392.       Not set out.
     393.       Not set out.
     394.       Not set out.
     395.       Not set out.
     396.       Not set out.
     397.       Not set out.
     398.       Not set out.
     399.       Not set out.
     400.       Not set out.
     401.       Not set out.
     402.       Not set out.
     403.       Not set out.
     404.       Not set out.
     405.       Not set out.
     406.       Not set out.
  196
_
  Item Details($)  Appropriations($)
    ITEM 407.  First Year     Second Year  First Year    Second Year
  FY2025  FY2026  FY2025  FY2026
     407.       Not set out.
     408.       Not set out.
     409.       Not set out.
     410.       Not set out.
     411.       Not set out.
     412.       Not set out.
     413.       Not set out.
     414.       Not set out.
  § 1-18. DEPARTMENT OF STATE POLICE (156)
     415.       Information Technology Systems,
  Telecommunications and Records Management
  (30200)  $122,064,016    $121,394,525
  $130,694,525
  Information Technology Systems and Planning
  (30201)  $36,613,477       $36,613,477
  $45,913,477
  Criminal Justice Information Services (30203)  $33,707,537       $31,528,046
  Telecommunications and Statewide Agencies Radio
  System (STARS) (30204)  $20,311,369       $20,311,369
  Firearms Purchase Program (30206)  $3,165,823        $3,165,823
  Sex Offender Registry Program (30207)  $14,512,896       $16,022,896
  Concealed Weapons Program (30208)  $358,481  $358,481
  Dispatch and Telecommunications Support (30209)  $13,394,433       $13,394,433
  Fund Sources: General  $95,193,645       $93,872,914
  $103,172,914
  Special  $18,864,520       $21,290,760
  Dedicated Special Revenue  $5,741,561        $3,716,561
  Federal Trust  $2,264,290        $2,514,290
  Authority: §§ 18.2-308.2:2, 19.2-387, 19.2-388, 27-55, 52-4, 52-4.4, 52-8.5, 52-12, 52-13, 52-
  15, 52-16, 52-25 and 52-31 through 52-34, Code of Virginia.
  A.1. It is the intent of the General Assembly that wireless 911 calls be delivered directly by
  the Commercial Mobile Radio Service (CMRS) provider to the local Public Safety Answering
  Point (PSAP), in order that such calls be answered by the local jurisdiction within which the
  call originates, thereby minimizing the need for call transfers whenever possible.
  2. Notwithstanding the provisions of Article 7, Chapter 15, Title 56, Code of Virginia,
  $3,700,000 the first year and $3,700,000 the second year from the Wireless E-911 Fund is
  included in this appropriation for telecommunications to offset dispatch center operations and
  related costs incurred for answering wireless 911 telephone calls.
  B. Out of the Motor Carrier Special Fund, $900,000 the first year and $900,000 the second
  year shall be disbursed on a quarterly basis to the Department of State Police.
  C.1. This appropriation includes $9,175,535 the first year and $9,175,535 the second year
  from the general fund for maintaining the Statewide Agencies Radio System (STARS).
  2. The Secretary of Public Safety and Homeland Security, in conjunction with the STARS
  Management Group and the Superintendent of State Police, shall provide a status report on (1)
  annual operating costs; (2) the status of site enhancements to support the system; (3) the
  project timelines for implementing the enhancements to the system; and (4) other matters as
  197
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  Item Details($)  Appropriations($)
    ITEM 415.  First Year    Second Year       First Year  Second Year
  FY2025  FY2026  FY2025        FY2026
  the secretary may deem appropriate. This report shall be provided to the Governor and the
  Chairs of the House Appropriations and Senate Finance and Appropriations Committees
  no later than October 1 of each year.
  3. Any bond proceeds authorized for the STARS project that remain after the full
  implementation of the STARS network shall be made available for the STARS equipment
  needs of the Department of Military Affairs.
  4. Any general fund appropriation given for STARS operating and maintenance under the
  service area 30204, is designated for such purposes. If the Department of State Police
  cannot expend its STARS appropriation within a given fiscal year, there shall remain an
  appropriation balance at the end of the fiscal year. The Department may request a
  discretionary re-appropriation in the subsequent year as provided in § 4-1.05 of this act if
  necessary for the payment of preexisting obligations for the purchase of goods or services.
  D. The department shall deposit to the general fund an amount estimated at $100,000 the
  first year and $100,000 the second year resulting from fees generated by additional
  criminal background checks of local job applicants and prospective licensees collected
  pursuant to § 15.2-1503.1 of the Code of Virginia.
  E. Notwithstanding the provisions of §§ 19.2-386.14, 38.2-415, 46.2-1167 and 52-4.3,
  Code of Virginia, the Department of State Police may use revenue from the State Asset
  Forfeiture Fund, the Insurance Fraud Fund, the Drug Investigation Trust Account – State,
  and the Safety Fund to modify, enhance or procure automated systems that focus on the
  Commonwealth's law enforcement activities and information gathering processes.
  F. The Superintendent of State Police is authorized to and shall establish a policy and
  reasonable fee to contract for the bulk transmission of public information from the
  Virginia Sex Offender Registry. Any fees collected shall be deposited in a special account
  to be used to offset the costs of administering the registry. The State Superintendent of
  State Police shall charge no fee for the transfer of any information from the Virginia Sex
  Offender Registry to the Statewide Automated Victim Notification (SAVIN) system.
  G.1. The Virginia State Police shall, upon request, provide to the Department of
  Behavioral Health and Developmental Services any information it possesses as a result of
  carrying out the provisions of §§ 19.2-389, 37.2-819 and 64.2-2014, Code of Virginia, to
  enable the Department to make anonymous the data held pursuant to those provisions and
  link it with other relevant data held by the Commonwealth for the purpose of evaluating
  the impact of carrying out these provisions on the public health and safety, pursuant to a
  grant from the Nation