_____ 2 Available for Appropriation $32,728,450,421 $36,565,293,743 $31,989,805,410 $32,951,953,318 $64,718,255,831 $69,517,247,061 The appropriations made in this act from nongeneral fund revenues are based upon the following: First Year Second Year Total Balance, June 30, 2024 $12,189,205,926 $12,329,216,528 $0 $12,189,205,926 $12,329,216,528 Official Revenue Estimates $50,242,785,460 $55,952,484,636 $52,470,704,871 $57,955,178,841 $102,713,490,331 $113,907,663,477 Lottery Proceeds Fund $877,926,201 $943,824,250 $852,926,201 $875,335,350 $1,730,852,402 $1,819,159,600 Internal Service Fund $2,547,892,953 $2,548,392,953 $2,613,216,074 $2,661,451,414 $5,161,109,027 $5,209,844,367 Bond Proceeds $834,497,540 $930,193,760 $200,000,000 $406,085,243 $1,034,497,540 $1,336,279,003 Total Nongeneral Fund Revenues Available for Appropriation $66,692,308,080 $72,704,112,127 $56,136,847,146 $61,898,050,848 $122,829,155,226 $134,602,162,975 TOTAL PROJECTED REVENUES $99,420,758,501 $109,269,405,870 $88,126,652,556 $94,850,004,166 $187,547,411,057 $204,119,410,036 § 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.

_____ 3 § 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 $63,748,960,781 $67,475,321,135 $112,919,222,182 $117,834,227,778 $176,668,182,963 $185,309,548,913 LEGISLATIVE DEPARTMENT $280,791,734 $283,333,301 $10,610,590 $10,885,915 $291,402,324 $294,219,216 JUDICIAL DEPARTMENT $1,313,054,042 $1,323,020,345 $82,450,502 $85,770,523 $1,395,504,544 $1,408,790,686 EXECUTIVE DEPARTMENT $62,040,651,847 $65,826,480,706 $107,222,685,248 $111,767,286,620 $169,263,337,095 $177,593,767,326 INDEPENDENT AGENCIES $114,463,158 $42,486,783 $5,603,475,842 $5,970,284,720 $5,717,939,000 $6,012,771,503 STATE GRANTS TO NONSTATE AGENCIES $0 $0 $0 CAPITAL OUTLAY EXPENSES $951,677,311 $1,994,911,493 $1,805,819,634 $2,704,413,256 $2,757,496,945 $4,699,324,749 TOTAL $64,700,638,092 $69,470,232,628 $114,725,041,816 $120,538,641,034 $179,425,679,908 $190,008,873,662 § 8. This chapter shall be known and may be cited as the "2025 Appropriation Act."

_ 4 Item Details($) Appropriations($) ITEM 1. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 PART 1: OPERATING EXPENSES LEGISLATIVE DEPARTMENT § 1-1. GENERAL ASSEMBLY OF VIRGINIA (101) 1. Enactment of Laws (78200) a sum sufficient, estimated at $65,305,825 $66,855,825 $65,280,825 Legislative Sessions (78204) $65,305,825 $66,855,825 $65,280,825 Fund Sources: General $65,305,825 $66,855,825 $65,280,825 Authority: Article IV, Constitution of Virginia. A. Out of this appropriation, the House of Delegates is funded $39,373,969$40,148,969 the first year and $39,359,683 the second year from the general fund. The Senate is funded $25,931,856$26,706,856 the first year and $25,921,142 the second year from the general fund. B. Out of this appropriation shall be paid: 1. The salaries of the Speaker of the House of Delegates and other members, and personnel employed by each House; the mileage of members, officers and employees, including salaries and mileage of members of legislative committees sitting during recess; public printing and related expenses required by or for the General Assembly; and the incidental expenses of the General Assembly (§§ 30-19.11 through 30-19.20, inclusive, and § 30-19.4, Code of Virginia). The salary of the Speaker of the House of Delegates shall be $36,321 per year. The salaries of other members of the House of Delegates shall be $17,640 per year. The salaries of the members of the Senate shall be $18,000 per year. 2. Expenses of the Speaker of the House of Delegates not otherwise reimbursed, $16,200 each year, to be paid in equal monthly installments during the year. 3. In accordance with § 30-19.4, Code of Virginia, and subject to all other conditions of that section except as otherwise provided in the following paragraphs: a. $126,160 per calendar year for the compensation of one or more secretaries of the Speaker of the House of Delegates. Salary increases shall be governed by the provisions of Item 469 of this act. b. $344,216 per calendar year for the compensation of one or more legislative assistants of the Speaker of the House of Delegates. Salary increases shall be governed by the provisions of Item 469 of this act. c. $240,613 per calendar year for the compensation of one or more secretaries or legislative assistants for the Senate majority and minority leadership, as determined by the Majority Leader in consultation with the Chairman of the Senate Committee on Rules. Salary increases shall be governed by the provisions of Item 469 of this act. d.1. $52,102 per calendar year for the compensation of legislative assistants for each member of the House of Delegates and $60,409 for the compensation of legislative assistants for each member of the Senate. Salary increases granted shall be governed by the provisions of Item 469 of this act. 2. In addition, $19,538 per calendar year for each member of the House of Delegates and $11,583 per calendar year for each member of the Senate to provide compensation for additional legislative assistant support costs incurred during the legislative session and in the operation of legislative offices within members' districts. Salary increases granted shall be governed by the provisions of Item 469 of this act.

_ 5 Item Details($) Appropriations($) ITEM 1. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 e. The per diem for each legislative assistant of each member of the General Assembly, including the Speaker of the House of Delegates. Such per diem shall equal the amount authorized per session day for General Assembly members in paragraph B.5, if such legislative assistant maintains a temporary residence during the legislative session or an extension thereof and if the establishment of such temporary residence results from the person's employment by the member. The per diem for a legislative assistant who is domiciled in the City of Richmond or whose domicile is within twenty miles of the Capitol shall equal thirty-five percent of the amount paid to a legislative assistant who maintains a temporary residence during such session. For purposes of this paragraph, (i) a session day shall include such days as shall be established by the Rules Committee of each respective House and (ii) a temporary residence is defined as a residence certified by the member served by the legislative assistant as occupied only by reason of employment during the legislative session or extension thereof. Notwithstanding the provisions of (i) of the preceding sentence, if the House from which the legislative assistant is paid is in adjournment during a regular or special session, he must show to the satisfaction of the Clerk that he worked each day during such adjournment for which such per diem is claimed. f. A mileage allowance as provided in § 2.2-2823 A, Code of Virginia, and as certified by the member. Such mileage allowance shall be paid to a legislative assistant for one round trip between the City of Richmond and such person's home each week during the legislative session or an extension thereof when such person is maintaining a temporary residence. g. Per diem and mileage shall be paid only to a person who is paid compensation pursuant to § 30-19.4, Code of Virginia. h. Not more than one person shall be paid per diem or mileage during a single weekly pay period for serving a member as legislative assistant during a legislative session or extension thereof. i. No person, by virtue of concurrently serving more than one member, shall be paid mileage or per diem in excess of the daily rates specified in this Item. j. $83,336 per calendar year additional allowance for secretaries or legislative assistants to the Majority and Minority Leaders of the House of Delegates and the Senate and for secretaries or legislative assistants to the President Pro Tempore of the Senate, Chair of the Senate Committee on Rules, and to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees. Salary increases shall be governed by the provisions of Item 469 of this act. 4.a All compensation and reimbursement of expenses to members of the General Assembly and non-General Assembly members for attending a meeting described in paragraphs B.4.c., B.4.d., B.5., and B.6. shall be paid solely as provided pursuant to this item. b. The provisions of paragraphs B.4.c. and B.4.d. of this item shall not apply during any regular session of the General Assembly or extension thereof, or during any special session of the General Assembly; provided, however, that the provisions of such paragraphs shall apply during any recess of the same. c. Notwithstanding any other provision of law, each General Assembly member shall receive compensation for each day, or portion thereof, of attendance at an official meeting of any joint subcommittee, board, commission, authority, council, compact, or other body that has been created or established by the General Assembly or by resolution of a house of the General Assembly, provided that the member has been appointed to, or designated an official member of, such joint subcommittee, board, commission, authority, council, compact, or other body pursuant to an act of the General Assembly or a resolution of a house of the General Assembly that provides for the appointment or designation. Notwithstanding any other provision of law, each General Assembly member shall also receive compensation for each day, or portion thereof, of attendance at an official meeting of (i) any standing committee or subcommittee thereof of the House of Delegates to which the member has been appointed, (ii) any standing committee or subcommittee thereof or

_ 6 Item Details($) Appropriations($) ITEM 1. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Committee on Rules of the Senate to which the member has been appointed, or (iii) the Joint Rules Committee of the General Assembly. Any official meeting of a subcommittee of any of the committees described in clauses (i), (ii), or (iii) shall also be an official meeting for which the member shall receive compensation. Notwithstanding any other provision of law, any General Assembly member whose attendance, in the written opinion of the chairman of (a) any joint subcommittee, board, commission, authority, council, or other body that has been created or established in the legislative branch of state government by the General Assembly or by resolution of a house of the General Assembly; (b) any such standing committee of the House of Delegates or of the Senate; (c) the Committee on Rules of the Senate; or (d) the Joint Rules Committee of the General Assembly, is required at an official meeting of the body shall also receive compensation for each day, or portion thereof, of attendance at such official meeting. Any General Assembly member receiving compensation pursuant to this paragraph for attending an official meeting shall be reimbursed for his or her reasonable and necessary expenses incurred in attending such meeting. Notwithstanding any other provision of law, the reimbursement shall be provided by the respective body holding the meeting or by the entity that supports the work of the body. d. Compensation to General Assembly members for attendance at any official meeting described under B.4.c.of this item may be at a rate equal to $300 for each day, or portion thereof, of attendance. If the member attends two or more official meetings during the same day, and at least one of which occurs in the morning and one of which occurs in the afternoon, then the member shall be compensated at a rate of $400 for the entire day, otherwise compensation is capped at the $300 per day. The payment of such compensation shall be subject to the restrictions and limitations set forth in subsections B., C., and G. of § 30-19.12, Code of Virginia. Notwithstanding any other provision of law, compensation to General Assembly members for attendance at such official meetings shall be paid by the offices of the Clerk of the House of Delegates or Clerk of the Senate, as applicable. The body holding the meeting shall as soon as practicable report the member's attendance at any official meeting of such body to the Clerk of the House of Delegates or the Clerk of the Senate, as applicable, in order to facilitate payment of the compensation. Such body shall report the member's attendance in such manner as prescribed by the respective Clerk. 5. Notwithstanding any other provision of law, whenever any General Assembly member is required to travel for official attendance as a representative of the General Assembly at any meeting, conference, seminar, workshop, or conclave, which is not conducted by the Commonwealth of Virginia or any of its agencies or instrumentalities, such member shall be entitled to (i) compensation in an amount not to exceed the per day rate set forth in paragraph B.4.d., and (ii) reimbursement for reasonable and necessary expenses incurred. Such compensation and reimbursement for expenses shall be set by the Speaker of the House of Delegates for members of the House of Delegates and by the Senate Committee on Rules for members of the Senate. 6. The provisions of this paragraph shall apply only to non-General Assembly members (hereinafter, "citizen members") of any (i) board, commission, authority, council, or other body created or established in the legislative branch of state government by the General Assembly or by resolution of a house of the General Assembly, or (ii) joint legislative committee or subcommittee. Notwithstanding any other provision of law, any citizen member of any body described in this paragraph who is appointed at the state level, or designated an official member of such body, pursuant to an act of the General Assembly or a resolution of a house of the General Assembly that provides for the appointment or designation, shall receive compensation solely for each day, or portion thereof, of attendance at an official meeting of the same. In no event shall any citizen member be paid compensation for attending a meeting of an advisory committee or other advisory body. Subject to any contrary law that provides for a higher amount of compensation to be paid, compensation shall be paid at the rate of $50 for each day, or portion thereof, of attendance at an official meeting. Such citizen members shall also be reimbursed for reasonable and necessary expenses incurred in attending (i) an official meeting of any body described in this paragraph, or (ii) a meeting of an advisory committee or advisory body of any body described in this paragraph.

_ 10 Item Details($) Appropriations($) ITEM 1. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 4. No recommendation of the Joint Subcommittee shall be adopted if a majority votes against the recommendation. The Joint Subcommittee shall submit to the Division of Legislative Automated Systems an executive summary of its findings and recommendations no later than the first day of the next Regular Session of the General Assembly for each year. M. Any nonlegislative citizen member appointed by either the Speaker of the House, the Senate Committee on Rules or the Joint Rules Committee to any Authority, Board, Commission, Committee, or other deliberative body in the Commonwealth shall serve at the pleasure of such appointing authority. Any such member may be relieved of his appointment at any time, with or without cause. N.1. The Chair of the Senate Finance and Appropriations Committee shall appoint six members from the Senate Committee on Finance and Appropriations and the Chair of the House Appropriations Committee shall appoint three members from the House Committee on Appropriations and three members of the House Committee on Finance to a Joint Subcommittee on Tax Policy. The Joint Subcommittee shall elect a chairman and vice- chairman from among its membership. 2. The goals and objectives of the Joint Subcommittee shall include (i) evaluating the fiscal impact of amendments to tax brackets, tax rates, credits, deductions, and exemptions, as well as any other factors it deems relevant to making Virginia's individual income tax system more fair and equitable; (ii) giving consideration to the fairness, certainty, convenience of payment, economy in collection, simplicity, neutrality, and economic efficiency of the Commonwealth's tax policies and any changes thereto; and (iii) recommending whether the General Assembly should amend the Code of Virginia. 3. To assist the Joint Subcommittee, the Chair of the Joint Subcommittee may appoint a workgroup which includes the staff of the House Committee on Finance, the House Committee on Appropriations, the Senate Committee on Finance and Appropriations, and any other stakeholders deemed appropriate. All agencies of the Commonwealth shall provide technical assistance to the Joint Subcommittee, upon request. 4. The Joint Subcommittee shall explore efforts to modernize the Commonwealth’s income and sales and use taxes during the 2024 interim. The goals and objectives shall include: (i) evaluating existing sales and use tax exemptions; (ii) applying sales and use tax to digital goods and services, including transactions involving businesses; (iii) evaluating efforts to increase the progressivity of the income tax; (iv) and long-term revenue growth to maintain core government services. 5. The Joint Subcommittee on Tax Policy shall study the data center sales and use tax exemption during the 2025 interim. The goals and objectives shall include: (i) reviewing Virginia's status as a leader for data center development and tax preferences; (ii) competitive advantages provided by existing and future exemptions; (iii) approaches taken in other states to provide stability and continuity for the impacted firms; (iv) investigating methods to attract data center investment to non-urbanized areas of the Commonwealth; (v) reviewing the recommendations and options in the 2024 JLARC study on Data Centers in Virginia; and (vi) reviewing the estimated direct and indirect economic benefits of data center investment in the Commonwealth. O.1. The Virginia Minority Business Commission (the Commission) shall promote the growth and competitiveness of Virginia minority-owned businesses. 2.a. The Commission shall consist of 13 members that include seven legislative members and six nonlegislative citizen members. Members shall be appointed as follows: four members of the House of Delegates to be appointed by the Speaker of the House of Delegates in accordance with the principles of proportional representation contained in the Rules of the House of Delegates; three members of the Senate to be appointed by the Senate Committee on Rules; three nonlegislative citizen members with expertise in entrepreneurship, economics, and business to be appointed by the Speaker of the House of Delegates; and three nonlegislative citizen members with expertise in entrepreneurship, economics, and business to be appointed by the Senate Committee on Rules. Nonlegislative citizen members of the Commission shall be citizens of the Commonwealth of Virginia. Unless otherwise approved in writing by the Chair of the Commission and the respective Clerk, nonlegislative citizen members shall only be reimbursed for travel originating and ending within the

_ 11 Item Details($) Appropriations($) ITEM 1. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Commonwealth of Virginia for the purpose of attending meetings. b. Legislative members and ex officio members of the Commission shall serve terms coincident with their terms of office. Nonlegislative citizen members shall be appointed for a term of two years. Appointments to fill vacancies, other than by expiration of a term, shall be for the unexpired terms. Legislative members and nonlegislative citizen members may be reappointed. However, no nonlegislative citizen member shall serve more than four consecutive two-year terms. The remainder of any term to which a member is appointed to fill a vacancy shall not constitute a term in determining the member's eligibility for reappointment. Vacancies shall be filled in the same manner as the original appointments. The Commission shall elect a Chair and Vice-Chair from among its membership, who shall be members of the General Assembly. c. Legislative members of the Commission shall receive such compensation as provided in § 30-19.12, and nonlegislative citizen members shall receive such compensation for the performance of their duties as provided in § 2.2-2813. All members shall be reimbursed for reasonable and necessary expenses incurred in the performance of their duties as provided in § 2.2-2813 and § 2.2-2825. Compensation to members of the General Assembly for attendance at official meetings of the Commission shall be paid by the offices of the Clerk of the House of Delegates or Clerk of the Senate, as applicable. All other compensation and expenses shall be paid from existing appropriations to the Commission. 3. The Commission shall: (i) Evaluate the impact of existing statutes and proposed legislation on minority businesses; (ii) Assess the Commonwealth's minority business assistance programs and examine ways to enhance their effectiveness; (iii) Provide minority business owners and advocates with a forum to address their concerns; (iv) Develop strategies and recommendations to promote the growth and competitiveness of Virginia minority-owned businesses; and, (v) Collaborate with the Department of Small Business and Supplier Diversity and other appropriate entities to facilitate the Commission's work and mission. 4. The Chair shall submit to the General Assembly and the Governor an annual executive summary of the interim activity and work of the Commission no later than November 1st of each year. The executive summary shall be submitted as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents and reports and shall be posted on the General Assembly's website. P. Included within this appropriation is $496,094$696,094 the first year and $496,094 $501,494 the second year from the general fund for operational support for the following legislative commissions: Legislative Commission/Council Authority FY 2025 FY 2026 American Revolution 250 Commission (Legislative Member Expenses) Title 30, Chapter 25, Code of Virginia $12,200 $12,200 Autism Advisory Council Title 30, Chapter 50, Code of Virginia $6,330 $6,330 Commission on Civics Education Title 30, Chapter 55, Code of Virginia $15,000 $15,000 Commission on School Construction and Modernization Title 30, Chapter 60, Code of Virginia $34,340 $34,340 Commission on Unemployment Compensation Title 30, Chapter 33, Code of Virginia $6,019 $6,019 Commission on Updating Virginia Law to Reflect Federal Recognition of Virginia Tribes Title 30, Chapter 65, Code of Virginia $37,540 $37,540 Commission to End Hunger House Bill 607, 2024 General $25,648 $25,648

_ 12 Item Details($) Appropriations($) ITEM 1. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Assembly Commission to Evaluate Opportunity for Minority Business Expansion Discretionary Inclusion $20,000 $20,000 Commission to Study the History of the Uprooting of Black Communities by Public Institutions of Higher Education Discretionary Inclusion $28,760 $228,760 $28,760 Joint Commission on Administrative Rules Title 30, Chapter 8.1, Code of Virginia $10,065 $10,065 Joint Commission on Transportation Accountability Title 30, Chapter 43, Code of Virginia $40,302 $40,302 Joint Subcommittee for Early Childhood Care and Education Chapter 1289, 2020 Acts of Assembly (Item 1, Paragraph Q) $24,400 $24,400 Joint Subcommittee for Health and Human Resources Oversight Chapter 836, 2017 Acts of Assembly (Item 1, Paragraph T) $24,400 $24,400 Joint Subcommittee on Coastal Flooding HJR 16, SJR 35, 2022 Acts of Assembly $20,000 $20,000 Joint Subcommittee on Local Government Fiscal Stress Chapter 836, 2017 Acts of Assembly (Item 1, Paragraph U) $26,840 $26,840 Joint Subcommittee on Tax Policy Chapter 552, 2021 Acts of Assembly, Special Session I (Item 1, Paragraph AA) $29,280 $29,280 Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission House Joint Resolution 10, 2024 Acts of Assembly $15,000 $15,000 Legislative Support Commission Title 30, Chapter 3.1, Code of Virginia $7,320 $7,320 Legislator Compensation Commission Senate Bill 1219, 2025 Acts of Assembly $0 $5,400 Manufacturing Development Commission Title 30, Chapter 41, Code of Virginia $12,020 $12,020 School Health Services Committee Title 30, Chapter 64, Code of Virginia $28,040 $28,040 Small Business Commission Title 30, Chapter 22, Code of Virginia $15,131 $15,131 State Water Commission Title 30, Chapter 24, Code of Virginia $10,222 $10,222 Virginia Coal and Energy Commission Title 30, Chapter 25, Code of Virginia $21,629 $21,629 Virginia Disability Commission Title 30, Chapter 35, Code of Virginia $25,608 $25,608 Total $496,094 $696,094 $496,094 $501,494 Q. The Division of Legislative Services shall provide staffing and operational support, as needed, for the legislative commissions listed within the table of the preceding paragraph of this item. R.1. There is hereby established a workgroup to review the recommendations of a November 2022 report from the Joint Legislative and Audit Review Commission (JLARC) regarding the actuarial surplus of the VA529 Defined Benefit Trust Fund (the Fund). The workgroup shall be comprised of the staff directors of the House Committee on Appropriations and the Senate

_ 13 Item Details($) Appropriations($) ITEM 1. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Committee on Finance and Appropriations, the investment director of the Virginia College Savings Plan, the State Treasurer, three nonlegislative citizen members who are citizens of the Commonwealth and have investment or actuarial expertise, one each of which is to be appointed by the Governor, and by the Chairs of the House Committee on Appropriations and the Senate Committee on Finance and Appropriations. 2. The workgroup shall review the considerations set forth in the JLARC report and produce recommendations with regard to: (i) the method, timing, and amount of any withdrawals from the Fund, including the appropriate funded status at which withdrawals should be considered, with consideration to maintaining sufficient assets to ensure Fund solvency for future obligations; (ii) provide guidelines for the appropriate allocation and subsequent use of monies withdrawn from the Fund, to include returning funds to Legacy Prepaid529 account holders, and for programs supporting higher education access and affordability; and (iii) ongoing oversight of Fund balances to determine availability of any future actuarial surpluses. 3. The workgroup shall submit its findings and recommendations to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than October 15, 2024. R.1. The Chairs of the House Appropriations and Senate Finance and Appropriations Committees shall each appoint four members from their respective committees to a joint subcommittee to review the recommendations of the November 2022 report from the Joint Legislative and Audit Review Commission (JLARC) regarding the actuarial surplus of the VA529 Defined Benefit Trust Fund (the Fund). 2. The Joint Subcommittee on VA529 Surplus Funds shall review the considerations set forth in the JLARC report and produce recommendations with regard to: (i) the method, timing, and amount of any withdrawals from the Fund, including the appropriate funded status at which withdrawals should be considered, with consideration to maintaining sufficient assets to ensure Fund solvency for future obligations; (ii) development of guidelines for the appropriate allocation and subsequent use of monies withdrawn from the Fund, including consideration of returning funds to Legacy Prepaid529 account holders and programs that support higher education access and affordability; and (iii) ongoing oversight of Fund balances to determine availability of any future actuarial surpluses. 3. The Subcommittee shall submit its findings and recommendations to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than October 15, 2025. S.1. The Chairs of the House Appropriations and Senate Finance and Appropriations Committees shall each appoint up to five members from their respective committees to a Joint Subcommittee on Elementary and Secondary Education Funding to provide on-going direction and oversight of the Standards of Quality funding cost policies and to make recommendations to their respective committees. 2. As part of its oversight, the Joint Subcommittee shall: (i) review the recommendations and policy options offered in the Joint Legislative Audit and Review Commission's July 2023 report, “Virginia's K-12 Funding Formula"; (ii) determine the appropriateness of implementing each recommendation or policy option, (iii) propose appropriate amendments to each recommendation or policy option and (iv) develop a long-range plan for the phased implementation of its recommendations. In its deliberations, the Joint Subcommittee shall consider the long-term fiscal implications of each recommendation. 3. The Joint Subcommittee shall submit initial recommendations and an implementation plan to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than November 1, 2024. 4. The school divisions, the staff of the Virginia Department of Education, and staff of the Joint Legislative Audit and Review Commission, are directed to provide technical assistance, as required, to the joint subcommittee. 5. Out of this appropriation, $1,000,000 the first year from the general fund is provided to I VETO ITEM 1.S.5. ON PAGES 13-14 /s/ Glenn Youngkin 3-24-2025

_ 14 Item Details($) Appropriations($) ITEM 1. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 support public engagement, facilitation and technical support for the Joint Subcommittee. T.1. The Chairs of the House Appropriations and Senate Finance and Appropriations Committees shall each appoint four members from their respective committees to a joint subcommittee to review public higher education funding policies and make recommendations to their respective committees. 2. The initial review of the Joint Subcommittee on Higher Education Funding Policies shall: (i) prioritize the review of funding related to operations and financial aid; (ii) provide recommendations to improve funding models; and (iii) develop a short- and long-term plan for phased implementation of any recommendations. As part of its review, the Joint Subcommittee shall consider the recommendations provided in reports related to higher education funding, including recent Joint Legislative Audit and Review Commission reports and the State Council of Higher Education for Virginia's report on Cost and Funding Needs. 3. The Joint Subcommittee shall convene after December 1, 2024 and shall submit initial recommendations to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than September 15, 2025. 4. The Joint Subcommittee may seek support from the staff of the Senate Finance and Appropriations and House Appropriations Committees, the State Council of Higher Education for Virginia, public institutions of higher education, and other higher education and state agency representatives. At its discretion, the Joint Subcommittee may contract for consulting services. U.1. The Commission to Study the History of the Uprooting of Black Communities by Public Institutions of Higher Education in the Commonwealth (the Commission) is established in the legislative branch of state government. The purpose of the Commission is to study and determine (i) whether any public institution of higher education has purchased, expropriated, or otherwise taken possession of property owned by any individual or entity within the boundaries of a community in which a majority of the residents are Black in order to establish or expand the institution's campus and (ii) whether and what form of compensation or relief would be appropriate for any individual described in clause (i) or any of his lineal descendants. As used in this chapter, "public institution of higher education" has the same meaning as provided in § 23.1-100, Code of Virginia. 2. The Commission shall consist of 19 members that include ten legislative members, seven nonlegislative citizen members, and 2 ex officio members. Members shall be appointed as follows: six members of the House of Delegates to be appointed by the Speaker of the House of Delegates in accordance with the principles of proportional representation contained in the Rules of the House of Delegates; four members of the Senate to be appointed by the Senate Committee on Rules; four nonlegislative citizen members to be appointed by the Speaker of the House of Delegates; three nonlegislative citizen members to be appointed by the Senate Committee on Rules; and the Secretary of Education and the Director of the State Council of Higher Education for Virginia or their designees to serve ex officio with voting privileges. Nonlegislative citizen members of the Commission shall be citizens of the Commonwealth. Unless otherwise approved in writing by the chair of the Commission and the respective Clerk, nonlegislative citizen members shall only be reimbursed for travel originating and ending within the Commonwealth for the purpose of attending meetings. 3. Legislative members and ex officio members of the Commission shall serve terms coincident with their terms of office. Nonlegislative citizen members shall be appointed for a term of two years. Appointments to fill vacancies, other than by expiration of a term, shall be for the unexpired terms. Legislative members and nonlegislative citizen members may be reappointed. However, no nonlegislative citizen member shall serve more than four consecutive two-year terms. The remainder of any term to which a member is appointed to fill a vacancy shall not constitute a term in determining the member's eligibility for reappointment. Vacancies shall be filled in the same manner as the original appointments. The Commission shall elect a chair and vice-chair from among its membership, who shall be members of the General Assembly. 4. Legislative members of the Commission shall receive such compensation as provided in § 30-19.12, and nonlegislative citizen members shall receive such compensation for the performance of their duties as provided in § 2.2-2813. All members shall be reimbursed for

_ 15 Item Details($) Appropriations($) ITEM 1. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 reasonable and necessary expenses incurred in the performance of their duties as provided in §§ 2.2-2813 and 2.2-2825. Compensation to members of the General Assembly for attendance at official meetings of the Commission shall be paid by the offices of the Clerk of the House of Delegates or Clerk of the Senate, as applicable. All other compensation and expenses shall be paid from existing appropriations to the Commission or, if unfunded, shall be approved by the Joint Rules Committee. 5. The Commission shall have the following duties: a. Consult with each public institution of higher education to determine whether the institution has purchased, expropriated, or otherwise taken possession of property owned by any individual within the boundaries of a community in which a majority of the residents are Black in order to establish or expand the institution's campus; b. Research whether acquisitions similar to those described in subdivision 1 have occurred in other states; c. Analyze, in conjunction with the relevant public institution of higher education and such other stakeholders as it deems appropriate, whether and what form of compensation or relief would be appropriate for any individual described in subdivision 1 or any of his lineal descendants; and d. Consult with such experts as it deems appropriate to assist it in carrying out its duties as set forth in this section. V. There is hereby established a workgroup to review the rate and distrubtion of pari- mutuel pools generated by wagering on historic horse racing at satellite facilities pursuant to § 59.1-392, Code of Virginia. The workgroup shall be comprised of three members each of the House Appropriations and Senate Finance and Appropriations Committees to be appointed by their respective chairs. The workgroup shall assess trends in pari-mutuel pools generated by historic horse racing wagering at satellite facilities, including the corresponding distribution of revenues to localities, and make recommendations regarding future distributions of such revenues beginning July 1, 2025. The workgroup shall provide its findings and recommendations to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than October 15, 2024. W.1. There is hereby established a Legislative Information Technology (IT) Council to oversee the operations and implementation of technology for the legislative branch. Membership of the Council shall include: the Clerk of the House, the Clerk of the Senate, the Staff Directors of the House Appropriations and Senate Finance and Appropriations Committees, the Director of the Division of Legislative Services, the Director of the Joint Legislative Audit and Review Commission, and the Director of the Division of Legislative Automated Systems (DLAS) as an ex officio non-voting member. Members of the Council may be represented by a designee. Meetings of the Council may occur at least four times a year to review, discuss, and make recommendations regarding services provided by DLAS, such as: (i) ongoing operational support; (ii) system development, implementation, refresh, and maintenance; (iii) information technology security; (iv) incident response; and (v) any other services provided to legislative agencies. The workgroup may direct DLAS to seek input from non-legislative stakeholders as needed to enhance the efficiency, effectiveness, and user-friendly capabilities of public-facing legislative systems. The Council may conduct an annual survey to evaluate the customer service that DLAS provides to legislative agencies. Finally, the Council shall, as needed, provide updates to the Joint Committee on Rules with regard to operational or performance issues, recommendations, or other feedback as needed to ensure the optimal operation of legislative entities. 2. The sole priority of DLAS shall be, through fiscal year 2026, to resolve outstanding issues with the Legislative Information System (LIS) and Lobbyist in a Box. DLAS shall cease development of all other systems unless otherwise directed by the Joint Committee on Rules or the Legislative IT Council. Total for General Assembly of Virginia $65,305,825 $66,855,825 $65,280,825 General Fund Positions 230.00 230.00

_ 16 Item Details($) Appropriations($) ITEM 1. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Position Level 230.00 230.00 Fund Sources: General $65,305,825 $66,855,825 $65,280,825 § 1-2. AUDITOR OF PUBLIC ACCOUNTS (133) 2. Legislative Evaluation and Review (78300) $17,273,164 $17,073,164 Financial and Compliance Audits (78301) $17,273,164 $17,073,164 Fund Sources: General $15,212,162 $15,012,162 Special $2,061,002 $2,061,002 Authority: Article IV, Section 18, Constitution of Virginia; Title 30, Chapter 14, Code of Virginia. A. Out of this appropriation shall be paid the annual salary of the Auditor of Public Accounts, $241,024 from June 10, 2024 to June 9, 2025 and $248,255 from June 10, 2025 to June 30, 2026. B. On or before November 1 of each year, the Auditor of Public Accounts shall report to the General Assembly the certified tax revenues collected in the most recently ended fiscal year pursuant to § 2.2-1829, Code of Virginia. The Auditor shall, at the same time, provide his report on (i) the 15 percent limitation and the amount that could be paid into the Revenue Stabilization Fund and (ii) any amounts necessary for deposit into the Fund in order to satisfy the mandatory deposit requirement of Article X, Section 8 of the Constitution of Virginia as well as the additional deposit requirement of § 2.2-1829, Code of Virginia. C. The specifications of the Auditor of Public Accounts for the independent certified public accountants auditing localities shall include requirements for any money received by the sheriff. These requirements shall include that the independent certified public accountant must submit a letter to the Auditor of Public Accounts annually providing assurance as to whether the sheriff has maintained a proper system of internal controls and records in accordance with the Code of Virginia. This letter shall be submitted along with the locality's audit report. D. 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. E. The Auditor of Public Accounts' Specifications for Audits of Counties, Cities, and Towns and the Specifications for Audits of Authorities, Boards, and Commissions, for the independent certified public accountants auditing localities and local government entities, shall include requirements related to the communication of other internal control deficiencies or financial matters, commonly referred to as a management letter. These requirements shall include that any such communication issued by the independent certified public accountants related to other internal control deficiencies or other financial matters that merit the attention of management and the governing body must be made in the form of official, written communication. F. The Auditor of Public Accounts shall include in the annual Specifications for Audits of Counties, Cities, and Towns, and Specifications for Audits of Authorities, Boards, and Commissions, for the independent certified public accountants auditing localities and local government entities, requirements to ensure that each city and county and applicable local government entity comply with the provisions of Article 12 (§ 2.2-2365 et seq.) of Chapter 22 of Title 2.2, Code of Virginia, and any guidelines, procedures, and criteria set forth by the Opioid Abatement Authority relating to opioid abatement funds. Any such adjustment to the requirements in the Specifications for Audits of Counties, Cities, and Towns and the Specifications for Audits of Authorities, Boards, and Commissions, shall be exempt from the Administrative Process Act and shall be required for audits effective for fiscal years

_ 17 Item Details($) Appropriations($) ITEM 2. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 beginning on July 1, 2023, and thereafter. Total for Auditor of Public Accounts $17,273,164 $17,073,164 General Fund Positions 120.00 120.00 Nongeneral Fund Positions 16.00 16.00 Position Level 136.00 136.00 Fund Sources: General $15,212,162 $15,012,162 Special $2,061,002 $2,061,002 § 1-3. COMMISSION ON THE VIRGINIA ALCOHOL SAFETY ACTION PROGRAM (413) 3. Ground Transportation System Safety Services (60500) $2,634,239 $2,634,239 Ground Transportation Safety Promotion (60503) $2,634,239 $2,634,239 Fund Sources: Special $2,634,239 $2,634,239 Authority: §§ 18.2-271.1 and 18.2-271.2, Code of Virginia. A. Out of this appropriation shall be paid the annual salary of the Executive Director, $155,5108 from June 10, 2024 to June 9, 2025 and $159,761 from June 10, 2025 to June 30, 2026. B. Notwithstanding the salaries listed in paragraph A. of this item, the Commission on the Virginia Alcohol Safety Action Program may establish a salary range for the Executive Director of the program. Total for Commission on the Virginia Alcohol Safety Action Program $2,634,239 $2,634,239 Nongeneral Fund Positions 11.50 11.50 Position Level 11.50 11.50 Fund Sources: Special $2,634,239 $2,634,239 § 1-4. DIVISION OF CAPITOL POLICE (961) 4. Administrative and Support Services (39900) $16,927,134 $16,927,134 Security Services (39923) $16,927,134 $16,927,134 Fund Sources: General $16,927,134 $16,927,134 Authority: Title 30, Chapter 3.1, Code of Virginia. Out of this appropriation shall be paid the annual salary of the Chief, Division of Capitol Police, $243,241 from June 10, 2024 to June, 9, 2025 and $250,538 from June 10, 2025 to June 30, 2026. Total for Division of Capitol Police $16,927,134 $16,927,134 General Fund Positions 122.00 122.00 Position Level 122.00 122.00 Fund Sources: General $16,927,134 $16,927,134 § 1-5. DIVISION OF LEGISLATIVE AUTOMATED SYSTEMS (109) 5. Information Technology Development and Operations (82000) $6,950,723 $7,100,723 Computer Operations Services (82001) $6,950,723 $7,100,723 Fund Sources: General $6,663,128 $6,813,128 Special $287,595 $287,595 Authority: Title 30, Chapter 3.2, Code of Virginia.

_ 18 Item Details($) Appropriations($) ITEM 5. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 A. Out of this appropriation shall be paid the annual salary of the Director, Division of Legislative Automated Systems, $210,452 from June 10, 2024 to June 9, 2025 and $216,766 from June 10, 2025 to June 30, 2026. B. Included in this appropriation is funding sufficient for the ongoing replacement of a legacy legislative bill tracking system. The expenditure of these funds is contingent on the Director of the Division of Legislative Automated Systems developing a detailed implementation plan and submitting the plan to the Committee on Joint Rules for its approval. Any procurement of a replacement legislative bill tracking system shall be exempt from the provisions of the Virginia Public Procurement Act (§ 2.2-4300 et. seq.) of the Code of Virginia and the contract review provisions of § 2.2-2012. The plan may propose to procure a replacement legislative bill tracking system using (i) a request for information or a request for proposal, singly or jointly or in any combination thereof, (ii) such other industry recognized procurement method for procuring a management information system, or (iii) such other procurement method that comports with the best interests of the Commonwealth in the determination of the Director. C. The Director, Division of Legislative Automated Systems, shall provide a detailed accounting of funding provided since fiscal year 2020 for the replacement of the legacy legislative tracking system, and separately for other legislative system replacements and upgrades. Such accounting shall be provided to the Chairs of the Joint Rules Committee, the House Appropriations Committee, and the Senate Finance and Appropriations Committee by October 1, 2024. D. Out of the amounts included in this item, $201,140 the first year and $201,140 the second year from the general fund is provided to complete the replacement of a legacy legislative bill tracking system. E. Out of the amounts included in this item, $50,000 the first year and $50,000 the second year from the general fund is provided for software, security, and infrastructure upgrades for the Division of Legislative Automated Systems. Total for Division of Legislative Automated Systems $6,950,723 $7,100,723 General Fund Positions 21.00 21.00 Position Level 21.00 21.00 Fund Sources: General $6,663,128 $6,813,128 Special $287,595 $287,595 § 1-6. DIVISION OF LEGISLATIVE SERVICES (107) 6. Legislative Research and Analysis (78400) $9,640,479 $9,915,804 $9,640,479 $9,760,479 Bill Drafting and Preparation (78401) $9,640,479 $9,915,804 $9,640,479 $9,760,479 Fund Sources: General $9,620,449 $9,620,449 $9,740,449 Special $20,030 $295,355 $20,030 Authority: Title 30, Chapter 2.2, Code of Virginia. A. Out of this appropriation shall be paid the annual salary of the Director, Division of Legislative Services, $202,701 from June 10, 2024 to June 9, 2025 and $208,782$219,221 from June 10, 2025 to June 30, 2026. B. Notwithstanding the salary set out in paragraph A. of this item, the Committee on Joint Rules may establish a salary range for the Director, Division of Legislative Services. C. The Division of Legislative Services shall continue to provide administrative support to include payroll processing, accounting, and travel expense processing at no charge to the Behavioral Health Commission, the Chesapeake Bay Commission, the Joint Commission on Health Care, the Virginia Commission on Youth, the Commission on Electric Utility Regulation, and the Virginia State Crime Commission.

_ 19 Item Details($) Appropriations($) ITEM 6. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 D. Notwithstanding any other provision of law, the Senate Joint Resolution 10 (2022 Session) Joint Subcommittee to Examine the Commonwealth's Pandemic Response shall continue conducting its study and meet as needed to provide a final report by December 1, 2024. Any remaining appropriation at year end shall be carried forward to the subsequent fiscal year to support the Joint Subcommittee. E. The Division shall procure additional expertise as necessary in its role as staff support to the Virginia Gaming Commission established by House Joint Resolution 548, 2023 Acts of Assembly. In addition to the activities directed in HJR 548, the Joint Subcommittee shall evaluate all potential options to consolidate gaming regulation and oversight in the Commonwealth and provide a detailed transition plan in support of recommendations. F. Out of this appropriation, $275,325 the first year from dedicated special revenue is provided to implement the recommendations of the Chesapeake Bay Restoration Fund Advisory Committee. G. Out of this appropriation, $120,000 from the general fund the second year shall be provided for one position to support the Commission on Women's Health. Total for Division of Legislative Services $9,640,479 $9,915,804 $9,640,479 $9,760,479 General Fund Positions 63.00 63.00 67.00 Position Level 63.00 63.00 67.00 Fund Sources: General $9,620,449 $9,620,449 $9,740,449 Special $20,030 $295,355 $20,030 Capitol Square Preservation Council (820) 7. Architectural and Antiquity Research Planning and Coordination (74800) $262,288 $0 $262,288 $0 Architectural Research (74801) $262,288 $0 $262,288 $0 Fund Sources: General $262,288 $0 $262,288 $0 Authority: Title 30, Chapter 28, Code of Virginia. Total for Capitol Square Preservation Council $262,288 $0 $262,288 $0 General Fund Positions 2.00 2.00 Position Level 2.00 2.00 Fund Sources: General $262,288 $0 $262,288 $0 Dr. Martin Luther King, Jr. Memorial Commission (845) 8. Human Relations Management (14600) $100,379 $100,379 Human Relations Management (14601) $100,379 $100,379 Fund Sources: General $100,379 $100,379 Authority: Title 30, Chapter 27, Code of Virginia. Total for Dr. Martin Luther King, Jr. Memorial Commission $100,379 $100,379 Fund Sources: General $100,379 $100,379

_ 20 Item Details($) Appropriations($) ITEM 8. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Joint Commission on Technology and Science (847) 9. Technology Research, Planning, and Coordination (53700) $456,028 $456,028 Technology Research (53701) $456,028 $456,028 Fund Sources: General $456,028 $456,028 Authority: Title 30, Chapter 11, Code of Virginia. Total for Joint Commission on Technology and Science $456,028 $456,028 General Fund Positions 2.00 2.00 Position Level 2.00 2.00 Fund Sources: General $456,028 $456,028 Commissioners for the Promotion of Uniformity of Legislation in the United States (145) 10. Governmental Affairs Services (70100) $87,522 $87,522 $105,122 Interstate Affairs (70103) $87,522 $87,522 $105,122 Fund Sources: General $87,522 $87,522 $105,122 Authority: Title 30, Chapter 29, Code of Virginia. Commissioners shall receive no compensation for their services from the funds appropriated in this item, but their necessary travel and hotel expenses shall be reimbursed, subject to the approval of the Joint Rules Committee or to the joint approval of the Speaker of the House of Delegates and the Chair of the Senate Committee on Rules. Total for Commissioners for the Promotion of Uniformity of Legislation in the United States $87,522 $87,522 $105,122 Fund Sources: General $87,522 $87,522 $105,122 Virginia Code Commission (108) 11. Enactment of Laws (78200) $93,341 $93,341 Code Modernization (78201) $93,341 $93,341 Fund Sources: General $69,333 $69,333 Special $24,008 $24,008 Authority: Title 30, Chapter 15, Code of Virginia. The Code Commission shall not authorize, or undertake, a re-numbering or re-codification of the Code of Virginia, 1950 as amended unless there is a specific appropriation included in a general Appropriation Act addressing the fiscal impact of such an action. The Commission is authorized to develop a proposal, for review by the Committee on Joint Rules, to re-number the Code of Virginia, including the proposed re-numbering structure and a detailed estimate of any potential fiscal impact on state agencies from the restructuring. Total for Virginia Code Commission $93,341 $93,341 Fund Sources: General $69,333 $69,333 Special $24,008 $24,008 Virginia Freedom of Information Advisory Council (834)

_ 21 Item Details($) Appropriations($) ITEM 12. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 12. Governmental Affairs Services (70100) $269,146 $269,146 $535,136 Public Information Services (70109) $269,146 $269,146 $535,136 Fund Sources: General $269,146 $269,146 $535,136 Authority: Title 30, Chapter 21, Code of Virginia. Total for Virginia Freedom of Information Advisory Council $269,146 $269,146 $535,136 General Fund Positions 2.00 2.00 4.00 Position Level 2.00 2.00 4.00 Fund Sources: General $269,146 $269,146 $535,136 Virginia Housing Commission (840) 13. Housing Assistance Services (45800) $423,763 $423,763 $498,763 Housing Research and Planning (45803) $423,763 $423,763 $498,763 Fund Sources: General $423,763 $423,763 $498,763 Authority: § 30-257, Code of Virginia. Total for Virginia Housing Commission $423,763 $423,763 $498,763 General Fund Positions 3.00 3.00 Position Level 3.00 3.00 Fund Sources: General $423,763 $423,763 $498,763 Brown v. Board of Education Scholarship Committee (858) 14. Human Relations Management (14600) $1,025,312 $1,025,312 Human Relations Management (14601) $1,025,312 $1,025,312 Fund Sources: General $1,025,312 $1,025,312 Authority: Title 30, Chapter 34.1, Code of Virginia. Total for Brown v. Board of Education Scholarship Committee $1,025,312 $1,025,312 Fund Sources: General $1,025,312 $1,025,312 Virginia Conflict of Interest and Ethics Advisory Council (876) 15. Personnel Management Services (70400) $896,933 $896,933 Personnel Management Services (70400) $813,320 $813,320 Agency Human Resource Services (70401) $83,613 $83,613 Fund Sources: General $896,933 $896,933 Authority: Chapters 792 and 804 of the 2014 Acts of Assembly. Out of the amounts appropriated to the Council, an amount estimated at $195,000 each year is from lobbyist registration fees pursuant to § 2.2-424, Code of Virginia.

_ 22 Item Details($) Appropriations($) ITEM 15. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Total for Virginia Conflict of Interest and Ethics Advisory Council $896,933 $896,933 General Fund Positions 7.00 7.00 Position Level 7.00 7.00 Fund Sources: General $896,933 $896,933 Virginia-Israel Advisory Board (330) 16. Economic Development Services (53400) $244,872 $244,872 $302,425 Economic Development Research, Planning, and Coordination (53401) $217,125 $217,125 $274,678 Economic Development Services (53412) $27,747 $27,747 Fund Sources: General $244,872 $244,872 $302,425 Total for Virginia-Israel Advisory Board $244,872 $244,872 $302,425 General Fund Positions 1.00 1.00 Position Level 1.00 1.00 Fund Sources: General $244,872 $244,872 $302,425 Commission on the May 31, 2019 Virginia Beach Mass Shooting (879) 17. Research, Planning, and Coordination (78800) $38,506 $38,506 Policy Research and Planning (78801) $38,506 $38,506 Fund Sources: General $38,506 $38,506 Authority: Discretionary Inclusion A. The Commission to Investigate the May 31, 2019, Virginia Beach Mass Shooting is established as an independent commission. The purpose of the Commission is to conduct an independent, thorough, objective incident review of the May 31, 2019, tragedy and make recommendations regarding improvements that can be made in the Commonwealth's laws, policies, procedures, systems, and institutions, as well as those of other governmental agencies and private providers. B.1. The Commission shall consist of 22 members appointed as follows: five nonlegislative citizen members to be appointed by the Speaker of the House of Delegates; five nonlegislative citizen members to be appointed by the Senate Committee on Rules; and 11 nonlegislative citizen members to be appointed by the Governor. The Superintendent of State Police shall serve ex officio as a nonvoting member of the Commission. One of the nonlegislative citizen members shall serve as a victim advocate; all other nonlegislative citizen member of the Commission shall have significant experience as either a (i) law-enforcement officer, (ii) jurist, (iii) local government administrator, (iv) qualified, licensed forensic psychologist, (v) first responder, (vi) security expert, or (vii) IT specialist, and no nonlegislative citizen members of the Commission shall be currently serving in an elected capacity. The Governor shall appoint at least one person from each of the occupations and professions described in clauses (i) through (vii). Every effort shall be made to ensure that appointees do not have a conflict of interest yet can provide the best insight into their specialization. The Commission shall elect a chairman and vice-chairman from among its membership. 2. Unless otherwise approved in writing by the chairman of the Commission, Commission members shall only be reimbursed for travel originating and ending within the Commonwealth for the purpose of attending meetings. C.1. The Commission shall: (i) investigate the underlying motive for the May 31, 2019, Virginia Beach mass shooting; (ii) investigate the gunman's personal background and entire

_ 23 Item Details($) Appropriations($) ITEM 17. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 prior employment history with the City of Virginia Beach and his interactions with coworkers and supervisors, including but not limited to formal documentation and informal incidents; (iii) determine how the gunman was able to carry out his actions; (iv) identify any obstacles confronted by first responders; (v) identify and examine the security procedures and protocols in place immediately prior to the mass shooting; (vi) examine the post-shooting communications between law enforcement and the families of the victims; (vii) assess such other matters as it deems necessary to gain a comprehensive understanding of the tragic events of May 31, 2019, and (viii) develop recommendations regarding improvements that can be made in the Commonwealth's laws, policies, procedures, systems, and institutions, as well as those of other government agencies and private providers, to minimize the risk of a tragedy of this nature from ever occurring again in the Commonwealth. 2. To the extent required by law, the Commission shall (i) protect the confidentiality of any individual's or family member's personal or health information and (ii) make public or publish information and findings only in summary or aggregate form without identifying personal or health information related to any individual or family member unless authorization is obtained from an individual or family member that specifically permits the Commission to disclose that person's personal or health information; and (iii) ensure that its investigation does not impede any investigation into the matter being conducted by law enforcement. D. The Office of the State Inspector General shall provide staff support to the Commission. All agencies of the Commonwealth shall provide assistance to the Office of the State Inspector General upon request. Upon the request of the Chairman, the Director of the Department of Planning and Budget may authorize a transfer of this appropriation to the Office of the State Inspector General to support the work of the Commission. E. Beginning in 2021, the Chairman shall submit to the General Assembly and the Governor an annual executive summary of the interim activity and work of the Commission no later than November 1 of each year. The executive summary shall be submitted as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents and reports and shall be posted on the General Assembly's website. Total for Commission on the May 31, 2019 Virginia Beach Mass Shooting $38,506 $38,506 Fund Sources: General $38,506 $38,506 Commission to Study Slavery and Subsequent De Jure and De Facto Racial and Economic Discrimination Against African Americans (880) 18. Research, Planning, and Coordination (78800) $94,169 $94,169 Policy Research and Planning (78801) $94,169 $94,169 Fund Sources: General $94,169 $94,169 Authority: Title 2.2, Chapter 25, Article 11, Code of Virginia. Total for Commission to Study Slavery and Subsequent De Jure and De Facto Racial and Economic Discrimination Against African Americans $94,169 $94,169 Fund Sources: General $94,169 $94,169 Grand Total for Division of Legislative Services $13,632,738 $13,645,775 $13,632,738 $13,906,593 General Fund Positions 80.00 78.00 80.00 84.00 Position Level 80.00 78.00 80.00 84.00 Fund Sources: General $13,588,700 $13,326,412 $13,588,700 $13,862,555

_ 24 Item Details($) Appropriations($) ITEM 18. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Special $44,038 $319,363 $44,038 § 1-7. CHESAPEAKE BAY COMMISSION (842) 19. Resource Management Research, Planning, and Coordination (50700) $370,000 $370,000 Resource Management Policy and Program Development (50701) $370,000 $370,000 Fund Sources: General $370,000 $370,000 Authority: Title 30, Chapter 36, Code of Virginia. Total for Chesapeake Bay Commission $370,000 $370,000 General Fund Positions 1.00 1.00 Position Level 1.00 1.00 Fund Sources: General $370,000 $370,000 § 1-8. JOINT COMMISSION ON HEALTH CARE (844) 20. Health Research, Planning, and Coordination (40600) $1,041,882 $1,041,882 $1,216,882 Health Policy Research (40606) $1,041,882 $1,041,882 $1,216,882 Fund Sources: General $1,041,882 $1,041,882 $1,216,882 Authority: Title 30, Chapter 18, Code of Virginia. Total for Joint Commission on Health Care $1,041,882 $1,041,882 $1,216,882 General Fund Positions 7.00 7.00 8.00 Position Level 7.00 7.00 8.00 Fund Sources: General $1,041,882 $1,041,882 $1,216,882 § 1-9. BEHAVIORAL HEALTH COMMISSION (882) 21. Health Research, Planning, and Coordination (40600) $767,883 $767,883 Behavioral Health Policy Research (40610) $767,883 $767,883 Fund Sources: General $767,883 $767,883 Authority: Title 30, Chapter 63, Code of Virginia. Total for Behavioral Health Commission $767,883 $767,883 General Fund Positions 5.00 5.00 Position Level 5.00 5.00 Fund Sources: General $767,883 $767,883 § 1-10. VIRGINIA COMMISSION ON YOUTH (839) 22. Social Services Research, Planning, and Coordination (45000) $514,807 $414,807 Social Services Research and Planning (45003) $514,807 $414,807

_ 25 Item Details($) Appropriations($) ITEM 22. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $514,807 $414,807 Authority: Title 30, Chapter 20, Code of Virginia. Total for Virginia Commission on Youth $514,807 $414,807 General Fund Positions 3.00 3.00 Position Level 3.00 3.00 Fund Sources: General $514,807 $414,807 § 1-11. VIRGINIA STATE CRIME COMMISSION (142) 23. Criminal Justice Research, Planning and Coordination (30500) $1,844,034 $1,844,034 $1,919,034 Criminal Justice Research (30503) $1,844,034 $1,844,034 $1,919,034 Fund Sources: General $1,706,521 $1,706,521 $1,781,521 Federal Trust $137,513 $137,513 Authority: Title 30, Chapter 16, Code of Virginia. A.1. The Virginia State Crime Commission shall review cases at the Virginia Department of Forensic Science (Department), in consultation with the Department's Scientific Advisory Committee, where testing or analysis was performed by Mary Jane Burton and report on the total number of the following: (i) case files that contain at least one named suspect; (ii) cases where scientific testimony was provided; and (iii) named suspects who were convicted of an offense related to such testing, categorized by persons: (a) currently incarcerated, on probation, or on parole; (b) executed; or, (c) deceased. 2. Notwithstanding any other provision of law, the Crime Commission and other state and local agencies may receive and disseminate to individuals, state and local agencies, and private organizations involved in the completion of this review (i) personal or case identifying information related to the named suspects, (ii) Virginia criminal history record information related to the named suspects, (iii) expunged or sealed police and court records related to the Department case file of a named suspect, and (iv) any other information that may be necessary to the successful and timely completion of the review. Information received or disseminated for purposes of this review shall not be subject to the Virginia Freedom of Information Act (§ 2.2-3700). 3. The Virginia State Crime Commission shall have the authority to review additional case files to address related matters as deemed appropriate, in consultation with the House Appropriations and Senate Finance and Appropriations Committees. The Crime Commission shall report on its findings by the first day of each General Assembly Session until completion of this review. B.1. For the purpose of carrying out its duties and notwithstanding any contrary provision of law, the Virginia State Crime Commission shall have the legal authority to access the records, information, facilities, and employees of every department, division, board, bureau, commission, authority, or other agency created by the Commonwealth or to which the Commonwealth is a party or from any political subdivision of the Commonwealth. Upon request, such entities shall provide the Virginia State Crime Commission with records and any other information deemed necessary by the Virginia State Crime Commission for the performance of its duties. Additionally, upon request, such entities shall allow the Virginia State Crime Commission access to their facilities and ample opportunity to observe their operations. Such entities may not require the Virginia State Crime Commission to pay a fee to obtain records or any other information, or to access their facilities or observe their operations. Upon request, the Executive Secretary of the Supreme Court of Virginia shall provide the Virginia State Crime Commission with case data, in an electronic format, from its district and circuit court case management systems for all adults and juveniles charged with a criminal offense, civil offense, or traffic violation. If a clerk of the circuit court does not participate in the statewide Circuit Case

_ 26 Item Details($) Appropriations($) ITEM 23. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Management System maintained by the Executive Secretary of the Supreme Court of Virginia, then upon request such clerk of the circuit court shall provide the Virginia State Crime Commission with case data, in an electronic format, from its own case management system for all adults and juveniles charged with a criminal offense, civil offense, or traffic violation. 2. The Virginia State Crime Commission may use the data provided by the Executive Secretary of the Supreme Court of Virginia or any clerk of the circuit court for research, evaluation, or statistical purposes only and shall ensure the confidentiality and security of the data. The Virginia State Crime Commission shall not publish personal or case identifying information, including names, social security numbers, and dates of birth, which may be included in the data from the case management systems. Upon transfer to the Virginia State Crime Commission, such data shall not be subject to the Virginia Freedom of Information Act. Except for the publishing of personal or case identifying information, including names, social security numbers, and dates of birth, the restrictions in this section shall not prohibit the Virginia State Crime Commission from publishing aggregate data as part of its reports or presentations, or from sharing aggregate data when requested by a member of the General Assembly, a member of the Virginia State Crime Commission, the Office of the Attorney General, the Office of the Governor, or a member of the Governor's Cabinet. Total for Virginia State Crime Commission $1,844,034 $1,844,034 $1,919,034 General Fund Positions 11.00 11.00 Nongeneral Fund Positions 4.00 4.00 Position Level 15.00 15.00 Fund Sources: General $1,706,521 $1,706,521 $1,781,521 Federal Trust $137,513 $137,513 § 1-12. COMMISSION ON ELECTRIC UTILITY REGULATION (863) 24. Research, Planning, and Coordination (78800) $691,050 $691,050 $766,050 Policy Research and Planning (78801) $691,050 $691,050 $766,050 Fund Sources: General $691,050 $691,050 $766,050 Total for Commission on Electric Utility Regulation $691,050 $691,050 $766,050 General Fund Positions 6.00 6.00 Position Level 6.00 6.00 Fund Sources: General $691,050 $691,050 $766,050 § 1-13. AMERICAN REVOLUTION 250 COMMISSION (883) 24.50 Historic and Commemorative Attraction Management (50200) $20,000,000 $0 Revolutionary War Commemoration (50210) $20,000,000 $0 Fund Sources: General $20,000,000 $0 A. All agencies and institutions of the Commonwealth shall, upon request, designate liaisons and provide assistance and advice to the American Revolution 250 Commission and the Virginia Commemorations, Inc. for the planning, coordination, and implementation of the 250th anniversary of the American Revolution. B. Any employees paid from this appropriation shall be exempt from the Virginia Personnel Act. Employees shall not be entitled to severance and unemployment as stipulated in hiring agreements. I VETO ITEM 24. ON PAGE 26 /s/ Glenn Youngkin 5-2-25

_ 27 Item Details($) Appropriations($) ITEM 24.50. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 C. The American Revolution 250 Commission and the Virginia Commemorations, Inc. may perform the following actions directly relating to the planning, coordination, and implementation of the 250th anniversary of the American Revolution: 1. Solicit and accept donations of materials and services to defray expenses; 2. Retain all nongeneral funds from grants, donations, contributions, gifts, fees, sales, or other funds received, collected, or undertaken by the American Revolution 250 Commission for the 250th anniversary commemoration. Such nongeneral funds shall be retained and not reverted back to the general fund at the end of the fiscal year; 3. Procure, with the maximum delegated authority available to any executive branch agency or institution in the Commonwealth, any goods and services with which there are minimum procurement requirements associated; 4. Hire employees up to the Maximum Employment Level for the Foundation as provided in the general appropriation act, despite any potential suspension from hiring that may be mandated for state agencies; 5. Receive assistance and advice from agencies and institutions of the Commonwealth without charge; and 6. Contact international, national, interstate, state, regional, and local elected and appointed officials. D. The American Revolution 250 Commission and the Virginia Commemorations, Inc. may enter into agreements or contracts with private entities for the promotion of tourism through marketing without competitive sealed bidding or competitive negotiation provided a demonstrable cost savings can be realized by the Commission and such agreements or contracts are based on competitive principles. E. Except as provided otherwise in this paragraph, the provisions of the Virginia Public Procurement Act shall not apply to the expenditure of funds from the 250th anniversary commemoration. However, the provisions of this paragraph shall not be effective until such time as the American Revolution 250 Commission has adopted guidelines generally applicable to the procurement of goods and services by the Commonwealth. The guidelines shall implement a system of competitive negotiation for goods and services that: (i) shall prohibit discrimination because of race, religion, color, sex, age, disability, national origin, sexual orientation, gender identity, political affiliation, veteran status, or any other basis prohibited by state law relating to discrimination; (ii) may take into account in all cases the dollar amount of the intended procurement, the term of the anticipated contract, and the likely extent of competition; (iii) may implement a prequalification procedure for contractors or products; (iv) may include provisions for cooperative procurement arrangements; shall incorporate the prompt payment principles of §§ 2.2-4350 and 2.2-4354, Code of Virginia; and may implement provisions of law. F. The American Revolution 250 Commission shall establish guidelines, procedures, and objective criteria for the award and distribution of grants from the appropriation to state agencies, localities, and non-government organizations. Activities eligible for grants from the appropriation shall be focused on high-impact, collaborative projects that focus on the ideals of the American Revolution. The American Revolution 250 Commission shall advertise the availability of grant funds and shall solicit, receive, and review grant applications as defined by adopted guidelines. The decisions regarding who receives the grant awards shall be the responsibility of the American Revolution 250 Commission. G. All general funds received by the American Revolution 250 Commission shall be retained and not reverted back to the general fund at the end of any fiscal year. Total for American Revolution 250 Commission $20,000,000 $0 Fund Sources: General $20,000,000 $0 § 1-14. JOINT LEGISLATIVE AUDIT AND REVIEW COMMISSION (110)

_ 28 Item Details($) Appropriations($) ITEM 25. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 25. Legislative Evaluation and Review (78300) $6,244,847 $6,244,847 $6,069,847 Performance Audits and Evaluation (78303) $6,244,847 $6,244,847 $6,069,847 Fund Sources: General $6,103,939 $6,103,939 $5,928,939 Trust and Agency $140,908 $140,908 Authority: Title 30, Chapters 7 and 8, Code of Virginia. A. Out of this appropriation shall be paid the annual salary of the Director, Joint Legislative Audit and Review Commission (JLARC), $206,186 from June 10, 2024 to June 9, 2025 and $212,372 from June 10, 2025 to June 30, 2026. B. Expenses associated with the oversight responsibility of the Virginia Retirement System by JLARC and the House Appropriations and Senate Finance and Appropriations Committees shall be reimbursed by the Virginia Retirement System upon documentation by the Director, JLARC of the expenses incurred. C. Out of this appropriation, funds are provided to continue the technical support staff of JLARC, in order to assist with legislative fiscal impact analysis when an impact statement is referred from the Chairman of a standing committee of the House or Senate, and to conduct oversight of the expenditure forecasting process. Pursuant to existing statutory authority, all agencies of the Commonwealth shall provide access to information necessary to accomplish these duties. D.1. The General Assembly hereby designates the Joint Legislative Audit and Review Commission (JLARC) to review and evaluate the Virginia Information Technologies Agency (VITA) on a continuing basis and to make such special studies and reports as may be requested by the General Assembly, the House Appropriations Committee, or the Senate Finance and Appropriations Committee. 2. The areas of review and evaluation to be conducted by the Commission shall include, but are not limited to, the following: (i) VITA's infrastructure outsourcing contracts and any amendments thereto; (ii) adequacy of VITA's planning and oversight responsibilities, including VITA's oversight of information technology projects and the security of governmental information; (iii) cost-effectiveness and adequacy of VITA's procurement services and its oversight of the procurement activities of State agencies. 3. For the purpose of carrying out its duties and notwithstanding any contrary provision of law, JLARC shall have the legal authority to access the information, records, facilities, and employees of VITA. 4. Records provided to VITA by a private entity pertaining to VITA's comprehensive infrastructure agreement or any successor contract, or any contractual amendments thereto for the operation of the Commonwealth's information technology infrastructure shall be exempt from the Virginia Freedom of Information Act (§ 2.2-3700 et seq.), to the extent that such records contain (i) trade secrets of the private entity as defined in the Uniform Trade Secrets Act (§ 59.1-336 et seq.) or (ii) financial records of the private entity, including balance sheets and financial statements, that are not generally available to the public through regulatory disclosure or otherwise. In order for the records specified in clauses (i) and (ii) to be excluded from the Virginia Freedom of Information Act, the private entity shall make a written request to VITA: a. Invoking such exclusion upon submission of the data or other materials for which protection from disclosure is sought; b. Identifying with specificity the data or other materials for which protection is sought; and c. Stating the reasons why protection is necessary. VITA shall determine whether the requested exclusion from disclosure is necessary to protect the trade secrets or financial records of the private entity. VITA shall make a written determination of the nature and scope of the protection to be afforded by it under this subdivision. Once a written determination is made by VITA, the records afforded protection

_ 29 Item Details($) Appropriations($) ITEM 25. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 under this subdivision shall continue to be protected from disclosure when in the possession of VITA or JLARC. Except as specifically provided in this item, nothing in this item shall be construed to authorize the withholding of (a) procurement records as required by § 56-575.17; (b) information concerning the terms and conditions of any interim or comprehensive agreement, service contract, lease, partnership, or any agreement of any kind entered into by VITA and the private entity; (c) information concerning the terms and conditions of any financing arrangement that involves the use of any public funds; or (d) information concerning the performance of the private entity under the comprehensive infrastructure agreement, or any successor contract, or any contractual amendments thereto for the operation of the Commonwealth's information technology infrastructure. 5. The Chairman of JLARC may appoint a permanent subcommittee to provide guidance and direction for VITA review and evaluation activities, subject to the full Commission's supervision and such guidelines as the Commission itself may provide. 6. All agencies of the Commonwealth shall cooperate as requested by JLARC in the performance of its duties under this authority. E.1. The General Assembly hereby designates the Joint Legislative Audit and Review Commission (JLARC) to conduct, on a continuing basis, a review and evaluation of economic development initiatives and policies and to make such special studies and reports as may be requested by the General Assembly, the House Appropriations Committee, or the Senate Finance and Appropriations Committee. 2. The areas of review and evaluation to be conducted by the Commission shall include, but are not limited to, the following: (i) spending on and performance of individual economic development incentives, including grants, tax preferences, and other assistance; (ii) economic benefits to Virginia of total spending on economic development initiatives at least biennially; (iii) effectiveness, value to taxpayers, and economic benefits to Virginia of individual economic development initiatives on a cycle approved by the Commission; and (iv) design, oversight, and accountability of economic development entities, initiatives, and policies as needed. 3. For the purpose of carrying out its duties under this authority and notwithstanding any contrary provision of law, JLARC shall have the legal authority to access the facilities, employees, information, and records, including confidential information, and the public and executive session meetings and records of the board of VEDP, involved in economic development initiatives and policies for the purpose of carrying out such duties in accordance with the established standards, processes, and practices exercised by JLARC pursuant to its statutory authority. Access shall include the right to attend such meetings for the purpose of carrying out such duties. Any non-disclosure agreement that VEDP enters into on or after July 1, 2016, for the provision of confidential and proprietary information to VEDP by a third party shall require that JLARC also be allowed access to such information for the purposes of carrying out its duties. 4. Notwithstanding the provisions of subsection A or B of § 58.1-3 or any other provision of law, unless prohibited by federal law, an agreement with a federal entity, or a court decree, the Tax Commissioner is authorized to provide to JLARC such tax information as may be necessary to conduct oversight of economic development initiatives and policies. 5. The following records shall be excluded from the provisions of the Virginia Freedom of Information Act (§ 2.2-3700 et seq.), and shall not be disclosed by JLARC: (a) records provided by a public body as defined in § 2.2-3701, Code of Virginia, to JLARC in connection with its oversight of economic development initiatives and policies, where the records would not be subject to disclosure by the public body providing the records. The public body providing the records to JLARC shall identify the specific portion of the records to be protected and the applicable provision of the Freedom of Information Act or other provision of law that excludes the record or portions thereof from mandatory disclosure. (b) confidential proprietary records provided by private entities pursuant to a promise of

_ 30 Item Details($) Appropriations($) ITEM 25. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 confidentiality from JLARC, used by JLARC in connection with its oversight of economic development initiatives and policies where, if such records are made public, the financial interest of the private entity would be adversely affected. 6. By August 15 of each year, the Secretary of Commerce and Trade shall provide to JLARC all information collected pursuant to § 2.2-206.2, Code of Virginia, in a format and manner specified by JLARC to ensure that the final report to be submitted by the Secretary fulfills the intent of the General Assembly and provides the data and evaluation in a meaningful manner for decision-makers. 7. JLARC shall assist the agencies submitting information to the Secretary of Commerce and Trade pursuant to the provisions of § 2.2-206.2, Code of Virginia, to ensure that the agencies work together to effectively develop standard definitions and measures for the data required to be reported and facilitate the development of appropriate unique project identifiers to be used by the impacted agencies. 8. The Chairman of JLARC may appoint a permanent subcommittee to provide guidance and direction for ongoing review and evaluation activities, subject to the full Commission's supervision and such guidelines as the Commission itself may provide. 9. JLARC may employ on a consulting basis such professional or technical experts as may be reasonably necessary for the Commission to fulfill its responsibilities under this authority. 10. All agencies of the Commonwealth shall cooperate as requested by JLARC in the performance of its duties under this authority. F. Notwithstanding the salaries listed in paragraph A. of this item, the Joint Legislative Audit and Review Commission (JLARC) may establish a salary range for the Director of JLARC. G.1. The General Assembly hereby designates the Joint Legislative Audit and Review Commission (JLARC) to review and evaluate the agencies and programs under the Secretary of Health and Human Resources (HHR) on a continuing basis. 2. Review and evaluation work shall be directed by JLARC in consultation with the Joint Committee for Health and Human Resources Oversight. 3. Review and evaluation shall include, but not be limited to (i) studies of agencies or programs; (ii) targeted analysis of spending trends and other issues warranting examination; and (iii) assessment of the soundness and accuracy of population and spending forecasts, including the process, assumptions, methodology, and results. 4. For the purpose of carrying out its duties and notwithstanding any contrary provision of law, JLARC shall have the legal authority to access the information, records, facilities, and employees of all agencies within the HHR secretariat. 5. The following records shall be excluded from the provisions of the Virginia Freedom of Information Act (§ 2.2-3700 et seq.), and shall not be disclosed by JLARC: (a) records provided by a public body as defined in § 2.2-3701, Code of Virginia, to JLARC in connection with its evaluation of agencies and programs within the HHR secretariat, where the records would not be subject to disclosure by the public body providing the records. The public body providing the records to JLARC shall identify the specific portion of the records to be protected and the applicable provision of the Freedom of Information Act or other provision of law that excludes the record or portions thereof from mandatory disclosure. (b) confidential proprietary records provided by private entities pursuant to a promise of confidentiality from JLARC, used by JLARC in connection with its evaluation of agencies and programs within the HHR secretariat where, if such records are made public, the financial interest of the private entity would be adversely affected. 6. The Chairman of JLARC may appoint a permanent subcommittee to provide guidance and direction for ongoing review and evaluation of agencies and programs within the HHR secretariat, subject to the full Commission's supervision and such guidelines as the Commission itself may provide. 7. JLARC may employ on a consulting basis such professional or technical experts as may be

_ 31 Item Details($) Appropriations($) ITEM 25. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 reasonably necessary for the Commission to fulfill its responsibilities under this authority. 8. All agencies of the Commonwealth shall cooperate as requested by JLARC in the performance of its duties under this authority. H. The clerk of each circuit court shall provide the Joint Legislative Audit and Review Commission with all case data in an electronic format from its own case management system or the statewide Circuit Case Management System upon request of the Commission. If the statewide Circuit Case Management System is used by the clerk, when requested by the Commission, the Executive Secretary of the Supreme Court shall provide for the transfer of such data to the Commission. The Commission may use the data for research, evaluation, or statistical purposes only and shall ensure the confidentiality and security of the data. The Commission shall only publish analyses based on this data as needed for its reports, fiscal impact reviews, or racial and ethnic impact statements as required by the General Assembly. The Commission shall not publish personal or case identifying information, including names, social security numbers and dates of birth, which may be included in the data from a case management system. Upon transfer to the Joint Legislative Audit and Review Commission, such data shall not be subject to the Virginia Freedom of Information Act. Except for the publishing of personal or case identifying information, including names, social security numbers and dates of birth, the restrictions in this section shall not prohibit the Commission from sharing aggregate data in reports, fiscal impact reviews, or racial and ethnic impact statements. I. The Joint Legislative Audit and Review Commission shall engage, on a limited basis, the professional and technical consultants retained for the November 2019 Report "Gaming in the Commonwealth" for a limited review of the potential state and local revenues that may be generated from a casino located in the City of Petersburg, including any potential negative revenue impact on casinos located in other authorized host cities. Total for Joint Legislative Audit and Review Commission $6,244,847 $6,244,847 $6,069,847 General Fund Positions 41.00 41.00 40.00 Nongeneral Fund Positions 1.00 1.00 Position Level 42.00 42.00 41.00 Fund Sources: General $6,103,939 $6,103,939 $5,928,939 Trust and Agency $140,908 $140,908 § 1-15. VIRGINIA COMMISSION ON INTERGOVERNMENTAL COOPERATION (105) 26. Governmental Affairs Services (70100) $880,021 $880,021 $960,021 Interstate Affairs (70103) $880,021 $880,021 $960,021 Fund Sources: General $880,021 $880,021 $960,021 Authority: Title 30, Chapter 19, Code of Virginia. Out of this appropriation may be paid from the general fund the annual assessments: 1. To the National Conference of State Legislatures; 2. To the Council of State Governments; 3. To the Southern Regional Education Board; and 4. To the Education Commission of the States.

_ 32 Item Details($) Appropriations($) ITEM 26. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Total for Virginia Commission on Intergovernmental Cooperation $880,021 $880,021 $960,021 Fund Sources: General $880,021 $880,021 $960,021 § 1-16. LEGISLATIVE DEPARTMENT REVERSION CLEARING ACCOUNT (102) 27. Enactment of Laws (78200) $710,315 $1,460,315 $710,315 Undesignated Support for Enactment of Laws Services (78205) $710,315 $1,460,315 $710,315 Fund Sources: General $710,315 $1,460,315 $710,315 Authority: Discretionary Inclusion. A. Transfers out of this appropriation may be made to fund unanticipated costs in the budgets of legislative agencies or other such costs approved by the Joint Rules Committee. B. Included within this appropriation is an amount estimated at $200,000$250,000 the first year and $200,000$250,000 the second year from the general fund and one position for the operation of the Capitol Guides program. The allocation of these funds shall be subject to the approval of the Committee on Joint Rules. The Capitol Guides program shall be jointly administered by the Clerk of the House of Delegates and the Clerk of the Senate. C. Out of the amounts in this Item, $750,000 the first year from the general fund may be utilized to contract for the construction of a statue that commemorates the legacy of former Governor L. Douglas Wilder. The allocation of these funds shall be subject to the approval of the Committee on Joint Rules. The Virginia Capitol Foundation may accept donations for this purpose. D. On or before June 30, 2025, the Committee on Joint Rules shall authorize a reversion to the general fund of $2,264,114 representing savings generated by legislative agencies in the first year of the 2024-2026 biennium. The total savings amount includes estimated savings within the following legislative agencies: Legislative Agency Estimated Savings - FY2025 Estimated Savings - FY2026 107: Division of Legislative Services $500,000 $0 110: Joint Legislative Audit and Review Commission $1,000,000 $0 820: Capitol Square Preservation Council $764,114 $0 Total $2,264,114 $0 Total for Legislative Department Reversion Clearing Account $710,315 $1,460,315 $710,315 General Fund Positions 1.00 1.00 Position Level 1.00 1.00 Fund Sources: General $710,315 $1,460,315 $710,315 TOTAL FOR LEGISLATIVE DEPARTMENT $155,788,662 $158,101,699 $135,613,662 $136,117,517 General Fund Positions 648.00 646.00 648.00 652.00 Nongeneral Fund Positions 32.50 32.50 Position Level 680.50 678.50 680.50 684.50

_ 33 Item Details($) Appropriations($) ITEM 27. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $150,483,367 $152,521,079 $130,308,367 $130,812,222 Special $5,026,874 $5,302,199 $5,026,874 Trust and Agency $140,908 $140,908 Federal Trust $137,513 $137,513

_ 34 Item Details($) Appropriations($) ITEM 28. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 JUDICIAL DEPARTMENT § 1-17. SUPREME COURT (111) 28. Pre-Trial, Trial, and Appellate Processes (32100) $16,544,935 $16,544,935 Appellate Review (32101) $11,259,035 $11,259,035 Other Court Costs And Allowances (Criminal Fund) (32104) $5,285,900 $5,285,900 Fund Sources: General $16,365,655 $16,365,655 Special $179,280 $179,280 Authority: Article VI, Sections 1 through 6, Constitution of Virginia; Title 17.1, Chapter 3 and § 19.2-163, Code of Virginia. A. Out of the amounts for Appellate Review shall be paid: 1. The annual salary of the Chief Justice, $245,577 from June 10, 2024 to June 9, 2025, $252,944 from June 10, 2025 to June 30, 2026. 2. The annual salaries of the six (6) Associate Justices, each $230,342 from June 10, 2024 to June 9, 2025, $237,252 from June 10, 2025 to June 30, 2026. 3. To each justice, $13,500 the first year and $13,500 the second year, for expenses not otherwise reimbursed, said expenses to be paid out of the current appropriation to the Court. B. There is hereby reappropriated the unexpended balance remaining at the close of business on June 30, 2024, in the appropriation made in Item 39, Chapter 1, Acts of Assembly of 2023, Special Session I, in the item detail Other Court Costs and Allowances (Criminal Fund) and the balance remaining in this item detail on June 30, 2025. C.1. Out of the amounts appropriated in this Item, $5,175,000 the first year and $5,175,000 the second year from the general fund is included for increased reimbursements for court- appointed counsel pursuant to § 19.2-163, Code of Virginia. 2. The Director, Department of Planning and Budget, shall upon the request of the Executive Secretary of the Supreme Court of Virginia, transfer from the second year amount identified in Paragraph C.1. of this item to the first year an amount equal to the estimated shortfall for criminal fund waivers in the first year. Any such request shall be submitted by the Executive Secretary no later than May 1st of any fiscal year. Any amounts transferred shall be communicated to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than 30 days following any such transfer. D. The Executive Secretary of the Supreme Court of Virginia shall encourage training of Juvenile and Domestic Relations District Court judges regarding the options available for court-ordered services for families in truancy cases prior to the initiation of other remedies. 29. Law Library Services (32300) $1,156,387 $1,156,387 Law Library Services (32301) $1,156,387 $1,156,387 Fund Sources: General $1,156,387 $1,156,387 Authority: §§ 42.1-60 through 42.1-64, Code of Virginia. 30. Adjudication Training, Education, and Standards (32600) $899,140 $899,140 Judicial Training (32603) $899,140 $899,140 Fund Sources: General $899,140 $899,140 Authority: Title 16.1, Chapter 9; Title 17.1, Chapter 7; §§ 2.2-4025, 19.2-38.1 and 19.2-43, Code of Virginia. 31. Administrative and Support Services (39900) $53,003,053 $54,377,883 $53,293,491 $59,079,165

_ 35 Item Details($) Appropriations($) ITEM 31. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 General Management and Direction (39901) $53,003,053 $54,377,883 $53,293,491 $59,079,165 Fund Sources: General $42,650,189 $44,025,019 $42,940,627 $48,726,301 Special $124,375 $124,375 Dedicated Special Revenue $8,913,744 $8,913,744 Federal Trust $1,314,745 $1,314,745 Authority: §§ 16.1-69.30, 16.1-69.33, 17.1-314 through 17.1-320 and 17.1-502, Code of Virginia. A. The Executive Secretary of the Supreme Court shall submit an annual fiscal year summary, on or before September 1 of each year, to the Chairmen of the House Appropriations and Senate Finance Committees and to the Director, Department of Planning and Budget, which will report the number of individuals for whom legal or medical services were provided and the nature and cost of such services as are authorized for payment from the criminal fund or the involuntary mental commitment fund. B. Notwithstanding the provisions of § 19.2-326, Code of Virginia, the amount of attorney's fees allowed counsel for indigent defendants in appeals to the Supreme Court shall be in the discretion of the Supreme Court. C. The Chief Justice is authorized to reallocate legal support staff between the Supreme Court and the Court of Appeals of Virginia, in order to meet changing workload demands. D. Prior to January 1 of each year, the Judicial Council and the Committee on District Courts are requested to submit a fiscal impact assessment of their recommendations for the creation of any new judgeships, including the cost of judicial retirement, to the Chairs of the House Committee on Courts of Justice and Senate Committee on the Judiciary, and the House Appropriations and Senate Finance and Appropriations Committees. E. Included in this Item is $3,750,000 the first year and $3,750,000 the second year from the general fund, which may support computer system improvements for the several circuit and district courts. The Executive Secretary of the Supreme Court shall submit an annual report to the Director, Department of Planning and Budget on or before September 1 of each year outlining the improvement projects undertaken and the project status of each project. Each project in the report should include the life to date cost of the project, the amount spent on the project in the most recently completed fiscal year, the year the project began, the estimated cost to complete the remainder of the project and an estimated project completion date. F. Given the continued concern about providing adequate compensation levels for court- appointed attorneys providing criminal indigent defense in the Commonwealth, the Executive Secretary of the Supreme Court, in conjunction with the Governor, Attorney General, Indigent Defense Commission, representatives of the Indigent Defense Stakeholders Group and Chairs of the House Committee on Courts of Justice and Senate Committee on the Judiciary, shall continue to study and evaluate all available options to enhance Virginia's Indigent Defense System. G. In addition to any filing fee or other fee permitted by law, an electronic access fee may be charged for each case filed electronically pursuant to Rule 1:17 of the Rules of the Supreme Court of Virginia. The amount of this fee shall be set by the Supreme Court of Virginia. Moneys collected pursuant to this fee shall be deposited into the State Treasury to the credit of the Courts Technology Fund established pursuant to § 17.1-132, to be used to support the costs of statewide electronic filing systems. H. 1. No state funds used to support the operation of drug court programs shall be provided to programs that serve first-time substance abuse offenders only or do not include probation violators. This restriction shall not apply to juvenile drug court programs. 2. Notwithstanding the provisions of subsection O. of § 18.2-254.1, Code of Virginia, any locality is authorized to establish a drug treatment court supported by existing state resources and by federal or local resources that may be available. This authorization is

_ 36 Item Details($) Appropriations($) ITEM 31. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 subject to the requirements and conditions regarding the establishment and operation of a local drug treatment court advisory committee as provided by § 18.2-254.1 and the requirements and conditions established by the state Drug Treatment Court Advisory Committee. Any drug court treatment program established after July 1, 2012, shall limit participation in the program to offenders who have been determined, through the use of a nationally recognized, validated assessment tool, to be addicted to or dependent on drugs. However, no such drug court treatment program shall limit its participation to first-time substance abuse offenders only; nor shall it exclude probation violators from participation. 3. The evaluation of drug treatment court programs required by § 18.2-254.1 shall include the collection of data needed for outcome measures, including recidivism. Drug treatment court programs shall provide to the Office of the Executive Secretary of the Supreme Court the information needed to conduct such an evaluation. 4. Included within this appropriation is $960,000 the first year and $960,000 the second year from the general fund for drug courts in jurisdictions with high drug caseloads, to be allocated by the State Drug Treatment Court Advisory Committee to existing drug courts which have been approved by the Supreme Court of Virginia but have not previously received state funding. I. Notwithstanding the provisions of § 16.1-69.48, Code of Virginia, the Executive Secretary of the Supreme Court shall ensure the deposit of all Commonwealth collections directly into the State Treasury for Item 34 General District Courts, Item 35 Juvenile and Domestic Relations District Courts, Item 36 Combined District Courts, and Item 37 Magistrate System. J. Included in this appropriation, $289,000 the first year and $289,000 the second year from the general fund is provided to implement the Judicial Performance Evaluation Program established by § 17.1-100 of the Code of Virginia. K. Included in this appropriation, $175,321 the first year and $175,321 the second year from nongeneral funds and two positions to support drug treatment court evaluation and monitoring. The source of funds is the Drug Offender Assessment Fund. L. Included in the amounts appropriated for this item are $400,000 the first year and $400,000 the second year from the general fund to be allocated by the State Drug Treatment Court Advisory Committee for the establishment of drug courts in jurisdictions with high drug- related caseloads, or to increase funding provided to existing drug court programs experiencing high caseload growth. M. Included in this appropriation is $500,000 the first year and $500,000 the second year from the general fund to support the creation and expansion of mental health court dockets in jurisdictions with high caseloads, to be allocated by the Virginia Supreme Court. N.1. There is hereby created in the state treasury a special nonreverting fund to be known as the Attorney Wellness Fund, hereinafter referred to as the Fund. The Fund shall be established on the books of the Comptroller. Interest earned on 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 the fiscal year shall not revert to the general fund, but shall remain in the Fund. Except for transfers pursuant to this Item, there shall be no transfers out of the Fund, including transfers to the general fund. 2. Notwithstanding the provisions of § 54.1-3912, Code of Virginia, in addition to any other fee permitted by law, the Supreme Court of Virginia may adopt rules assessing members of the Virginia State Bar an annual fee of up to $30 to be deposited in the State Bar Fund and transferred to the Attorney Wellness Fund. 3.Moneys in the Fund shall be allocated at the direction of the Supreme Court of Virginia solely for the purposes of wellness initiatives for attorneys, judges, and law students, to prevent substance abuse and behavioral health disorders. The revenue raised in support of the Fund shall not be used to supplant current funding to the judicial branch. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request of the Executive Secretary of the Supreme Court of Virginia. O. The Office of the Executive Secretary of the Supreme Court shall prepare and distribute

_ 37 Item Details($) Appropriations($) ITEM 31. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 evaluation forms in all Circuit Court cases that are overseen by a retired judge for the purpose of collecting information on the number and types of cases referred to retired judges, and use such information to prepare and annually publish a report to be distributed to the members of the House Committee on Courts of Justice and the Senate Committee on the Judiciary, on or about January 1, each year. P. Included in this appropriation is $1,539,033 the first year and $1,539,033 the second year for the implementation of an automatic expungement process pursuant to House Bill 2113 and Senate Bill 1339 of the 2021 Session of the General Assembly. Q. Included in the amounts appropriated for this item is $94,963 the first year and $94,963 the second year from the general fund to implement the Hope Card Program in all circuit and district courts in the Commonwealth. R. The Office of the Executive Secretary (OES), in consultation with the Veterans Docket Advisory Committee established pursuant to Virginia Supreme Court Rule 1:25(e) and the Virginia Department of Veterans Services, will promote localized training to enable correctional and other criminal justice system entities to identify inmates or defendants who have served in the United States military. Such training will encourage use of the Virginia Reentry Search Services (VRSS) developed by the U.S. Veterans Administration to facilitate direct outreach to these veterans, and to inform the development of veteran- specific programs in the criminal justice system including the establishment of a Veterans Docket pursuant to Rule 1:25(b). OES will offer support for jurisdictions applying for funding consistent with Virginia Code 18.2-254.2 (B). S. Included in the amounts appropriated for this item is $679,649 the first year and $679,649 the second year from the general fund to increase per diem compensation to $350 for substitute judges in district courts when working a full day and $175 if the substitute judge serves for less than a full court docket or less than four hours, notwithstanding § 16.1-69.44, Code of Virginia. T. The Office of the Executive Secretary of the Supreme Court (OES) shall contract with the National Center for State Courts (NCSC) and collaborate with the Department of Behavioral Health and Developmental Services (DBHDS) to study existing statewide jail diversion programs and initiatives for individuals with a serious mental illness in Virginia and other states, and the feasibility of implementing an expedited diversion to court- ordered treatment (EDCOT) process to divert individuals with a serious mental illness to court-supervised mental health treatment. In conducting such study, OES shall work with DBHDS to (i) identify existing statewide jail diversion programs and initiatives for individuals with a serious mental illness in Virginia and determine the scope and effectiveness of such programs and initiatives, including the populations served; (ii) assess in what ways and to what extent an EDCOT process could divert individuals with a serious mental illness who are not currently served by existing programs in Virginia; (iii) examine the operational, legal, funding, and other barriers identified by stakeholders that would be required to address EDCOT implementation; and (iv) determine the feasibility of implementing an EDCOT process or similar diversion program in Virginia to allow for diversion of individuals with a serious mental illness not currently served by existing statewide diversion programs. OES shall work with NCSC to evaluate whether other states use diversion best practices that could more effectively and efficiently serve individuals with a mental illness who could be diverted to mental health treatment through an EDCOT process, and who are not currently served by existing statewide diversion programs in the Commonwealth. OES and DBHDS shall provide ample opportunities for meaningful collaboration and cooperation with stakeholders impacted by the potential implementation of an EDCOT process and changes to diversion programs in Virginia. OES shall report on its findings to the Behavioral Health Commission by November 1, 2025. U. Included in this appropriation is $750,000 the first year and $750,000 the second year from the general fund to support specialty dockets. V. Included in this appropriation is $75,000 the first year from the general fund for the Office of the Executive Secretary of the Supreme Court (OES) to contract with the National Center for State Courts (NCSC) to perform a study on juvenile restitution, including: (i) the frequency of court-ordered juvenile restitution in the Commonwealth; (ii) the average amount of restitution ordered; (iii) the percentage of juveniles who pay

_ 38 Item Details($) Appropriations($) ITEM 31. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 court-ordered restitution in full; (iv) the percentage of juveniles penalized for failure to pay restitution; (v) the percentage of victims completely compensated with restitution; and (vi) the demographics of juveniles ordered to pay restitution and make recommendations based on its findings to make the juvenile restitution process more rehabilitative while ensuring victims of crimes are compensated. OES shall report its findings and recommendations by September 1, 2025. Total for Supreme Court $71,603,515 $72,978,345 $71,893,953 $77,679,627 General Fund Positions 243.63 243.63 246.63 Nongeneral Fund Positions 8.00 8.00 Position Level 251.63 251.63 254.63 Fund Sources: General $61,071,371 $62,446,201 $61,361,809 $67,147,483 Special $303,655 $303,655 Dedicated Special Revenue $8,913,744 $8,913,744 Federal Trust $1,314,745 $1,314,745 Court of Appeals of Virginia (125) 32. Pre-Trial, Trial, and Appellate Processes (32100) $21,937,991 $21,937,991 Appellate Review (32101) $21,932,991 $21,932,991 Other Court Costs And Allowances (Criminal Fund) (32104) $5,000 $5,000 Fund Sources: General $21,937,991 $21,937,991 Authority: Title 17.1, Chapter 4 and § 19.2-163, Code of Virginia. A. Out of the amounts in this Item for Appellate Review shall be paid: 1. The annual salary of the Chief Judge, $221,915 from June 10, 2024 to June 9, 2025, $228,572 from June 10, 2025 to June 30, 2026. 2. The annual salaries of the sixteen (16) judges, each at $218,825 from June 10, 2024 to June 9, 2025, $225,390 from June 10, 2025 to June 30, 2026. 3. Salaries of the judges are to be 95 percent of the salaries of justices of the Supreme Court except for the Chief Judge, who shall receive an additional $3,000 annually. 4. To each judge, $6,500 the first year and $6,500 the second year, for expenses not otherwise reimbursed, said expenses to be paid out of the current appropriation to the Court. B. There is hereby reappropriated the unexpended balance remaining at the close of business on June 30, 2024, in the appropriation made in Item 43, Chapter 1, Acts of Assembly of 2023, Special Session I, in the item detail Other Court Costs and Allowances (Criminal Fund) and the balance remaining in this item detail on June 30, 2025. C. The amount of attorney's fees allowed counsel to indigent defendants in appeals to the Court of Appeals shall be in the discretion of the court. D. Out of the amounts appropriated in this Item, $9,493,443 the first year and $9,493,443 the second year from the general fund to support additional judges and associated staff to address anticipated workload increases related to legislation adopted by the 2021 Session of the General Assembly that expands the jurisdiction and organization of the Court of Appeals of Virginia. E. The Court of Appeals shall examine options for workload metrics that could be used to objectively determine the necessary number of positions, including judgeships and personnel in the Clerk's Office and the Office of the Chief Attorney. The Court of Appeals shall provide a report to the General Assembly on its findings and recommendations by November 15, 2025.

_ 39 Item Details($) Appropriations($) ITEM 32. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Total for Court of Appeals of Virginia $21,937,991 $21,937,991 General Fund Positions 142.13 142.13 Position Level 142.13 142.13 Fund Sources: General $21,937,991 $21,937,991 Circuit Courts (113) 33. Pre-Trial, Trial, and Appellate Processes (32100) $131,392,451 $137,464,210 $138,814,210 Trial Processes (32103) $58,997,219 $59,084,019 $58,984,019 Other Court Costs And Allowances (Criminal Fund) (32104) $72,395,232 $78,380,191 $79,830,191 Fund Sources: General $131,392,451 $137,464,210 $138,814,210 Authority: Article VI, Section 1, Constitution of Virginia; Title 17.1, Chapter 5; § 19.2- 163, Code of Virginia. A. Out of the amounts in this Item for Trial Processes shall be paid: 1. The annual salaries of Circuit Court judges, each at $213,839 from June 10, 2024 to June 10, 2025, $220,254 from June 10, 2025 to June 30, 2026. Such salaries shall represent the total compensation from all sources for Circuit Court judges. 2. Expenses necessarily incurred for the position of judge of the Circuit Court, including clerk hire not exceeding $1,500 a year for each judge. 3. The state's share of expenses incident to the prosecution of a petition for a writ of habeas corpus by an indigent petitioner, including payment of counsel fees as fixed by the Court; the expenses shall be paid upon receipt of an appropriate order from a Circuit Court. 4. A circuit court judge shall only be reimbursed for mileage for commuting if the judge has to travel to a courthouse in a county or city other than the one in which the judge resides and the distance between the judge's residence and the courthouse is greater than 25 miles. B. The Chief Circuit Court Judge shall restrict the appointment of special justices to conduct involuntary mental commitment hearings to those unusual instances when no General District Court or Juvenile and Domestic Relations District Court Judge can be made available or when the volume of the hearings would require more than eight hours a week. C. There is hereby reappropriated the unexpended balance remaining at the close of business on June 30, 2024, in the appropriation made in Item 44, Chapter 1, Acts of Assembly of 2023, Special Session I, in the item detail Other Court Costs and Allowances (Criminal Fund) and the balance remaining in this item detail on June 30, 2025. D. The appropriation in this Item for Other Court Costs and Allowances (Criminal Fund) shall be used to implement the provisions of § 8.01-384.1:1, Code of Virginia. E.1. General fund appropriations for Other Court Costs and Allowances (Criminal Fund) total $139,541,179 the first year and $145,526,138 $146,976,138 the second year in this Item and Items 28, 32, 34, 35 and 36. 2. The Chief Justice of the Supreme Court of Virginia shall determine how the amounts appropriated to Other Courts Costs and Allowances (Criminal Fund) will be allocated, consistent with statutory provisions in the Code of Virginia. Funds within these appropriations are to be used to fund fully the statutory caps on compensation applicable to attorneys appointed by the court to defend criminal charges. Should this appropriation not be sufficient to fund fully all of the statutory caps on compensation as established by §

_ 40 Item Details($) Appropriations($) ITEM 33. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 19.2-163, Code of Virginia, that this appropriation shall be applied first to fully fund the statutory caps for the most serious noncapital felonies and then, should funds still remain in this appropriation, to the other statutory caps, in declining order of the severity of the charges to which each cap is applicable. 3. Notwithstanding the provisions of § 19.2-163, Code of Virginia, the amount of compensation allowed to counsel appointed by the court to defend a felony charge that may be punishable by death shall be calculated on an hourly basis at a rate set by the Supreme Court of Virginia. 4. The Department of Planning and Budget is authorized to transfer appropriations between the Criminal Fund and the Involuntary Mental Commitment Fund, as appropriated in any item within the courts system, to support authorized program expenses in the event of an unanticipated shortfall in either fund. Any such transfers shall be made only as needed and shall be reported to the House Appropriations and Senate Finance and Appropriations Committees within 60 days. F. Mandated changes or improvements to court facilities pursuant to § 15.2-1643, Code of Virginia, or otherwise, including any new construction, shall be delayed at the request of the local governing body in which the court is located until June 30, 2026. The provisions of this item shall not apply to facilities that were subject to litigation on or before November 30, 2008. G. In order to reduce expenditures through the Criminal Fund for court-appointed counsel, compensation paid to attorneys appointed pursuant to Virginia Code § 53.1-40 shall be limited to $55 per hour, with a maximum per diem compensation of $200, except in cases where the appointed attorney is appointed to represent indigent prisoners at more than one state prison, and in such cases their billing shall be capped monthly at $6,000, plus reasonable expenses, to be paid from the Criminal Fund. H.1. Notwithstanding the provisions of § 19.2-155, Code of Virginia, in cases where an Attorney for the Commonwealth must recuse himself from a case or a special prosecutor must be appointed, the circuit court judge must appoint an Attorney for the Commonwealth or an Assistant Attorney for the Commonwealth from another jurisdiction. If the circuit court judge determines that the appointment of such Attorney for the Commonwealth or such Assistant Attorney for the Commonwealth is not appropriate or that such an attorney or assistant is unavailable then the judge must request approval from the Executive Secretary of the Supreme Court for an exception to this requirement. 2. The Executive Secretary of the Supreme Court shall include in the annual report required in paragraph A. of Item 31 information on the number of exceptions granted related to special prosecutors and the related expenditures. I. Notwithstanding any other provisions of Chapter 23 of Title 8.1 of the Code of Virginia, a reasonable fee not to exceed $150 may be charged by Commissioners of Accounts for any foreclosures on a timeshare estate to reimburse them for the reasonable costs associated therewith. J. The Executive Secretary of the Supreme Court shall deposit $100,000 the second year from the general fund to the Sealing Fee Fund established in §17.1-205.1, Code of Virginia. J. Out of the amounts appropriated in this Item, $1,000,000 the second year from the general fund is provided to support an increase in the rate paid to guardian ad litems from the Criminal Fund to $78.75 per hour for time spent in court and $57.50 for time spent out of court. K. As part of the annual Criminal Fund forecasting process conducted by the Office of the Executive Secretary (OES) in consultation with staff from the Department of Planning and Budget and the House Appropriations and Senate Finance and Appropriations Committees, the OES shall continue to include notice of any intended rate changes that would have an impact on Criminal Fund expenditures in materials provided to support the forecasting process. OES may approve a rate increase if (i) it will not require an increase in subsequent Criminal Fund appropriations, as determined by the group consensus on the six-year Criminal Fund forecast; or (ii) if sufficient funding is provided to the Criminal Fund to

_ 41 Item Details($) Appropriations($) ITEM 33. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 accommodate anticipated cost impacts from the increase. Total for Circuit Courts $131,392,451 $137,464,210 $138,814,210 General Fund Positions 158.00 158.00 Position Level 158.00 158.00 Fund Sources: General $131,392,451 $137,464,210 $138,814,210 General District Courts (114) 34. Pre-Trial, Trial, and Appellate Processes (32100) $153,148,993 $153,148,993 $153,773,397 Trial Processes (32103) $128,250,476 $128,250,476 $128,874,880 Other Court Costs And Allowances (Criminal Fund) (32104) $17,935,793 $17,935,793 Involuntary Mental Commitments (32105) $6,962,724 $6,962,724 Fund Sources: General $153,148,993 $153,148,993 $153,773,397 Authority: Article VI, Section 8, Constitution of Virginia; §§ 16.1-69.1 through 16.1-137, 19.2-163 and 37.2-809 et seq., Code of Virginia. A. Out of the amounts in this Item for Trial Processes shall be paid: 1. The annual salaries of all General District Court judges, $192,457 from June 10, 2024 to June 9, 2025, $198,231 from June 10, 2025 to June 30, 2026. Such salary shall be 90 percent of the annual salary fixed by law for judges of the Circuit Courts and shall represent the total compensation for General District Court Judges and incorporate all supplements formerly paid by the various localities. 2. The salaries of substitute judges and court personnel. B. There is hereby reappropriated the unexpended balances remaining at the close of business on June 30, 2024, in the appropriation made in Item 45, Chapter 1, Acts of Assembly of 2023, Special Session I, in the item details Other Court Costs and Allowances (Criminal Fund) and Involuntary Mental Commitments and the balances remaining in these item details on June 30, 2025. C. Any balance, or portion thereof, in the item detail Involuntary Mental Commitments, may be transferred between Items 34, 35, 36, and 286, as needed, to cover any deficits incurred for Involuntary Mental Commitments by the Supreme Court or the Department of Medical Assistance Services. D. The appropriation in this Item for Other Court Costs and Allowances (Criminal Fund) shall be used to implement the provisions of § 8.01-384.1:1, Code of Virginia. E. A district court judge shall only be reimbursed for mileage for commuting if the judge has to travel to a courthouse in a county or city other than the one in which the judge resides and the distance between the judge's residence and the courthouse is greater than 25 miles. F. Upon the retirement or separation from employment of any chief general district court clerks from the 7th judicial district or the 13th judicial district, any vacant chief clerk positions in excess of one chief clerk for each general district court shall be reallocated by the Committee on District Courts to district courts with the highest documented unmet staffing requirements. Total for General District Courts $153,148,993 $153,148,993 $153,773,397 General Fund Positions 1,200.60 1,200.60 1,202.60

_ 42 Item Details($) Appropriations($) ITEM 34. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Position Level 1,200.60 1,200.60 1,202.60 Fund Sources: General $153,148,993 $153,148,993 $153,773,397 Juvenile and Domestic Relations District Courts (115) 35. Pre-Trial, Trial, and Appellate Processes (32100) $121,722,928 $121,716,328 $122,028,530 Trial Processes (32103) $85,276,430 $85,269,830 $85,582,032 Other Court Costs And Allowances (Criminal Fund) (32104) $36,181,751 $36,181,751 Involuntary Mental Commitments (32105) $264,747 $264,747 Fund Sources: General $121,722,928 $121,716,328 $122,028,530 Authority: Article VI, Section 8, Constitution of Virginia; §§ 16.1-69.1 through 16.1-69.58, 16.1-226 through 16.1-334, 19.2-163 and 37.2-809 through 37.2-813., Code of Virginia. A. Out of the amounts in this Item for Trial Processes shall be paid: 1. The annual salaries of all full-time Juvenile and Domestic Relations District Court Judges, $192,457 from June 10, 2024 to June 9, 2025, $198,231 from June 10, 2025 to June 30, 2026. Such salary shall be 90 percent of the annual salary fixed by law for judges of the Circuit Courts and shall represent the total compensation for Juvenile and Domestic Relations District Court Judges. 2. The salaries of substitute judges and court personnel. B. There is hereby reappropriated the unexpended balances remaining at the close of business on June 30, 2024, in the appropriation made in Item 46, Chapter 1, Acts of Assembly of 2023, Special Session I, in the Item details Other Court Costs and Allowances (Criminal Fund) and Involuntary Mental Commitments and the balances remaining in these item details on June 30, 2025. C. Any balance, or portion thereof, in the Item detail Involuntary Mental Commitments, may be transferred between Items 34, 35, 36, and 286, as needed, to cover any deficits incurred for Involuntary Mental Commitments by the Supreme Court or the Department of Medical Assistance Services. D. The appropriation in this Item for Other Court Costs and Allowances (Criminal Fund) shall be used to implement the provisions of § 8.01-384.1:1, Code of Virginia. E. Out of the amounts appropriated in this Item, $310,300 the first year and $310,300 the second year from the general fund is included to cover the cost of fee changes to mediators appointed in any custody and support or visitation cases. F. Notwithstanding the provisions of § 20-124.4, Code of Virginia, the fee paid to mediators shall be $120 per appointment mediated. For such purpose, $303,000 the first year and $303,000 the second year from the general fund is included in the appropriation for this item. G. Notwithstanding any other provision of law, during a declared judicial state of emergency as defined in § 17.1-330, Code of Virginia, and for up to 90 days after the declaration has been rescinded or expires, a chief judge may waive the ceremonial requirements pursuant to § 46.2-336, Code of Virginia, or otherwise conduct juvenile licensing ceremonies in an alternative manner prescribed by the court. The judge may mail or otherwise deliver driver's licenses to licensees at the time such licenses are received by the judge. The Chief judge may also coordinate with the Department of Motor Vehicles to have licenses mailed directly to licensees. Total for Juvenile and Domestic Relations District Courts $121,722,928 $121,716,328 $122,028,530

_ 43 Item Details($) Appropriations($) ITEM 35. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 General Fund Positions 672.80 672.80 673.80 Position Level 672.80 672.80 673.80 Fund Sources: General $121,722,928 $121,716,328 $122,028,530 Combined District Courts (116) 36. Pre-Trial, Trial, and Appellate Processes (32100) $25,948,249 $25,948,249 Trial Processes (32103) $16,661,686 $16,661,686 Other Court Costs And Allowances (Criminal Fund) (32104) $7,737,503 $7,737,503 Involuntary Mental Commitments (32105) $1,549,060 $1,549,060 Fund Sources: General $25,948,249 $25,948,249 Authority: Article VI, Section 8, Constitution of Virginia, §§ 16.1-69.1 through 16.1-137, 16.1-226 through 16.1-334, 19.2-163, and 37.2-809 through 37.2-813, Code of Virginia. A. Out of the amounts in this Item for Trial Processes shall be paid the salaries of substitute judges and court personnel. B. There is hereby reappropriated the unexpended balances remaining at the close of business on June 30, 2024, in the appropriation made in Item 47, Chapter 1, Acts of Assembly of 2023, Special Session I, in the item details Other Court Costs and Allowances (Criminal Fund) and Involuntary Mental Commitments and the balances remaining in these item details on June 30, 2025. C. Any balance, or portion thereof, in the Item detail Involuntary Mental Commitments, may be transferred between Items 34, 35, 36, and 286, as needed, to cover any deficits incurred for Involuntary Mental Commitments by the Supreme Court or the Department of Medical Assistance Services. D. The appropriation in this Item for Other Court Costs and Allowances shall be used to implement the provisions of § 8.01-384.1:1, Code of Virginia. Total for Combined District Courts $25,948,249 $25,948,249 General Fund Positions 212.35 212.35 Position Level 212.35 212.35 Fund Sources: General $25,948,249 $25,948,249 Magistrate System (103) 37. Pre-Trial, Trial, and Appellate Processes (32100) $41,537,062 $41,537,062 Pre-Trial Assistance (32102) $41,537,062 $41,537,062 Fund Sources: General $41,537,062 $41,537,062 Authority: Article VI, Section 8, Constitution of Virginia; Title 19.2, Chapter 3, Code of Virginia. Total for Magistrate System $41,537,062 $41,537,062 General Fund Positions 423.20 423.20 Position Level 423.20 423.20 Fund Sources: General $41,537,062 $41,537,062 Grand Total for Supreme Court $567,291,189 $568,666,019 $573,646,786 $581,719,066 General Fund Positions 3,052.71 3,052.71 3,058.71

_ 44 Item Details($) Appropriations($) ITEM 37. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Nongeneral Fund Positions 8.00 8.00 Position Level 3,060.71 3,060.71 3,066.71 Fund Sources: General $556,759,045 $558,133,875 $563,114,642 $571,186,922 Special $303,655 $303,655 Dedicated Special Revenue $8,913,744 $8,913,744 Federal Trust $1,314,745 $1,314,745 § 1-18. BOARD OF BAR EXAMINERS (233) 38. Regulation of Professions and Occupations (56000) $1,930,184 $1,930,184 Lawyer Regulation (56019) $1,930,184 $1,930,184 Fund Sources: Special $1,930,184 $1,930,184 Authority: Title 54.1, Chapter 39, Articles 3 and 4 and § 54.1-3934, Code of Virginia. The State Comptroller shall continue the Board of Bar Examiners Fund on the Cardinal system. Revenues collected from fees paid by applicants for admission to the bar shall be deposited into the Board of Bar Examiners Fund. The source of nongeneral funds included in this item is the Board of Bar Examiners Fund. Interest generated by the fund shall be retained by the fund. Total for Board of Bar Examiners $1,930,184 $1,930,184 Nongeneral Fund Positions 9.00 9.00 Position Level 9.00 9.00 Fund Sources: Special $1,930,184 $1,930,184 § 1-19. JUDICIAL INQUIRY AND REVIEW COMMISSION (112) 39. Adjudication Training, Education, and Standards (32600) $779,882 $779,882 Judicial Standards (32602) $779,882 $779,882 Fund Sources: General $779,882 $779,882 Authority: Article VI, Section 10, Constitution of Virginia; Title 17.1, Chapter 9, Code of Virginia. Total for Judicial Inquiry and Review Commission $779,882 $779,882 General Fund Positions 3.00 3.00 Position Level 3.00 3.00 Fund Sources: General $779,882 $779,882 § 1-20. INDIGENT DEFENSE COMMISSION (848) 40. Legal Defense (32700) $86,671,159 $88,330,106 $87,214,744 $89,395,011 Criminal Indigent Defense Services (32701) $82,327,585 $83,986,532 $82,871,170 $84,913,244 Legal Defense Regulatory Services (32703) $246,405 $246,405 Administrative Services (32722) $4,097,169 $4,097,169 $4,235,362 Fund Sources: General $84,520,523 $85,064,108 $85,583,301 Special $2,150,636 $3,809,583 $2,150,636 $3,811,710 Authority: §§ 19.2-163.01 through 19.2-163.8, Code of Virginia

_ 45 Item Details($) Appropriations($) ITEM 40. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 A. Pursuant to § 19.2-163.01, Code of Virginia, the Executive Director of the Indigent Defense Commission shall serve at the pleasure of the commission. B. Out of the amounts in this Item, $200,000 the first year and $200,000 the second year from the general fund is provided to support two positions to enforce and monitor compliance with the new Standards of Practice for court-appointed counsel. C. Out of the amounts in this item, $6,558,009 the first year and $6,558,009 the second year from the general fund is provided to hire additional public defender positions to address increased workloads and reduce turnover in offices across the Commonwealth. The Commission may direct a portion of the funding for salary adjustments, including increasing starting salaries for attorneys and adjusting salaries for current staff to address turnover rates within the offices. D. The Commission shall convene a workgroup to assess the feasibility of creating an Appellate Defender Office. E. Out of the amounts in this item, funding is provided for three positions for the Fairfax Indigent Defense Commission to provide public defender services to the Town of Herndon, the Town of Vienna, and the City of Fairfax. Total for Indigent Defense Commission $86,671,159 $88,330,106 $87,214,744 $89,395,011 General Fund Positions 727.00 727.00 731.00 Nongeneral Fund Positions 2.00 4.00 2.00 4.00 Position Level 729.00 731.00 729.00 735.00 Fund Sources: General $84,520,523 $85,064,108 $85,583,301 Special $2,150,636 $3,809,583 $2,150,636 $3,811,710 § 1-21. VIRGINIA CRIMINAL SENTENCING COMMISSION (160) 41. Adjudicatory Research, Planning, and Coordination (32400) $1,859,578 $1,859,578 Adjudicatory Research And Planning (32403) $1,859,578 $1,859,578 Fund Sources: General $1,789,506 $1,789,506 Special $70,072 $70,072 Authority: Title 17.1, Chapter 8, Code of Virginia A. For any fiscal impact statement prepared by the Virginia Criminal Sentencing Commission pursuant to § 30-19.1:4, Code of Virginia, for which the commission does not have sufficient information to project the impact, the commission shall assign a minimum fiscal impact of $50,000 to the bill and this amount shall be printed on the face of each such bill, but shall not be codified. The provisions of § 30-19.1:4, paragraph H. shall be applicable to any such bill. B. The clerk of each circuit court shall provide the Virginia Criminal Sentencing Commission case data in an electronic format from its own case management system or the statewide Circuit Case Management System. If the statewide Circuit Case Management System is used by the clerk, when requested by the Commission, the Executive Secretary of the Supreme Court shall provide for the transfer of such data to the Commission. The Commission may use the data for research, evaluation, or statistical purposes only and shall ensure the confidentiality and security of the data. The Commission shall only publish statistical reports and analyses based on this data as needed for its annual reports or for other reports as required by the General Assembly. The Commission shall not publish personal or case identifying information, including names, social security numbers and dates of birth, that may be included in the data from a case management system. Upon transfer to the Virginia Criminal Sentencing Commission,

_ 46 Item Details($) Appropriations($) ITEM 41. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 such data shall not be subject to the Virginia Freedom of Information Act. Except for the publishing of personal or case identifying information, including names, social security numbers and dates of birth, the restrictions in this section shall not prohibit the Commission from sharing aggregate data when requested by a member of the General Assembly, the Office of the Attorney General, the Office of the Governor, or a member of the Governor's Cabinet. C. The Executive Secretary of the Supreme Court shall provide for the transfer of juvenile case information maintained in electronic format in a case management system to the Virginia Criminal Sentencing Commission. Such information shall include: (i) case identifying information, including names, complete dates of birth and social security numbers, and case or docket numbers; (ii) charges, including statutes, descriptions, and Virginia Crime Codes established by § 19.2-390.01; (iii) offenses for which the juvenile was found delinquent, including statutes, descriptions, and Virginia Crime Codes; (iv) dispositions in delinquency cases, and; (v) information to identify cases in which a preliminary hearing was held pursuant to § 16.1-269.1 and cases transferred for trial in circuit court. The Commission may use the data only for research, evaluation, or statistical purposes, for the preparation or assistance with the preparation of sentencing guidelines required by § 19.2-298.01, or for aggregate analysis necessary for the development or revision of sentencing guidelines as provided in § 17.1-806. The data may also be used in the preparation of aggregate reports required by law or requested by a member or office of the General Assembly, the Office of the Attorney General, the Office of the Governor, or a member of the Governor's Cabinet. The Commission shall ensure the confidentiality and security of the data. The Commission shall not publish personal or case identifying information, including names, social security numbers, and dates of birth, included in the data. Upon transfer, such data shall not be subject to the Virginia Freedom of Information Act. Total for Virginia Criminal Sentencing Commission $1,859,578 $1,859,578 General Fund Positions 12.00 12.00 Position Level 12.00 12.00 Fund Sources: General $1,789,506 $1,789,506 Special $70,072 $70,072 § 1-22. VIRGINIA STATE BAR (117) 42. Legal Defense (32700) $18,578,474 $18,578,474 Indigent Defense, Civil (32704) $18,578,474 $18,578,474 Fund Sources: General $9,228,474 $9,228,474 Special $8,350,000 $8,350,000 Dedicated Special Revenue $1,000,000 $1,000,000 Authority: § 17.1-278, Code of Virginia. A.1. The amounts for Indigent Defense, Civil, include up to $75,000 the first year and up to $75,000 the second year from the general fund for the Community Tax Law Project, to provide indigent defense services in matters related to taxation disputes, and educational services involving the rights and responsibilities of taxpayers. 2. The amounts for Indigent Defense, Civil, include up to $9,131,100 the first year and up to $9,131,100 the second year from the general fund to provide grants for high quality civil legal assistance to low income Virginians and to promote equal access to justice. B. The Virginia State Bar and the Legal Services Corporation of Virginia shall annually, on or about January 1, provide a report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, and the Director, Department of Planning and Budget regarding the status of legal services assistance programs in the Commonwealth. The report shall include, but not be limited to, efforts to maintain and improve the accuracy of caseload data, case opening and case closure information, and program activity levels as it relates to clients. 43. Regulation of Professions and Occupations (56000) $17,192,215 $17,192,215

_ 47 Item Details($) Appropriations($) ITEM 43. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Lawyer Regulation (56019) $17,192,215 $17,192,215 Fund Sources: Dedicated Special Revenue $17,192,215 $17,192,215 Authority: Title 54.1, Chapter 39, Article 2 and §§ 54.1-3935 through 54.1-3938, Code of Virginia. A. It is the intention of the General Assembly that the Virginia State Bar strictly direct its activities toward the purposes of regulating the legal profession and improving the quality of legal services available to the people of the Commonwealth, and that, insofar as reasonably possible, the Virginia State Bar shall refrain from commercial or other undertakings not necessarily or reasonably related to the above stated purposes. B. Out of the amounts appropriated for this Item, $1,000,000 the first year and $1,000,000 the second year from revenues generated from the assessment of annual fees by the Supreme Court of Virginia upon members of the Virginia State Bar, pursuant to Chapter 847, 2007 Acts of Assembly, is provided for transfer to the Clients' Protection Fund of the Virginia State Bar. C. The Virginia State Bar shall review its member fee structure and make changes necessary to ensure fees are set at amounts needed only to cover costs and to provide for an appropriate balance. Total for Virginia State Bar $35,770,689 $35,770,689 Nongeneral Fund Positions 89.00 89.00 Position Level 89.00 89.00 Fund Sources: General $9,228,474 $9,228,474 Special $8,350,000 $8,350,000 Dedicated Special Revenue $18,192,215 $18,192,215 TOTAL FOR JUDICIAL DEPARTMENT $694,302,681 $697,336,458 $701,201,863 $711,454,410 General Fund Positions 3,794.71 3,794.71 3,804.71 Nongeneral Fund Positions 108.00 110.00 108.00 110.00 Position Level 3,902.71 3,904.71 3,902.71 3,914.71 Fund Sources: General $653,077,430 $654,452,260 $659,976,612 $668,568,085 Special $12,804,547 $14,463,494 $12,804,547 $14,465,621 Dedicated Special Revenue $27,105,959 $27,105,959 Federal Trust $1,314,745 $1,314,745

_ 48 Item Details($) Appropriations($) ITEM 44. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 EXECUTIVE DEPARTMENT EXECUTIVE OFFICES § 1-23. OFFICE OF THE GOVERNOR (121) 44. Administrative and Support Services (79900) $7,522,963 $7,522,963 General Management and Direction (79901) $7,522,963 $7,522,963 Fund Sources: General $7,493,839 $7,493,839 Federal Trust $29,124 $29,124 Authority: Article V, Constitution of Virginia; Title 2.2, Chapter 1, Code of Virginia. A. This appropriation includes $175,000 the first year and $175,000 the second year from the general fund to pay the salary of the Governor. B. Out of the amounts for General Management and Direction, $75,000 each year is included for the Governor's discretionary expenses. C. Out of the appropriation for this item $103,800 from the general fund is provided each year for the Governor's Fellows program. Any balances remaining from the appropriation identified in this paragraph shall be brought forward and made available to support the Governor's Fellows in the subsequent fiscal year. The Department of Planning and Budget is authorized to transfer amounts from the appropriation in this paragraph to applicable state agencies as required to execute the purposes of this paragraph. D. This item includes $728,985 the first year and $728,985 the second year from the general fund and five and a half positions for the Office of the Children's Ombudsman. E. The Governor shall designate a member of the Executive Branch to be an advisor on Health Workforce Development in Virginia. This advisor may or may not have other duties and responsibilities. The Health Workforce Development advisor shall gather information to evaluate the status of health workforce development in the Commonwealth. The advisor also shall recommend options to improve such workforce development to make Virginia's health workforce the best it can be to maximize the health status of Virginians and the quality of health care provided to Virginians. The advisor shall work with Secretariats and state agencies, with designated boards, with the Virginia Health Workforce Development Authority, with regional bodies in Virginia, with private entities involved in health workforce development, and with charitable entities working to promote development of an outstanding health workforce. The advisor shall work with designated persons in the offices of the Secretaries of Labor, Health and Human Resources, Education, and Commerce and Trade. The Health Workforce Development advisor shall produce any reports requested by the Governor to help use the workforce to improve the health of Virginians and the quality of care provided. F. The Governor shall ensure that Executive Branch rulemakings that are exempt from Article 2 of the Administrative Process Act shall not be subject to the Executive Branch Review process. Furthermore, the Governor shall ensure that any agencies and regulations with a full or partial exemption from either Article 1 or Article 2 of the Administrative Process Act not be required to comply with any requirements other than those specifically required by the Code of Virginia pertaining to other regulatory activity, including petitions for rulemaking, meeting notices, agendas and minutes, the periodic review of existing regulations, and guidance documents. G. The Governor shall direct the Director, Department of Human Resources Management to include in the quarterly report required by § 2.2-607, Code of Virginia. the funding amount, including fund sources from the agencies that are covering the payroll for such employee, for state employees that are transferred from one state agency to another without transferring appropriations. H. From the amounts initially appropriated in Chapter 2, 2022 Special Session I, $1,000,000 of the carryforward balances shall revert to the general fund. The executive branch shall not I VETO ITEM 44.H. ON PAGES 48-49 /s/ Glenn Youngkin 3-24-2025

_ 49 Item Details($) Appropriations($) ITEM 44. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 issue any procurement related to development of a model simulator to predict effects of K- 12 formula changes. 44.50 Human Relations Management (14600) $1,816,772 $1,816,772 Diversity, Equity, and Inclusion Services (14602) $1,816,772 $1,816,772 Fund Sources: General $1,816,772 $1,816,772 Authority: Title 2.2, Chapter 6, Article 1, Code of Virginia. If the Governor has not appointed a Director of the Office of Diversity, Equity, and Inclusion by July 1, 2024, pursuant to § 2.2-435.12, Code of Virginia, the Director, Department of Planning and Budget shall transfer the appropriation in this Item to the Virginia Cannabis Equity Business Loan Fund. 45. Historic and Commemorative Attraction Management (50200) $885,246 $885,246 Executive Mansion Operations (50207) $885,246 $885,246 Fund Sources: General $885,246 $885,246 Authority: Title 2.2, Chapter 1, Code of Virginia. 46. Governmental Affairs Services (70100) $587,109 $587,109 Intergovernmental Relations (70101) $587,109 $587,109 Fund Sources: General $387,218 $387,218 Commonwealth Transportation $199,891 $199,891 Authority: Title 2.2, Chapter 3, Code of Virginia. 47. Disaster Planning and Operations (72200) a sum sufficient a sum sufficient Disaster Operations (72202) a sum sufficient Disaster Assistance (72203) a sum sufficient Authority: Title 44, Chapter 3.2, Code of Virginia. A.1. The amount for Disaster Assistance is from all funds of the state treasury, not constitutionally restricted, and is to be effective only in the event of a declared state of emergency or authorization by the Governor of the sum sufficient, pursuant to § 44- 146.28, Code of Virginia. Any appropriation authorized by this Item shall be transferred to state agencies for payment of eligible costs according to written directions of the Governor or by such other person or persons as may be designated by him for this purpose. 2. Any amount authorized for expenditure pursuant to § 44-146.28, Code of Virginia, shall be paid to eligible jurisdictions in accordance with guidelines and procedures established by the Department of Emergency Management, pursuant to § 44-146.28, Code of Virginia. 3. The amount calculated for disaster assistance for any event provided under this authority shall be made in consultation with the Secretary of Finance, and, as deemed appropriate by the Secretary, the Department of Planning and Budget. B. In the event of a Presidentially declared disaster, the state and local share of any federal assistance, hazard mitigation, or flood control programs in which the state participates will be determined in accordance with the procedures in the "Commonwealth of Virginia Emergency Operations Plan, Basic Plan," promulgated by the Department of Emergency Management. The state share of any such program shall be no less than 10 percent. Total for Office of the Governor $10,812,090 $10,812,090 General Fund Positions 62.17 62.17 Nongeneral Fund Positions 1.33 1.33 Position Level 63.50 63.50 Fund Sources: General $10,583,075 $10,583,075

_ 50 Item Details($) Appropriations($) ITEM 47. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Commonwealth Transportation $199,891 $199,891 Federal Trust $29,124 $29,124 § 1-24. LIEUTENANT GOVERNOR (119) 48. Administrative and Support Services (79900) $566,920 $566,920 General Management and Direction (79901) $566,920 $566,920 Fund Sources: General $566,920 $566,920 Authority: Article V, Sections 13, 14, and 16, Constitution of Virginia; and Title 24.2, Chapter 2, Article 3, Code of Virginia. Out of this appropriation shall be paid: 1. The salary of the Lieutenant Governor, $36,321 the first year and $36,321 the second year; 2. Expenses of the Lieutenant Governor during sessions of the General Assembly on the same basis as for the members of the General Assembly; 3. Salaries and benefits for compensation of up to three staff positions in the Office of the Lieutenant Governor. Total for Lieutenant Governor $566,920 $566,920 General Fund Positions 4.00 4.00 Position Level 4.00 4.00 Fund Sources: General $566,920 $566,920 § 1-25. ATTORNEY GENERAL AND DEPARTMENT OF LAW (141) 49. Legal Advice (32000) $57,435,842 $57,435,842 State Agency/Local Legal Assistance and Advice (32002) $57,435,842 $57,435,842 Fund Sources: General $39,535,700 $39,535,700 Special $16,149,310 $16,149,310 Dedicated Special Revenue $500,000 $500,000 Federal Trust $1,250,832 $1,250,832 Authority: Title 2.2 Chapter 5, Code of Virginia. A. Out of this appropriation shall be paid: 1. The salary of the Attorney General, $150,000 the first year and $150,000 the second year. 2. Expenses of the Attorney General not otherwise reimbursed, $9,000 each year in equal monthly installments. 3. Salary expenses necessary to provide legal services pursuant to Title 2.2, Chapter 5, Code of Virginia. B. Out of this appropriation, $738,536 the first year and $738,536 the second year from the general fund is designated for efforts to enforce the 1998 Tobacco Master Settlement Agreement and Article 1 (§ 3.2-4200, et seq.), Chapter 42, Title 3.2, Code of Virginia. The Department of Law shall be responsible for enforcement of Article 1 (§ 3.2-4200, et seq.), Chapter 42, Title 3.2, Code of Virginia and the 1998 Tobacco Master Settlement Agreement. The general fund shall be reimbursed on a proportional basis from the Tobacco Indemnification and Community Revitalization Fund and the Virginia Tobacco Settlement Fund for costs associated with the enforcement of the 1998 Tobacco Master Settlement Agreement pursuant to transfers directed by Item 468 and § 3-1.01, Paragraph N of this act. C. Upon notification by the Attorney General, agencies that administer programs which are funded wholly or partially from nongeneral fund appropriations shall transfer to the Department of Law the necessary funds to cover the costs of legal services that are related to

_ 51 Item Details($) Appropriations($) ITEM 49. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 such nongeneral funds. The Attorney General, in consultation with the respective agency heads, shall determine the amounts for transfer. It is the intent of the General Assembly that legal services provided by the Office of the Attorney General for general fund- supported programs shall be provided out of this appropriation. D. At the request of the Attorney General, the Director, Department of Planning and Budget, shall provide an amount not to exceed $100,000 per year from the Miscellaneous Contingency Reserve Account to pay the compensation, fees, and expenses of (i) counsel appointed by the Office of the Attorney General in actions brought pursuant to § 15.2- 1643, Code of Virginia, to cause court facilities to be made secure, or put in good repair, or rendered otherwise safe, and (ii) counsel representing court personnel, including clerks, judges, and Justices in actions arising out of their official duties. E.1. Pursuant to Chapter 577 of the Acts of Assembly of 2008, the Office of the Attorney General shall provide legal service in civil matters and consultation and legal advice in suits and other legal actions to soil and water conservation district directors and districts upon the request of those district directors or districts at no charge, inclusive of all fees, expenses, or other costs associated with litigation, excluding the payment of damages. 2. If the Office of the Attorney General is unable to provide legal services to the soil and water conservation districts, and as a result the districts incur costs from retaining other counsel, then the Director of the Department of Planning and Budget shall transfer general fund appropriations from the Office of the Attorney General to the Department of Conservation and Recreation in an amount equal to the cost incurred by the soil and water conservation districts to be used to reimburse the districts for costs incurred. F. The Attorney General shall prepare and submit a report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by November 1 of each year detailing expenditures in the prior fiscal year for special outside counsel by any executive branch agencies. The report shall include the reasoning why outside counsel is necessary, the hourly rate charged by outside counsel, total expenditures, and funding source. G. Except as otherwise specifically provided by law, all legal services of the Office of the Attorney General shall be performed exclusively by (i) an employee of the Office, (ii) an employee of another Virginia governmental entity as may be provided by law, (iii) an employee of a federal governmental entity pursuant to an agreement between the Office of the Attorney General and such federal governmental entity, or (iv) law students who receive a non-salary stipend from their law school or another institution or recent law school graduates who graduated within the past two years sponsored by their graduating institution with a non-salary stipend. Except as otherwise specifically provided under this act, the sole source of compensation paid to employees of the Office of the Attorney General for performing legal services on behalf of the Commonwealth shall be from the appropriations provided under this act. In any case in which the Office of the Attorney General is authorized under law to contract with, hire, or engage a person other than a person described in clauses (i), (ii), (iii), or (iv) to perform legal services on behalf of the Commonwealth, the sole consideration for such legal services shall be a monetary amount bargained for in an arm's length transaction with such person and the Office of the Attorney General or another Virginia governmental entity, stating under what authority that office enters the contract. Only persons described in clauses (i), (ii), (iii), or (iv) shall perform legal services on premises leased by the Office of the Attorney General. Nothing in this paragraph shall prohibit the Office of the Attorney General from entering into a settlement agreement with a defendant arising from a case litigated or prosecuted by a federal governmental entity, local governmental entity, or an Attorney General's Office in another state or United States territory. Nothing in this paragraph shall prohibit the Office of the Attorney General from employing and providing office space to an unpaid intern assisting in performing legal services, provided that such intern does not possess a current license to practice law in the Commonwealth, any other state, or any United States territory. H.1. There is hereby created in the state treasury a special, nonreverting fund to be known as the Electronic Nicotine Delivery Systems Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund at the

_ 52 Item Details($) Appropriations($) ITEM 49. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 end of each fiscal year, including interest thereon, shall not revert to the general fund but shall remain in the Fund. 2. Notwithstanding any other provision of law, upon receipt of amounts from a settlement, judgment, verdict, or other court order relating to consumer protection claims regarding the marketing and distribution of electronic nicotine delivery systems (ENDS) products toward youth, such amounts shall be deposited into the Fund. Any amounts appropriated from the Fund shall be used, to the maximum extent possible, for efforts to prevent, abate, and cease the use of ENDS and other related nicotine products. I. Out of this appropriation, $1,000,000 the first year and $1,000,000 the second year from the Electronic Nicotine Delivery Systems Fund shall be transferred to the Virginia Foundation for Healthy Youth to support a youth vaping prevention campaign. J. Out of this appropriation, $500,000 the first year and $500,000 the second year from the Commonwealth Opioid Abatement and Remediation Fund shall be transferred to the Virginia Foundation for Healthy Youth to address the opioid crisis through a marketing campaign and classroom-based programmatic efforts. K. Out of this appropriation, $1,300,000 the first year and $1,300,000 the second year from the general fund is designated for supporting group violence intervention efforts as defined in Item 394, subection N of this act. 50. Medicaid Program Services (45600) $14,429,831 $14,429,831 Medicaid Fraud Investigation and Prosecution (45614) $14,429,831 $14,429,831 Fund Sources: Special $3,826,794 $3,826,794 Federal Trust $10,603,037 $10,603,037 Authority: Title 32.1, Chapter 9, Code of Virginia. 51. Regulation of Business Practices (55200) $6,786,546 $6,786,546 Regulatory and Consumer Advocacy (55201) $6,786,546 $6,786,546 Fund Sources: General $4,491,015 $4,491,015 Special $2,295,531 $2,295,531 Authority: Title 2.2, Chapter 5, Code of Virginia. Included in this Item is $1,250,000 the first year and $1,250,000 the second year from special funds for the Regulatory, Consumer Advocacy, Litigation, and Enforcement Revolving Trust Fund as established in Item 48 of Chapter 966 of the Acts of Assembly 1994 and amended herein. The Department of Law is authorized to deposit to the fund any fees, civil penalties, costs, recoveries, or other moneys which from time to time may become available as a result of regulatory and consumer advocacy litigation, litigation in which the Office of the Attorney General participates, or civil enforcement efforts including, but not limited to, those brought pursuant to Article 1 (§ 3.2-4200 et seq.) and Article 3 (§ 3.2-4204 et seq.) of Chapter 42 of Title 3.2 of the Code of Virginia. The Department of Law is also authorized to deposit to the fund any attorneys' fees which from time to time may be obtained. Any deposit to, and interest earnings on, the fund shall be retained in the fund, provided, however, that any amounts contained in the fund that exceed $1,250,000 on the final day of the fiscal year shall be deposited to the credit of the general fund. In addition to the uses of the fund permitted by Item 48 of Chapter 966 of the Acts of Assembly of 1994, the fund may be used to pay costs associated with enforcement efforts pursuant to Article 1 (§ 3.2-4200 et seq.) and Article 3 (§ 3.2-4204 et seq.) of Chapter 42 of Title 3.2 of the Code of Virginia, costs associated with litigation initiated by the Office of the Attorney General, and costs associated with civil commitment procedures pursuant to Chapter 9 of Title 37.2 of the Code of Virginia. 52. Any judgment rendered pursuant to the Virginia Tort Claims Act shall be paid out of the state treasury under the direction of the Attorney General. Claims against agencies funded solely from the general fund shall be paid from the general fund. Claims against agencies funded by both general and nongeneral funds shall be paid from a combination of funds based upon the appropriations from such funds.

_ 53 Item Details($) Appropriations($) ITEM 53. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 53. Personnel Management Services (70400) $1,399,535 $1,399,535 Compliance and Enforcement (70414) $1,399,535 $1,399,535 Fund Sources: General $1,323,086 $1,323,086 Federal Trust $76,449 $76,449 Authority: Title 2.2, Chapter 26, Article 12, and Chapter 39; Title 15.2, Chapter 16, § 15.2-1604, Code of Virginia. Total for Attorney General and Department of Law $80,051,754 $80,051,754 General Fund Positions 346.75 346.75 Nongeneral Fund Positions 203.25 203.25 Position Level 550.00 550.00 Fund Sources: General $45,349,801 $45,349,801 Special $22,271,635 $22,271,635 Dedicated Special Revenue $500,000 $500,000 Federal Trust $11,930,318 $11,930,318 Division of Debt Collection (143) 54. Collection Services (74000) $3,653,502 $3,653,502 State Collection Services (74001) $3,339,287 $3,339,287 State Fraud Recovery Services (74002) $314,215 $314,215 Fund Sources: Special $3,653,502 $3,653,502 Authority: Title 2.2, Chapter 5 and Title 8.01, Chapter 3, Code of Virginia. A. 1. The Division of Debt Collection shall provide legal services and advice related to the collection of funds owed the Commonwealth, including the recovery of certain funds pursuant to the Virginia Fraud Against Taxpayers Act (FATA) (§ 8.01-216.1 et seq.) by the Commonwealth as defined by 8.01-216.2. All agencies and institutions shall follow the procedures for collection of funds owed the Commonwealth as specified in §§ 2.2-518 and 2.2-4800 et seq. of the Code of Virginia, and all agencies, institutions, and political subdivisions shall follow the procedures for recovery of funds as specified in §§ 2.2-518 and 8.01-216.1 et seq. of the Code of Virginia, except as provided otherwise therein or in this act. 2. The provisions of this section shall not apply to any investigations, litigation, or recoveries related to matters handled under the authority granted to the Medicaid Fraud Control Unit within the Department of Law pursuant to the provisions of 42 C.F.R. § 1007 et seq. All matters pertaining to the recovery of such Medicaid funds, including damages, fines, and penalties received pursuant to FATA, are specifically excluded from the provisions of this section. B.1. The Division of Debt Collection is entitled to retain as fees up to 30 percent of any revenues generated by its collection services pursuant to paragraph A. to pay operating costs supported by the appropriation in this item. 2. Upon closing its books at the end of the fiscal year, after the execution of all transfers to state agencies having claims collected by the Division of Debt Collection, the Division may retain up to a $400,000 balance in its operating accounts. Any amounts contained in the operating accounts that exceed $400,000 on the final day of the fiscal year shall be deposited to the credit of the general fund no later than September 1 of the succeeding fiscal year. 3. The Division of Debt Collection is entitled to retain as special revenue up to 30 percent of any funds recovered on behalf of the Commonwealth as well as any separate attorney's fees awarded to the Commonwealth pursuant to FATA for its fraud recovery services pursuant to paragraph A., to pay operating costs supported by the appropriation in this item. 4. There shall be created on the books of the Comptroller a special, nonreverting,

_ 54 Item Details($) Appropriations($) ITEM 54. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 revolving fund to be known as the Fraud Recovery Fund (FATA Fund). The Division is authorized to deposit to the FATA Fund any revenue, fees, civil penalties, costs, recoveries, or other moneys which from time to time may become available as a result of its fraud recovery services. The Division is also authorized to deposit to the FATA Fund any attorneys' fees which from time to time may be awarded to the Commonwealth. Any deposit to, and interest earnings on, the FATA Fund shall be retained in the FATA Fund. The Division shall retain 30% of any funds recovered as well as any separate attorney's fees awarded to the Commonwealth pursuant to FATA, and shall transfer the remaining funds to the appropriate state agencies and political subdivisions on a periodic basis or such other period of time approved by the Division. 5. The Director, Department of Planning and Budget, may grant an exception to the provisions in paragraph B.2. if the Division of Debt Collection can show just cause. C. The Division of Debt Collection may contract with private collection agents for the collection of debts amounting to less than $15,000. Total for Division of Debt Collection $3,653,502 $3,653,502 Nongeneral Fund Positions 27.00 27.00 Position Level 27.00 27.00 Fund Sources: Special $3,653,502 $3,653,502 Grand Total for Attorney General and Department of Law $83,705,256 $83,705,256 General Fund Positions 346.75 346.75 Nongeneral Fund Positions 230.25 230.25 Position Level 577.00 577.00 Fund Sources: General $45,349,801 $45,349,801 Special $25,925,137 $25,925,137 Dedicated Special Revenue $500,000 $500,000 Federal Trust $11,930,318 $11,930,318 § 1-26. SECRETARY OF THE COMMONWEALTH (166) 55. Central Records Retention Services (73800) $3,161,712 $3,161,712 Appointments (73801) $3,161,712 $3,161,712 Fund Sources: General $3,054,298 $3,054,298 Dedicated Special Revenue $107,414 $107,414 Authority: §§ 2.2-400 through 2.2-435, 2.2-3106, Code of Virginia. A. The fee charged by the Secretary of the Commonwealth under the provisions of § 2.2-409, Code of Virginia, for a Service of Process shall be $28.00. B. Included in the general fund appropriation for this item is $18,470 each year for costs related to the Virginia Indian Advisory Board, pursuant to § 2.2-401.01, Code of Virginia. Total for Secretary of the Commonwealth $3,161,712 $3,161,712 General Fund Positions 20.00 20.00 Position Level 20.00 20.00 Fund Sources: General $3,054,298 $3,054,298 Dedicated Special Revenue $107,414 $107,414 § 1-27. OFFICE OF THE STATE INSPECTOR GENERAL (147) 56. Inspection, Monitoring, and Auditing Services (78700) $8,829,568 $8,760,908 Inspection and Compliance of Program Operations (78701) $8,829,568 $8,760,908

_ 55 Item Details($) Appropriations($) ITEM 56. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $6,292,984 $6,224,324 Special $282,390 $282,390 Commonwealth Transportation $2,254,194 $2,254,194 Authority: Title 2.2, Chapter 3.2, Code of Virginia. A. Out of this appropriation shall be paid the annual salary of the State Inspector General $177,142 from July 1, 2024 to June 30, 2025 and $177,142 from July 1, 2025 to June 30, 2026. B. The Office of the State Inspector General shall be responsible for investigating the management and operations of state agencies and nonstate agencies to determine whether acts of fraud, waste, abuse, or corruption have been committed or are being committed by state officers or employees or any officers or employees of a nonstate agency, including any allegations of criminal acts affecting the operations of state agencies or nonstate agencies. However, no investigation of an elected official of the Commonwealth to determine whether a criminal violation has occurred, is occurring, or is about to occur under the provisions of § 52-8.1 shall be initiated, undertaken, or continued except upon the request of the Governor, the Attorney General, or a grand jury. C. The Office of the State Inspector General shall be responsible for coordinating and recommending standards for those internal audit programs in existence as of July 1, 2012, and developing and maintaining other internal audit programs in state agencies and nonstate agencies as needed in order to ensure that the Commonwealth's assets are subject to appropriate internal management controls. The State Inspector General shall assess the condition of the accounting, financial, and administrative controls of state agencies and nonstate agencies. D. The Office of the State Inspector General shall be responsible for providing timely notification to the appropriate attorney for the Commonwealth and law-enforcement agencies whenever the State Inspector General has reasonable grounds to believe there has been a violation of state criminal law. E. The Office of the State Inspector General shall be responsible for assisting citizens in understanding their rights and the processes available to them to express concerns regarding the activities of a state agency or nonstate agency or any officer or employee of the foregoing; F.1. The Office of the State Inspector General shall be responsible for development, coordination and management of a program to train internal auditors. The Office of the State Inspector General shall assist internal auditors of state agencies and institutions in receiving continued professional education as required by professional standards. The Office of the State Inspector General shall coordinate its efforts with state institutions of higher education and offer training programs to the internal auditors as well as coordinate any special training programs for the internal auditors. 2. To fund the direct costs of hiring training instructors, the Office of the State Inspector General is authorized to collect fees from training participants to provide training events for internal auditors. G.1. Out of the amounts appropriated in this item is $1,037,515 the first year and $968,555 the second year from the general fund to support the Office of the Department of Corrections Ombudsman and the Corrections Oversight Committee. 2. The Ombudsman shall develop a short-term and long-term strategic plan that (i) is informed by visits to Department facilities, at least two public meetings, consultation with stakeholders, and review of best practices in other states; (ii) includes procedures for coordination with existing employees at the Office of the State Inspector General and the Department, in collaboration with those employees and with the goal of complementing existing efforts; and (iii) includes potential options and recommendations for legislation and budget actions that would support its short-term and long-term goals. The Office shall provide a report on its initial activities and strategic plan to the Governor and the General Assembly on or before November 15, 2025.

_ 56 Item Details($) Appropriations($) ITEM 56. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Total for Office of the State Inspector General $8,829,568 $8,760,908 General Fund Positions 30.00 30.00 Nongeneral Fund Positions 16.00 16.00 Position Level 46.00 46.00 Fund Sources: General $6,292,984 $6,224,324 Special $282,390 $282,390 Commonwealth Transportation $2,254,194 $2,254,194 § 1-28. INTERSTATE ORGANIZATION CONTRIBUTIONS (921) 57. Governmental Affairs Services (70100) $210,940 $210,940 Interstate Affairs (70103) $210,940 $210,940 Fund Sources: General $210,940 $210,940 Authority: Discretionary Inclusion. Out of the amounts for Interstate Affairs funding is provided for the following organizational memberships: 1. National Association of State Budget Officers 2. National Governors' Association 3. Federal Funds Information for States Total for Interstate Organization Contributions $210,940 $210,940 Fund Sources: General $210,940 $210,940 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

_ 57 Item Details($) Appropriations($) ITEM 58. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 OFFICE OF ADMINISTRATION § 1-29. SECRETARY OF ADMINISTRATION (180) 58. Administrative and Support Services (79900) $1,989,547 $1,989,547 $2,254,310 General Management and Direction (79901) $824,272 $824,272 $1,089,035 Accounting and Budgeting Services (79903) $1,165,275 $1,165,275 Fund Sources: General $1,989,547 $1,989,547 $2,254,310 Authority: Title 2.2, Chapter 2, Code of Virginia. 59. Central Support Services for Business Solutions (82400) $5,554,231 $5,554,231 $0 Information Technology Services for Data Exchange Programs (82401) $5,554,231 $5,554,231 $0 Fund Sources: General $264,763 $264,763 $0 Internal Service $5,289,468 $5,289,468 $0 Authority: § 2.2-203.2:4, Code of Virginia A. The nongeneral funds appropriated to this Item shall be used to support a data sharing and analytics program for the purposes of developing a database to identify data elements and document user access patterns. The database will also support the creation of an enterprise data dictionary and a cloud-based data catalog platform. Agencies, as defined in § 2.2-3801, Code of Virginia, shall cooperate with the Office of Data Governance and Analytics to further develop the data sharing and analytics program. B. Notwithstanding the provisions of § 2.2-203.2:4., Code of Virginia, the Office of Data Governance and Analytics is hereby moved to the Virginia Information Technologies Agency. Total for Secretary of Administration $7,543,778 $7,543,778 $2,254,310 General Fund Positions 14.00 14.00 Nongeneral Fund Positions 7.00 7.00 0.00 Position Level 21.00 21.00 14.00 Fund Sources: General $2,254,310 $2,254,310 Internal Service $5,289,468 $5,289,468 $0 § 1-30. COMPENSATION BOARD (157) 60. Financial Assistance for Sheriffs' Offices and Regional Jails (30700) $649,570,737 $641,570,737 $642,458,772 Financial Assistance for Regional Jail Operations (30710) $206,647,181 $203,823,929 Financial Assistance for Local Law Enforcement (30712) $123,968,344 $122,485,228 $123,359,423 Financial Assistance for Local Court Services (30713) $76,543,743 $75,565,615

_ 58 Item Details($) Appropriations($) ITEM 60. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Financial Assistance to Sheriffs (30716) $16,945,625 $16,945,625 $16,959,465 Financial Assistance for Local Jail Operations (30718) $225,465,844 $222,750,340 Fund Sources: General $641,568,079 $633,568,079 $634,456,114 Dedicated Special Revenue $8,002,658 $8,002,658 Authority: Title 15.2, Chapter 16, Articles 3 and 6.1; and §§ 53.1-83.1 and 53.1-85, Code of Virginia. A.1. The annual salaries of the sheriffs of the counties and cities of the Commonwealth shall be as hereinafter prescribed, according to the population of the city or county served and whether the sheriff is charged with civil processing and courtroom security responsibilities only, or the added responsibilities of law enforcement or operation of a jail, or both. Execution of arrest warrants shall not, in and of itself, constitute law enforcement responsibilities for the purpose of determining the salary for which a sheriff is eligible. 2. Whenever a sheriff is such for a county and city together, or for two or more cities, the aggregate population of such political subdivisions shall be the population for the purpose of arriving at the salary of such sheriff under the provisions of this item and such sheriff shall receive as additional compensation the sum of one thousand dollars. July 1, 2024 July 1, 2025 December 1, 2025 to to to June 30, 2025 November 30, 2025 June 30, 2026 Law Enforcement and Jail Responsibility 0 to 69,999 $119,424 $123,007 $123,007 70,000 to 99,999 $132,693 $136,674 $136,674 100,000 to 174,999 $147,441 $151,864 $151,864 175,000 to 249,999 $155,196 $159,852 $159,852 250,000 and above $172,442 $177,615 $177,615 Law Enforcement or Jail 0 to 69,999 $117,037 $120,548 $120,548 70,000 to 99,999 $130,040 $133,941 $133,941 100,000 to 174,999 $144,488 $148,823 $148,823 175,000 to 249,999 $152,095 $156,658 $156,658 250,000 and above $169,856 $174,952 $174,952 No Law Enforcement or Jail Responsibility 0 to 69,999 $109,871 $113,167 $113,167 70,000 to 99,999 $122,080 $125,742 $125,742 100,000 to 174,999 $135,641 $139,710 $139,710 175,000 to 249,999 $142,779 $147,062 $147,062 250,000 and above $160,371 $165,182 $165,182 B. Out of the amounts provided for in this Item, no expenditures shall be made to provide security devices such as magnetometers in standard use in major metropolitan airports. Personnel expenditures for operation of such equipment incidental to the duties of courtroom and courthouse security deputies may be authorized, provided that no additional expenditures for personnel shall be approved for the principal purpose of operating these devices. C. In accordance with the provisions of § 53.1-120, Code of Virginia, sheriffs are responsible

_ 59 Item Details($) Appropriations($) ITEM 60. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 for ensuring courtroom safety and chief judges are responsible, by agreement with the sheriff of the jurisdiction, for the designation of courtroom security deputies for their respective courts. However, unless a judge provides the sheriff with a written order stating that a substantial security risk exists in a particular case, no courtroom security deputies may be ordered by a judge for civil cases, not more than one deputy may be ordered by a judge for criminal cases in a district court, and not more than two deputies may be ordered by a judge for criminal cases in a circuit court. In complying with such orders for additional security, the sheriff may consider other deputies present in the courtroom as part of his security force. D. Should the scheduled opening date of any facility be delayed for which funds are available in this Item, the Director, Department of Planning and Budget, may allot such funds as the Compensation Board may request to allow the employment of staff for training purposes not more than 45 days prior to the rescheduled opening date for the facility. E. Consistent with the provisions of paragraph B of Item 67, the board shall allocate the additional jail deputies provided in this appropriation using a ratio of one jail deputy for every 3.0 beds of operational capacity. Operational capacity shall be determined by the State Board of Local and Regional Jails. No additional deputy sheriffs shall be provided from this appropriation to a local jail in which the present staffing exceeds this ratio unless the jail is overcrowded. Overcrowding for these purposes shall be defined as when the average annual daily population exceeds the operational capacity. In those jails experiencing overcrowding, the board may allocate one additional jail deputy for every five average annual daily prisoners above operational capacity. Should overcrowding be reduced or eliminated in any jail, the Compensation Board shall reallocate positions previously assigned due to overcrowding to other jails in the Commonwealth that are experiencing overcrowding. F. Two-thirds of the salaries set by the Compensation Board of medical, treatment, and inmate classification positions approved by the Compensation Board for local correctional facilities shall be paid out of this appropriation. G.1. Subject to appropriations by the General Assembly for this purpose, the Compensation Board shall provide for a master deputy pay grade to those sheriffs' offices which had certified, on or before January 1, 1997, having a career development plan for deputy sheriffs that meet the minimum criteria set forth by the Compensation Board for such plans. The Compensation Board shall allow for additional grade 9 positions, at a level not to exceed one grade 9 master deputy per every five Compensation Board grade 7 and 8 deputy positions in each sheriff's office. 2. Each sheriff who desires to participate in the Master Deputy Program who had not certified a career development plan on or before January 1, 1997, may elect to participate by certifying to the Compensation Board that the career development plan in effect in his office meets the minimum criteria for such plans as set by the Compensation Board. Such election shall be made by February 1 for an effective date of participation the following July 1. 3. Subject to appropriations by the General Assembly for this purpose, funding shall be provided by the Compensation Board for participation in the Master Deputy Program to sheriffs' offices electing participation after January 1, 1997, according to the date of receipt by the Compensation Board of the election by the sheriff. H. The Compensation Board shall estimate biannually the number of additional law enforcement deputies which will be needed in accordance with § 15.2-1609.1, Code of Virginia. Such estimate of the number of positions and related costs shall be included in the board's biennial budget request submission to the Governor and General Assembly. The allocation of such positions, established by the Governor and General Assembly in Item 67 of this act, shall be determined by the Compensation Board on an annual basis. The annual allocation of these positions to local sheriffs' offices shall be based upon the most recent final population estimate for the locality that is available to the Compensation Board at the time when the agency's annual budget request is completed. The source of such population estimates shall be the Weldon Cooper Center for Public Service of the University of Virginia or the United States Bureau of the Census. For the first year of the

_ 60 Item Details($) Appropriations($) ITEM 60. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 biennium, the Compensation Board shall allocate positions based upon the most recent provisional population estimates available at the time the agency's annual budget is completed. I. Any amount in the program Financial Assistance for Sheriffs' Offices and Regional Jails may be transferred between Items 60 and 61, as needed, to cover any deficits incurred in the programs Financial Assistance for Confinement of Inmates in Local and Regional Facilities, and Financial Assistance for Sheriffs' Offices and Regional Jails. J.1. Subject to appropriations by the General Assembly for this purpose, the Compensation Board shall provide for a Sheriffs' Career Development Program. 2. Following receipt of a sheriff's certification that the minimum requirements of the Sheriffs' Career Development Program have been met, and provided that such certification is submitted by sheriffs as part of their annual budget request to the Compensation Board on or before February 1 of each year, the Compensation Board shall increase the annual salary shown in paragraph A of this Item by the percentage shown herein for a twelve-month period effective the following July 1. a. 9.3 percent increase for all sheriffs who certify their compliance with the established minimum criteria for the Sheriffs' Career Development Program where such criteria includes that a sheriff has achieved certification in a program agreed upon by the Compensation Board and the Virginia Sheriffs' Institute by Virginia Commonwealth University , or, where such criteria include that a sheriff's office seeking accreditation has been assessed and will be considered for accreditation by the accrediting body no later than March 1, and have achieved accreditation by March 1 from the Virginia Law Enforcement Professional Standards Commission, or the Commission on Accreditation of Law Enforcement agencies, or the American Correctional Association. 3. Other constitutional officers' associations may request the General Assembly to include certification in a program agreed upon by the Compensation Board and the officers' associations by the Weldon Cooper Center for Public Service to the requirements for participation in their respective career development programs. K. Notwithstanding the provisions of Article 7, Chapter 15, Title 56, Code of Virginia, $8,000,000 the first year and $8,000,000 the second year from the Wireless E-911 Fund is included in this appropriation for local law enforcement dispatchers to offset dispatch center operations and related costs. L. Notwithstanding the provisions of §§ 53.1-131 through 53.1 -131.3, Code of Virginia, local and regional jails may charge inmates participating in inmate work programs a reasonable daily amount, not to exceed the actual daily cost, to operate the program. M.1. Included in this appropriation is $2,042,314 the first year and $2,042,314 the second year from the general fund for the Compensation Board to contract for services to be provided by the Virginia Center for Policing Innovation to implement and maintain the interface between all local and regional jails in the Commonwealth and the Statewide Automated Victim Information and Notification (SAVIN) system, to provide for SAVIN program coordination, and to maintain the interface between SAVIN and the Virginia Sex Offender Registry and provide for automated protective order notifications. All law enforcement agencies receiving general funds pursuant to this item shall provide the data requirements necessary to participate in the SAVIN system. 2. The data collected for purposes of the Statewide Automated Victim Information and Notification (SAVIN) system may be used to support additional public safety systems authorized by statute or the Appropriation Act. In support of these systems, the data may be used to determine or supplement risk factors, provide notifications, or data-driven information. The Commonwealth of Virginia's Chief Data Officer and the Compensation Board shall be permitted access to, and extraction of, such raw state data provided for these purposes, under terms agreed to by both the vendor collecting data under contract with the Virginia Center for Policing Innovation and the Commonwealth of Virginia's Chief Data Officer. No raw data shall be transferred beyond the SAVIN system except that which is shared with the Commonwealth of Virginia's Chief Data Officer in such mutually agreed upon manner.

_ 61 Item Details($) Appropriations($) ITEM 60. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 3. Notwithstanding § 18.2-308.2:2, Code of Virginia, the Department of State Police may operate telephone, mail, VCheck, or other authorized communication response systems to provide dealers in firearms with information on the legal eligibility of prospective purchasers to possess or transport firearms covered under these regulations. This information may be released only to authorized dealers and/or those who have registered to receive notifications through the Virginia VINE Protective Order Notification System, including victims (or a legal representative of a victim), crime victim and witness assistance program employees, law enforcement officials and court officials. N. Out of the amounts appropriated in this item, $9,835,820 the first year and $9,835,820 the second year from the general fund is provided for additional behavioral health case managers and medical treatment positions in local and regional jails. O. Notwithstanding the provisions of paragraph H. of Item 67 of this act, included in this appropriation is $2,053,904 the first year and $2,053,904 the second year from the general fund to support new staffing associated with an increase in the rated operating capacity resulting from former expansions at the Piedmont Regional Jail that were not previously provided in base staffing and related funding by the Compensation Board. P.1. The Compensation Board shall report on the allocation of funds first appropriated in Chapter 2, 2022 Special Session I, to increase compensation for sworn officers, including specific measures of effectiveness that indicate the degree to which these salary adjustments reduce the number of departures and vacancies. A report is due to the Governor, the Chairs of the House Appropriation and Senate Finance and Appropriation Committees, and the Director, Department of Planning and Budget no later than October 15, 2023. 2. The Compensation Board shall report on retention data for deputies with law enforcement duties compared to deputies without law enforcement duties, including information on local salary supplements. The report shall include information on the distribution of time allocated for law enforcement, court security and jail responsibilities in localities in which the sheriff has law enforcement authority. The report shall also include data on the degree to which individual deputies are moved across the different responsibilities or assigned to one specific responsibility. The report shall be provided to such committees and agencies no later than October 15, 2024. Q. Included in this appropriation is $874,195 the second year from the general fund to provide a 6.0 percent salary increase for sheriffs' dispatchers and dispatcher supervisors as of July 1, 2025. 61. Financial Assistance for Confinement of Inmates in Local and Regional Facilities (35600) $43,714,791 $43,714,791 $43,814,791 Financial Assistance for Local Jail Per Diem (35601) $17,953,054 $17,953,054 $18,053,054 Financial Assistance for Regional Jail Per Diem (35604) $25,761,737 $25,761,737 Fund Sources: General $43,714,791 $43,714,791 $43,814,791 Authority: §§ 53.1-83.1, 53.1-84 and 53.1-85, Code of Virginia. A. In the event the appropriation in this Item proves to be insufficient to fund all of its provisions, any amount remaining as of June 1, 2025, and June 1, 2026, may be reallocated among localities on a pro rata basis according to such deficiency. B. For the purposes of this Item, the following definitions shall be applicable: 1. Effective sentence--a convicted offender's sentence as rendered by the court less any portion of the sentence suspended by the court. 2. Local responsible inmate--(a) any person arrested on a state warrant and incarcerated in a local correctional facility, as defined by § 53.1-1, Code of Virginia, prior to trial; (b) any person convicted of a misdemeanor offense and sentenced to a term in a local correctional

_ 62 Item Details($) Appropriations($) ITEM 61. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 facility; or (c) any person convicted of a felony offense and given an effective sentence of (i) twelve months or less or (ii) less than one year. 3. State responsible inmate--any person convicted of one or more felony offenses and (a) the sum of consecutive effective sentences for felonies, committed on or after January 1, 1995, is (i) more than 12 months or (ii) one year or more, or (b) the sum of consecutive effective sentences for felonies, committed before January 1, 1995, is more than two years. C. The individual or entity responsible for operating any facility which receives funds from this Item may, if requested by the Department of Corrections, enter into an agreement with the department to accept the transfer of convicted felons, from other local facilities or from facilities operated by the Department of Corrections. In entering into any such agreements, or in effecting the transfer of offenders, the Department of Corrections shall consider the security requirements of transferred offenders and the capability of the local facility to maintain such offenders. For purposes of calculating the amount due each locality, all funds earned by the locality as a result of an agreement with the Department of Corrections shall be included as receipts from these appropriations. D. Out of this appropriation, an amount not to exceed $377,010 the first year and $377,010 the second year from the general fund, is designated to be held in reserve for unbudgeted medical expenses incurred by local correctional facilities in the care of state responsible felons. E. The following amounts shall be paid out of this appropriation to compensate localities for the cost of maintaining prisoners in local correctional facilities, as defined by § 53.1-1, Code of Virginia, or if the prisoner is not housed in a local correctional facility, in an alternative to incarceration program operated by, or under the authority of, the sheriff or jail board: 1. For local responsible inmates--$5 per inmate day, or, if the inmate is housed and maintained in a jail farm not under the control of the sheriff, the rate shall be $19 per inmate day. 2. For state responsible inmates--$15 per inmate day. F. For the payment specified in paragraph E.1. of this Item for prisoners in alternative punishment or alternative to incarceration programs: 1. Such payment is intended to be made for prisoners that would otherwise be housed in a local correctional facility. It is not intended for prisoners that would otherwise be sentenced to community service or placed on probation. 2. No such payment shall be made unless the program has been approved by the Department of Corrections or the Department of Criminal Justice Services. Alternative punishment or alternative to incarceration programs, however, may include supervised work experience, treatment, and electronic monitoring programs. G.1. Except as provided for in paragraph G.2., and notwithstanding any other provisions of this Item, the Compensation Board shall provide payment to any locality with an average daily jail population of under ten in FY 1995 an inmate per diem rate of $18 per day for local responsible inmates and $12 per day for state responsible inmates held in these jails in lieu of personal service costs for corrections' officers. 2. Any locality covered by the provisions of this paragraph shall be exempt from the provisions thereof provided that the locally elected sheriff, with the assistance of the Compensation Board, enters into good faith negotiations to house his prisoners in an existing local or regional jail. In establishing the per diem rate and capital contribution, if any, to be charged to such locality by a local or regional jail, the Compensation Board and the local sheriff or regional jail authority shall consider the operating support and capital contribution made by the Commonwealth, as required by §§ 15.2-1613, 15.2-1615.1, 53.1-80, and 53.1-81, Code of Virginia. The Compensation Board shall report periodically to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on the progress of these negotiations and may withhold the exemption granted by this paragraph if, in the board's opinion, the local sheriff fails to negotiate in good faith. H.1. The Compensation Board shall recover the state-funded costs associated with housing

_ 63 Item Details($) Appropriations($) ITEM 61. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 federal inmates, District of Columbia inmates or contract inmates from other states. The Compensation Board shall determine, by individual jail, the amount to be recovered by the Commonwealth by multiplying the jail's current inmate days for this population by the proportion of the jail's per inmate day salary funds provided by the Commonwealth, as identified in the most recent Jail Cost Report prepared by the Compensation Board. Beginning July 1, 2009, the Compensation Board shall determine, by individual jail, the amount to be recovered by the Commonwealth by multiplying the jail's current inmate days for this population by the proportion of the jail's per inmate day operating costs provided by the Commonwealth, excluding payments otherwise provided for in this Item, as identified in the most recent Jail Cost Report prepared by the Compensation Board. If a jail is not included in the most recent Jail Cost Report, the Compensation Board shall use the statewide average of per inmate day salary funds provided by the Commonwealth. 2. The Compensation Board shall deduct the amount to be recovered by the Commonwealth from the facility's next quarterly per diem payment for state-responsible and local-responsible inmates. Should the next quarterly per diem payment owed the locality not be sufficient against which to net the total quarterly recovery amount, the locality shall remit the remaining amount not recovered to the Compensation Board. 3. Any local or regional jail which receives funding from the Compensation Board shall give priority to the housing of local-responsible, state-responsible, and state contract inmates, in that order, as provided in paragraph H.1. 4. The Compensation Board shall not provide any inmate per diem payments to any local or regional jail which holds federal inmates in excess of the number of beds contracted for with the Department of Corrections, unless the Director, Department of Corrections, certifies to the Chairman of the Compensation Board that a) such contract beds are not required; b) the facility has operational capacity built under contract with the federal government; c) the facility has received a grant from the federal government for a portion of the capital costs; or d) the facility has applied to the Department of Corrections for participation in the contract bed program with a sufficient number of beds to meet the Department of Corrections' need or ability to fund contract beds at that facility in any given fiscal year. 5. The Compensation Board shall apply the cost recovery methodology set out in paragraph H.1. of this Item to any jail which holds inmates from another state on a contractual basis. However, recovery in such circumstances shall not be made for inmates held pending extradition to other states or pending transfer to the Virginia Department of Corrections. 6. The provisions of this paragraph shall not apply to any local or regional jail where the cumulative federal share of capital costs exceeds the Commonwealth's cumulative capital contribution. 7. For a local or regional jail which operates bed space specifically built utilizing federal capital or grant funds for the housing of federal inmates and for which Compensation Board funding has never been authorized for staff for such bed space, the Compensation Board shall allow an exemption from the recovery provided in paragraph H.1. for a defined number of federal prisoners upon certification by the sheriff or superintendent that the federal government has paid for the construction of bed space in the facility or provided a grant for a portion of the capital cost. Such certification shall include specific funding amounts paid by the federal government, localities, and/or regional jail authorities, and the Commonwealth for the construction of bed space specifically built for the housing of federal inmates and for the construction of the jail facility in its entirety. The defined number of federal prisoners to be exempted from the recovery provided in paragraph H.1. shall be based upon the proportion of funding paid by the federal government and localities and/or regional jail authorities for the construction of bed space to house federal prisoners to the total funding paid by all sources, including the Commonwealth, for all construction costs for the jail facility in its entirety. For Western Tidewater Regional Jail, exemption from the recovery provided in paragraph H.1. shall apply to the first 76 federal inmates housed at the jail and for any inmate above 130 housed at the jail at any given time. 8. Beginning March 1, 2013, federal inmates placed in the custody of a regional jail

_ 100 Item Details($) Appropriations($) ITEM 86. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Promotion Fund as established in § 3.2-3005, Code of Virginia. F. Out of the amounts in this Item, $1,151,899 $1,241,193 the first year and $1,151,899 $1,241,193 the second year from the general fund shall be deposited to the Virginia Spirits Promotion Fund established pursuant to § 3.2-3012, Code of Virginia. G. Out of the amounts in this Item, $30,000 the first year and $30,000 the second year from the general fund is provided to support a pilot partnership between the Department and Virginia State University's Small Farm Management Agents to increase diversity of program participants, with an emphasis on small, socially disadvantaged, BIPOC, new and beginning, veteran and women farmers and landowners. H. Out of the amounts in this Item, the Commissioner is authorized to expend from the general fund amounts not to exceed $25,000 the first year and $25,000 the second year for entertainment expenses commonly borne by businesses. Further, such expenses shall be recorded separately by the agency. I. Out of the amounts in this Item, the Commissioner is authorized to expend $1,120,226 the first year and $1,120,226 the second year from the general fund for the promotion of Virginia's agricultural products overseas. Such efforts shall be conducted in concert with the international offices opened by the Virginia Economic Development Partnership. J. Out of the amounts in this Item, $25,000 the first year and $25,000 the second year from the general fund shall be provided to support 4-H and Future Farmers of America youth participation educational costs at the State Fair of Virginia. These funds shall not be used for administrative costs by the State Fair. K. The Department shall transfer the June 30, 2024, fund balances in the Virginia Farmland Preservation Fund (02013) and the Agricultural Vitality Program Fund (09092) to the Department of Forestry (411) following final close of Fiscal Year 2024 in accordance with House Bill 892 of the 2024 General Assembly Session. L. Out of the amounts in this item, $300,000 the first year from the general fund shall be provided to the Shenandoah County Agricultural Foundation to support the promotion, education, maintenance, and safety of horse racing through equine facility infrastructure improvements. 87. Economic Development Services (53400) $3,452,698 $3,702,698 $2,452,698 Financial Assistance for Economic Development (53410) $3,452,698 $3,702,698 $2,452,698 Fund Sources: General $3,452,698 $3,702,698 $2,452,698 Authority: Title 3.2, Chapter 3.1, Code of Virginia. A. Out of the amounts in this Item, $2,250,000$2,500,000 the first year and $1,250,000 $1,500,000 the second year from the general fund shall be deposited to the Governor's Agriculture and Forestry Industries Development Fund for the payment of grants or loans in accordance § 3.2-303 et seq., Code of Virginia. Out of these amounts, $250,000 the first year and $250,000 the second year shall be used to support the Blue Catfish Processing, Flash Freezing, and Infrastructure Grant Program established pursuant to § 3.2-312, Code of Virginia. Notwithstanding any other provision of law, at the discretion of the Governor, the cap on the amount of funding that may be awarded to an individual project as provided in § 3.2-305, Code of Virginia, may be waived for qualifying projects of regional or statewide interest. B. Out of the amounts in this Item, $600,000 the first year and $600,000 the second year from the general fund shall be deposited to the Dairy Producer Margin Coverage Premium Assistance Fund established pursuant to § 3.2-3305.1, Code of Virginia. C. Out of the amounts in this Item, $250,000 the first year and $250,000 the second year from the general fund is provided for the Blue Catfish Processing, Flash Freezing, and Infrastructure Grant Program established pursuant to § 3.2-312, Code of Virginia.

_ 101 Item Details($) Appropriations($) ITEM 87. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 88. Plant Pest and Disease Control (53500) $5,883,196 $5,883,196 Plant Pest and Disease Prevention and Control Services (53504) $5,883,196 $5,883,196 Fund Sources: General $3,772,389 $3,772,389 Special $661,660 $661,660 Federal Trust $1,449,147 $1,449,147 Authority: Title 3.2, Chapters 7, 8, 9, 10, 28, 38, 41.1 and 44; Title 15.2, Chapter 18, Code of Virginia. A.1. The Commissioner may enter into agreements with local and state agencies, or other persons, for the control of black vultures, coyotes, and other wildlife that pose danger to agricultural animals. The Commissioner shall enter into an agreement with the federal government to establish and maintain the Virginia Cooperative Wildlife Damage Management Program. 2. Out of the appropriation in this item, $292,525 the first year and $292,525 the second year from the general fund is provided to enhance the cooperative agreement between the U.S. Department of Agriculture and the department regarding the Wildlife Damage Cooperative Program to maintain the technical assistance provided to help landowners with wildlife depredation from coyotes, black vultures and other wildlife. B. Out of the amounts in this Item, $200,000 the first year and $200,000 the second year from the general fund shall be deposited to the Beehive Grant Fund established pursuant to § 3.2-4415, Code of Virginia. Notwithstanding the provisions of § 3.2-4416, Code of Virginia, the department shall not accept applications for grants from the Beehive Grant Program if funds are not appropriated for such purposes nor shall the department be required to continue to accept applications for the program if funds appropriated have been fully allocated to grantees for a given fiscal year. C. Notwithstanding the provisions of §§ 3.2-4114.2 and 3.2-4115, Code of Virginia, the Commissioner shall charge an annual nonrefundable fee of $150 on each application for registration, or renewal of registration, as an industrial hemp grower, an annual nonrefundable fee of $200 on each application for registration as an industrial hemp processor, and an annual nonrefundable fee of $250 for registration as an industrial hemp dealer pursuant to Chapter 41 of Title 3.2, Code of Virginia. D. Out of the amounts appropriated in this item, $485,000 the first year and $485,000 the second year from the general fund and one position is provided to the department to support one additional staff position and related expenses for invasive species management and to take steps to eradicate or slow the spread of priority species. 89. Agriculture and Food Homeland Security (54100) $186,026 $186,026 Agricultural and Food Emergencies Prevention and Response (54101) $186,026 $186,026 Fund Sources: General $182,705 $182,705 Special $3,321 $3,321 Authority: Title 3.2, Chapters 7, 51, 59, 60, and 65, Code of Virginia. 90. Consumer Affairs Services (55000) $1,860,287 $1,860,287 Consumer Affairs - Regulation and Consumer Education (55001) $1,860,287 $1,860,287 Fund Sources: General $33,726 $33,726 Special $1,826,561 $1,826,561 Authority: Title 3.2, Chapter 1; Title 57, Chapter 5; Title 59.1, Chapters 24, 25, 33.1, 34, 34.1 and 36, Code of Virginia. 91. Regulation of Business Practices (55200) $3,976,398 $4,758,109 $3,976,398 Regulation of Grain Commodity Sales (55207) $124,974 $124,974

_ 102 Item Details($) Appropriations($) ITEM 91. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Regulation of Weights and Measures and Motor Fuels (55212) $3,851,424 $4,633,135 $3,851,424 Fund Sources: General $3,743,293 $4,525,004 $3,743,293 Special $233,105 $233,105 Authority: Title 3.2, Chapters 43, 47, 55.1, 56, 57, and 58; and Title 59.1, Chapter 12, Code of Virginia. A. In lieu of periodic inspections by the Commissioner, Department of Agriculture and Consumer Services, any person whose weights and measures devices, as defined in § 3.2- 5600, et seq., Code of Virginia, which are used for a commercial purpose may select to provide for the inspection and testing of all such weights and measures to determine the accuracy and correct operation of the equipment or device. The owner shall have all such weights and measures devices tested at least annually by a service agency that is registered pursuant to § 3.2-5703, Code of Virginia. Weights and measures that have been rejected by a service agency shall not be used again commercially until they have been officially reexamined by the rejecting authority or an inspector employed by the Commissioner, and found to be in compliance with Title 3.2, Chapter 56, Code of Virginia. The owner of such weights and measures devices, or third-party agencies on behalf of the owner, shall report to the Commissioner on an annual basis in a manner prescribed by the Commissioner the results of all testing, including (i) the number of inspections completed, (ii) the number of failures in the weights and measures equipment or devices, and (iii) the actions taken to correct any inaccuracies in the equipment or devices. 92. Food Safety and Security (55400) $16,724,887 $16,724,887 Regulation of Food Establishments and Processors (55401) $9,366,281 $9,366,281 Regulation of Meat Products (55402) $5,826,821 $5,826,821 Regulation of Milk and Dairy Industry (55403) $1,531,785 $1,531,785 Fund Sources: General $10,863,882 $10,863,882 Special $803,823 $803,823 Federal Trust $5,057,182 $5,057,182 Authority: Title 3.2, Chapters 51, 51.1, 52, 53, 54, 55, and 60, Code of Virginia. A. Each establishment under the authority of the Regulation of Meat Products that is requesting overtime or holiday inspection shall pay that part of the actual cost of the inspection services. B. The Commissioner, Department of Agriculture and Consumer Services, is authorized to collect an annual inspection fee, not to exceed $40, from all establishments that are subject to inspection pursuant to Title 3.2, Chapter 51, Code of Virginia. However, any such establishment that is subject to any permit fee, application fee, inspection fee, risk assessment fee, or similar fee imposed by any locality shall be subject to this annual inspection fee only to the extent that the annual inspection fee and the locally imposed fee, when combined, do not exceed $40. This fee structure shall be subject to the approval of the Secretary of Agriculture and Forestry. Any food bank, second harvest certified food bank, food bank member charity, or other food related activity which is exempt from taxation under 26 U.S.C. § 501 (c) (3), which maintains a food handling or storage facility, or any food-related program operated by any Community Services Board, as defined in Title 37.2, Chapter 5, Code of Virginia, shall be exempt from this inspection fee. Also, a producer of fruits and herbs that are dried, without the addition of any other ingredients, and sold only at a local farmers' market shall be exempt from the fee. C. Out of the amounts in this item, $700,000 the first year and $700,000 the second year from the general fund and seven positions are provided for investigation and enforcement activities related to hemp product violations at food product establishments regulated by the department. D. Out of the amounts in this item, $416,130 the first year and $416,130 the second year from the general fund, $416,130 the first year and $416,130 the second year in federal funds, and

_ 103 Item Details($) Appropriations($) ITEM 92. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 eight positions are provided for meat and poultry inspection activities. E. Out of the amounts in this item, $2,172,909 the first year and $2,172,909 the second year from the general fund and 15 positions are provided for the registration and inspection of facilities selling certain hemp products, pursuant to Chapter 744, 2023 Acts of Assembly. 93. Regulation of Products (55700) $6,945,385 $6,945,385 $7,445,385 Pesticide Regulation and Applicator Certification (55704) $4,324,021 $4,324,021 $4,824,021 Regulation of Feed, Seed, and Fertilizer Products (55706) $2,621,364 $2,621,364 Fund Sources: General $863,014 $863,014 Dedicated Special Revenue $5,382,208 $5,382,208 $5,882,208 Federal Trust $700,163 $700,163 Authority: Title 3.2, Chapters 1, 36, 37, 39, 40, 43, 47, 48, and 49; Title 18.2, Chapter 6; and Title 59.1, Chapter 12, Code of Virginia. The Office of Pesticide Services shall publish a report on the activities, educational programs, research, and grants administered through the Pesticide Control Act Fund to the Board of Agriculture and Consumer Services by October 15 of each year. 94. Regulation of Charitable Gaming Organizations (55900) $2,282,350 $2,282,350 Charitable Gaming Regulation and Enforcement (55907) $2,282,350 $2,282,350 Fund Sources: General $2,170,863 $2,170,863 Dedicated Special Revenue $111,487 $111,487 Authority: Title 2.2, Chapter 24; Title 18.2, Chapter 8; and Title 59.1, Chapter 51, Code of Virginia. A. Notwithstanding § 18.2-340.31, Code of Virginia, any and all fees paid by any organization conducting charitable gaming under a permit issued by the department, including audit and administrative fees and permit fees, shall be deposited to the general fund. B. The department shall deposit into the Investigation Fund any assets it receives as a result of a law enforcement seizure and subsequent forfeiture by either a state or federal court. The fund shall be used to defray the expenses of investigation and enforcement actions and to purchase equipment for enforcement purposes. C. Included in these amounts is $100,000 the first year and $100,000 the second year in nongeneral funds from annual registration fees paid by operators of fantasy contests to support both direct and indirect expenses of the department in the regulation of fantasy contests in Virginia. 95. Administrative and Support Services (59900) $13,970,126 $14,120,126 $13,970,126 $16,759,556 General Management and Direction (59901) $13,970,126 $14,120,126 $13,970,126 $16,759,556 Fund Sources: General $11,232,089 $11,382,089 $11,232,089 $14,021,519 Special $2,409,853 $2,409,853 Trust and Agency $188,557 $188,557 Federal Trust $139,627 $139,627 Authority: Title 3.2, Chapters 1, 4, 5, 6 and 29; Title 10.1, Chapter 5, Code of Virginia. Out of the amounts in this Item, $150,000 the first year and $2,789,430 the second year

_ 104 Item Details($) Appropriations($) ITEM 95. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 from the general fund is provided for the phased modernization of the agency's general fund supported regulatory programs. Total for Department of Agriculture and Consumer Services $97,871,728 $99,403,809 $96,652,428 $101,622,228 General Fund Positions 374.99 374.99 Nongeneral Fund Positions 235.01 235.01 Position Level 610.00 610.00 Fund Sources: General $55,634,282 $57,166,363 $54,414,982 $57,704,782 Special $7,845,874 $7,845,874 Trust and Agency $9,335,024 $9,335,024 Dedicated Special Revenue $11,120,218 $11,120,218 $12,800,218 Federal Trust $13,936,330 $13,936,330 § 1-37. DEPARTMENT OF FORESTRY (411) 96. Forest Management (50100) $48,898,648 $49,168,648 $46,198,648 $46,430,648 Reforestation Incentives to Private Forest Land Owners (50102) $4,345,039 $4,345,039 Forest Conservation, Wildfire & Watershed Services (50103) $34,644,395 $34,914,395 $34,444,395 $34,676,395 Tree Restoration and Improvement, Nurseries & State-Owned Forest Lands (50104) $6,509,214 $6,509,214 Financial Assistance for Forest Land Management (50105) $3,400,000 $900,000 Fund Sources: General $30,104,282 $30,374,282 $27,404,282 $27,636,282 Special $14,219,213 $14,219,213 Dedicated Special Revenue $285,000 $285,000 Federal Trust $4,290,153 $4,290,153 Authority: Title 10.1, Chapter 11, and Title 58.1, Chapter 32, Article 4, Code of Virginia. A. The State Forester is hereby authorized to utilize any unobligated balances in the fire suppression fund authorized by § 10.1-1124, Code of Virginia, for the purpose of acquiring replacement equipment for forestry management and protection operations. B. In the event that budgeted amounts for forest fire suppression are insufficient to meet forest fire suppression demands, such amounts as may be necessary for this purpose may be transferred from Item 471 of this act to the Department of Forestry, with the approval of the Director, Department of Planning and Budget. C. The department shall provide technical assistance and project supervision in the aerial spraying of herbicides on timberland on landowner property. In addition to recovering the direct cost associated with the spraying contract, the department may charge an administrative fee for this service. D. The Department of Forestry, in cooperation with the Department of Corrections, shall continue the use of inmate labor for routine and special work projects in state forests. E. The appropriation in Reforestation Incentives to Private Forest Land Owners includes $1,945,239 the first year and $1,945,239 the second year from the general fund for the Reforestation of Timberlands Program. This appropriation shall be deemed sufficient to meet the provisions of Titles 10.1 and 58.1, Code of Virginia. F. Out of this appropriation, $2,126,126 the first year and $2,126,126 the second year from the general fund is included for the purchase of forest fire protection equipment through the

_ 105 Item Details($) Appropriations($) ITEM 96. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 state's master equipment lease purchase program. G. The department is authorized to enter into agreements with private entities for the active operational life of the tower located at 900 Natural Resources Drive in Albemarle County, Virginia. Notwithstanding any other provision of law, any revenues received from such agreements shall be retained by the department and used for forest land management. H.1. The State Comptroller shall continue the Virginia State Forest Mitigation and Acquisition Fund and the Long Term Mitigation Fund as established in Item 102, Chapter 806, 2013 Acts of Assembly. All moneys in these funds shall be used as provided for in this Item and in Item 102, Chapter 806, 2013 Acts of Assembly, and Item 98, Chapter 665, 2015 Acts of Assembly. 2.a. With the exception of the amounts prescribed in paragraph H.2.b. of this item, the Virginia State Forest Mitigation and Acquisition Fund shall be used solely for forest land or conservation easement acquisition. b. The Long Term Mitigation Fund shall be used solely for long term management of the Cumberland State Forest Stream Buffer Preservation Stewardship Plan. 3. For any such future mitigation projects, no state forest land shall be used to provide compensatory mitigation for wetland or stream impacts of any public or private project until such time as due consideration has been given to the availability of mitigation credits available from private sources. State forest land means all sites, roadways, game food patches, ponds, lakes, streams, rivers, beaches, and lakes to which the Department of Forestry holds title for use, development, and administration. I. The department is authorized to sell properties and timber located at the following: 16520 Five Forks Road, Amelia, Virginia, 23002; 26401 Blue Star Highway, Emporia, Virginia, 23847; 11260 Jessie Dupont Memorial Highway, Kilmarnock, Virginia, 22482; 152 Maury River Road, Lexington, Virginia, 24450; and 2080 Sowers Road NE, Floyd, Virginia, 24091. Notwithstanding any other provision of law, the net proceeds of these transactions shall be deposited into the general fund. J. Out of this appropriation, $100,000 the first year and $100,000 the second year from the general fund is provided for the Virginia Natural Resources Leadership Institute. K. Out of this appropriation, $175,000 the first year and $175,000 the second year from the general fund is provided to increase bandwidth capacity at the agency's offices. L. Out of the amounts in this item, $487,842 the first year and $487,482 the second year from the general fund is provided for a Hardwood Forest Habitat initiative. M. Out of the amounts in this item, $940,000 the first year and $940,000 the second year from the general fund and two positions are provided to support the implementation of strategies and to determine metrics to mitigate the impact of invasive species in support of the objectives outlined in the Virginia Invasive Species Management Plan (2018). The Department shall take steps to eradicate or slow the spread of priority species on private and public lands; support the creation of additional Partnerships for Regional Invasive Species Management (PRISMs); and provide statewide coordination of invasive species management working with VDACS, DCR, and DWR, in collaboration with relevant stakeholders. N. Out of the amounts in this item, $437,500 the first year and $437,500 the second year from the general fund shall be deposited to the Virginia Farmland and Forestland Preservation Fund established in § 10.1-119.3, Code of Virginia. O. Out of the amounts of this item, $2,500,000 the first year from the general fund shall be deposited to the Forest Sustainability Fund established pursuant to § 58.1-3242.1, Code of Virginia. Total for Department of Forestry $48,898,648 $49,168,648 $46,198,648 $46,430,648 General Fund Positions 170.59 170.59 Nongeneral Fund Positions 113.41 113.41

_ 106 Item Details($) Appropriations($) ITEM 96. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Position Level 284.00 284.00 Fund Sources: General $30,104,282 $30,374,282 $27,404,282 $27,636,282 Special $14,219,213 $14,219,213 Dedicated Special Revenue $285,000 $285,000 Federal Trust $4,290,153 $4,290,153 § 1-38. AGRICULTURAL COUNCIL (307) 97. Agricultural and Seafood Product Promotion and Development Services (53000) $490,422 $490,422 Grants for Agriculture, Research, Education and Services (53001) $490,422 $490,422 Fund Sources: Dedicated Special Revenue $490,422 $490,422 Authority: Title 3.2, Chapter 29, Code of Virginia. Total for Agricultural Council $490,422 $490,422 Fund Sources: Dedicated Special Revenue $490,422 $490,422 § 1-39. VIRGINIA RACING COMMISSION (405) 98. Economic Development Services (53400) $3,700,000 $3,700,000 Financial Assistance to the Horse Breeding Industry (53411) $3,700,000 $3,700,000 Fund Sources: General $300,000 $0 Special $3,400,000 $3,700,000 Authority: Title 59.1, Chapter 29, Code of Virginia. Out of this appropriation, $300,000 the first year from the general fund is provided to the County of Rockbridge to support the Virginia Horse Center. 99. Regulation of Horse Racing and Pari-Mutuel Betting (55800) $4,661,561 $4,661,561 License and Regulate Horse Racing and Pari-mutuel Wagering (55801) $4,661,561 $4,661,561 Fund Sources: Special $4,661,561 $4,661,561 Authority: Title 59.1, Chapter 29, Code of Virginia. A. Out of this appropriation, the members of the Virginia Racing Commission shall receive compensation and reimbursement for their reasonable expenses in the performance of their duties, as provided in § 2.2-2104, Code of Virginia. B. Notwithstanding the provisions of § 59.1-392, Code of Virginia, up to $255,000 the first year and $255,000 the second year shall be transferred to Virginia Polytechnic Institute and State University to support the Virginia-Maryland Regional College of Veterinary Medicine. C. Any revenues received during the biennium and which are due to the commission pursuant to § 59.1-364 et seq., Code of Virginia, shall be used first to fund the operating expenses of the commission as appropriated in this Item. A year-end fund balance of $900,000 shall be maintained for payment of authorized commission obligations for operating expenses as appropriated under the provisions of this act and amounts payable to specific entities pursuant to § 59.1-392 and appropriated in paragraphs B and D of this Item prior to the reversion of nongeneral fund balances. Any fund balances in this Item at the end of each fiscal year in excess of $900,000 shall revert to the general fund. D. Out of these amounts, the obligations set out in § 59.1-392 D. 5., D.6., G.5., G.6., K.3., K.4., K.5., N.3., N.4., and N.5., Code of Virginia, shall be fully funded. E. In the event revenues exceed the appropriated amounts in this Item, the Virginia Racing

_ 107 Item Details($) Appropriations($) ITEM 99. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Commission is authorized to seek an administrative appropriation, up to $700,000, from the Director, Department of Planning and Budget, to develop programs or award grants for the promotion, marketing, sustenance, and growth of the Virginia horse industry, including horse breeding. F.1. The Virginia Racing Commission shall report monthly to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on the gross gaming revenues generated from traditional horse racing wagering and from historical horse racing (HHR) wagering from any significant infrastructure limited licensee facility and each satellite facility licensee authorized for operation in the Commonwealth. This monthly reporting shall include the actual dollar amount of the (i) total prize payout, (ii) total contributions to purses for thoroughbred and harness racing, (iii) amount of state and local taxes collected and remitted by jurisdiction, (iv) amount retained by the Virginia Racing Commission, and (v) amount retained by any licensee or operator. 2. Included within the monthly report required in F.1., from the amounts included in clause (v) of F.1., the Commission shall specifically identify the actual dollar amounts allocated pursuant to a Revenue Sharing Agreement dated April 13, 2018, or any amendments thereto, or for an Amended Memorandum of Understanding dated December 4, 2017, or any amendments thereto, for (i) contributions to the Virginia Equine Alliance and other parties collectively referred to in the Revenue Sharing Agreement as the Horsemen, (ii) all HHR gross commission, (iii) any amounts or rebates from Advanced Deposit Wagering to service providers, (iv) deposits to the Virginia Breeders Fund, (v) deposits to the Virginia-Certified Residency Program, and (vi) any allocation of funds for problem gaming. 3. In addition to the reporting requirements in F.1. and F.2., the Commission shall report quarterly to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on the actual number of days of live racing conducted across the Commonwealth for the preceding quarter, including all reporting requirements identified in F.1 and F.2 resulting from each day of live racing pursuant to 11 VAC 10-47- 190. G. Notwithstanding any other provision of law, the percentage of the pool to be retained by the licensee for distribution as provided in subsection U of § 59.1-392 and subsection 9 of 11 VAC l0-47-180 shall be distributed as follows: (1) the amount to be distributed to any locality shall remain as provided in subdivision 2 of subsection U of § 59.1-392 and subdivision (b) of subsection 9 of 11 VAC l0-47-180; (2) the Virginia Breeders Fund, the Virginia-Maryland Regional College of Veterinary Medicine for equine programs, the Virginia Horse Center Foundation, and the Virginia Horse Industry Board shall each receive twenty-five one-thousandths percent; and (3) the Commonwealth shall receive the remainder as a license tax. Total for Virginia Racing Commission $8,361,561 $8,361,561 Nongeneral Fund Positions 10.00 10.00 Position Level 10.00 10.00 Fund Sources: General $300,000 $0 Special $8,061,561 $8,361,561 TOTAL FOR OFFICE OF AGRICULTURE AND FORESTRY $156,221,594 $158,023,675 $152,302,294 $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 $86,637,799 $88,439,880 $82,418,499 $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 $11,895,640 $13,575,640

_ 108 Item Details($) Appropriations($) ITEM 99. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Federal Trust $18,226,483 $18,226,483

_ 109 Item Details($) Appropriations($) ITEM 100. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 OFFICE OF COMMERCE AND TRADE § 1-40. SECRETARY OF COMMERCE AND TRADE (192) 100. Administrative and Support Services (79900) $1,235,106 $1,235,106 General Management and Direction (79901) $1,235,106 $1,235,106 Fund Sources: General $1,235,106 $1,235,106 Authority: Title 2.2, Chapter 2, Article 3; § 2.2-201, Code of Virginia. It is the intent of the General Assembly that state programs providing financial, technical, or training assistance to local governments for economic development projects or directly to businesses seeking to relocate or expand operations in Virginia should not be used to help a company relocate or expand its operations in one or more Virginia communities when the same company is simultaneously closing facilities in other Virginia communities. It is the responsibility of the Secretary of Commerce and Trade to enforce this policy and to inform the Chairs of the Senate Finance and Appropriations and House Appropriations Committees in writing of the justification to override this policy for any exception. Total for Secretary of Commerce and Trade $1,235,106 $1,235,106 General Fund Positions 9.00 9.00 Position Level 9.00 9.00 Fund Sources: General $1,235,106 $1,235,106 Economic Development Incentive Payments (312) 101. Economic Development Services (53400) $93,986,649 $150,472,331 $86,185,426 $61,731,826 Financial Assistance for Economic Development (53410) $93,986,649 $150,472,331 $86,185,426 $61,731,826 Fund Sources: General $93,836,649 $150,322,331 $86,035,426 $61,581,826 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

_ 110 Item Details($) Appropriations($) ITEM 101. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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, $3,076,350 $2,686,350 the first year and $3,612,850 $3,209,250 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, $5,000,000 $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, $2,239,000 $2,269,000 the first year and $2,539,000 $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.

_ 111 Item Details($) Appropriations($) ITEM 101. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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, $21,250,000$28,700,000 the first year and $21,250,000 the second 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, $20,000,000 $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

_ 112 Item Details($) Appropriations($) ITEM 101. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 second 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 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 a special, nonreverting fund the Financial Services Expansion Grant Fund for the grants to be paid to a qualified financial services company in accordance with § 59.1-284.43, Code of Virginia. legislation to be considered by the 2024 General Assembly and subject to performance metrics agreed to in a memorandum of understanding with the Commonwealth. 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

_ 113 Item Details($) Appropriations($) ITEM 101. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 114 Item Details($) Appropriations($) ITEM 101. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. Total for Economic Development Incentive Payments $93,986,649 $150,472,331 $86,185,426 $61,731,826 Fund Sources: General $93,836,649 $150,322,331 $86,035,426 $61,581,826 Dedicated Special Revenue $150,000 $150,000 Grand Total for Secretary of Commerce and Trade $95,221,755 $151,707,437 $87,420,532 $62,966,932 General Fund Positions 9.00 9.00 Position Level 9.00 9.00 Fund Sources: General $95,071,755 $151,557,437 $87,270,532 $62,816,932 Dedicated Special Revenue $150,000 $150,000 § 1-41. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (165) 102. Housing Assistance Services (45800) $310,850,885 $412,350,885 $310,725,885 Housing Assistance (45801) $242,142,776 $341,642,776 $242,017,776 Homeless Assistance (45804) $17,836,107 $19,836,107 $17,836,107 Financial Assistance for Housing Services (45805) $50,872,002 $50,872,002 Fund Sources: General $108,192,368 $209,692,368 $108,067,368 Special $95,412,243 $95,412,243 Dedicated Special Revenue $100,000 $100,000 Federal Trust $107,146,274 $107,146,274 Authority: Title 36, Chapters 8, 9, and 11; and Title 58.1, Chapter 3, Articles 4 and 13, Code of Virginia. A. Out of the amounts in this Item, $3,482,705 from the general fund, $100,000 from dedicated special revenue, and $3,427,000 from federal trust funds the first year and $3,482,705 from the general fund, $100,000 from dedicated special revenue, and $3,427,000 from federal trust funds the second year shall be provided to support services for persons at risk of or experiencing homelessness and housing for populations with special needs, and $4,050,000 the first year and $4,050,000 the second year from the general fund shall be provided for homeless prevention. Of the general fund amount provided, the department is authorized to use up to two percent in each year for program administration. The amounts allocated for services for persons at risk of or experiencing homelessness may be matched through local or private sources. Any balances for the purposes specified in this paragraph which are unexpended on June 30, 2025, and June 30, 2026, shall not revert to the general fund but shall be carried forward and reappropriated.

_ 115 Item Details($) Appropriations($) ITEM 102. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 B. The department shall report to the Chairs of the Senate Finance and Appropriations, the House Appropriations Committees, and the Director, Department of Planning and Budget, by November 4 of each year on the state's homeless programs, including, but not limited to, the number of (i) emergency shelter beds, (ii) transitional housing units, (iii) single room occupancy dwellings, (iv) homeless intervention programs, (v) homeless prevention programs, and (vi) the number of homeless individuals supported by the permanent housing state funding on a locality and statewide basis and the accomplishments achieved by the additional state funding provided to the program. The report shall also include the number of Virginians served by these programs, the costs of the programs, and the financial and in-kind support provided by localities and nonprofit groups in these programs. In preparing the report, the department shall consult with localities and community-based groups. C. Out of the amounts in this Item, $1,775,000 the first year and $1,775,000 $1,100,000 the second year from the general fund shall be provided for rapid re-housing efforts. In keeping with the specific goals of the Balance of State Continuum of Care, $200,000 of this amount in each year shall be focused on ensuring that no veteran is homeless or in a shelter for more than 30 days. These funds shall be used to supplement other state and federal programs, shall be directed to areas throughout the state where federal funds are not available, and shall be used to serve those veterans ineligible for federal benefits. The department shall provide these funds as grants in a formula determined by the department with input from stakeholders. Any balances for the purposes specified in this paragraph which are unexpended on June 30, 2025, and June 30, 2026, shall not revert to the general fund but shall be carried forward and reappropriated. D. The department shall continue to collaborate with the Department of Veteran Services to ensure coordinated efforts towards reducing homelessness among veterans. E.1. Out of the amounts in this Item, $87,500,000 the first year and $87,500,000 the second year from the general fund shall be deposited to the Virginia Housing Trust Fund, established pursuant to § 36-142 et seq., Code of Virginia. Notwithstanding § 36-142, Code of Virginia, when awarding grants through eligible organizations for targeted efforts to reduce homelessness, priority consideration shall be given to efforts to reduce the number of homeless youth and families and to expand permanent supportive housing. 2. As part of the plan required by § 36-142 E., Code of Virginia, the department shall also report on the impact of the loans and grants awarded through the fund, including but not limited to: (i) the number of affordable rental housing units repaired or newly constructed, (ii) the number of individuals receiving down payments and/or closing assistance, (iii) the progress and accomplishments in reducing homelessness achieved by the additional support provided through the fund, and (iv) the progress in expanding permanent supportive housing options. 3. In any year where claims for the Virginia Housing Opportunity Tax credit exceed revenue loss assumptions in "The Economic Outlook and Revenue Forecast" report (GACRE Report) prepared by the Secretary of Finance and submitted to the General Assembly annually in December (net lost revenues), the Governor is authorized to direct the State Comptroller to transfer an amount equal to these net lost revenues from the Virginia Housing Trust Fund to the general fund. F. Out of the amounts in this Item, $15,800,000 the first year and $15,800,000 the second year from federal trust funds shall be provided to support Virginia affordable housing programs and the Indoor Plumbing Program. G. Out of the amounts in this Item, $50,000 the first year and $50,000 the second year from the general fund and one position shall be provided to support the administrative costs associated with administering the tax credits authorized pursuant to § 58.1- 439.12:04, Code of Virginia. H. The department shall develop and implement strategies, that may include potential Medicaid financing, for housing individuals with serious mental illness. The department shall include other agencies in the development of such strategies including the Virginia Housing Development Authority, Department of Behavioral Health and Developmental Services, Department of Aging and Rehabilitative Services, Department of Medical

_ 116 Item Details($) Appropriations($) ITEM 102. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Assistance Services, and Department of Social Services. The department shall also include stakeholders whose constituents have an interest in expanding supportive housing for people with serious mental illness, including the National Alliance on Mental Illness Virginia, the Virginia Housing Alliance and the Virginia Sheriff's Association. An annual report on such strategies and the progress on implementation shall be provided to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by the first day of each General Assembly Regular Session. I. Out of the amounts appropriated in this Item, $3,450,000 the first year and $3,450,000 the second year from the general fund shall be used to establish a competitive Eviction Prevention and Diversion Pilot Program that will support local or regional eviction prevention and diversion programs that utilize a systems approach with linkages to local departments of social services and legal aid resources. This program shall prioritize grant applications that provide a local match at an amount deemed appropriate by the Department. J. The authorization provided under Item 113, Paragraph L., Chapter 1, 2022 General Assembly, Special Session I, that directs the department to use up to $11,400,000 of unobligated balances in the Low-Income Energy Efficiency Program Fund (02017) for flood relief is hereby continued. Using these funds, the department shall continue to administer a program established for the purposes of providing relief to residents of Virginia that lost or sustained property damage as a result of a flood disaster, mudslide, or landslide occurring on or after August 1, 2021, but before September 31, 2021, and subject to a Major Disaster Declaration (FEMA-4628-DR) issued by President Biden on October 26, 2021. K. The authorization provided under Item 113, Paragraph O., Chapter 1, 2023 General Assembly, Special Session I, that directs the department to use up to $18,000,000 of unobligated balances in the Low-Income Energy Efficiency Program Fund (02017) for flood relief is hereby continued. Using these funds, the department shall continue to administer a program established for the purposes of providing relief to residents of Virginia that lost or sustained property damage as a result of a flood disaster, mudslide, or landslide occurring on or after July 1, 2022, but before August 31, 2022, and subject to a Major Disaster Declaration (FEMA-4674-DR) issued by President Biden on September 30, 2022 L. Out of this appropriation, $200,000 the first year and $200,000 the second year from the general fund is provided for the department to support the comprehensive statewide housing assessment, pursuant to § 36-139, Code of Virginia. M.1. Notwithstanding the provisions of § 10.1-1330, Code of Virginia, the department shall utilize $5,000,000 of unobligated balances in the Low-Income Energy Efficiency Program Fund (02017) for the purpose of establishing a pilot program to assist residents of a manufacturing home park or organizations exempt from taxation under 501(c)3 of the Internal Revenue Code with acquiring manufactured home parks located in Virginia. 2. The department shall award the funds provided in this paragraph as revolving loans to either: (i) associations consisting of residents of one or more manufactured home parks in Virginia, or (ii) organizations exempt from taxation under 501(c)3 of the Internal Revenue Code that provide, construct, or renovate affordable housing in Virginia. 3. The department shall develop criteria and guidelines for this pilot program on or before December 1, 2024. At a minimum, the guidelines shall prohibit any loans that result in the involuntary displacement of any person residing in the park at the time of its acquisition. The interest rate of loans issued under this pilot program shall not exceed the lowest annual interest rate offered on a loan from the Virginia Housing Trust Fund. 4. Up to twenty-five percent of funds provided in this paragraph may be distributed to organizations exempt from taxation under 501(c)3 of the Internal Revenue Code that provide, construct, or renovate affordable housing in Virginia that have been assigned a right of first refusal to purchase a manufactured home park by a locality, pursuant to the provisions of House Bill 1397 of the 2024 General Assembly. Upon receipt of notice from a nonprofit that they have: (i) been assigned right of first refusal by a locality to purchase manufactured home parks, or (ii) received notice from the locality that such owner has entered into a contract to sell the park contingent upon providing the right of first refusal, the department shall expedite the application for a loan, and notify the applicant of its decision within 30 days of receiving the application.

_ 117 Item Details($) Appropriations($) ITEM 102. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 5. The department shall report to the General Assembly on or before December 1, 2025, the results of the pilot program. At a minimum, the report shall contain information on the number of applications, the number and dollar amount of loans made, number of parks acquired, and the estimated costs of continuing the program. 6. The department may recover administrative costs from the amounts provided in this paragraph. 7. The department shall implement this program no later than May 4, 2025. Such implementation shall include making funds available to successful applicants. N.1. Notwithstanding the provisions of § 10.1-1330, Code of Virginia, the department shall utilize $5,000,000 of unobligated balances in the Low-Income Energy Efficiency Program Fund (02017) for the purpose of creating a down payment assistance pilot program. The grants awarded under this pilot program shall be issued as a forgivable, second trust mortgage. New homes purchases with a grant from this program must meet Earth Craft or Energy Star energy efficiency standards or their equivalent. 2. The department, in administrating the funds provided in this paragraph, may elect to contract with an organization exempt from taxation under 501(c)3 of the Internal Revenue Code with expertise in providing, constructing, or renovating affordable housing. 3. The department shall develop criteria and guidelines for the pilot program on or before December 1, 2024. At a minimum, the guidelines shall include eligibility criteria that targets grants to recipients earning less than 60 percent of the Area Median Income. The guidelines shall also stipulate a process for forgiving the grants awarded by the department that includes: (i) regular payments by the recipients on the first mortgage and (ii) residing in the home for at least fifteen years from date of closing. The guidelines shall detail a process for recovering any awards made under the pilot program. 4. The department shall develop performance metrics and monitoring mechanism to evaluate the long term effectiveness of the program and its outcomes. 5. The department shall report on or before December 1, 2025, to the General Assembly the results of this pilot program. The report, at a minimum, shall contain information on the number of applicants, number and dollar amount of grants made, number of homes purchased, and an estimated cost of continuing the program. 6. The department may recover administrative costs from the amounts provided in this paragraph. 7. The department shall implement this program no later than May 4, 2025. Such implementation shall include making funds available to successful applicants. O. Out of this appropriation, $150,000 the first year and $150,000 the second year from the general fund is provided to the department's housing division. P. Out this appropriation, $125,000 the first year from the general fund is provided to the City of Richmond for Housing Opportunities Made Equal to provide statewide education and outreach about the protected classes covered under Virginia's Fair Housing law. Q.1. Out of this appropriation, $50,000,000 the first year from the general fund is provided for disaster mitigation and relief for qualified communities. Of the amounts in this paragraph, $25,000,000 is provided for the department to establish and administer a program for the purposes of providing relief to residents of Virginia that lost or sustained residential or commercial property damage as a result of (i) a disaster occurring on or after September 25, 2024, but before October 3, 2024, and subject to a Major Disaster Declaration (FEMA-4831-DR) issued by President Biden on October 1, 2024 and (ii) storms occurring during the State of Emergency declared by Governor Youngkin on February 10, 2025, including, without limitation the heavy rains occurring on or around February 15 and 16, 2025. a. The department shall establish procedures for filing and resolving claims, which shall include measures to prevent fraud, and which may include any criteria the department

_ 118 Item Details($) Appropriations($) ITEM 102. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 determines reasonable to carry out the provisions of this paragraph. The amount of relief provided to an eligible applicant shall be up to 100 percent of the property value for the realty that represents a total loss and up to 50 percent of the property value for the realty that sustained major damage, as defined by Q.1.f. and Q.1.g. below, not to exceed $500,000. If an eligible applicant owns multiple, noncontiguous properties in an area affected by the disaster in paragraph Q.1. of this item, the eligible applicant may file separate claims for each parcel, and the maximums described in this paragraph shall apply to each separate claim. The department shall reduce payments by any federal or state relief or insurance payments received by the eligible applicant for property repairs or damage related to the disaster described in paragraph Q.1. of this item. b. Payments under paragraph Q.1. of this item shall be subject to the availability of funds. If claims exceed available funds, the department shall make payments in the order that claims were received. c. The department shall not provide relief under this section for a residential or commercial realty that was abandoned or uninhabited at the time of the disaster described in paragraph Q.1 of this item. d. No recourse may be had by any person, organization, or entity against a recipient of payment under this paragraph, absent any evidence of misuse of funds. Misuse of funds shall be established by a showing that a recipient knowingly misapplied the proceeds of a payment received under this paragraph. If a showing of misuse of funds has been made, then a person may seek recourse against the recipient for an amount no greater than the extent of the payment. e. Relief awarded pursuant to this paragraph is excluded from gross income and is not subject to taxation. f. "Total loss" means real property that has been destroyed, such that there is a total loss of the structure, the structure is not economically feasible to repair, or there is a complete failure to major structural components, such as the collapse of the basement, wall, or roof. g. "Major damage" means real property that has substantial failure to its structural elements, such as walls, floor, or foundation, or that has sustained damage that will take more than 30 days to repair. h. "Eligible applicant" means any individual property owner that lost or sustained residential or commercial real property damage as a result of a disaster occurring on or after September 25, 2024, but before October 3, 2024, and subject to a Major Disaster Declaration (FEMA- 4831-DR) issued by President Biden on October 1, 2024 and storms occurring during the State of Emergency declared by Governor Youngkin on February 10, 2025, including, without limitation the heavy rains occurring on or around February 15 and 16, 2025. i. The department may provide relief under this section for commercial real property loss and also loss of fencing and crop loss as a result of the disaster described by paragraph Q.1. of this item. The program provisions of this paragraph Q.1. shall apply to any commercial assistance provided by the department; however, the maximum assistance awarded for commercial property loss shall not exceed 100 percent of the property value lost or damaged by the disaster described in by paragraph Q.1. of this item. 2. Of the amounts in this paragraph, $25,000,000 is provided for the department to supply major weather event disaster mitigation funding to affected communities to counter the cycle of disaster damage, reconstruction, and repeated damage. Grants under this paragraph shall be made to local governments, nonprofit entities, or individuals to supplement disaster recovery funding by improving the characteristics of the physical structures of houses and multi-family dwellings including the building materials, energy efficiency profile, and hazard mitigation features which influence the accessibility of the home, cost of cooling and heating, and the likelihood that the structure withstands hazards. a. The department, in administering the funds provided in this paragraph, may elect to contract with organizations exempt from taxation under 501(c)3 of the Internal Revenue Code with expertise in planning for, providing, constructing, or renovating, weather resilient housing.

_ 119 Item Details($) Appropriations($) ITEM 102. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 b. The department shall develop criteria and guidelines for the program on or before December 1, 2025, which shall include eligible recipients and identify permitted sources of matching funds as necessary, which may include federal, state and other funding programs and sources as sources for match for funding from the program. Eligible activities shall be construction and improvement projects designed to mitigate the impacts of future disasters. Funding under paragraph Q.2. of this item shall be available for projects within communities eligible under paragraph Q.1.and those communities whose residents sustained property damage as a result of a flood disaster, mudslide, storm damage, wind damage, or landslide that was subject to a Major Disaster Declaration occurring on or after August 1, 2021. Grants to individuals shall not exceed $500,000. Funding may be used to satisfy match requirements for federal, state and other funding programs and sources, including U.S. Federal Emergency Management Agency public assistance and hazard mitigation grant funding, U.S. Department of Housing and Urban Development community development block grants, and funding from U.S. Environmental Protection Agency, the U.S. Economic Development Administration, and the U.S. Department of Agriculture. c. Out of the amounts in this paragraph, the department shall direct $350,000 to pilot a statewide emergency management mobile application communications platform in Health Service Area 3. The platform shall provide care coordination across local, regional, and state entities for mass casualty, evacuation, and other events involving patient transport. The pilot program will evaluate the effectiveness of an emergency management mobile application communications platform in Southwest Virginia by measuring its impact on key performance indicators, including: number of participating organizations/personnel, platform usage, time to treatment, and user satisfaction. An interim report detailing the pilot program launch will be submitted to the Chairs of the Senate Finance and Appropriations Committee and the House Appropriations Committee by December 1, 2025. A final report including quantitative data and qualitative feedback gathered from participating organizations and personnel will be submitted to the Chairs by October 1, 2026. 3. The Director of the Department of Housing and Community Development is authorized to reduce funds provided for major weather event disaster mitigation in paragraph Q.2. if eligible claims for relief as provided in paragraph Q.1. exceed $25,000,000, to the extent that unobligated funds from paragraph Q.2. are available. 4. The department shall report to the General Assembly on the expenditure of funds from paragraph Q.1. within 90 days of the completion of this assistance program to include total assistance deployed by type of loss, total victims served, and completion of funded repairs or new residential construction. The department shall report to the General Assembly on the expenditure of funds from paragraph Q.2. on or before December 1, 2026, except as provided in Q.2.c. At a minimum the report shall contain information on the number and type of applicants, the number of grants made, and expenditure of grant funding, and the projects completed. 5. The department may recover administrative costs from the amounts provided in this paragraph including any necessary costs for partnerships with individuals and entities, including local departments of social services, entities of local government, planning district commissions, and non-profits to effectuate the provisions of this paragraph. The amounts provided in this paragraph Q. shall not revert to the general fund at the end of any fiscal year. R. Out of this appropriation, $675,000 the second year from the general fund shall be provided to support the organizational capacity and administrative needs of the Continuum of Care lead agencies in Virginia, including local planning groups in the Balance of State Continuum of Care, as they serve persons at risk of or experiencing homelessness in their regions. The department shall determine, with input from Continuum of Care lead agencies and other stakeholders, the activities that are eligible for funding, which shall include but are not limited to: (i) the development and management of homeless crisis response systems; (ii) grant administration and reporting; (iii) staff training; and (iv) essential operational tasks. The department shall provide these funds as grants in a formula determined by the department with input from stakeholders.

_ 120 Item Details($) Appropriations($) ITEM 102. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 S.1. Out of the amounts appropriated in this item, $20,000,000 the first year from the general fund shall be used to establish and implement a rental assistance pilot program in Planning District Commission Regions 8 and 23. The department may utilize up to five percent of the funding for the administrative costs associated with implementing the program. The amounts provided in this paragraph S. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated. 2. For the purposes of this paragraph, "qualifying household" means a family unit that resides together in one dwelling (i) that includes at least one person 16 years of age or younger and (ii) whose income does not exceed 50 percent of the area median income for the locality in which such family resides, as calculated by the U.S. Department of Housing and Urban Development. 3. The department shall establish criteria and guidelines for this pilot program on or before December 1, 2025. The guidelines shall provide that qualifying households may receive monthly rental assistance equal to the lesser of (i) the amount necessary to reduce their housing costs to 30 percent of the monthly adjusted net income of the household or (ii) the applicable payment standard as determined by the department. Rental assistance issued pursuant to this paragraph may be used for housing in any locality in Planning District Commission Regions 8 and 23, and for housing costs other than rent, such as security deposits and application fees. 4. The guidelines for the administration of the pilot program shall be informed by the 2022 Virginia Housing Stability Fund Model Program Guidelines report and by consultations with various stakeholders, including the Department of Social Services, Virginia Housing, the Department of Education, McKinney-Vento liaisons, Continuum of Care lead agencies, housing providers, public housing authorities, tenants, and others. The department may administer the pilot program in partnership with local and regional agencies, with a priority for partnerships with local school divisions and McKinney-Vento liaisons. The department shall determine rental assistance payment standards for each size of a dwelling unit in a market area, which shall be greater than or equal to the Small Area Fair Market Rent, as established annually by the U.S. Department of Housing and Urban Development, for the same size of dwelling unit in the same market area. The department shall develop a process to ensure that each dwelling unit for which rental assistance is used is safe and habitable. 5. The department shall collect data on the utilization of the rental assistance issued in each fiscal year under the pilot program and submit an annual report to the General Assembly on or before December 1 of each year with an update on the implementation and impact of the pilot program. 6. The department shall convene a group of stakeholders to consider and make recommendations regarding potential funding sources to support the program's continuation beyond the initial pilot stage, and it shall submit the recommendations of the stakeholder group to the Chairs of the Senate Finance and Appropriations Committee and House Appropriations Committee on or before November 1, 2025. The department shall convene this stakeholder group no later than June 1, 2025, and shall include as members of the stakeholder group representatives of the following: Virginia Housing, McKinney-Vento liaisons, legal aid, affordable housing providers, public housing authorities, residential landlords, residential tenants, and others identified by the department. 7. Any funds remaining on June 30 of either fiscal year shall carryforward to the next fiscal year and be reappropriated for the same purpose. T. Out of this appropriation, $1,500,000 the first year from the general fund is provided to the City of Charlottesville to support the repurposing of an existing facility to create a low- barrier emergency shelter to address urgent need. The funding in this paragraph shall be contingent on the approval of the project by the Charlottesville City Council. Any funding remaining at the end of the fiscal year 2025 shall be carried forward to the next fiscal year and reappropriated for the purposes described in this paragraph T. U. Out of the appropriation in this item, $1,500,000 the first year from the general fund is provided to the City of Portsmouth to support ForKids' expansion of eviction prevention programs and targeted support for McKinney-Vento children in Portsmouth, Chesapeake, and the surrounding areas. The amounts provided in this paragraph U. shall not revert to the I VETO ITEM 102.S. ON PAGE 120 /s/ Glenn Youngkin 5-2-25 I VETO ITEM 102.T. ON PAGE 120 /s/ Glenn Youngkin 5-2-25

_ 121 Item Details($) Appropriations($) ITEM 102. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 general fund at the end of any fiscal year, but shall be carried forward and reappropriated. V.1. Out of this appropriation, $15,000,000 the first year from the general fund is provided for the department to establish the First-Time Homebuyer Grant Program to assist eligible first-time homebuyers in paying for first-time homebuyer expenses. The department shall award eligible first-time homebuyers a grant in an amount equal to five percent of first-time homebuyer expenses incurred during the calendar year, not to exceed $10,000, on a first-come, first-served basis. Any grant awarded pursuant to this paragraph shall be repaid to the Commonwealth in the event that the residential real property for which first-time homebuyer expenses were incurred and such grant was awarded is sold within three years from the purchase date of such property. Repayment pursuant to this subsection shall not be required if such sale was made following a natural disaster or other act of God that made such residential real property uninhabitable. The Department shall develop guidelines for administering the program and for any repayment requirements provided by this paragraph on or before August 1, 2025. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2- 4000 et seq.). 2. For the purposes of this paragraph, "First-time homebuyer expenses" means costs incurred by a first-time homebuyer in the purchase of direct ownership in residential real property in an amount equal to the purchase price value of such property detailed on the standard purchase agreement. 3. For the purposes of this paragraph, "Eligible first-time homebuyer" means an individual or married individuals filing jointly (i) who has had no ownership interest in a principal residence during the preceding three-year period ending on the date of purchase of the residential real property detailed on the standard purchase agreement and (ii) who has an annual household income in the most recent taxable year that does not exceed the greater of (a) $100,000 or (b) the median annual household income for the locality in which such residential real property is situated according to the most recent data available from the U.S. Census Bureau. 4. Of the amounts in this paragraph, the department may use up to $300,000 to administer this program. 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, $13,000,000 the first year from the general fund is provided for the department to award grants to localities or planning district commissions that have established or will establish by December 31, 2025, a local Housing Trust Fund for long- term local investments related to affordable housing. The department shall develop criteria and guidelines for these one-time grants on or before August 1, 2025. Of the amounts in this paragraph, $5,000,000 shall be provided to Prince William County to support affordable housing. Of the amounts in this paragraph, $1,000,000 shall be provided to the City of Emporia to support an affordable housing project. Of the amounts in this paragraph, $250,000 shall be provided to Tazewell County for remediation of blighted properties in the Town of Richlands to create affordable housing construction sites. The amounts provided in this paragraph W. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated. X. The department shall identify programs designed to keep long-term residents in their primary homes as real property tax liabilities increase, including the Longtime Owner Occupancy Program (LOOP) as implemented in Philadelphia, Pennsylvania. The department shall review and provide recommendations for eligibility criteria based on financial indicators, financing options including voluntary locality contributions or offsets, and assess feasibility, equity, and efficiency of administration and implementation at the local, regional, or state level. The department shall convene a group of national, state, and local tax and housing experts to assist with developing recommendations, with the support of the Department of Taxation and the Commission on Local Government. The department shall submit their findings to the Chairs of House General Laws and Senate General Laws and Technology by September 1, 2025. Y. Out of this appropriation, $500,000 the first year from the general fund is provided to the City of Suffolk to support the construction of a homeless shelter. The amounts provided I VETO ITEM 102.V. ON PAGE 121 /s/ Glenn Youngkin 5-2-25 I VETO ITEM 102.W. ON PAGE 121 /s/ Glenn Youngkin 5-2-25

_ 122 Item Details($) Appropriations($) ITEM 102. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 103. Community Development Services (53300) $124,652,325 $159,702,325 $93,477,325 $81,477,325 Community Development and Revitalization (53301) $69,166,159 $100,216,159 $39,166,159 $27,166,159 Financial Assistance for Regional Cooperation (53303) $35,960,497 $35,960,497 Financial Assistance for Community Development (53305) $19,525,669 $23,525,669 $18,350,669 Fund Sources: General $94,927,401 $129,977,401 $63,752,401 $51,752,401 Special $5,246,590 $5,246,590 Trust and Agency $150,000 $150,000 Federal Trust $24,328,334 $24,328,334 Authority: Title 15.2, Chapter 13, Article 3 and Chapter 42; Title 36, Chapters 8, 10 and 11; and Title 59.1, Chapter 22, Code of Virginia. A. Out of the amounts in this Item, $351,930 the first year and $351,930 the second year from the general fund is provided for annual membership dues to the Appalachian Regional Commission. B. The department and local program administrators shall make every reasonable effort to provide participants basic financial counseling to enhance their ability to benefit from the Indoor Plumbing Program and to foster their movement to economic self-sufficiency. C. Out of the amounts in this Item shall be paid from the general fund in four equal quarterly installments each year: 1. To the Lenowisco Planning District Commission, $114,971 the first year and $114,971 the second year, which includes $38,610 the first year and $38,610 the second year for responsibilities originally undertaken and continued pursuant to § 15.2-4207, Code of Virginia, and the Virginia Coalfield Economic Development Authority. 2. To the Cumberland Plateau Planning District Commission, $114,971 the first year and $114,971 the second year, which includes $42,390 the first year and $42,390 the second year for responsibilities originally undertaken and continued pursuant to § 15.2-4207, Code of Virginia, and the Virginia Coalfield Economic Development Authority. 3. To the Mount Rogers Planning District Commission, $114,971 the first year and $114,971 the second year. 4. To the New River Valley Planning District Commission, $114,971 the first year and $114,971 the second year. 5. To the Roanoke Valley-Alleghany Regional Commission, $114,971 the first year and $114,971 the second year. 6. To the Central Shenandoah Planning District Commission, $114,971 the first year and $114,971 the second year. 7. To the Northern Shenandoah Valley Regional Commission, $114,971 the first year and $114,971 the second year. 8. To the Northern Virginia Regional Commission, $190,943 the first year and $190,943 the second year. 9. To the Rappahannock-Rapidan Regional Commission, $114,971 the first year and $114,971 the second year. 10. To the Thomas Jefferson Planning District Commission, $114,971 the first year and

_ 123 Item Details($) Appropriations($) ITEM 103. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 $114,971 the second year. 11. To the Region 2000 Local Government Council, $114,971 the first year and $114,971 the second year. 12. To the West Piedmont Planning District Commission, $114,971 the first year and $114,971 the second year. 13. To the Southside Planning District Commission, $114,971 the first year and $114,971 the second year. 14. To the Commonwealth Regional Council, $114,971 the first year and $114,971 the second year. 15. To the Richmond Regional Planning District Commission, $152,957 the first year and $152,957 the second year. 16. To the George Washington Regional Commission, $114,971 the first year and $114,971 the second year. 17. To the Northern Neck Planning District Commission, $114,971 the first year and $114,971 the second year. 18. To the Middle Peninsula Planning District Commission, $114,971 the first year and $114,971 the second year. 19. To the Crater Planning District Commission, $114,971 the first year and $114,971 the second year. 20. To the Accomack-Northampton Planning District Commission, $114,971 the first year and $114,971 the second year. 21. To the Hampton Roads Planning District Commission $190,943 the first year, and $190,943 the second year. D. Out of the amounts in this Item, $1,568,442 the first year and $1,568,442 the second year from the general fund shall be provided for the Southeast Rural Community Assistance Project (formerly known as the Virginia Water Project) operating costs and water and wastewater grants. The department shall disburse the total payment each year in twelve equal monthly installments. E. The department shall leverage any appropriation provided for the capital costs for safe drinking water and wastewater treatment in the Lenowisco, Cumberland Plateau, or Mount Rogers planning districts with other state moneys, federal grants or loans, local contributions, and private or nonprofit resources. F. Out of the amounts in this Item, $470,000 the first year and $470,000 the second year from the general fund shall be provided for the Center for Rural Virginia, which shall be referred to in this act as the Senator Frank Ruff Center for Rural Virginia. The department shall report periodically to the Chairs of the Senate Finance and Appropriations and House Appropriations Committees on the status, needs and accomplishments of the center. G. Out of the amounts in this Item, $171,250 the first year and $171,250 the second year from the general fund shall be provided to support The Crooked Road: Virginia's Heritage Music Trail. H.1. Out of the amounts in this Item, $7,000,000 $9,000,000 the first year and $7,000,000 $5,000,000 the second year from the general fund shall be deposited to the Virginia Removal or Rehabilitation of Derelict Structures Fund to support industrial site revitalization. Out of the amounts in this paragraph, $2,400,000 the first year and $2,400,000 the second year from the general fund is designated for removing, renovating or modernizing port-related buildings and facilities in the cities of Portsmouth, Norfolk, Newport News, Richmond or Front Royal. 2. Notwithstanding § 36-153, Code of Virginia, or any other provision of law, moneys in the Virginia Removal or Rehabilitation of Derelict Structures Fund and moneys

_ 124 Item Details($) Appropriations($) ITEM 103. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 appropriated to support the Industrial Revitalization Fund Program shall be used to support the inclusion of solar panels or solar canopies for parking lots as a component of a real property project awarded a grant through the program. These conditions shall not apply to projects funded with the amounts provided in the preceding paragraph for removing, renovating, or modernizing port-related buildings and facilities in the cities of Portsmouth, Norfolk, Newport News, Richmond, or Front Royal, and the projects supported with funds in the paragraphs below. 3. Out of the amounts in this paragraph, $1,500,000 the first year is provided for Charles City County to support the redevelopment and rehabilitation of a site on John Tyler Memorial Highway into a retail and public engagement space to increase visitation to the area. Notwithstanding § 36-155, Code of Virginia, the maximum grant award and local match requirements shall not apply to the amounts provided in this paragraph. 4. Out the amounts in this paragraph, $2,000,000 the second first year is provided for the City of Danville to develop property along the Dan River, known as White Mill. The funding provided in this paragraph may be used to establish a recreation and first responder training facility as a part of the overall redevelopment of White Mill, to promote tourism and market driven economic development activity in the city. The department shall require the city to provide a one for two match from non-state sources as certified by the department or a minimum investment of non-state funds of $4,000,000 prior to releasing any of these funds. Notwithstanding § 36-155, Code of Virginia, the maximum grant award shall not apply to the amounts provided in this paragraph. I. Out of the amounts in this Item, $500,000 the first year and $500,000 the second year from the general fund shall be provided for the Virginia Main Street Program. This amount shall be in addition to other appropriations for this activity. J. Of the general fund amounts provided for the Virginia Main Street Program, the Indoor Plumbing Rehabilitation Program, and the water and wastewater planning and construction projects in Southwest Virginia, the department is authorized to use up to two percent of the appropriation in each year for program administration. K.1. Out of the amounts in this Item, $875,000 the first year and $875,000 the second year from the general fund shall be provided for the Southwest Virginia Cultural Heritage Foundation. 2. The foundation shall report by September 1 of each year to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on the expenditures of the foundation and its ongoing efforts to generate revenues sufficient to sustain operations. L.1. Out of the amounts in this Item, $40,000,000 $50,000,000 the first year and $10,000,000 the second year from the general fund is provided for the Virginia Telecommunication Initiative. The funds shall be used for providing financial assistance to supplement construction costs by private sector broadband service providers to extend service to areas that presently are unserved by any broadband provider. Any balances for the purposes specified in this paragraph which are unexpended on June 30, 2025, and June 30, 2026, shall not revert to the general fund but shall be carried forward and reappropriated with the exception of the amounts designated in 7. of this paragraph L. It is the intent of the General Assembly that the funding provided in this paragraph L.1. shall be continued in the next biennium. 2. The department shall develop appropriate criteria and guidelines for the use of the funding provided to the Virginia Telecommunication Initiative. Such criteria and guidelines shall: (i) facilitate the extension of broadband networks by the private sector and shall focus on unserved areas; (ii) attempt to identify the most cost-effective solutions, given the proposed technology and speed that is desired; (iii) give consideration to proposals that are public- private partnerships in which the private sector will own and operate the completed project; (iv) consider the number of locations where the applicant states that service will be made available, in addition to whether customers take the service in both evaluating applications and in establishing completion and accountability requirements; and, (v) require investment from the private sector partner in the project prior to making any award from the fund at an appropriate level determined by the department. The department shall encourage additional assistance from the local governments in areas designated to receive funds to lower the

_ 125 Item Details($) Appropriations($) ITEM 103. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 overall cost and further assist in the timely completion of construction, including assistance with permits, rights of way, easement and other issues that may hinder or delay timely construction and increase the cost. 3. The department shall post electronic copies of all submitted applications to the department's website after the deadline for application submissions has passed but before project approval and shall establish a process for providers to challenge applications where providers assert the proposed area is served by another broadband provider. 4. The department shall consult with the Broadband Advisory Council to designate the unserved areas to receive funds. 5. Notwithstanding the foregoing, the department shall allow public broadband authorities to apply directly for Virginia Telecommunications Initiative funds without investment from the private sector. The cumulative total of any grants awarded to public broadband authorities shall not exceed 10 percent of total available funding in any fiscal year. 6. For grants awarded from the amounts appropriated in paragraphs B.2.b.2) and C.1. of Chapter 1 of the 2021 Acts of Assembly, Special Session II, Item 114, Paragraph L. of Chapter 552, 2021 Acts of Assembly, Special Session I, and this paragraph, for the construction of broadband infrastructure through the Virginia Telecommunications Initiative (VATI), the Department of Housing and Community Development shall deliver a quarterly performance report to the Governor, Secretary of Commerce and Trade, Chairs of the House Appropriations Committee and Senate Finance and Appropriations Committee, and Broadband Advisory Council, starting in Calendar Year 2022. To the extent possible, the quarterly performance report shall contain information by grant recipient and year on the following metrics: (1) Number of passings; (2) Grant dollars expended by fund source (State and Local Recovery Fund, Capital Project Fund, general fund state grants and match); (3) Contract performance period, and on-time progress towards project delivery; (4) Maximum advertised project speeds available; and, (5) Achievement of key project milestones. The quarterly report shall be due within 30 days of the close of the quarter. The quarterly performance report shall include an evaluation of any projects under risk of incompletion or underperformance. The department in providing such risk assessment shall include a reason for the project's delay. The Department of Housing and Community Development shall develop a public facing dashboard to be updated quarterly that contains key performance information by grant recipient and year and includes the key performance indicators outlined above. Information in this public facing tool shall contain data beginning with grants awarded in the fiscal year 2022 Virginia Telecommunications Initiative grant cycle, and any future VATI grant cycles. 7.a. Out of the amounts in this paragraph, the department shall utilize up to $30,000,000 in the first year from the general fund to establish a program to provide supplements to current Virginia Telecommunication Initiative grant projects for “make ready" costs. Projects receiving money from these funds shall be limited to projects funded with resources from the State and Local Fiscal Recovery Fund or the Capital Projects Fund of the American Rescue Plan Act of 2021, which were awarded during the fiscal year 2022 Virginia Telecommunication Initiative grant round. The department shall limit “make ready" costs to utility pole replacements and mid-span pole installations. Any balances, for the purposes specified in this paragraph 7., which are unexpended on June 30, 2025, shall revert to the general fund. b. The department shall establish an application process for the unit of government under contract with the department for the delivery of passings in mutual agreement with its private-sector partner to apply for a grant to supplement “make ready" costs occurring on or after January 1, 2024. Applicants shall be required to submit the following information: (i) the number, cost, and location of pole replacements or mid-span pole installations; (ii) documentation sufficient to establish that the pole replacements or mid-span pole installations described in the application have been completed or will be completed within 120 days of the receipt of funds; (iii) documentation sufficient to establish the costs for which funds are requested; (iv) documentation that demonstrates estimated project costs for utility pole replacements and mid-span pole installations included in the approved fiscal year 2022 Virginia Telecommunication Initiative grant application; and (v) any

_ 126 Item Details($) Appropriations($) ITEM 103. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 other information, protections, or criteria determined by the department as necessary to effectuate the provisions of this paragraph 7. c. The department shall award funds on a competitive basis to projects that, in the determination of the department, are “at-risk" for completion by December 31, 2026. d. The department shall develop scoring criteria to prioritize eligible applications that (i) facilitate broadband service to the greatest number of unserved/underserved contiguous locations per mile; (ii) include a match from the project's private sector partner, which will be determined by the department; (iii) will accelerate the completion of projects; (iv) are cost effective; and (v) incorporate other criteria determined by the department. The department shall review and award funds monthly starting on September 1, 2024, and award funds no later than June 1, 2025. e. Any awards made to an eligible applicant shall be limited to a percentage of the make ready costs included in the unit of government's fiscal year 2022 Virginia Telecommunication Initiative grant application as determined by the department. In no circumstance shall the department award more than $30,000 per mile for pole replacements and/or mid-span installation costs included in any application for these funds. f. The department may award the funds provided in this paragraph 7. to supplement undergrounding costs for redesigned projects that change the deployment method from aerial to underground. Redesigned projects must be approved by the department prior to any release of these funds for undergrounding costs. The relevant provisions of paragraphs 7.a. through 7.e. shall apply for any undergrounding application process established by the department. No more than $30,000 per mile shall be awarded for undergrounding costs. M. Out of the amounts in this Item, $1,408,647 the first year and $1,408,647 the second year from the general fund is provided for administrative support for the Virginia Telecommunications Initiative. N.1. Out of the amounts in this Item, $30,000,000 the first year and $30,000,000 the second year from the general fund shall be deposited to the Virginia Growth and Opportunity Fund to encourage regional cooperation among business, education, and government on strategic economic and workforce development efforts in accordance with § 2.2-2487, Code of Virginia. 2. Of the amounts provided in this paragraph, the appropriation shall be distributed as follows: (i) $2,250,000 the first year and $2,250,000 the second year from the general fund shall be allocated to qualifying regions to support organizational and capacity building activities, which, notwithstanding § 2.2-2489, Code of Virginia, may not require matching funds if a waiver is granted by the Virginia Growth and Opportunity Board to a qualifying region upon request; (ii) $16,900,000 the first year and $16,900,000 the second year from the general fund shall be allocated to qualifying regions based on each region's share of the state population; and (iii) $10,850,000 the first year and $10,850,000 the second year from the general fund shall be awarded to regional councils on a competitive basis. 3. The Virginia Growth and Opportunity Board may allocate monies among the distributions outlined in paragraph N.2. of this item to meet demonstrated demand for funds. However, only those regional councils whose allocation is less than $1,000,000 in a fiscal year based on the region's share of state population shall be eligible to receive an additional allocation, and the amount shall be limited such that the total allocation does not exceed $1,000,000 in a fiscal year. 4. The Virginia Growth and Opportunity Board may approve grants for assessments of commercial economic development demand and current access, and to advance the planning and engineering of broadband infrastructure that are aligned with the framework recommended by the working group, established in Chapter 2, 2018 Special Session I, Acts of Assembly and shall give priority consideration for broadband technology development and deployment to facilitate the connectivity or upgrade of services to current and proposed business-ready sites in areas of high unemployment in qualifying regions. 5. The Virginia Growth and Opportunity Board may rescind funds allocated to regional councils on a per capita basis, if the unobligated balances of a regional council exceed its

_ 127 Item Details($) Appropriations($) ITEM 103. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 average annual per capita distribution award. Any funds rescinded pursuant to this paragraph shall be retained in the Virginia Growth and Opportunity Fund (09272) and may be used by the Virginia Growth and Opportunity Board for grant awards to competitive projects. The Department shall notify the Chairs of the House Appropriations and Senate Finance and Appropriations Committees within 10 days of the decision by the Virginia Growth and Opportunity Board to rescind regional per capital allocations. The regional council, the amount, and reason for unused funds shall be included in such notice. 6.a. The department shall report one month after the close of each calendar quarter to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on grant awards and expenditures from the Virginia Growth and Opportunity Fund. The report shall include, but not be limited to, total appropriations made or transferred to the fund, total grants awarded, total expenditures from the fund, total per capita allocations rescinded and repurposed to competitive awards, cash balances, and balances available for future commitments. The report shall further summarize such amounts by the allocations provided in paragraph N.2. of this item, including amounts allocated to support organizational and capacity building activities, amounts allocated to regional councils based on each region's share of the state population, and amounts to be awarded on a competitive basis by fiscal year. The report shall include details on the cash balances available in the Virginia Growth and Opportunity Fund including the unobligated balances by the per capita allocation and competitive allocation of paragraph N.2., which shall be further disaggregated by fiscal year and regional council, as appropriate. b. The department shall report at the close of each fiscal year to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on the outcomes associated with closed projects that received a grant from the Virginia Growth and Opportunity Fund on or before December 1st of each year. This report shall include itemized information that details the project name, the Regional Council, GO Virginia investment type (regional per capita, competitive, or Economic Resilience and Recovery), GO Virginia strategy, program year, date of award, committed match, anticipated project outcomes, and actual project outcomes. The department shall utilize the information provided in this report to create a public facing performance dashboard to be updated annually that, at a minimum, includes individual projects organized by Region, total GO Virginia resources committed to the project, anticipated outcomes, and final outcomes submitted to the department at the close of the project. This information shall further be disaggregated by year and shall feature all projects receiving GO Virginia grants. O.1. Out of the amounts in this Item, $424,000 the first year and $424,000 the second year from the general fund is provided to support the creation of a statewide broadband map. The department shall, in coordination with the Office of the Chief Broadband Advisor, develop a statewide broadband availability map indicating broadband coverage, including maximum broadband speeds available in service territories in the Commonwealth. The department and Chief Advisor shall update the map at least annually. 2. Broadband service providers shall be required to submit updated service territory data to the department annually. The department shall establish a process, timeline, and specific data requirements for broadband providers to submit their data. All public bodies shall cooperate with the department, or any agent thereof, to furnish data requested by the Department for the initial improvement and maintenance of the map. 3. In no instance may the department require broadband providers to submit any data, in either substantive content or form, beyond that which the provider is required to submit to the Federal Communications Commission pursuant to the federal Broadband Deployment Accuracy and Technological Availability Act, 47 U.S.C. § 641 et. seq., provided, however, that satellite-based broadband providers that have been designated as an eligible telecommunications carrier pursuant to 47 U.S.C. § 214(e)(6) for any portion of the Commonwealth shall be required to submit comparable data as other broadband providers. Public bodies and broadband providers shall not be required to submit any customer information, such as names, addresses, or account numbers. 4. The department may publish only anonymized versions of the map, showing locations served and unserved by broadband without reference to any specific provider. The map

_ 128 Item Details($) Appropriations($) ITEM 103. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 shall not include information regarding ownership or control over the network or networks providing service. The department shall establish a process for broadband providers to petition the Department to correct inaccuracies in the map. Any determination made by the department pursuant to any specific petition with respect to any specific map to correct inaccuracies shall be final and not subject to further review. 5. Maps published by the department pursuant to this section may be considered, but shall not be considered conclusive, for purposes of determining eligibility for funding for Commonwealth broadband expansion grant or loan programs, including the Virginia Telecommunication Initiative, or challenges thereto. 6. The department: (i) may contract with private parties to make the necessary improvements to the existing map and to maintain the map. Such private parties may include any entities and individuals selected by the department to assist the department in improving and maintaining such a map; (ii) shall consult existing broadband maps, particularly those published by the Federal Communications Commission; and (iii) may acquire existing, privately held data or mapping information that may contribute to the accuracy of the map. 7. Information submitted by a broadband provider in connection with this section shall be excluded from the requirements of the Virginia Freedom of Information Act (§ 2.2-3700 et seq.). Information submitted by a broadband provider pursuant to this section shall be used solely for the purposes stated under this section and shall not be released by the department, or any other public records custodian, without the express written permission of the submitting broadband provider. 8. The department shall annually evaluate federal mapping data and shall waive the requirement for broadband providers to submit territory data if a map of near identical or greater quality is made publicly available by the Federal Communications Commission as part of the federal Digital Opportunity Data Collection program or its successor. This waiver shall not be unreasonably withheld. 9. For the purposes of the initiative outlined in paragraph O. of this item, "Broadband" means Internet access at speeds equal to or greater than the broadband Internet speed benchmark set by the Federal Communications Commission. "Broadband provider" means a provider of fixed or mobile broadband Internet access service and includes any entity required to provide the federal government with information on Federal Communications Commission Form 477 or as part of the federal Digital Opportunity Data Collection program or a provider of satellite-based broadband Internet access service that has been designated as an eligible telecommunications carrier pursuant to 47 U.S.C. § 214(e)(6) for any portion of the Commonwealth. "Chief Advisor" means the Commonwealth Broadband Chief Advisor as established in § 2.2-205.2, Code of Virginia. "Map" means the statewide broadband availability map developed and maintained pursuant to paragraph O. of this item. 10. The department shall add layers to the Map to demonstrate broadband availability in: (i) rural areas and (ii) on farmlands. The department, in collaboration with the Center for Rural Virginia, shall determine an appropriate definition of rural for effectuating the purposes of this paragraph. The Map shall utilize information from the Virginia Land and Energy Navigator, produced by the Virginia Cooperative Extension at Virginia Tech to showcase broadband availability on Virginia prime farmland. The Virginia Cooperative Extension at Virginia Tech shall provide this data to the department at no cost. P.1. Out of this appropriation, $150,000$2,650,000 the first year and $150,000 the second year from the general fund is provided for the Community Development Financial Institutions Fund, as established by § 36-140.01, Code of Virginia. Of these amounts, the department is authorized to use up to $150,000 to administer these funds. 2. The department shall use up to 20 percent, but no less than 10 percent, of the fund to provide low-interest, non-forgivable loans to qualifying institutions, as defined by § 36- 140.01, Code of Virginia. Interest on loans made from the fund shall not exceed three percent. 3. The department shall require (a) qualifying institutions receiving a loan from the fund to finance eligible program projects through loans, and (b) repayment of loan awards no sooner than five years after its execution of a loan contract with the qualifying institution.

_ 129 Item Details($) Appropriations($) ITEM 103. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Q. Out of the amounts in this Item, $250,000 the first year and $250,000 the second year from the general fund is provided for the Lenowisco Planning District Commission and Cumberland Plateau Planning District Commission designated for operations of the Coalfield Expressway Authority. Such funds for grants shall be managed by the Virginia Coalfield Economic Development Authority. R. The department shall continue the talent pathways planning grant program established in Item 114, Paragraph S. in House Bill 29 of the 2022 General Assembly, Special Session I. S.1. Out of this appropriation, $200,000 the first year and $200,000 the second year from the general fund is provided for the Lenowisco Planning District Commission and the Cumberland Plateau Planning District Commission (PDC), in equal amounts, to identify, plan, and support economic development efforts within each PDC that align with federal funding opportunities, including Assistance to Coal Communities funding. In fulfilling the purposes of this paragraph, the PDCs may hire an additional position to help coordinate efforts and activities designed to maximize the receipt of federal funding by the region. These economic development initiatives may be coordinated Virginia Economic Development Partnership Authority and other regional economic development organizations as applicable. The PDCs shall provide quarterly reports to the department on the activities supported and federal investment secured as a result of the funding provided in this paragraph. 2. The department shall establish an Inter-Agency Task Force chaired by the Secretary of Commerce and Trade, or their designee, and comprised of designees from the Virginia Economic Development Partnership Authority, Virginia Energy, the Virginia Tourism Corporation, the Department of Housing and Community Development, the Virginia Department of Agriculture and Consumer Services, the Virginia Department of Environmental Quality, the Secretary of Labor, the Virginia Coalfield Economic Development Authority, the Tobacco Region Revitalization Commission, and the Virginia Community College System. The purpose of the Inter-Agency Task Force is to review and make recommendations to support economic development in Southwest Virginia. In conducting its review, the department's Division of Economic Development and Community Vitality shall conduct regular stakeholder outreach with impacted communities and regional stakeholders to identify the necessary programs, resources, and policy changes required to support transitioning workers and communities. The Inter- Agency Task Force shall consult with impacted stakeholders including residents of the coalfield counties, employers in the coalfield counties, local government representatives, and representatives of regional nonprofit entities. T. l. The department is hereby authorized to use federal funding received by Virginia from the Broadband Equity, Access, and Deployment (BEAD) Program of the Federal Infrastructure and Jobs Act (Public Law 117-58). 2. In its implementation of Public Law 117-58, the department shall first confirm that sufficient funds are allocated to ensure the deployment of service to all unserved locations and all underserved locations, followed by coverage to Community Anchor Institutions in a manner consistent with Public Law 117-58 and related federal guidance. 3. Of the federal funding remaining after Paragraph T.2., the department shall take such measures as necessary to allocate the additional funding to include the purposes outlined below, drawn from the National Telecommunications Information Administration BEAD Notice of Funding Opportunity ("NOFO"): (i) User training with respect to cybersecurity, privacy, and other digital safety matters; (ii) Remote learning or telehealth services/facilities; (iii) Digital literacy/upskilling (from beginner-level to advanced); (iv) Computer science, coding and cybersecurity education programs; (v) Implementation of Eligible Entity digital equity plans to supplement, but not to duplicate or supplant, Planning Grant funds received by the Eligible Entity in connection with the Digital Equity Act of 2021;

_ 130 Item Details($) Appropriations($) ITEM 103. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 (vi) Broadband sign-up assistance and programs that provide technology support; (vii) Multi-lingual outreach to support adoption and digital literacy; (viii) Prisoner education to promote pre-release digital literacy, job skills, online job acquisition skills, etc.; (ix) Digital navigators; (x) Direct subsidies for use toward broadband subscription, where the Eligible Entity shows the subsidies will improve affordability for the end user population and to supplement, but not to duplicate or supplant, the subsidies provided by the Affordable Connectivity Program; (xi) Costs associated with stakeholder engagement, including travel, capacity-building, or contract support; (xii) Other allowable costs necessary to carrying out programmatic activities of an award, not to include ineligible costs described in Section V.H.2 of the NOFO; and (xiii) Broadband resiliency to include utility pole replacements, mid-span pole installations, and undergrounding. 4. Prior to entering a contract with a sub recipient from the Broadband Equity, Access, and Deployment (BEAD) Program of the Federal Infrastructure and Jobs Act (Public Law 117- 58), the department shall receive approval from the National Telecommunications Information Administration (NTIA) validating eligibility under the BEAD program. U.1. Out of this appropriation, $1,000,000 the first year from the general fund is provided for the department to enter into a Memorandum of Understanding (MOU) with Reynolds Community College to establish a child care facility for the benefit of state employees near the seat of state government in Richmond, Virginia. 2. The funds provided in this paragraph shall be used to retrofit space on the campus for the child care facility. At a minimum, the department, in negotiating the MOU with Reynolds Community College, shall: (i) establish market rates by child care age groups to support center operations; (ii) develop a detailed operations plan to include class size and appropriate staff ratios; (iii) provide training opportunities for community college students; (iv) set a timeline for the development of the center and its opening; (v) accept the child care subsidy as defined § 22.1-289.02, Code of Virginia; and (vi) provide frequent reporting and updates on center operations. 3. The department shall provide annual reports on or before November 1, 2024, and thereafter on the status of this center including operations, development timeline, and state employees served or expected to be served. The department shall also provide recommendations on utilizing additional state resources for retrofitting space on community college campuses for child care across the Commonwealth to serve community college students and the broader public in its 2025 annual report. 4. The funding provided in this paragraph shall be used for no other purpose than those outlined above. V. Out of this appropriation, $100,000 the first year from the general fund is provided to Prince William County to support workforce development training programs in the eastern part of the county. W. Out of the amounts in this item, $125,000 the second year from the general fund is provided to the Virginia Coalfield Economic Development Authority to address telehealth and telemedicine needs in Planning Districts 1 and 2. X.1. Out of the amounts in this item, $100,000 the first year from the general fund is provided to Tazewell County to explore expansion of a natural gas pipeline to the Wardell Industrial Park to determine if utilizing available natural gas resources benefits economic development of the County. 2. Out of the amounts in this item, $100,000 the first year from the general fund is provided to

_ 131 Item Details($) Appropriations($) ITEM 103. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Russell County to explore expansion of a natural gas pipeline from the connection point of the current natural gas pipeline near Castlewood, Virginia, west along US Highway 58 to the Russell and Wise County line to determine if using available natural gas resources benefits economic development of the County. Y.1. The provisions of Item 115, paragraph Y.1. through Y.6. of House Bill 29 of the 2024 General Assembly shall continue in the event the state's subgrantee selection process for the Broadband Equity, Access, and Deployment (BEAD) Program is delayed beyond June 1, 2024, and shall last until the subgrantee process for BEAD begins. 2. Any American Rescue Plan Act funds returned during this process shall be deposited to the State and Local Fiscal Recovery Fund (12110) or the Capital Projects Fund (12120) for transfer in accordance with the provisions of Item 472 of this act. Z. Out of the appropriation in this item, $100,000 the first year from the general fund is provided to Patrick County for a natural gas study. AA. Out of this appropriation, $7,500,000 the first year from the general fund is provided to Pulaski County for site readiness improvements including a road extension, grading, and natural gas pipeline extension. Prior to the release of any funding in this paragraph, Pulaski County shall enter into a Memorandum of Understanding (MOU) with the department; demonstrate at a minimum a dollar-for-dollar match of non-state resources for these site readiness improvements; and attest to the department the commitment of a company to locate or expand operations on the site, which may include a data center company, data center operator, manufacturer, logistics company or a company specializing in maintenance, repair, and operations. The amounts provided in this paragraph AA. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated. BB. Out of this appropriation, $2,500,000 the first year from the general fund is provided for the Urban Public-Private Partnership Redevelopment Fund. Notwithstanding the provisions of § 15.2-2417, Code of Virginia, the department shall develop appropriate criteria and guidelines for the administration of the grant program. Such criteria shall include (i) how to prioritize awards for (a) localities experiencing an above average and high level of fiscal stress as designated by the Commission on Local Government in its most recent "Report on Comparative Revenue Capacity, Revenue Effort, and Fiscal Stress of Virginia's Cities and Counties" and (b) localities experiencing a significant decrease in commercial real estate assessments and (ii) the amount and type of local match, to include both requirements that consider monetary contributions and requirements that consider nonmonetary contributions. Eligible project partners for local governments shall include private developers including limited partnerships, limited liability companies, or domestic corporations, nonprofit organizations that are exempt from taxation under § 501(c)(3) of the Internal Revenue Code, local government and regional authorities, land bank entities as defined by § 15.2-7500, and common interest communities as defined by § 54.1-2345, including property owners' associations as defined by the Property Owners' Association Act (§ 55.1-1800 et seq.), condominium unit owners' associations established pursuant to the Virginia Condominium Act (§ 55.1-1900 et seq.), and real estate cooperative associations established pursuant to the Virginia Real Estate Cooperative Act (§ 55.1- 2100 et seq.). Of the amounts in this paragraph, $200,000 is provided to the department for program administration. CC. Out of this appropriation, $1,200,000 the first year from the general fund is provided to Prince William County to support the Occoquan Riverwalk project. The amounts provided in this paragraph CC. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated. DD. Out of the amounts in this item, $4,250,000 the first year from the general fund is provided to the City of Portsmouth for sanitary sewer pump station upgrades. The amounts provided in this paragraph DD. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated. EE. Out of the amounts in this item, $6,000,000 the first year from the general fund is provided to the City of Portsmouth to support the Prentis Street transmission water main improvements project. The amounts provided in this paragraph EE. shall not revert to the I VETO ITEM 103.BB. ON PAGE 131 /s/ Glenn Youngkin 5-2-25 I VETO ITEM 103.CC. ON PAGE 131 /s/ Glenn Youngkin 5-2-25 I VETO ITEM 103.EE. ON PAGES 131-132 /s/ Glenn Youngkin 5-2-25

_ 132 Item Details($) Appropriations($) ITEM 103. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 general fund at the end of any fiscal year, but shall be carried forward and reappropriated. 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. 105. Regulation of Structure Safety (56200) $3,352,665 $3,352,665 State Building Code Administration (56202) $3,352,665 $3,352,665 Fund Sources: General $814,292 $814,292 Special $2,238,373 $2,238,373 Dedicated Special Revenue $300,000 $300,000 Authority: Title 15.2, Chapter 9; Title 27, Chapters 1, 6, and 9; Title 36, Chapters 4, 4.1, 4.2, 6, and 8; Title 58.1, Chapter 36, Article 5; and Title 63.2, Chapter 17, Code of Virginia. 106. Governmental Affairs Services (70100) $568,822 $568,822 Intergovernmental Relations (70101) $568,822 $568,822 Fund Sources: General $568,822 $568,822 Authority: Title 15.2, Subtitle III, Code of Virginia. Out of the amounts in this item, $150,000 the first year and $150,000 the second year from the general fund and one position is provided for the Commission on Local Government pursuant to Senate Bill 645 of the 2024 General Assembly Session. 107. Administrative and Support Services (59900) $5,387,695 $5,387,695 General Management and Direction (59901) $5,387,695 $5,387,695 Fund Sources: General $4,812,687 $4,812,687 Special $564,424 $564,424 Federal Trust $10,584 $10,584 Authority: Title 36, Chapter 8, Code of Virginia. Total for Department of Housing and Community Development $461,125,882 $597,675,882 $428,825,882 $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 $225,629,060 $362,179,060 $193,329,060 $181,329,060 Special $103,461,630 $103,461,630 Trust and Agency $150,000 $150,000 Dedicated Special Revenue $400,000 $400,000

_ 133 Item Details($) Appropriations($) ITEM 107. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Federal Trust $131,485,192 $131,485,192 § 1-42. DEPARTMENT OF ENERGY (409) 108. Minerals Management (50600) $44,797,427 $45,022,427 $44,797,427 Geologic and Mineral Resource Investigations, Mapping, and Utilization (50601) $1,826,270 $2,051,270 $1,826,270 Mineral Mining Environmental Protection, Worker Safety and Land Reclamation (50602) $3,276,419 $3,276,419 Gas and Oil Environmental Protection, Worker Safety and Land Reclamation (50603) $1,668,668 $1,668,668 Coal Environmental Protection and Land Reclamation (50604) $32,911,581 $32,911,581 Coal Worker Safety (50605) $5,114,489 $5,114,489 Fund Sources: General $11,174,960 $11,399,960 $11,174,960 Special $6,196,107 $6,196,107 Trust and Agency $525,000 $525,000 Dedicated Special Revenue $173,000 $173,000 Federal Trust $26,728,360 $26,728,360 Authority: Title 45.2, Code of Virginia. A. Out of this appropriation, $31,224 the first year and $31,224 the second year from special funds shall be provided for annual membership dues to the Interstate Mining Compact Commission. B. Out of this appropriation shall be provided reimbursement for expenses associated with administrative and judicial review when so ordered by a court of competent jurisdiction. C. Out of this appropriation, $6,119 the first year and $6,119 the second year from the general fund shall be provided for annual membership dues to the Interstate Oil and Gas Compact Commission. D. The application fee for a coal mine license or a renewal or transfer of a license pursuant to § 45.1-161.58 § 45.2-535, Code of Virginia, shall be in the amount of $350. E. The application fee for a mineral mine license or a renewal or transfer of a license pursuant to § 45.1-161.292:31 § 45.2-1205, Code of Virginia, shall be in the amount of $400, except applications submitted electronically, which shall be accompanied by a fee of $330. However, the fee for any person engaged in mining sand or gravel on an area of five acres or less shall be required to pay a fee of $100, except applications submitted electronically, which shall be accompanied by a fee of $80. F. The application fee for a new oil or gas well permit pursuant to § 45.1-361.29 § 45.2- 1631, Code of Virginia, shall be in the amount of $600 and the application fee for permit modifications shall be $300. G. The department shall identify and apply for any available federal or other non-general funds for the purposes of waste coal and garbage of bituminous coal remediation in the coal fields region of the Commonwealth. The department shall report on such efforts and resulting funding by November 1, 2024, and by November 1 of each succeeding year to the Governor and General Assembly. 109. Resource Management Research, Planning, and Coordination (50700) $4,766,189 $4,766,189 Energy Conservation and Alternative Energy Supply Programs (50705) $4,766,189 $4,766,189 Fund Sources: General $2,504,912 $2,504,912 Special $114,407 $114,407 Federal Trust $2,146,870 $2,146,870

_ 134 Item Details($) Appropriations($) ITEM 109. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: Title 45.2, Chapter 17, Code of Virginia. A. Out of this appropriation, $38,362 the first year and $38,362 the second year from the general fund shall be provided for dues and expenses for the Southern States Energy Board. B. To defray the costs of implementing the Virginia Energy Management Program, the Department of Energy is authorized to have included in state fuel oil, natural gas, electricity, and similar energy contracts a provision for suppliers to collect from using agencies and remit to the department an administrative surcharge. The surcharge shall reflect the department's actual costs to administer the program. Additionally, the department is authorized, consistent with federal funding rules, to distribute energy-related federal funds as grants or as loans to other state or nonstate agencies for use in financing energy-related projects, and to recover from the recipient an administrative service charge to recover the department's costs of administering such grant or loan programs. C. Out of this appropriation, $137,000 the first year and $137,000 the second year from the general fund is provided to support one position within the Division of Energy to assist localities with siting, procurement, land use concerns, and other solar energy-related issues. D. Out of this appropriation, $387,500 the first year and $387,500 the second year from the general fund is provided to support the Office of Offshore Wind to coordinate state agency activities to develop and execute strategies that reduce barriers for deployment of offshore wind and attract offshore wind supply chain businesses for Virginia's benefit, promote Virginia's infrastructure and workforce development assets, work with public and private sector partners to make Virginia a regional hub for offshore wind, and to provide staff support for the Virginia Offshore Wind Development Authority. E. Out of this appropriation, $250,000 the first year and $250,000 the second year from the general fund is provided to expand capacity at the department to focus on solar and energy efficiency projects. This funding shall support the following activities: (i) securing and maximizing federal grants; (ii) building relationships with federal agencies; and (iii) supporting economic development of renewable energy industries and their relevant supply chains. F. Upon the effective date of this act, in accordance with § 4-14.00, the State Comptroller shall revert to the general fund $10,000,000 from the general fund balances of this department. 110. Administrative and Support Services (59900) $5,866,474 $5,866,474 General Management and Direction (59901) $5,866,474 $5,866,474 Fund Sources: General $2,683,617 $2,683,617 Special $2,266,574 $2,266,574 Dedicated Special Revenue $916,283 $916,283 Authority: Title 45.2, Chapter 1, Code of Virginia. Total for Department of Energy $55,430,090 $55,655,090 $55,430,090 General Fund Positions 113.47 113.47 Nongeneral Fund Positions 123.53 123.53 Position Level 237.00 237.00 Fund Sources: General $16,363,489 $16,588,489 $16,363,489 Special $8,577,088 $8,577,088 Trust and Agency $525,000 $525,000 Dedicated Special Revenue $1,089,283 $1,089,283 Federal Trust $28,875,230 $28,875,230 § 1-43. DEPARTMENT OF SMALL BUSINESS AND SUPPLIER DIVERSITY (350) I VETO ITEM 109.F. ON PAGE 134 /s/ Glenn Youngkin 5-2-25

_ 135 Item Details($) Appropriations($) ITEM 111. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 111. Economic Development Services (53400) $9,326,797 $9,476,797 $8,826,797 $8,912,875 Minority Business Enterprise Procurement Reporting and Coordination (53406) $6,098 $6,098 Minority Business Enterprise Outreach (53407) $193,625 $112,440 $193,625 $112,440 Minority Business Enterprise Certification (53414) $1,987,080 $1,923,131 $1,987,080 $2,041,459 Business Information Services (53418) $2,012,607 $1,979,143 $1,990,887 $2,294,802 Administrative Services (53422) $2,811,108 $3,001,469 $2,337,828 $2,401,321 Financial Services for Economic Development (53423) $2,316,279 $2,454,516 $2,311,279 $2,056,755 Fund Sources: General $6,180,690 $6,330,690 $5,680,690 $5,766,768 Special $1,180,540 $1,180,540 Commonwealth Transportation $1,800,567 $1,800,567 Trust and Agency $100,000 $100,000 Dedicated Special Revenue $65,000 $65,000 Authority: Title 2.2, Chapters 16.1 and 22, Code of Virginia. A. The Department, in conjunction with the Department of General Services, the Virginia Employment Commission, and the Virginia Department of Transportation, is authorized to conduct analyses of the availability of minority business enterprises in Virginia and the utilization of such businesses by the Commonwealth of Virginia, localities, or private industry in the acquisition of goods and services. The Department also is authorized to receive and accept from the United States government, or any agency thereof, and from any other source, private or public, any and all gifts, grants, allotments, bequests or devises of any nature that would assist the Department in conducting such analyses or otherwise strengthen its services to minority business enterprises. The Director, Department of Planning and Budget, is authorized to establish a nongeneral fund appropriation for the purposes of expending revenues that may be received for this effort. B. Out of the amounts in this Item, $819,753 the first year and $819,753 the second year from the general fund shall be deposited to the Small Business Investment Grant Fund pursuant to § 2.2-1616, Code of Virginia. Notwithstanding the provisions of § 2.2-1616, Code of Virginia, an eligible investor that makes a qualified investment in a small business on or after July 1, 2020, but prior to January 1, 2023, that has been certified by the Authority pursuant to subsection D of § 2.2-1616, Code of Virginia shall be eligible for a grant in an amount equal to the lesser of 25 percent of the qualified investment or $50,000. The Department shall aggressively market the program and shall report to the Governor and the Secretary of Commerce and Trade on the status of the program by November 1 of each year. C. Out of the amounts in this Item, $83,000 the first year and $83,000 the second year from the general fund shall be provided to support the Business One-Stop Program. D.1. Out of the amounts in this Item, $1,345,540 from nongeneral funds the first year and $1,345,540 from nongeneral funds the second year shall be provided for the Virginia Small Business Financing Authority. 2. The Virginia Small Business Financing Authority is authorized to insure additional loans for eligible small businesses, pursuant to § 2.2-2290, Code of Virginia, up to an aggregate amount not to exceed four times the principal amount in the Insurance or Guarantee Fund, or up to an aggregate amount of $15,000,000. In the event that the authority is called upon to pay on guaranties of loans of more than 10 percent of the aggregate amount of all outstanding insured loans, the authority shall not insure any further loans and shall immediately notify the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees. Pursuant to § 4-1.03 of this act, the Director, Department of Planning and Budget, is authorized to transfer a

_ 136 Item Details($) Appropriations($) ITEM 111. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 sum sufficient to the Insurance or Guarantee Fund in the event the amount in the fund falls below the amount needed to honor any guarantee. 3. For the I-95 HOV/HOT Lanes project as evidenced by the Comprehensive Agreement approved pursuant to the Public-Private Transportation Act of 1995, the maximum fee and/or premium charged by the Virginia Small Business Financing Authority pursuant to §§ 2.2- 2285 and 2.2-2291, Code of Virginia, for acting as the conduit issuer for any bond financing is not to exceed $25,000 per annum. E. The Department shall include employment services organizations within the development and operation of any state procurement program or program goal and targets for small, women-owned, and minority-owned businesses consistent with requirements in the Code of Virginia requiring the Department to certify employment service organizations. F. Notwithstanding any other provision of law, any business certified on or after July 1, 2017, by the Department as a small, women-owned, or minority-owned business, shall be certified for a period of five years unless (i) the certification is revoked before the end of the five-year period, (ii) the business ceases operation, or (iii) the business no longer qualifies as a small, women- or minority-owned business. G. Beginning with the calendar quarter ending September 30, 2018, the Director of the Department shall report to the Secretary of Commerce and Trade and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on the agency's efforts to maximize job creation and retention among the Commonwealth's small businesses. The report shall include, at a minimum, measures of (i) the effectiveness of programs administered by the Small Business Financing Authority in assisting borrowers to create jobs and enable increased capital investment; (ii) the efficiency and effectiveness of Small, Women-owned, and Minority-owned Business and Disadvantaged Business Enterprise programs; (iii) the success of the agency's outreach and technical assistance activities; and, (iv) the number of businesses certified, and the average number of business days to process a certification application each month. The report shall be in a format prescribed by the Secretary but shall include specific data breakouts for rural areas and service-disabled veteran businesses currently certified in the SWaM certification and shall be due within thirty days of the close of each calendar quarter. H. Notwithstanding § 2.2-1604, Code of Virginia, any cooperative association organized pursuant to Chapter 3 (§ 13.1-301 et seq.) of Title 13.1 of the Code of Virginia as a nonstock corporation that was certified as a small business by the Department prior to July 1, 2017, may be recertified as a small business by the Department, provided that such cooperative association otherwise meets the requirements for certification as a small business pursuant to Article 1 (§ 2.2-1603 et seq.) of Chapter 16.1 of Title 2.2 of the Code of Virginia and any other applicable provision of the Code of Virginia. I. Out of the amounts in this Item, $500,000 the first year from the general fund shall be used by the department to produce a new statewide disparity study. J. Out of this appropriation, $150,000 the first year from the general fund is provided to the City of Richmond for the Metropolitan Business League's and Bridging Virginia's Capital Access Program. 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 J. Total for Department of Small Business and Supplier Diversity $9,326,797 $9,476,797 $8,826,797 $8,912,875 General Fund Positions 45.00 45.00 46.00 Nongeneral Fund Positions 24.00 24.00 Position Level 69.00 69.00 70.00 Fund Sources: General $6,180,690 $6,330,690 $5,680,690 $5,766,768 Special $1,180,540 $1,180,540

_ 137 Item Details($) Appropriations($) ITEM 111. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Commonwealth Transportation $1,800,567 $1,800,567 Trust and Agency $100,000 $100,000 Dedicated Special Revenue $65,000 $65,000 § 1-44. FORT MONROE AUTHORITY (360) 112. Economic Development Services (53400) $7,793,263 $7,740,610 Administrative Services (53422) $7,793,263 $7,740,610 Fund Sources: General $7,793,263 $7,740,610 Authority: Title 2.2, Chapter 22, Code of Virginia. A.1. Out of the amounts in this Item, $7,793,263 the first year and $7,740,610 the second year from the general fund shall be provided for the Commonwealth's share of the estimated operating expenses of the Fort Monroe Authority (FMA). This appropriation represents the Commonwealth's share of the FMA's estimated operating expenses. These expenses may not be reimbursed by the federal government and shall be reduced by any federal funding the authority may receive for expenditures funded through the Commonwealth's contribution that ultimately qualify for federal reimbursement. Any such reimbursements shall be repaid to the general fund. The State Comptroller shall disburse the first and second year appropriations in twelve equal monthly installments. 2. All moneys of the FMA, from whatever source derived, shall be paid to the treasurer of the FMA. The Auditor of Public Accounts or his legally authorized representatives shall annually examine the accounts of the books of the FMA. 3. Employees of the FMA shall be eligible for membership in the Virginia Retirement System and participation in all of the health and related insurance and other benefits, including premium conversion and flexible benefits, available to state employees as provided by law. 4. Pursuant to § 2.2-2338, Code of Virginia, the Board of Trustees of the FMA shall be deemed a state public body and may meet by electronic communication means in accordance with the requirements set forth in § 2.2-3708, Code of Virginia. Electronic communication shall mean the same as that term is defined in § 2.2-3701, Code of Virginia. 5. Notwithstanding any other provision of law or agreement, the amount paid from all sources of funds by the FMA to the City of Hampton pursuant to § 2.2-2342, Code of Virginia, shall not exceed $983,960 the first year and $983,960 the second year. B. Out of this appropriation, $301,753 the first year and $301,753 the second year from the general fund is provided for the facilities maintenance department. C. Out of this appropriation, $318,981 the first year and $359,982 the second year from the general fund is provided for the authority to address the costs of its public works contracts. D. Out of this appropriation, $93,654 the first year from the general fund is provided for the authority to address critical tree maintenance. E. FMA and the Department of General Services (the Department) shall execute a Memorandum of Understanding allowing up to $60,000 annually from capital authorizations for infrastructure upgrades, deferred maintenance, and improvements at Fort Monroe to be expended by the Department. Of these authorizations, annually, up to $30,000 in total may be used by the Department for dedicated support for FMA as fiscal agent and up to $30,000, annually, in total may be expended by the Department in the review of capital outlay infrastructure upgrades, deferred maintenance, and improvement projects at Fort Monroe. Total for Fort Monroe Authority $7,793,263 $7,740,610 Fund Sources: General $7,793,263 $7,740,610

_ 138 Item Details($) Appropriations($) ITEM 112. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 § 1-45. VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP (310) 113. Economic Development Services (53400) $52,951,862 $54,451,862 $53,451,862 $59,451,862 Financial Assistance for Economic Development (53410) $5,374,070 $5,874,070 Economic Development Services (53412) $47,577,792 $49,077,792 $47,577,792 $53,577,792 Fund Sources: General $52,951,862 $54,451,862 $53,451,862 $59,451,862 Authority: Title 2.2, Chapter 22, Article 4 and Chapter 51; and § 15.2-941, Code of Virginia. A. Upon authorization of the Governor, the Virginia Economic Development Partnership may transfer funds appropriated to it by this act to a nonstock corporation. B. Prior to July 1 of each fiscal year, the Virginia Economic Development Partnership shall provide to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees and the Director, Department of Planning and Budget a report of its operational plan. Prior to November 1 of each fiscal year, the Partnership shall provide to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees and the Director, Department of Planning and Budget a detailed expenditure report and a listing of the salaries and bonuses for all partnership employees for the prior fiscal year. All three reports shall be prepared in the formats as previously approved by the Department of Planning and Budget. C. In developing the criteria for any pay for performance plan, the board shall include, but not be limited to, these variables: 1) the number of economic development prospects committed to move to or expand operations in Virginia; 2) dollar investment made in Virginia for land acquisition, construction, buildings, and equipment; 3) number of full-time jobs directly related to an economic development project; and 4) location of the project. To that end, the pay for performance plan shall be weighted to recognize and reward employees who successfully recruit new economic development prospects or cause existing prospects to expand operations in localities with fiscal stress greater than the statewide average. Fiscal Stress shall be based on the Index published by the Commission on Local Government. If a prospect is physically located in more than one contiguous locality, the highest Fiscal Stress Index of the participating localities will be used. D. The State Comptroller shall disburse the first and second year appropriations in twelve equal monthly installments. 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. E. The Virginia Economic Development Partnership shall provide administrative and support services for the Virginia Tourism Authority as prescribed in the Memorandum of Agreement until July 1, 2026, or until the authority is able to provide such services. F. The Virginia Economic Development Partnership shall report one month after the close of each quarter to the Chairs of the Senate Finance and Appropriations and House Appropriations Committees on the Commonwealth's Development Opportunity Fund. The report shall include, but not be limited to, total appropriations made or transferred to the fund, total grants awarded, cash balances, and balances available for future commitments. G. Prior to purchasing airline and hotel accommodations related to overseas trade shows, the Virginia Economic Development Partnership shall provide an itemized list of projected costs for review by the Secretary of Commerce and Trade. H.1. Out of the amounts in this Item, $2,250,000 in the first year and $2,250,000 in the second year from the general fund shall be deposited in the Virginia Brownfields Restoration and Economic Redevelopment Assistance Fund established pursuant to § 10.1-1237, Code of Virginia. 2. Guidelines developed by the Virginia Economic Development Partnership, in consultation with the Department of Environmental Quality, governing the use of the Fund shall provide

_ 139 Item Details($) Appropriations($) ITEM 113. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 for grants of up to $500,000 for site remediation and include a requirement that sites with potential for redevelopment and economic benefits to the surrounding community be prioritized for consideration of such grants. I. Any requests for administrative or staff support for the Committee on Business Development and Marketing or the Committee on International Trade established to advise the Virginia Economic Development Partnership shall be directed to, and are subject to the approval of, the Chair or the Chief Executive Officer of the Virginia Economic Development Partnership. J. Out of the amounts in this Item, $9,000,000 the first year and $9,000,000 the second year from the general fund is provided to support the development of a workforce program to provide training and recruitment services to select companies locating or expanding in the Commonwealth. K. Out of the amounts in this Item, $1,562,500 the first year and $1,562,500 the second year from the general fund is provided for the Virginia Economic Development Partnership Authority to administer a comprehensive Virginia Business Ready Sites program. The funds in this paragraph may be used to administer the program established by § 2.2-2240.2:1, Code of Virginia, § 2.2-2761, Code of Virginia, and House Bill 1125 of the 2024 General Assembly and characterize, inventory, develop, market and deploy economic sites in the Commonwealth, which includes business investment activities. L.1. Out of the amounts in this Item, $1,983,600 the first year and $2,233,600 the second year from the general fund is provided to support the Office of Education and Labor Market Alignment in accordance with § 2.2-2238, Code of Virginia. 2. Notwithstanding any provision of law, the Office of Labor Market Alignment (the Office) shall serve as a resource for education and workforce programs administered by state government to better inform programmatic decisions on workforce education and training. Additionally, the Office shall serve as a guide and resource for the Governor and the General Assembly in determining strategic education and workforce investments in current and future education and workforce training programs with a particular focus on those programs supported with state general fund dollars. 3. The Office shall develop and report an annual research agenda to the Governor and General Assembly on or before June 30th of each year in collaboration with the Secretaries of Education, Labor, and Commerce and Trade, the State Council of Higher Education for Virginia, institutions of higher education, the Virginia Department of Education, the Virginia Employment Commission, the Virginia Initiative for Growth and Opportunity Board, and the Department of Workforce Development and Advancement, members of or staff to the House Committee on Education, Senate Committee on Education and Health, House Committee on Appropriations, and the Senate Committee on Finance and Appropriations. 4. The Virginia Economic Development Partnership Authority shall include in its annual report, due on November 1st of each year, an update on the activities of the Office of Labor Market Alignment. M. Out of the amounts in this Item, $4,600,000 the first year and $4,600,000 the second year from the general fund is provided to fully implement Virginia's International Trade Plan. N. Out of this appropriation, $1,158,969 the first year and $1,158,969 the second year from the general fund is provided to establish the Division of Incentives consistent with the provisions of § 2.2-2237.3, Code of Virginia. O. Out of this appropriation, $200,000 the first year and $200,000 the second year from the general fund is provided to establish an internal audit function for the authority, consistent with the provisions of § 2.2-2236.1, Code of Virginia. P. Out of this appropriation, $200,000 the first year and $200,000 the second year from the general fund is provided for the authority to enhance cyber security initiatives. Q. Out of this appropriation, $300,000 the first year and $300,000 the second year from

_ 140 Item Details($) Appropriations($) ITEM 113. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 the general fund is provided to support the opening of the Virginia-Taiwan Trade Office. R. Notwithstanding any provision of subsection D of § 2.2-2237.1, Code of Virginia, to the contrary, the Virginia Economic Development Partnership Authority may include in its annual report on its operational plan the most recent audit report from the Auditor of Public Account's examination of the Authority's accounts and books pursuant to § 2.2-2242, Code of Virginia, in lieu of the audited financial statements of the Authority for the year ending the previous June 30. S. Out of this appropriation, $1,000,000 the first year and $1,250,000 the second year from the general fund is provided to support reorganizing economic development services at the authority. T.1. Out of this appropriation, $6,000,000 the second year from the general fund is provided to support employer-focused activities that further the goal of providing all postsecondary students in Virginia with one or more paid internships during their undergraduate course of study. 2. Out of the amounts provided in this paragraph, up to $500,000 in fiscal year 2026 may be transferred by the Director of the Department of Planning and Budget to the Department of Workforce Development and Advancement (Virginia Works) to support the development and deployment of the jobseeker/individual focused portal, Virginia Has Jobs, for higher education related internships. Such transfer will be coordinated and assessed for approval by the Board of the Virginia Economic Development Partnership (VEDP). If an amount is approved for the stated purposed, Virginia Works shall use the one-time funds provided in this paragraph to increase the capabilities of the Virginia Has Jobs platform to collect information from employers on available higher education internships and connect students to these internship opportunities. To provide guidance on functionality, feature requirements, and user experience considerations of the higher education related internship component of the Virginia Has Jobs platform, Virginia Works shall convene an advisory group consisting of the State Council of Higher Education for Virginia (SCHEV), institutions of higher education, VEDP, Virginia Chamber of Commerce, Virginia Business Higher Education Council, and other statewide local government and non-profit education partners. The advisory group will confirm that the the Virginia Has Jobs platform is not duplicative of existing platforms used by any of the advisory group members. Virginia Works shall not use these funds for the marketing or promotion of the Virginia Has Jobs platform. 3. Out of the amounts provided in this paragraph, up to $2,000,000 in fiscal year 2026 may be designated for VEDP to conduct initial outreach and marketing to increase employer participation in paid internship and other work-based learning programs pursuant to § 23.1- 903.4, Code of Virginia, including developing and implementing a statewide promotion, convening, and marketing program to encourage, assist, and recognize employers that increase employment of undergraduate student interns. Such amounts will be subject to approval by the Board of VEDP. 4. Out of this amounts provided in this paragraph, up to $3,500,000 in fiscal year 2026 and up to $6,000,000 each year thereafter, is provided for VEDP to support the following activities: (i) arranging for administration of the matching grant program for certain employers of higher education related student interns as provided in this paragraph; (ii) coordinating regional collaboratives to serve as intermediaries for employers seeking to initiate or expand employment of higher education related student interns in a region; and (iii) measuring and reporting program participation and progress toward identified goals through the Virginia Office of Education and Workforce Alignment. VEDP shall convene a stakeholder group from business, industry, education, economic and workforce development, and government, including the following primary partners for employer engagement: Virginia Chamber of Commerce; Virginia Business Higher Education Council; and other statewide local government and non-profit education partners to design these activities. At the recommendation of the stakeholder group, VEDP may enter into a Memorandum of Understanding (MOU) with Virginia Works to carry out the activities listed in paragraphs T.4. and 5. of this item; however, VEDP shall remain the fiscal agent for these activities. The MOU shall provide for ongoing collaboration by and with SCHEV and institutions of higher education to integrate the employer-focused activities authorized in this paragraph with campus internship centers and other activities related to postsecondary paid and credit-

_ 141 Item Details($) Appropriations($) ITEM 113. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 bearing internships that are implemented pursuant to Item 132.I. Such amounts to be authorized and the MOU will be subject to annual approval by the Board of VEDP. 5. VEDP shall provide for implementation of a program of matching grants for small and midsize Virginia-based employers that hire undergraduate student interns and shall establish criteria for the grants in consultation with the partners identified in paragraph T.4. of this item. Such criteria shall include: (i) a limitation of eligibility to for-profit business and nonprofit organizations, excluding institutions of higher education, with physical operations and facilities in Virginia and 150 or fewer Virginia-based employees; (ii) certification of employer eligibility by the authority following a training program of reasonable duration and agreement by the employer to reasonable mentoring and reporting obligations; (iii) a limitation of grant awards to reimbursement, not to exceed $7,500 per higher education related internship, for a maximum of one-half of wages, including FICA, and workplace subsidies, including transportation, housing, and other internship-related expenses, paid to or for the benefit of a student participating in a qualifying internship; (iv) the minimum and maximum number of hours required to ensure the student gains valuable work experience; (v) a limitation of the qualifying number of higher education related internships per employer; and (vi) the maximum timeframe for employers to be eligible to receive the grants. Prioritization of grant awards may consider employers of 50 or fewer employees. The authority may provide other services to employers, including arranging for one or more staffing agencies to provide services related to higher education related intern recruitment and placement, but eligibility for matching grants shall not be conditioned on an employer's engagement with or use of such staffing agency or other services. 6. VEDP may employ a program administrator, contract for professional services related to marketing and communications, and take such other actions within its existing authority as it deems appropriate to accomplish the purposes of this paragraph and facilitate the partnerships and collaboration described herein. All activities and amounts are subject to annual approval by the Board of VEDP. U. Out of this appropriations, $1,500,000 the first year from the general fund is provided to the authority to promote Virginia to national and international site consultants, corporate executives, and others tasked with making business location recommendations and decisions. Total for Virginia Economic Development Partnership $52,951,862 $54,451,862 $53,451,862 $59,451,862 Fund Sources: General $52,951,862 $54,451,862 $53,451,862 $59,451,862 § 1-46. VIRGINIA TOURISM AUTHORITY (320) 114. Tourist Promotion (53600) $32,214,929 $37,284,929 $26,014,929 $26,139,929 Tourist Promotion Services (53607) $32,214,929 $37,284,929 $26,014,929 $26,139,929 Fund Sources: General $32,214,929 $37,284,929 $26,014,929 $26,139,929 Authority: Title 2.2, Chapter 22, Article 8, Code of Virginia. A.1. The Department of Transportation shall pay to the Virginia Tourism Authority $1,425,000 the first year and $1,425,000 the second year for continued operation of the Welcome Centers, of which $225,000 the first year and $225,000 the second year is for maintenance of the Danville Welcome Center. The Department of Transportation shall fund maintenance at each state Welcome Center based on the agreed-upon service levels contained in the Memorandum of Agreement between the Virginia Tourism Authority and the Department of Transportation. 2. To the extent necessary to fund the operations of the Welcome Centers, the Virginia Tourism Authority is authorized to collect fees paid by businesses for display space at the I VETO ITEM 113.U. ON PAGE 141 /s/ Glenn Youngkin 5-2-25

_ 142 Item Details($) Appropriations($) ITEM 114. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Welcome Centers. B. Upon authorization of the Governor, the Virginia Tourism Authority may transfer funds appropriated to it by this act to a nonstock corporation. C. Prior to July 1 of each fiscal year, the Virginia Tourism Authority shall provide to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees and the Director, Department of Planning and Budget a report of its operating plan. Prior to September 1 of each fiscal year, the authority shall provide to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees and the Director, Department of Planning and Budget a detailed expenditure report and a listing of the salaries and bonuses for all authority employees for the prior fiscal year. All three reports shall be prepared in the formats as previously approved by the Department of Planning and Budget. D. The State Comptroller shall disburse the first and second year appropriations in twelve equal monthly installments. 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. E.1. Out of the amounts in this Item, $5,050,000 $5,695,000 the first year and $4,250,000 the second year from the general fund is provided for grants to regional and local tourism authorities and other tourism entities to support their efforts. From the grants provided from the amounts included in this paragraph, priority consideration shall be given to funding for the Daniel Boone Visitor Center, as well as $450,000 $700,000 the first year and $450,000 the second year to the Heart of Appalachia Tourism Authority, and $50,000 the first year and $50,000 the second year for events sponsored by Special Olympics Virginia, and $2,900,000 $3,295,000 the first year and $2,100,000 the second year to the Southwest Virginia Regional Recreation Authority for the Spearhead Trails initiative. From the amounts provided for the Heart of Appalachia Tourism Authority, $250,000 the first year is provided to support the development of the Three Rivers Destination – Discover Center in St Paul, Virginia. 2. Out of the amounts in this paragraph provided for the Southwest Virginia Regional Recreation Authority, up to $25,000 the first year and up to $25,000 the second year from the general fund, shall be provided to support a peer-support program for Virginia veterans in partnership with the Spearhead Trails initiative. The Virginia Department of Behavioral Health and Developmental Services and the Virginia Department of Veterans Services shall provide assistance in establishing such program upon the request of the board of the Southwest Regional Recreation Authority. 3. It is the intent of the General Assembly that the amounts in this paragraph provided for the Southwest Virginia Regional Recreation Authority in the second year to support the Spearhead Trails initiative shall be provided in its entirety in the first quarter of the fiscal year. The Southwest Virginia Regional Recreation Authority shall submit annual financial statements to the Virginia Tourism Authority by September 1 each year. F. The Virginia Tourism Authority shall place a high priority on marketing rural areas of the state. G. Out of the amounts in this Item, $3,100,000 in the first year and $3,100,000 in the second year from the general fund is provided to supplement appropriations to promote Virginia's tourism industries through an enhanced advertising campaign. Of these amounts, at least $1,000,000 the first year and $1,000,000 the second year shall be used to support a cooperative advertising program to partner with private sector tourism businesses and regional tourism entities to advertise Virginia as a tourism destination. The state dollars shall be used to incentivize private and regional tourism marketing funds on a $1.00 for $1.00 basis whereby the Virginia Tourism Corporation shall enter into agreements to undertake joint advertising purchases to promote Virginia and specific facilities with private sector and regional partners. H. Out of the amounts in this Item, $150,000 the first year and $150,000 the second year from the general fund is provided to support a tourism development initiative in the County of Henrico. I. Out of the amounts in this Item, $25,000 the first year and $25,000 the second year from the

_ 143 Item Details($) Appropriations($) ITEM 114. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 general fund is provided to support the Carver Price Legacy Museum. J. With such funds as are available, the Virginia Tourism Authority shall collaborate with "Opening Doors for Virginians with Disabilities" to maintain and update the Opening Doors for Virginians with Disabilities travel guide and establish a more user-friendly link to this information on the Virginia Tourism Corporation website home page. K. Out of the amounts in this Item, $2,140,000 the first year and $2,140,000 the second year from the general fund is provided for grants to promote tourism in accordance with the provisions of § 2.2-2320.2, Code of Virginia. L. The Virginia Tourism Authority shall provide technical assistance to the City of Danville on how best to plan for increased tourism in the Southside region due to infrastructure improvements at the Virginia International Raceway and the opening of a casino in the City. M. Out of this appropriation, $300,000 the first year from the general fund shall be used by the authority to develop a marketing and promotional campaign to increase visitation to the Carter Family Fold. The authority will develop, create, and manage the campaign and may coordinate with existing regional marketing organizations and other state tourism agencies to maximize the economic impact of this campaign. N. Out of this appropriation, $100,000 the first year from the general fund is provided to the City of Virginia Beach for the development of a Hampton Roads African American Heritage travel guide. O. Out of this appropriation, $5,000,000 the first year from the general fund is provided for sponsorship and partnership with and promotion of the Ladies Professional Golf Association's (LPGA) 2024 Solheim Cup hosted in Gainesville, Virginia. The authority shall use these funds to: (i) promote Prince William County and other Virginia Tourism assets during this event, and (ii) provide grants to Prince William County to address public safety and transportation services required for the domestic and international travelers attending the event. P. Out of the amounts in this item, $330,012 the first year and $330,012 the second year from the general fund is provided to promote and advertise tourism in Virginia. These amounts include $130,012 in the first year and $130,012 in the second year for a partnership operated by the Virginia Association of Broadcasters to advertise Virginia Tourism, provided the Association contributes a total of at least $390,036 in television and radio advertising value to promote tourism in Virginia in the first year and $390,036 in the second year. Also included in these amounts is $100,000 the first year and $100,000 the second year to promote Virginia Parks, and $100,000 the first year and $100,000 the second year to promote Virginia's wineries. Q. Out of the amounts in this item, $497,544 the first year and $497,544 the second year from the general fund is provided to purchase media in the Washington, D.C., Virginia, and Baltimore, Maryland markets through a partnership operated by the Virginia Association of Broadcasters, in association with its affiliates in other states in the region, provided that the Association can obtain contributions of at least $1,492,632 the first year and $1,492,632 the second year in television, radio, and station-related internet advertising value to promote tourism in Virginia. R. Out of this appropriation, $3,000,000 the first year from the general fund is provided to Prince William County to support the promotion of a major sporting event occurring between June 6th through June 8th of 2025. 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 R., and shall not revert to the general fund. S. Out of this appropriation, $50,000 the first year from the general fund is provided to Wise County for the Blue Highway Festival. 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 S., and shall not revert to the general fund. T. Out of this appropriation, $125,000 the first year and $125,000 the second year from the general fund is provided to the City of Norfolk for Nauticus to support education

_ 144 Item Details($) Appropriations($) ITEM 114. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 programming for Schooner 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 T., and shall not revert to the general fund. U. Out of this appropriation, $1,250,000 the first year from the general fund is provided for the Virginia Tourism Authority to develop a marketing campaign to attract out of state visitors from Black, Indigenous, and Hispanic communities. The amounts provided in this paragraph U. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated. Total for Virginia Tourism Authority $32,214,929 $37,284,929 $26,014,929 $26,139,929 Fund Sources: General $32,214,929 $37,284,929 $26,014,929 $26,139,929 § 1-47. VIRGINIA INNOVATION PARTNERSHIP AUTHORITY (309) 115. Economic Development Services (53400) $63,488,565 $132,539,319 $111,536,839 $42,486,085 Economic Development Services (53412) $63,488,565 $132,539,319 $111,536,839 $42,486,085 Fund Sources: General $63,488,565 $132,539,319 $111,536,839 $42,486,085 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 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: I VETO ITEM 114.U. ON PAGE 144 /s/ Glenn Youngkin 5-2-25

_ 145 Item Details($) Appropriations($) ITEM 115. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 146 Item Details($) Appropriations($) ITEM 115. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 pay the administrative, promotional and legal costs of establishing and administering the consortium, including the creation of intellectual property protocols, and the publication of

_ 147 Item Details($) Appropriations($) ITEM 115. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 8. Up to $2,500,000 of the funds managed by the Commonwealth Health Research Board (CHRB), created pursuant to § 32.1-162.23, Code of Virginia, shall be directed toward collaborative research projects, approved by the boards of the VBHRC and CHRB, to support Virginia's core bioscience strengths, improve human health, and demonstrate commercial viability and a high likelihood of creating new companies and jobs in Virginia. 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

_ 148 Item Details($) Appropriations($) ITEM 115. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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, 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

_ 149 Item Details($) Appropriations($) ITEM 115. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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) 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, $6,500,000 $46,500,000 the first year and $40,000,000 the second 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, $6,000,000 $26,500,000 the first year and $20,500,000 the second 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

_ 150 Item Details($) Appropriations($) ITEM 115. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 (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. R.1. Out of this appropriation, $6,500,000 $13,000,000 the first year and $6,500,000 the second 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, $2,002,480 $4,053,234 the first year and $2,050,754 the second 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

_ 151 Item Details($) Appropriations($) ITEM 115. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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. Total for Virginia Innovation Partnership Authority $63,488,565 $132,539,319 $111,536,839 $42,486,085 Fund Sources: General $63,488,565 $132,539,319 $111,536,839 $42,486,085 TOTAL FOR OFFICE OF COMMERCE AND TRADE $777,553,143 $1,046,584,579 $779,247,541 $679,954,265 General Fund Positions 278.72 278.72 279.72 Nongeneral Fund Positions 252.28 252.28 Position Level 531.00 531.00 532.00 Fund Sources: General $499,693,613 $768,725,049 $501,388,011 $402,094,735 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 Federal Trust $160,360,422 $160,360,422

_ 152 Item Details($) Appropriations($) ITEM 116. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 OFFICE OF EDUCATION § 1-48. SECRETARY OF EDUCATION (185) 116. Administrative and Support Services (79900) $848,147 $848,147 General Management and Direction (79901) $848,147 $848,147 Fund Sources: General $848,147 $848,147 Authority: Title 2.2, Chapter 2, § 2.2-208 Code of Virginia. A. The Secretary of Education is hereby authorized to make allocations of the portion of the tax-exempt private activity bond limitation amount to be allocated annually to the Commonwealth of Virginia pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (PL 107-16)(Section 142(k)(5) of the Internal Revenue Code of 1986, as amended) for the development of education facilities using public-private partnerships, and to provide for carryovers of any unused limitation amount. In making such allocations, the Secretary is directed to give priority to public-private partnership proposals that will serve as demonstration projects concerning the leveraging of private sector contributions and resources, the achievement of economies or efficiencies associated with private sector innovation, and other benefits that are or may be derived from public-private partnerships in contrast to more traditional approaches to public school construction and renovation. The Secretary is directed to report annually not later than August 31 to the Chairs of the Senate Finance and Appropriations and House Appropriations Committees regarding any guidelines implemented and any allocations made pursuant to this paragraph. B. For the funds identified for reallocation in each of the higher education institutions' educational and general programs, each respective institution shall report the amounts and the specific purposes for which they were used in its six-year academic plans finalized in the fall of 2024 and the fall of 2025. C. The Offices of the Secretary of Education and the Secretary of Finance shall evaluate the feasibility and determine the initial and ongoing fiscal impact of converting the Virginia Museum of Transportation into a state agency or authority and develop a plan for the conversion if determined to be financially feasible and beneficial to the Commonwealth. The Secretary may consult representatives from the Virginia Museum of Transportation, the City of Roanoke, the Roanoke Regional Chamber of Commerce, and any other appropriate stakeholders. The Offices of the Secretary of Education and Secretary of Finance shall report the findings to the Chairs of the House Appropriations and the Senate Finance and Appropriations Committees by November 1, 20242025. Total for Secretary of Education $848,147 $848,147 General Fund Positions 5.00 5.00 Position Level 5.00 5.00 Fund Sources: General $848,147 $848,147 § 1-49. DEPARTMENT OF EDUCATION, CENTRAL OFFICE OPERATIONS (201) 117. Instructional Services (18100) $169,062,783 $180,062,783 $165,316,073 $168,083,520 Public Education Instructional Services (18101) $22,863,760 $33,863,760 $20,763,760 $21,763,760 Program Administration and Assistance for Instructional Services (18102) $144,427,394 $142,780,684 $144,548,131 Adult Education and Literacy (18104) $1,771,629 $1,771,629 Fund Sources: General $22,391,683 $33,391,683 $20,291,683 $21,291,683 Special $775,000 $775,000 Commonwealth Transportation $301,676 $301,676 Trust and Agency $5,000 $5,000

_ 153 Item Details($) Appropriations($) ITEM 117. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Dedicated Special Revenue $0 $0 Federal Trust $145,589,424 $143,942,714 $145,710,161 Authority: Public Education Instructional Services: Title 22.1, Chapter 13, Code of Virginia; P.L. 107-110, P.L. 105-332, P.L.108-447, P.L. 102-305, Federal Code. Program Administration and Assistance for Instructional Services: Title 22.1, Chapter 13, Code of Virginia; P.L. 107-110, P.L. 105-332, P.L. 108-447, P.L. 102-305, Federal Code. Compliance and Monitoring of Instructional Services: Title 22.1, Chapter 13, Code of Virginia; P.L. 107-110, P.L. 105-332, P.L. 108-447, Federal Code. Adult Education and Literacy: §§ 2.2-2472, 22.1-223-226, 22.1-253.13:1, 22.1-254.2, Code of Virginia; P.L. 105-220, Federal Code. A. The Superintendent of Public Instruction is encouraged to implement school/community team training. B. The Superintendent of Public Instruction shall provide direction and technical assistance to local school divisions in the revision of their Vocational Education curriculum and instructional practices. C. The Superintendent of Public Instruction, in cooperation with the Commissioner of Social Services, shall encourage local departments of social services and local school divisions to work together to develop cooperative arrangements for the use of school resources, especially computer labs, for the purpose of training Temporary Assistance for Needy Families (TANF) recipients for the workforce. D. Notwithstanding § 4-1.04 a 3 of this act, the Superintendent of Public Instruction may apply for grant funding to be used by local school divisions consistent with the provisions of Chapter 447, 1999 Acts of Assembly. The nongeneral fund appropriation for this agency shall be adjusted by the amount of the proceeds of any such grant awards. E. 1. Out of the appropriations in this item, $1,300,000 the first year and $1,300,000 the second year from the general fund is provided to support students and teachers pursuing information technology industry certifications. The funding shall be used to provide outreach, training, instructional resources, industry recognized certification opportunities for teachers and students enrolled in Virginia public high schools and regional career and technical education programs, and information technology curriculum resources for use by students' parents. 2. The funds provided in this initiative shall be used to support the following priority objectives: a) increase the percentage of students enrolled in career and technical education courses who receive instruction in information technology leading to an increased number of students achieving industry recognized certifications in information technology; b) increase the number of high schools and regional career and technical education programs that receive the training and technical support to be ready to implement information technology curricula leading to increased statewide implementation and use; c) increase the number of teachers teaching targeted career and technical education courses and other high school teachers who receive training in information technology and in industry recognized certifications leading to an increased number of teachers achieving industry recognized certifications in information technology; and, d) support implementation of information technology curricula in school divisions in Southside and Southwest Virginia so that implementation in those regions is at least comparable to implementation in other regions of Virginia. F. Out of the appropriation in this Item, $413,000 the first year and $413,000 the second year from the general fund is provided for the Department of Education to continue a professional development program intended to increase the capacity of principals as school leaders in under-performing schools. G. Out of the appropriation in this Item, $366,000 the first year and $366,000 the second year from the general fund is provided to the Department of Education to assist local school divisions, as needed, to establish criteria for the professional development of

_ 154 Item Details($) Appropriations($) ITEM 117. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 teachers and principals on the subject of issues related to high-needs students. H. Out of this appropriation, $3,652,000 the first year and $3,652,000 the second year from the general fund is provided for the Virginia Kindergarten Readiness Program. a. Of this amount, $1,377,000 the first year and $1,377,000 the second year from the general fund is provided through the Department of Education to the University of Virginia to continue statewide implementation of the Virginia Kindergarten Readiness Program conducted in the fall, and to continue to support a post-assessment upon the conclusion of the kindergarten year. b. The Department of Education shall coordinate with the University of Virginia's Center for Advanced Study of Teaching and Learning to ensure that all school divisions shall be required to have their kindergarten students assessed annually during the school year using the multi- dimensional kindergarten readiness assessment model. All school divisions shall be required to have their kindergarten students assessed with such model. c. Of this amount, $1,050,000 the first year and $1,050,000 the second year shall be allocated to the University of Virginia to support implementation of a pre-kindergarten version of the Virginia Kindergarten Readiness Program for four-year-old children enrolled in publicly- funded pre-kindergarten programs, and for piloting the use and development of a pre- kindergarten version of the Virginia Kindergarten Readiness Program for three-year-old children enrolled in publicly-funded pre-kindergarten programs. d. Of this amount, $350,000 the first year and $350,000 the second year from the general fund shall be allocated to University of Virginia's Center for Advanced Study of Teaching and Learning to provide training to school divisions annually on how to effectively use Virginia Kindergarten Readiness Program data to improve instructional practices and student learning. Such teacher focused professional development and training shall be prioritized for the school divisions that would most benefit from state assistance in order to provide more time for classroom instruction and student learning for kindergarten and pre-kindergarten students, including both three- and four-year-old pre-kindergarten classrooms. e. The Department and the University of Virginia's Center for Advanced Study of Teaching and Learning shall use the results of the multi-dimensional Virginia Kindergarten Readiness Program assessments to determine how well the Virginia Preschool Initiative promotes readiness in all key developmental domains assessed. The Department shall submit such findings using data from the prior year's fall assessment to the Chairs of House Appropriations and Senate Finance and Appropriations Committees no later than October 1 each year. f. Of this amount, $875,000 the first year and $875,000 the second year from the general fund is provided through the Department of Education to the University of Virginia in partnership with the Department and school divisions to support an assessment in literacy, math, social skills and self-regulation in grades one, two and three to help teachers, parents and divisions identify students' strengths, deficiencies and support student growth longitudinally. I. Out of this appropriation, $700,000 the first year and $700,000 the second year from the general fund is provided through the Department of Education to the University of Virginia's Center for Advanced Study of Teaching and Learning to ensure that teachers in select publicly-funded early childhood programs, including Virginia Preschool Initiative classrooms, receive appropriate individualized professional development training from professional development specialists to support quality teacher-child interactions and effective implementation of high-quality curriculum. Funding and professional development assistance shall be prioritized for classrooms that have demonstrated need based on the Unified Measurement and Improvement System, known as VQB5, established pursuant to § 22.1- 289.05, Code of Virginia, which is based on observing teachers with the Classroom Assessment Scoring System (CLASS) observation tool and use of standards-aligned curriculum. The University of Virginia's Center for Advanced Study of Teaching and Learning, assisted on an as needed basis by the Department of Education, Virginia Early Childhood Foundation, and Elevate Early Education shall hire and train specialists to provide such individualized professional development. The University of Virginia's Center for Advanced Study of Teaching and Learning and the Training and Technical Assistance Centers funded by the Individuals with Disabilities Act (IDEA) through the Department of

_ 155 Item Details($) Appropriations($) ITEM 117. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Education shall coordinate to ensure alignment of professional development and supports for teachers of children with special needs. J. Out of this appropriation, $1,047,000 the first year and $1,047,000 the second year from the general fund is provided to ensure that select publicly-funded early childhood programs, including Virginia Preschool Initiative programs, have the quality of their teacher-child interactions assessed through a rigorous and research-based classroom observational instrument using the CLASS observational instrument for such assessment. These observations shall be used to verify accuracy and maintain reliability of the measurements required within Virginia's Unified Measurement and Improvement System, known as VQB5, established pursuant to § 22.1-289.05, Code of Virginia. K.1 Out of this appropriation, $9,978,283 the first year and $7,978,283 the second year from the general fund is provided to the University of Virginia's Virginia Literacy Partnership for implementation of literacy instruction aligned with science-based reading research. The Director of Planning and Budget shall transfer this amount to the University of Virginia to support the Virginia Literacy Partnership for the activities within this Item. 2. To maximize remaining federal pandemic relief funds in the first year, remaining balances from the Learning Acceleration Grants program after its May 31, 2024 expiration shall be used to supplant the general funds in paragraph K.1 and such supplanted general fund amounts shall be unallotted. 3. Of this amount, $3,400,000 the first year and $3,400,000 the second year shall be used to support literacy coaching, technical assistance and professional development. 4. Of this amount, $6,578,283 the first year and $4,578,283 the second year shall be used to support development and implementation of a statewide literacy screener. 5. For the review of literacy materials conducted by the University of Virginia's Virginia Literacy Partnership on behalf of the Department of Education, the Partnership shall be authorized to collect reasonable fees from applicants to offset costs incurred as part of such review. Prior to the collection of any such fees, the Partnership shall establish a schedule of fees. 6. Notwithstanding §22.1-253.13:1 G and H of the Code of Virginia, for students in grades 4 through 8, the administration of literacy screeners and development of student literacy plans shall not be required until the 2025-2026 school year. L. The Superintendent of Public Instruction shall enter into a statewide contract with one or more telehealth providers to provide high-quality mental health care services to public school students. School divisions may opt to purchase such services through this contract. M. The Department of Education shall work collaboratively with the Department of Behavioral Health and Developmental Services and the Department of Medical Assistance Services on a plan for creating a new program to deliver flexible mental health funds to divisions. The program should provide flexible funding to participating divisions for maintaining school-based mental health services and supports as well as technical assistance and evaluation capabilities to build out their mental health programs within a multi-tiered system of supports and consider maximizing existing funding and positions funded through the Standards of Quality such as specialized student support positions. The plan should include: (i) a proposed vision and goals for Virginia's school-based mental health program and action steps to meet these goals; (ii) proposed outcome measures to determine program success; (iii) a recommendation on the amount of funding that should be appropriated annually; (iv) a proposed funding mechanism to ensure funding flexibility and consistency over time; and (v) a structure for providing technical assistance and evaluation capabilities that will ensure the program is positively impacting the outcomes of students. The Department of Education shall provide such plan to the Chairs of the Senate Finance and Appropriations Committee and the House Appropriations Committee and the Behavioral Health Commission no later than December 1, 2024. N. Out of this appropriation, $100,000 the first year from the general fund is provided to identify and create model curriculum, tools, and resources to support local school divisions in teaching Asian American history, including the history of Virginians of Asian

_ 156 Item Details($) Appropriations($) ITEM 117. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 descent, as part of the History and Social Science Standards of Learning and supporting programming for Asian American and Pacific Islander History Month. O. The Superintendent of Public Instruction shall enter into a statewide contract with a provider experienced in attendance recovery services for at-risk students to assist public school divisions with outreach and support for disengaged, chronically absent, or struggling students. The provider should be able to scale up the number of students served if necessary based on demand from school divisions. School divisions may opt to purchase services through this contract. P.1. Out of this appropriation, $11,000,000 the first year and $1,000,000 the second year from the general fund is provided to improve student performance in mathematics in public elementary and secondary schools in the Commonwealth. 2. The Department shall: (i) oversee and track mathematics instruction, assessment scores, and learning outcomes in the Commonwealth to identify potential areas for improvement; (ii) identify evidence-based and proven best practices to improve mathematics instruction and student performance; (iii) establish the framework for and support the implementation of professional development strategies for educators and school systems; (iv) administer state funds provided to school divisions as appropriate; (v) collaborate with school boards and division superintendents to support the implementation of competency-based and evidence- based mathematics learning, provide recommendations on best practices, and facilitate professional development opportunities for educators; (vi) oversee the statewide professional development framework for evidence-based teacher training, provide instructional guides and evidence-based resources, and facilitate regional professional development networks on improving mathematics; and (vii) collect data to analyze student mathematics progress and report the impact on student success across the Commonwealth. 3. The Department shall establish and oversee a Mathematics Advisory Task Force to provide recommendations on improving mathematics education in elementary, middle, and high school. Task Force members shall include mathematics teachers, instructional coaches, school administrators, parents, business leaders, a division superintendent, a higher education representative, a school board member, and other stakeholders. 4.a. Of this amount, $10,000,000 the first year from the general fund is provided for grants to local school divisions for mathematics curriculum, high quality instructional materials, competency-based/mastery learning models, and regional network support to improve instruction for high-need student groups. Priority shall be given to schools preliminarily identified as off track and needs intensive support and that had performance gaps in overall grade level math or math student group performance as identified in 2024 Standards of Learning (SOL) mathematics assessment results. b. Any funds appropriated for this purpose that are unexpended by June 30, 2025, shall not revert and shall be reappropriated in the second year for the same purpose. The Department shall administer grant funds and establish guidelines and an application process by November 1, 2025. 5. Of this amount, $1,000,000 the first year from the general fund is provided for expanded access to online advanced math programming and expanded math experts through innovative math teacher credentialing options. Any funds appropriated for this purpose that are unexpended by June 30, 2025, shall not revert to the general fund and shall be reappropriated in the second year for the same purpose. 6. The Department shall report to the Board of Education and the Chairs of the Senate Finance and Appropriations, Senate Education and Health, House Appropriations, and House Education Committees by November 1, 2025, and annually thereafter on: (i) the overall program activities and strategies used to impact student mathematics outcomes; (ii) the status of grant funds provided to school divisions and related outcomes; (iii) the impact of expanded advanced virtual mathematics course offerings and increased math educator professionals; (iv) the activities and recommendations of the Mathematics Advisory Task Force; and (v) recommendations for future improvements to mathematics instruction and support programs.

_ 157 Item Details($) Appropriations($) ITEM 118. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 118. Special Education and Student Services (18200) $20,828,186 $25,828,186 $20,828,186 $21,090,079 Special Education Instructional Services (18201) $13,245,301 $18,245,301 $13,245,301 Special Education Administration and Assistance Services (18202) $1,055,230 $1,055,230 Special Education Compliance and Monitoring Services (18203) $3,881,827 $3,881,827 Student Assistance and Guidance Services (18204) $2,645,828 $2,645,828 $2,907,721 Fund Sources: General $4,922,758 $9,922,758 $4,922,758 Special $120,000 $120,000 Federal Trust $15,785,428 $15,785,428 $16,047,321 Authority: Special Education Instructional Services: §§ 22.1-213 through 22.1-221, 22.1- 253.13:1 through 22.1-253.13:8, 22.1-319 through 22.1-332, Code of Virginia; P.L. 108- 446, Federal Code. Special Education Administration and Assistance Services: §§ 22.1-253.13:1 through 22.1-253.13:8, Code of Virginia; P.L. 108-446, Federal Code. Special Education Compliance and Monitoring Services: §§ 22.1-213 through 22.1-221, 22.1-253.13:1 through 22.1-253.13:8, 22.1-319 through 22.1-332, Code of Virginia; P.L. 108-446, Federal Code. Student Assistance and Guidance Services: Title 22.1, Chapters 1, 13, 14, 16; §§ 22.1- 16.2, 22.1-17.1, 22.1-17.2, 22.1-199.4, 22.1-206, 22.1-207.1, 22.1-208.01, 22.1-209.2, Code of Virginia; P.L. 107-110 and P.L. 108-446, Federal Code. A. The Department of Education, in collaboration with the Office of Children's Services, shall provide training to local staff serving on Family Assessment and Planning Teams and Community Policy and Management Teams. Training shall include, but need not be limited to, the federal and state requirements pertaining to the provision of the special education services funded under § 2.2-5211, Code of Virginia. The training shall also include written guidance concerning which services remain the financial responsibility of the local school divisions. In addition, the Department of Education shall provide ongoing local oversight of its federal and state requirements related to the provision of services funded under § 2.2-5211, Code of Virginia. B. The Board of Education shall consider the caseload standards for speech-language pathologists as part of its review of the Standards of Quality, pursuant to § 22.1-18.01, Code of Virginia. C. The Board of Education shall consider the inclusion of instructional positions needed for blind and visually impaired students enrolled in public schools and shall consider developing a caseload requirement for these instructional positions as part of its review of the Standards of Quality, pursuant to § 22.1-18.01, Code of Virginia. D. Out of this appropriation, $447,416 the first year and $447,416 the second year from the general fund is provided to the Department of Education to provide training, technical assistance, and on-site coaching to public school teachers and administrators on implementation of a positive behavioral interventions and supports program with the goal of improving school climate and reducing disruptive behavior in the classroom. Such training and other assistance may be provided as part of the Department's ongoing efforts to assist schools with implementation of a tiered system of supports that addresses both academic and behavioral needs. E. Out of this appropriation, $290,000 the first year and $290,000 the second year from the general fund and $290,000 the first year and $290,000 the second year from federal funds shall be used for Multisensory Structured Literacy teacher training. F. Out of this appropriation, $592,755 the first year and $592,755 the second year from the

_ 158 Item Details($) Appropriations($) ITEM 118. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 general fund is provided to support statewide training and assistance for local school divisions to implement the Board of Education's Regulations Governing the Use of Seclusion and Restraint in Public Elementary and Secondary Schools in Virginia. G.1. The Department of Education shall serve as the lead agency to collect and report data that succinctly measures the progress and outcomes of students that are placed in private provider settings by such student's public school of residence in Virginia or have been placed in a private provider facility by other legal means for which the Commonwealth is responsible for providing education. In keeping with the November 1, 2018, Private Day Special Education Outcomes report's findings and recommendations, the data shall include at least student attendance rates, graduation rates, individual student progress improvement rates relative to student individual education plans, standardized test scores, return to public school setting percentages, suspension and expulsion rates, transition to enrolling in post-secondary education percentages, and parental and student perspectives. 2. The Department of Education, in collaboration with the Office of Children's Services, shall establish an implementation advisory group to assist in refining the outcome measures contained in paragraph G.1 of this item and the collection of any additional information that is beneficial in determining and measuring outcomes of such students in private day school settings that ensure a consistent set of comparable and compatible data relative to such data of students enrolled in the public schools in Virginia and who have an individualized education plan. The advisory workgroup shall include a representative number of various stakeholders that includes, but is not limited to, private day schools, local school divisions, associations that represent private providers, and others as necessary. The advisory group shall assist in the development of data collection protocols, requirements, and outcome reporting mechanisms. The relevant data shall be provided to the department annually by each private provider that receives state funding for the purpose of providing services as prescribed in such student's individualized education plan. 3. The department shall collect outcome data for private day special education schools and, if warranted, other state agencies shall provide appropriate support to facilitate the collection of such data. All public school divisions that have students enrolled in such a private provider facility shall include in their contract for services with the private provider a requirement for the department to receive the data necessary to satisfy the data collections and subsequent reporting requirements. The department shall report annually on the outcome data for students enrolled in special education private day schools to Chairs of the House Appropriations, House Education, Senate Finance and Appropriations, and Senate Education and Health Committees by the first day of the regular General Assembly Session. 4. The Department of Education shall enter into a data sharing Memorandum of Understanding with the Office of Children's Services to allow linkage of specific student data to specific private day schools. 5. The Department of Education and the Office of Children's Services shall have authority to implement these changes prior to the completion of any regulatory process undertaken in order to effect such changes. 6. The Department of Education shall collect and publish data annually from each private special education day school on: (i) the number of teachers who are not fully endorsed in the content that they are teaching; (ii) the number of teachers who have less than one year of classroom experience; (iii) the number of teachers who are provisionally licensed; (iv) the type of academic credentials attained by each teacher and in what subjects; (v) the number of career and technical education credentials conferred by each school on its graduating students in each of the three prior academic years; (vi) each school's accreditation status, including the accrediting body; and (vii) the number of incidents of restraint and seclusion occurring in each of the previous three academic years. H. The Board of Education shall develop and promulgate regulations for private special education day schools on restraint and seclusion that establish the same requirements for restraint and seclusion as those for public schools. I. The Department of Education shall revise the state's special education complaint procedures and practices to ensure the Department requires and enforces corrective actions that (i) achieve full and appropriate remedies for school divisions' non-compliance with special

_ 159 Item Details($) Appropriations($) ITEM 118. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 education laws and regulations, including, at a minimum, requiring school divisions to provide compensatory services to students with disabilities when the Department determines divisions did not provide legally obligated services; and (ii) ensure that relevant personnel understand how to avoid similar non-compliance in the future. J.1. Out of this appropriation, $2,200,000 the first year and $2,200,000 the second year from the general fund is provided to support families of special education students, and professional development and coaching as required by House Bill 1089 and Senate Bill 220. 2. To maximize remaining federal pandemic relief funds, in the first year, remaining balances from the Learning Acceleration Grants program after its May 31, 2024 expiration shall be used to supplant the general funds in paragraph J.1 and such supplanted general fund amounts shall be unallotted. 3. Out of this amount, $1,100,000 the first year and $1,100,000 the second year shall be provided to Virginia's Parent Training and Information Center in the Commonwealth designated pursuant to 20 U.S.C. § 1471(e) to support eight regional special education family support centers. 4. Out of this amount, $1,100,000 the first year and $1,100,000 the second year shall be provided to support the development of professional development materials and ongoing special education coaching. K. Out of this appropriation, $5,000,000 the first year from the general fund is provided for enhancements to the Virginia Individualized Education Plan (IEP) system, including modules to support student progress tracking, document translation, family engagement, IEP and 504 processes, and a dashboard to support performance monitoring. Any balances appropriated for the purposes specified in this paragraph that are unexpended on June 30, 2025, shall not revert to the general fund but shall be reappropriated for expenditure for the same purpose. 119. Pupil Assessment Services (18400) $40,051,012 $46,777,393 $40,051,012 $66,458,987 Test Development and Administration (18401) $40,051,012 $46,777,393 $40,051,012 $66,458,987 Fund Sources: General $28,858,849 $35,585,230 $28,858,849 $48,400,000 Special $293,607 $293,607 Federal Trust $10,898,556 $10,898,556 $17,765,380 Authority: § 22.1-253.13:3, sections C and E, Code of Virginia; P.L. 107-110, Federal Code. A.1. Out of this appropriation, $25,380,678 $31,607,059 the first year and $25,380,678$44,921,829 the second year from the general fund is provided to support the costs of contracts for test development, administration, scoring, and reporting as well as other program-related costs of the Standards of Learning testing program. Of this amount, $6,226,381 the first year and $19,541,151 the second year shall be unallotted. Prior to the allotment of these funds, the Department of Education shall provide an updated report to the Secretary of Education, the Secretary of Finance, and the Department of Planning and Budget on the annual contract cost, including any extensions through December 31, 2027, as directed in paragraph A.2.b., and the Department’s available general fund and nongeneral fund sources to support those costs. The Department of Education shall maximize available nongeneral funds to support the cost of the existing assessment contract and the directed extensions. Any balances for the purposes specified in this paragraph and paragraph A.2.b. that are unexpended on June 30, 2025, or June 30, 2026, that are required to meet contract obligations through December 31, 2027, shall not revert to the general fund but shall be reappropriated for expenditure in the next fiscal year for the same purpose. Any general fund not required to meet contract obligations shall remain unallotted. 2. a. Pursuant to Chapter 760, 2022 Acts of the the General Assembly, the Department

_ 160 Item Details($) Appropriations($) ITEM 119. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 shall include in its annual report a plan to implement a new state assessment system, including a revised timeframe; estimated short- and long-term costs, including the costs to transition to the new system; staffing and training needs; key milestones; and project deliverables. The Department shall request the funding needed to implement the new contract for inclusion in the Governor's introduced budget bill for the 2025 Regular Session. The Department may consider issuing a request for information (RFI) as part of the process to better determine the costs and requirements of the new system. The Department shall submit the annual report no later than November 1, 2024. b. Notwithstanding any contrary provisions of law, the Department of Education is authorized to extend current assessment contracts for one additional year to provide sufficient time for the Department to initiate procurement processes as necessary to select an assessment vendor.is directed and authorized to pursue an extension to the current assessment contracts through December 31, 2027 to allow sufficient time for the Department to complete procurement processes as necessary to select an assessment vendor. Extensions to the existing assessment contracts shall not be subject to the provisions for renewals of high risk contracts. 3. a. Out of this appropriation, $500,000 the first year from the general fund is provided for the Department and Secretary of Education to procure a vendor to analyze options for implementing an innovative new statewide assessment system to support high-quality teaching and learning in public K-12 schools in Virginia. The new assessment system shall align with Virginia's Standards of Learning with the goal of implementation by the 2027-2028 school year. The selected vendor shall have demonstrated expertise in K-12 statewide assessment systems and the development of comprehensive reports with recommendations for state education agencies. b. The Department and Secretary of Education shall establish a workgroup to provide input on the needs of the assessment system, participate in the work of the vendor, and consist, at a minimum, of representatives of statewide organizations that represent superintendents, teachers, principals, and curriculum development and assessment, and individuals with experience implementing statewide assessment systems. c. The scope of work for the vendor shall include: 1. An analysis of high-quality assessment systems in other states, emphasizing models that incorporate: (a) alignment with state standards and instructional goals; (b) non-traditional assessments, such as project-based or performance-based approaches; (c) accessibility for English learners and students with disabilities, with examples of accommodations and multilingual assessments from other states; (d) advanced technology integration, such as adaptive testing and online platforms, including infrastructure requirements and associated costs; (e) integration of authentic growth measures that provide formative feedback for educators and could be integrated into a statewide assessment system; (f) feedback on the application of knowledge and higher-level reasoning skills as described in the standards; and (g) best practices for release of rubrics, sample items and tasks, anchor papers, exemplars, and other resources that clarify the benchmarks for success. 2. An evaluation of the feasibility and cost-effectiveness of pilot testing components of the proposed assessment system before full implementation. 3. Guidance and recommendations for the Department to develop a competitive RFP for vendors to redesign and manage the statewide assessment system, and recommendations for the Department and school divisions to implement best practices in change management, proposed training, and staffing to ensure a successful transition to a new system. 4. A proposed implementation timeline and identification of key performance indicators for a successful transition to a new system. 5. Compliance with federal requirements, including the Every Student Succeeds Act (ESSA). d. The Department and Secretary of Education shall provide a detailed project plan of the work of the vendor and monthly email status updates to the Chairs and staff of the Senate Finance and Appropriations, Senate Education and Health, House Appropriations, and House Education Committees, and submit a final report that includes options for building a high-quality assessment system and associated costs, to the Chairs of the Senate Finance and

_ 161 Item Details($) Appropriations($) ITEM 119. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Appropriations, Senate Education and Health, House Appropriations, and House Education Committees by November 1, 2025. B. Out of this appropriation, $1,551,416 the first year and $1,551,416 the second year from the general fund is provided for continued computer adaptive test transition and revision. C. Notwithstanding any contrary provisions of law, the Department of Education shall not be required to administer the Stanford 9 norm-referenced test. D. Out of this appropriation, $300,000 the first year and $300,000 the second year from the general fund is provided for assessment related materials for a verified credit in high school history and social science. In establishing graduation requirements, the State Board of Education shall require students to earn one verified credit in history and social science. Such verified credit shall be earned by (i) the successful completion of a state-developed end-of-course Standards of Learning assessment; (ii) achievement of a passing score on a Board-approved standardized test administered on a statewide, multistate, or international basis that measures content that incorporates or exceeds the Standards of Learning content in the course for which the verified credit is given; (iii) achievement of criteria for the receipt of a locally awarded verified credit from the local school board in accordance with criteria established in Board guidelines when the student has not passed a corresponding Standards of Learning assessment; or (iv) successful completion of assessments that include state-developed performance tasks scored locally in accordance with Board guidelines using state-developed rubrics. 120. School and Division Assistance (18500) $10,039,341 $10,039,341 $15,024,149 School Improvement (18501) $4,641,016 $4,641,016 School Nutrition (18502) $4,871,374 $4,871,374 $9,856,182 Pupil Transportation (18503) $526,951 $526,951 Fund Sources: General $5,240,740 $5,240,740 Special $31,010 $31,010 Federal Trust $4,767,591 $4,767,591 $9,752,399 Authority: School Improvement: § 22.1-253.13:1 et seq., Code of Virginia; P. L. 107-110, Federal Code. School Nutrition: §§ 22.1-24, 22.1-89.1, and 22.1-207.3, Code of Virginia; P.L. 79-396, P.L. 89-642, P.L. 95-627, as amended, P.L. 108-265, Federal Code. Pupil Transportation: Title 22.1, Chapter 12, and Title 46.2, Code of Virginia; P. L. 103- 272 and P.L. 109-20, Federal Code. A. This appropriation includes $1,100,183 the first year and $1,100,183 the second year from the general fund for contractual services related to assisting schools that do not meet the Standards of Accreditationas prescribed by the Board of Education. B. Notwithstanding the provisions of § 2.2-1502.1, Code of Virginia, the Board of Education, in cooperation with the Department of Planning and Budget, is authorized to invite a school division to participate in the school efficiency review program described in § 2.2-1502.1, Code of Virginia, as a component of a division level academic review pursuant to § 22.1-253.13:3, Code of Virginia. C. 1. Out of this appropriation, $1,922,461 the first year and $1,922,461 the second year from the general fund is provided to the Office of School Quality to assist low performing schools. 2. The Department of Education shall submit an initial report that contains: (i) the level of staffing, amount of funding, and opportunities and challenges of the Office for FY 2023 and FY 2024; (ii) the planned organizational structure, staffing, and resource needs of the Office over the next five years; (iii) the goals and expected outcomes of the Office and how the Office will collaborate with staff and units within the Department of Education to I VETO ITEM 120. ON PAGES 161-162 /s/ Glenn Youngkin 5-2-25

_ 162 Item Details($) Appropriations($) ITEM 120. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 support schools based on their specific needs; and (iv) a plan to evaluate the effectiveness of the Office, including feedback from school divisions and stakeholders to determine both the impact and quality of the assistance received. 3. The Superintendent shall submit the initial report by July 1, 2024, to the Chairs of the Senate Education and Health and Finance and Appropriations Committees, and the Chairs of the House Education and Appropriations Committees. The Superintendent shall submit a report on the progress of implementing the goals of the Office by June 1, 2025. Funding for the first year and second year shall be unallotted and the Department of Planning and Budget shall transfer funds allocated to the Office in the corresponding year upon submission of the reports. D. The Department of Education shall maintain at least 30 full-time employees in the Office of School Quality to support schools and school divisions not meeting state benchmarks. At least six of these positions shall be deployed as regional support specialists focused on academic improvement in math, literacy, and science. 121. Technology Assistance Services (18600) $18,962,424 $18,962,424 Instructional Technology (18601) $707,600 $707,600 Distance Learning and Electronic Classroom (18602) $18,254,824 $18,254,824 Fund Sources: General $6,073,882 $6,073,882 Special $105,000 $105,000 Trust and Agency $12,719,402 $12,719,402 Federal Trust $64,140 $64,140 Authority: Instructional Technology: §§ 22.1-20.1, 22.1-70.2, 22.1-199.1, 22.1-253.13:1 through 22.1-253.13:8, Code of Virginia; P.L. 107-110, Federal Code. Distance Learning and Electronic Classroom: § 22.1-212.2, Code of Virginia. Virtual Virginia Payments 1. From appropriations in this Item, the Department of Education shall provide assistance for the Virtual Virginia program. 2. This appropriation includes $498,000 the first year and $498,000 the second year from the general fund to support the Virtual Virginia full-time program for 200 students in grades nine through 12. 3. This appropriation includes $330,000 the first year and $330,000 the second year from the general fund to support the virtual mathematics outreach program. 4. The local share of costs associated with the operation of the Virtual Virginia program shall be computed using the composite index of local ability-to-pay. 5. The Department of Education shall maintain a plan to support the per-student, per-course fee schedule for local school divisions to participate in Virtual Virginia (VVA) coursework for elementary, middle, and high school students. Such fee schedule plan shall provide (i) an allotment of slots, determined by the Department, per course to a school division free of charge, and (ii) for any slots a school division wishes to use beyond the free slots, a per- course, per-student fee that may include discounts for school divisions based upon the composite index of local ability to pay. The department shall also include in its plan the current student participation enrollment by grade level in each VVA course, the number of students enrolled in VVA courses that a fee of any kind is charged and how such fee is currently paid for in each participating school division. 122. Teacher Licensure and Education (56600) $3,687,518 $3,687,518 Teacher Licensure and Certification (56601) $2,908,581 $2,908,581 Teacher Education and Assistance (56602) $778,937 $778,937 Fund Sources: General $1,413,218 $1,413,218 Special $2,274,300 $2,274,300 I VETO ITEM 120. ON PAGES 161-162 /s/ Glenn Youngkin 5-2-25

_ 163 Item Details($) Appropriations($) ITEM 122. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: Teacher Licensure and Certification: §§ 22.1-16, 22.1-298.1, 22.1-299, 22.1- 299.2, 22.1-302, 22.1-303, 22.1-305.2, 22.1-316 to 22.1-318, Code of Virginia; P.L. 107- 110, Federal Code. Teacher Education and Assistance: §§ 22.1-290; 22.1-290.01; 22.1-290.1, 22.1-298, 22.1- 305.2, 22.1-305.1, Code of Virginia; P. L. 108-446 and P. L. 107-110, Federal Code. A. Proceeds from the fee schedule for the issuance of teaching certificates shall be utilized to defray all, or any part of, the expenses incurred by the Department of Education in issuing or accounting for teaching certificates. The fee schedule shall take into account the actual costs of issuing certificates. Any portion of the general fund appropriation for this Item may be supplemented by such fees. B. The Board of Education is authorized to approve changes in the licensure fee amounts charged to school personnel pursuant to 8VAC20-23-40 A.2. C. In furtherance of the General Assembly's interest in understanding trends in Virginia's teaching work force, teacher turnover rates, and the market for teachers, as evidenced by such metrics as the number of applicants per position, the Department shall develop and provide a model exit questionnaire that Virginia school divisions may administer to their exiting teachers. D. Out of this appropriation, $93,084 the first year and $93,084 the second year from the general fund is provided to support local school division access to the National Association of State Directors of Teacher Education and Certification (NASDTEC) Clearinghouse to research educator misconduct. E. Out of this appropriation, $558,000 the first year and $558,000 the second year from the general fund is provided to support the automated teacher licensure application and intake process. F. Out of this appropriation, $395,991 the first year and $395,991 the second year from the general fund is provided to strengthen the Department of Education's role in helping school divisions with the most substantial teacher recruitment and retention challenges and to implement a statewide strategic plan for recruiting and retaining teachers in the most critical shortage areas. G. Statewide non-profit organizations that are affiliated with established national professional associations shall be permitted to apply for state funds to support teacher training for educators. 123. Administrative and Support Services (19900) $27,294,418 $32,432,418 $27,294,418 $28,169,584 General Management and Direction (19901) $6,824,835 $4,998,310 $6,824,835 $4,998,310 Information Technology Services (19902) $12,783,632 $17,921,632 $12,783,632 $13,658,798 Accounting and Budgeting Services (19903) $4,745,795 $6,572,320 $4,745,795 $6,572,320 Policy, Planning, and Evaluation Services (19929) $2,940,156 $2,940,156 Fund Sources: General $24,080,790 $29,218,790 $24,080,790 Special $3,097,669 $3,097,669 Federal Trust $115,959 $115,959 $991,125 Authority: Article VIII, Sections 2, 4, 5, 6, 8, Constitution of Virginia; Title 2.2, Chapters 10, 12, 29, 30, 31, and 32; Title 22.1, 22.1-8 through 20, 22.1-21 through 24; Title 51.1, Chapters 4, 5, 6.1, and 11; Title 60.2, Chapters 60.2-100, 60.2-106; Title 65.2, Chapters 1, 6, and 9, Code of Virginia; P.L. 108-446, P.L. 107-110, Federal Code. A. Out of this appropriation, $9,000 the first year and $9,000 the second year from the general fund is designated to support annual membership dues to the Southern Regional Education Board. In addition, $5,000 the first year and $5,000 the second year from the general fund is designated to pay registration and travel expenses of citizens appointed as

_ 164 Item Details($) Appropriations($) ITEM 123. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Virginia commissioners for the Southern Regional Education Board. B. Out of this appropriation $79,000 the first year and $79,000 the second year from the general fund is provided for the fees and travel expenses associated with the Interstate Compact on Educational Opportunity for Military Children, established pursuant to Chapter 187, of the 2009 Acts of Assembly. C. The Department of Education is authorized to collect proceeds from the sale of educational resources it has developed, such as technology applications, on-line course content, assessments, and other educational content, to out-of-state individuals or entities and to in- state, for-profit entities. The Department of Education is further authorized to deposit such proceeds in a non-reverting special fund account established in its financial records for this purpose. Net proceeds from such sales shall be expended by the Department of Education to further develop existing educational resources or to create new educational resources for the benefit of the commonwealth's public schools and which may also be sold under the provisions of this paragraph. The Secretary of Administration shall authorize any licensing agreements executed by the Department of Education pursuant to this paragraph. D. Out of this appropriation, $34,625 the first year and $34,625 the second year from the general fund shall be used to provide performance evaluation training to teachers, principals, division superintendents, and other affected school division personnel in support of the transition from continuing employment contracts to annual employment contracts for teachers and principals. E. Out of this appropriation, $100,000 the first year and $100,000 the second year from the general fund is provided for the Board of Education, in consultation with the Standards of Learning Innovation Committee, to continue redesigning the School Performance Report Card so that it is more effective in communicating to parents and the public regarding information about the status and achievements of the schools and school divisions. F. Out of this appropriation, $300,000 the first year and $300,000 the second year is provided from the general fund for the Department of Education to develop and implement a growth scale for the existing Standards of Learning mathematics and reading assessments. This growth scale should facilitate data-driven school improvement efforts and support the state's accountability and accreditation systems. G. Out of the amounts in this item, the Department of Education shall develop and administer biennially to individuals holding a license from the Department in each public elementary and secondary school in the Commonwealth a voluntary and anonymous school personnel survey to evaluate school-level teaching conditions and the impact such conditions have on teacher retention and student achievement. Such survey may include questions regarding school leadership, teacher leadership, teacher autonomy, demands on teachers' time, student conduct management, professional development, instructional practices and support, new teacher support, community engagement and support, and facilities and other resources. The Superintendent of Public Instruction shall report the results of any school personnel survey to the Chairs of the House Committees on Appropriations and Education and to the Senate Committees on Finance and Appropriations and Education and Health annually before the first day of each General Assembly Regular Session. H. Out of this appropriation, $132,932 the first year from the general fund and $132,932 the second year from the general fund is provided for the Department of Education, in consultation with the Department of General Services, to develop or adopt and maintain a data collection tool to assist each school board to determine the relative age of each public school building in the local school division and the amount of maintenance reserve funds that are necessary to restore each such building. The Department of Education shall transfer these funds or a portion of these funds to the Department of General Services if the Department of Education determines that the Department of General Services shall develop and collect maintenance reserve data from each local school division. The Department of Education shall report the data on an annual basis as part of the Superintendent's Annual Report. I. The Office of Community Schools shall provide an annual report and make it publicly available on its website that includes: the number of schools that have adopted the Community School framework; the status of these schools in implementing and evaluating the framework; an update and outcome of state grants awarded; and an assessment of the services

_ 165 Item Details($) Appropriations($) ITEM 123. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 provided by the Office to support schools. J. Out of this appropriation, $300,000 the first year and $300,000 the second year from the general fund is provided for staffing and contracted services through the finance office to support activities related to the Joint Subcommittee on Elementary and Secondary Education Funding. These positions may also be used to support the Department's fiscal operations following the conclusion of the Joint Subcommittee's work. K. Out of this appropriation, $5,138,000 the first year from the general fund is provided for the continued implementation of a statewide learning management system (LMS) and resources. 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. Total for Department of Education, Central Office Operations $289,925,682 $317,790,063 $286,178,972 $321,476,261 General Fund Positions 184.17 184.17 201.67 Nongeneral Fund Positions 335.83 335.83 362.33 Position Level 520.00 520.00 564.00 Fund Sources: General $92,981,920 $120,846,301 $90,881,920 $111,423,071 Special $6,696,586 $6,696,586 Commonwealth Transportation $301,676 $301,676 Trust and Agency $12,724,402 $12,724,402 Federal Trust $177,221,098 $175,574,388 $190,330,526 Direct Aid to Public Education (197) 124. Financial Assistance for Educational, Cultural, Community, and Artistic Affairs (14300) $80,019,567 $90,684,567 $51,404,567 $51,944,567 Financial Assistance for Supplemental Education (14304) $80,019,567 $90,684,567 $51,404,567 $51,944,567 Fund Sources: General $80,019,567 $90,684,567 $51,404,567 $51,944,567 Authority: Discretionary Inclusion. Appropriation Detail of Educational, Cultural, Community, and Artistic Affairs (14300) Supplemental Education Assistance Programs (14304) FY 2025 FY 2026 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 Fee Reduction $750,000 $750,000 $900,000 Black History Museum and Cultural Center of Virginia $700,000 $700,000 Blue Ridge PBS $850,000 $1,600,000 $850,000 Career and Technical Education Initiatives - Portsmouth, Chesapeake, $6,000,000 $0

_ 166 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fredericksburg, Stafford County Career and Technical Education Regional Centers $660,000 $600,000 $660,000 $600,000 Career and Technical Education Resource Center $498,021 $498,021 Career and Technical Education Student Organizations $718,957 $718,957 Career Council at Northern Neck Career & Technical Center $60,300 $60,300 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 Implementation Planning Grant $2,500,000 $5,000,000 $2,500,000 Computer Science Teacher Training $550,000 $550,000 Connect Plus $600,000 $600,000 Critical National Security Language Grant Program $250,000 $250,000 Dolly Parton's Imagination Library For Kids $1,157,065 $1,657,065 $1,157,065 Early Childhood Educator Incentive $20,000,000 $0 EduTutorVA $250,000 $250,000 eMediaVA $1,200,000 $1,950,000 $1,200,000 Excel Center - Goodwill Industries of the Valleys $500,000 $0 Great Aspirations Scholarship Program (GRASP) $500,000 $500,000 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 Program $250,000 $250,000 National Board Certification Program $4,997,500 $4,997,500 New Chesapeake Men for Progress Education Foundation $100,000 $0 Opportunity Scholars $500,000 $0 PBS Appalachia $250,000 $1,000,000 $250,000 Petersburg Executive Leadership Recruitment Incentives $350,000 $350,000 Pittsylvania County Public Library $160,000 $0 Positive Behavioral Interventions & Support (PBIS) $1,598,000 $1,598,000 Power Scholars Academy- YMCA BELL $1,200,000 $1,200,000 Praxis and Virginia Communication and Literacy Assessment Assistance for Provisionally Licensed Minority Teachers $50,000 $50,000 Project Discovery $987,500 $987,500 Public Safety Training Center - Prince $50,000 $50,000

_ 167 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 Southside Virginia Regional Technology Consortium $108,905 $108,905 Southwest Virginia Public Education Consortium $124,011 $124,011 STEM Program / Research Study (VA Air & Space Center) $1,181,975 $1,181,975 STEM Competition Team Grants $200,000 $200,000 Targeted Extended/Enriched School Year and Year-round School Grants $7,763,312 $7,763,312 Teach for America $500,000 $750,000 $500,000 Teacher Recruitment & Retention Grant Programs $2,281,000 $2,281,000 Teacher Residency Program $2,850,000 $2,850,000 21st Century Community Learning Centers $3,000,000 $2,000,000 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 (VECF) $1,250,000 $1,250,000 Virginia Holocaust Museum $250,000 $375,000 $125,000 Virginia Leads Innovation Network $0 $250,000 Virginia Student Training and Refurbishment (VA STAR) Program $300,000 $300,000 Vision Screening Grants $591,000 $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 $80,019,567 $90,684,567 $51,404,567 $51,944,567 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.

_ 168 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 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

_ 169 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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

_ 170 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 171 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 172 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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, $500,000 $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.These funds may be used for grants or contracts awarded and expenses associated with supporting the Teach for America program. School divisions or their partners may apply for those funds through applications submitted to the Department of Education. Applications must be submitted to the Department of Education by September 1 each year. 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

_ 173 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 174 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $591,000 $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, $660,000 $600,000 the first year and $660,000 $600,000 the

_ 175 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 second year from the general fund is provided for annual grants of $60,000 to each of the nine 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 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, $850,000 $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 pilot 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, $1,200,000$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

_ 176 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 consultation with division superintendents or their designated representatives to assess 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 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, $1,157,065 $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,

_ 177 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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, $250,000$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, 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, $250,000$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

_ 178 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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, $2,500,000$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 $750,000 $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

_ 179 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 180 Item Details($) Appropriations($) ITEM 124. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 125. State Education Assistance Programs (17800) $10,210,145,291 $10,581,610,874 $10,395,058,322 $10,796,667,828 Standards of Quality for Public Education (SOQ) (17801) $8,674,694,615 $8,700,123,680 $8,721,616,902 $9,031,364,659 Financial Incentive Programs for Public Education (17802) $572,051,419 $876,897,932 $756,596,388 $801,751,774 Financial Assistance for Categorical Programs (17803) $60,473,056 $60,765,012 $63,918,831 $64,216,050 Distribution of Lottery Funds (17805) $902,926,201 $943,824,250 $852,926,201 $899,335,345 Fund Sources: General $9,224,703,860 $9,385,271,394 $9,309,616,891 $9,609,817,253 Special $1,020,000 $1,020,000 Commonwealth Transportation $1,495,230 $1,495,230 Trust and Agency $902,926,201 $993,824,250 $1,002,926,201 $1,074,335,345 Dedicated Special Revenue $80,000,000 $200,000,000 $80,000,000 $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 $4,572,898,168 $4,520,122,320

_ 181 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 $4,556,200,098 $4,693,027,373 Sales Tax $1,710,600,000 $1,755,500,000 $1,780,100,000 $1,821,500,000 Textbooks $108,042,215 $108,201,736 $107,777,357 $108,020,593 Vocational Education $94,455,795 $94,910,721 $94,007,303 $94,639,010 Gifted Education $43,971,754 $44,034,788 $43,893,312 $43,987,798 Special Education $527,612,453 $528,261,934 $526,268,049 $527,339,469 Special Education Add-On $0 $52,782,732 At-Risk Add-On (split funded) $616,036,160 $566,390,188 $648,037,570 $628,692,979 English Learner Teachers $165,982,653 $213,236,555 $170,304,480 $228,451,867 VRS Retirement (includes RHCC) $534,619,604 $535,427,199 $533,370,957 $534,586,237 Social Security $248,783,023 $249,159,066 $248,156,354 $248,722,333 Group Life $15,333,750 $15,357,012 $15,287,368 $15,322,436 Remedial Summer School $36,359,040 $33,444,383 $34,291,832 Total $8,674,694,615 $8,700,123,680 $8,721,616,902 $9,031,364,659 Incentive Programs (17802) Compensation Supplement $178,149,562 $178,824,244 $361,023,394 $376,360,450 Governor's Schools $28,771,866 $28,543,740 $29,943,003 $29,761,333 Clinical Faculty $318,750 $318,750 Career Switcher Mentoring Grants $279,983 $279,983 Special Education - Endorsement Program $437,186 $437,186 Special Education – Vocational Education $200,089 $200,089 Virginia Workplace Readiness Skills Assessment $308,655 $308,655 Math/Reading Instructional Specialists Initiative $1,834,538 $1,834,538 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 School Division Consolidation Incentive $600,000 $0 School Construction Assistance Program $80,000,000 $250,000,000 $80,000,000 $110,000,000 Supplemental Payment in Lieu of Sales Tax on Food and Personal Hygiene Products $272,500,000 $273,600,000 Bonus Payment $134,399,957 $0 Total $572,051,419 $756,596,388

_ 182 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 $876,897,932 $801,751,774 Categorical Programs (17803) Adult Education $1,051,800 $1,051,800 Adult Literacy $2,480,000 $2,480,000 American Indian Treaty Commitment $61,930 $54,383 $66,484 $61,202 School Lunch Program $5,801,932 $5,801,932 Special Education - Homebound $5,334,701 $5,634,204 $5,388,049 $5,690,550 Special Education - Jails $4,356,532 $4,560,383 Special Education - State Operated Programs $41,386,161 $44,570,183 Total $60,473,056 $60,765,012 $63,918,831 $64,216,050 Lottery Funded Programs (17805) At-Risk Add-On (split funded) $225,180,150 $274,024,247 $192,396,464 $242,477,896 Foster Care $12,019,296 $12,193,067 $12,470,476 $12,281,254 Special Education - Regional Tuition $93,967,863 $95,778,547 $98,967,863 $99,778,547 Early Reading Intervention $42,597,923 $39,834,324 $42,479,126 $39,775,832 Mentor Teacher $1,000,000 $1,000,000 K-3 Primary Class Size Reduction $163,843,284 $156,375,875 $164,595,097 $163,084,946 School Breakfast Program $11,246,873 $11,456,532 $12,437,264 $12,619,194 SOL Algebra Readiness $18,646,449 $18,807,402 $18,604,551 $18,767,429 Infrastructure and Operations Per Pupil Funds $301,361,277 $301,361,275 $276,361,284 $276,361,278 Regional Alternative Education $10,680,318 $10,682,684 $11,247,727 $10,949,677 Individualized Student Alternative Education Program (ISAEP) $2,247,581 $2,247,581 Career and Technical Education – Categorical $11,681,872 $11,681,872 Project Graduation $1,387,240 $1,387,240 Race to GED (NCLB/EFAL) $2,410,988 $2,410,988 Path to Industry Certification (NCLB/EFAL) $1,831,464 $1,831,464 Supplemental Basic Aid $1,073,623 $1,001,152 $1,057,204 $930,147 Supplemental Support for Accomack and Northampton $1,750,000 $1,750,000 Total $902,926,201 $943,824,250 $852,926,201 $899,335,345 Technology – VPSA $56,054,800 $55,764,000 $56,215,600 $55,924,800

_ 183 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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 1,212,152.38 1,214,292.30 the first year and 1,209,772.52 1,213,645.50 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

_ 184 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 185 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 186 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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. Funding in support of one hour of additional instruction per day based on the percent of students eligible

_ 187 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 for the federal free lunch program with a pupil-teacher ratio range of 18:1 to 10:1, depending upon a school division's combined failure rate on the English and Math Standards of Learning, is included in Remedial Education Payments (C 9). 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. 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

_ 188 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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

_ 189 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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,

_ 190 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $902,926,201$943,824,250 the first year and $852,926,201$899,335,345 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

_ 191 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 CB.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

_ 192 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $150,000,000 $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

_ 193 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $108,042,215$108,201,736 the first year and $107,777,357$108,020,593 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

_ 194 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 $571,700,000$586,000,000 the first year and $595,100,000$608,900,000 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. i. From the total amounts in paragraph h. above, an amount estimated at $381,200,000$390,600,000 the first year and $396,700,000$405,900,000 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 $190,600,000$195,300,000 the first year and $198,400,000$203,000,000 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

_ 195 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 a. Out of this appropriation, $616,036,160$566,390,188 the first year and $648,037,570$628,692,979 the second year from the general fund and $225,180,150$274,024,247 the first year and $192,396,464$242,477,896 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

_ 196 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 $10,680,318$10,682,684 the first year and $11,247,727$10,949,677 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. 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, $549,105$549,281 the first year and $1,113,010$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

_ 197 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Department of Education shall reallocate any unused student slots as prescribed in this item. 11. Remedial Summer School a. This appropriation includes $36,359,040$33,444,383 the first year and $34,291,832 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 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 $163,843,284$156,375,875 the first year and $164,595,097$163,084,946 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 Students Approved Grades K-3 Maximum Individual Eligible for Free Lunch, Three-Year Average School Ratio K-3 Class Size 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

_ 198 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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 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.

_ 199 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $12,894,859 $12,223,431 $12,894,859 $12,222,500 2025 $12,939,920 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 $56,054,800$55,764,000 in fiscal year 2025 and $56,215,600$55,924,000 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 $56,054,800$55,764,000 in fiscal year 2025 and $56,215,600$55,924,000 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

_ 200 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 201 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 202 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 $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 $2,768,425 $2,626,373 $2,768,425 $2,625,250 2025 $2,768,425 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

_ 203 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $42,597,923$39,834,324 the first year and $42,479,126$39,775,832 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

_ 204 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 may also be used to meet the requirements of this program. 17. Standards of Learning Algebra Readiness Payments a. An additional payment of $18,646,449$18,807,402 the first year and $18,604,551$18,767,429 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 $165,982,653$213,236,555 the first year and $170,304,480$228,451,867 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

_ 205 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 $93,967,863$95,778,547 the first year and $98,967,863$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 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

_ 206 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $12,019,296$12,193,067 the first year and $12,470,476$12,281,254 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.

_ 207 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 208 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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, $818,874$811,727 the first year and $1,699,942$1,722,016 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. 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, $11,246,873$11,456,532 the first year and $12,437,264$12,619,194 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

_ 209 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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;

_ 210 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 211 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $301,361,277$301,361,275 the first year and $276,361,284$276,361,278 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 $446.67$446.01 per pupil the first year and $410.62$409.70 per pupil the second year in adjusted March 31 average daily membership. These per pupil

_ 212 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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, $178,149,562$178,824,244 the first year and $361,023,394$376,360,450 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

_ 213 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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, $818,874$811,727 the first year and $1,699,942$1,722,016 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 $549,105$549,281 the first year and $1,113,010$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

_ 214 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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, $80,000,000$200,000,000 the first year and $80,000,000$110,000,000 the second year from the School Construction Fund and $50,000,000 the first year from the Literary Fund that 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 below .3000, or contained in a locality designated with high fiscal stress 30 percent of project costs School divisions with a local composite index value at or above .3000 and below .4000, or contained in a locality designated with above average fiscal stress 20 percent of project costs 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

_ 215 Item Details($) Appropriations($) ITEM 125. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 (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. 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. 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. 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. 125.10 Early Childhood Care and Education Programs (17600) $560,180,474 $585,580,474 $593,210,086

_ 216 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Early Childhood Care and Education Programs (17601) $560,180,474 $585,580,474 $593,210,086 Fund Sources: General $366,312,192 $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, $366,312,192 $391,312,192 the first year and $461,691,610 the second year from the general fund is provided to support the Child Care Subsidy Program, Mixed Delivery Program, and Virginia Preschool Initiative 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 42,719 slots 45,159 slots General Fund $169,836,446 $174,992,388 $266,500,894 Federal CCDF $129,871,766 $131,518,476 Federal ARPA-SLRF $63,996,516 $69,014,425 $0 TANF/VIEW & Fee for Service (GF appropriated through Department of Social Services) $26,864,671 $26,864,671 CCDF Total $390,569,399 $400,743,250 $424,884,041 Mixed Delivery Grant Program 2,530 slots 2,530 slots General Fund $38,837,720 $38,837,720 Virginia Preschool Initiative General Fund: Four Year Olds $124,521,106 $128,616,155 $123,236,076 General Fund: VPI Expansion $33,116,920 $23,865,929 $33,116,920 VPI Total $157,638,026 $152,482,084 $156,352,996 Employee Child Care Assistance Pilot Program $25,000,000 $0 Total General Funds $366,312,192 $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. I VETO ITEM 125.10 J. ON PAGE 216 AND PAGES 224-225 /s/ Glenn Youngkin 5-2-25

_ 217 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 2. The Department of Education, in collaboration with the Department of Social Services, shall prepare an annual Child Care and Development Fund (CCDF) report that reflects 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 and discretionary), administrative costs, and quality efforts. The plan also shall include a 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. In addition, this plan should report, by locality, the number of subsidies (mandated and discretionary) provided, number of providers receiving CCDF dollars, 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. The plan shall also include an appendix with the most recently completed CCDF annual report as required by the federal Office of Child Care. The department shall submit the report by October 1 of each year to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees. In addition, the department shall post this report on its website along with any reports from previous fiscal years. 3. 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 the 2024-2026 biennium 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 the 2024-2026 biennium 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.

_ 218 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 219 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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. de.(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

_ 220 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 221 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 222 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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. 9.a. The Department of Education shall collect information from local Virginia Preschool

_ 223 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Initiative programs and from providers participating in the Virginia Early Childhood Foundation's Mixed-Delivery Preschool Initiative as needed to compile a comprehensive report on the usage of state funds detailing, but not limited to the number of calculated slots and funding allocated to each local program or provider, and the number of such slots that have been filled. b. Such comprehensive report 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, (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. c. Such comprehensive report shall describe the Virginia Preschool Initiative 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. Virginia Preschool Initiative programs shall report the share of children with Individualized Education Plans in inclusive classrooms annually starting with the 2020-2021 school year. If the 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. d. The Department shall submit such comprehensive report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than December 31 each year. e. The Department shall develop a plan for comprehensive public reporting on early childhood expenditures, outcomes, and program quality to replace this reporting requirement. Such plan and subsequent reports shall consider the components included in this reporting requirement, and include all publicly-funded providers as defined in Chapter 860 and Chapter 861, 2020 Acts of Assembly. The plan shall identify any fiscal, legislative, or regulatory barriers to implementing such public reporting, and shall consider integration with the Department's School Quality Profiles. The Department of Education shall submit an update on implementation of the plan to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by December 1 each year. Once fully implemented, the Department of Education shall update and submit the report by December 1 of each year. 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 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:

_ 224 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 child care costs of their employees. The Pilot Program shall be administered by the Virginia Early Childhood Foundation (the Foundation). The Foundation shall establish such guidelines and procedures as it deems necessary for the administration of the Pilot Program, subject to the following conditions and requirements: 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. 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 I VETO ITEM 125.10.J. ON PAGE 216 AND PAGES 224-225 /s/ Glenn Youngkin 5-2-25

_ 225 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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. Federal Education Assistance Programs (17900) $1,123,329,873 $1,479,997,315 $1,123,329,873 $1,479,997,315 Federal Assistance to Local Education Programs (17901) $1,123,329,873 $1,479,997,315 $1,123,329,873 $1,479,997,315 Fund Sources: Federal Trust $1,123,329,873 $1,479,997,315 $1,123,329,873 $1,479,997,315

_ 226 Item Details($) Appropriations($) ITEM 126. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: PL 107-110, PL 108-446, PL 105-332, PL 105-220, PL 105-220, Federal Code. a. The appropriation to support payments to school divisions from federal program grant funds is contained in this Item. Such federal program grant funds are based on the latest estimates available to the Department of Education and are provided here for informational purposes and are subject to change within each state fiscal year by the awarding federal agency. The Department of Education is directed to update the estimated federal program grant fund amounts contained in the table in this item on a periodic basis throughout the biennium. b. The Department of Education will encourage localities to apply for Medicaid reimbursements for eligible special education expenditures which will help to increase available state and local funding for other educational activities and expenditures. c. It is the intent of the General Assembly that in any fiscal year when revenues received or budgeted by the Commonwealth, applicable to any public education program, which were derived from a federally funded grant or program and subsequently realize a decrease in such funding levels, that the Commonwealth will not supplant any of the decreased federal funding received or budgeted with any general fund revenues from the Commonwealth. Item Details of Federal Education Assistance Program Awards (17900) FY 2025 FY 2026 School Nutrition - Breakfast, Lunch, Special Milk $369,078,569 $591,045,484 $369,078,569 $591,045,484 School Nutrition - Summer Food Service Program and After School At-risk Program $14,250,000 $131,711,985 $14,250,000 $131,711,985 Fresh Fruit and Vegetables $5,274,822 $4,366,271 $5,274,822 $4,366,271 Child Nutrition Programs Team Nutrition Grants $276,840 $23,217 $276,840 $23,217 Special Education - IDEA - Part B Section 611 $299,665,859 $302,820,655 $299,665,859 $302,820,655 Special Education - IDEA - Part B Section 619 - Preschool $9,086,006 $9,298,696 $9,086,006 $9,298,696 Migration Education - Basic Grant $706,221 $844,427 $706,221 $844,427 Migrant Education - Consortium Incentive Grants $81,457 $85,698 $81,457 $85,698 Title I - Neglected & Delinquent Children $1,322,125 $1,138,422 $1,322,125 $1,138,422 Title I Part A - Improving Basic Programs $283,711,358 $289,755,309 $283,711,358 $289,755,309 Title II Part A - Improving Teacher Quality $38,829,605 $39,130,373 $38,829,605 $39,130,373 Title III Part A - Language Acquisition State Grant $14,410,456 $14,646,871 $14,410,456 $14,646,871 Title IV Part A - Student Support and Academic Enrichment Grant $19,221,969 $20,953,032 $19,221,969 $20,953,032 Title IV Part B - 21st Century Community Learning Centers $19,328,073 $19,998,488 $19,328,073 $19,998,488 Title VI - Rural and Low-Income Schools $2,334,440 $2,337,621 $2,334,440 $2,337,621 Adult Literacy $14,171,358 $14,966,487 $14,171,358 $14,966,487 Vocational Education - Basic Grant $26,483,927 $26,697,851 $26,483,927 $26,697,851 School Climate Transformation $749,701 $749,701

_ 227 Item Details($) Appropriations($) ITEM 126. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Education for Homeless Children and Youth $1,860,209 $1,860,209 Empowering Educators through a Systems Approach $1,524,000 $1,524,000 Virginia School Mental Health Providers Recruitment and Retention $962,878 $962,878 School Improvement Grants $3,834,584 $3,834,584 Safe Drug-Free Schools $3,013,243 $3,013,243 Special Education Program Improvement $1,355,569 $1,355,569 Special Education - Personnel Development $184,381 $184,381 Schools and Roads - Grants to States $1,420,679 $1,420,679 Troops to Teachers Grant $262,905 $262,905 Chesapeake Bay Studies $13,807 $13,807 Payments in Lieu of Real Estate Taxes $91,260 $91,260 Total $1,123,329,873 $1,479,997,315 $1,123,329,873 $1,479,997,315 Total for Direct Aid to Public Education $11,973,675,205 $12,737,873,230 $12,163,002,848 $12,921,819,796 Fund Sources: General $9,671,035,619 $9,867,668,153 $9,822,713,068 $10,123,453,430 Special $1,020,000 $1,020,000 Commonwealth Transportation $1,495,230 $1,495,230 Trust and Agency $902,926,201 $993,824,250 $1,002,926,201 $1,074,335,345 Dedicated Special Revenue $80,000,000 $200,000,000 $80,000,000 $110,000,000 Federal Trust $1,317,198,155 $1,673,865,597 $1,254,848,349 $1,611,515,791 Grand Total for Department of Education, Central Office Operations $12,263,600,887 $13,055,663,293 $12,449,181,820 $13,243,296,057 General Fund Positions 184.17 184.17 201.67 Nongeneral Fund Positions 335.83 335.83 362.33 Position Level 520.00 520.00 564.00 Fund Sources: General $9,764,017,539 $9,988,514,454 $9,913,594,988 $10,234,876,501 Special $7,716,586 $7,716,586 Commonwealth Transportation $1,796,906 $1,796,906 Trust and Agency $915,650,603 $1,006,548,652 $1,015,650,603 $1,087,059,747 Dedicated Special Revenue $80,000,000 $200,000,000 $80,000,000 $110,000,000 Federal Trust $1,494,419,253 $1,851,086,695 $1,430,422,737 $1,801,846,317 § 1-50. VIRGINIA SCHOOL FOR THE DEAF AND THE BLIND (218) 127. Instruction (19700) $6,826,265 $6,826,265 Classroom Instruction (19701) $6,626,005 $6,626,005 Occupational-Vocational Instruction (19703) $158,065 $158,065 Outreach and Community Assistance (19710) $42,195 $42,195

_ 228 Item Details($) Appropriations($) ITEM 127. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $5,838,198 $5,838,198 Special $135,239 $135,239 Federal Trust $852,828 $852,828 Authority: §§ 22.1-346 through 22.1-349, Code of Virginia. 128. Residential Support (19800) $6,242,437 $6,242,437 Food and Dietary Services (19801) $540,638 $540,638 Medical and Clinical Services (19802) $477,698 $477,698 Physical Plant Services (19803) $2,540,144 $2,540,144 Residential Services (19804) $2,307,938 $2,307,938 Transportation Services (19805) $376,019 $376,019 Fund Sources: General $6,099,724 $6,099,724 Special $104,220 $104,220 Federal Trust $38,493 $38,493 Authority: Title 22.1, Chapter 19, Code of Virginia. 129. Administrative and Support Services (19900) $3,988,607 $3,437,434 $3,512,434 General Management and Direction (19901) $3,988,607 $3,437,434 $3,512,434 Fund Sources: General $3,715,900 $3,164,727 $3,239,727 Special $219,237 $219,237 Federal Trust $53,470 $53,470 Authority: Title 22.1, Chapter 19, Code of Virginia. A. Notwithstanding any other provision of law, the Virginia School for the Deaf and the Blind is authorized to retain the income generated by the rental of facilities on the Staunton campus to outside entities. B. Notwithstanding any other provision of law, the Board of Visitors of the Virginia School for the Deaf and the Blind may establish, in compliance with the provisions of Article 3 (§ 23.1-809 et seq.) of Chapter 8 of Title 23.1, Code of Virginia, a campus police department and employ campus police officers upon appointment as provided in § 23.1-812, Code of Virginia. Campus police officers appointed and employed by the Virginia School for the Deaf and the Blind shall be eligible for the Virginia Law Officers’ Retirement System pursuant to Chapter 2.1 of Title 51.1 (§ 51.1-211 et seq.), Code of Virginia, and Line of Duty Act benefits pursuant to Chapter 4 of Title 9.1 (§ 9.1-400 et seq.), Code of Virginia. Total for Virginia School for the Deaf and the Blind $17,057,309 $16,506,136 $16,581,136 General Fund Positions 179.00 179.00 Position Level 179.00 179.00 Fund Sources: General $15,653,822 $15,102,649 $15,177,649 Special $458,696 $458,696 Federal Trust $944,791 $944,791 § 1-51. STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA (245) 130. Higher Education Student Financial Assistance (10800) $201,688,512 $275,788,512 $203,188,512 $265,288,512 Scholarships (10810) $201,498,512 $275,598,512 $202,998,512 $265,098,512 Regional Financial Assistance for Education (10813) $190,000 $190,000

_ 229 Item Details($) Appropriations($) ITEM 130. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $196,428,512 $255,528,512 $197,928,512 $260,028,512 Special $5,010,000 $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 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, $102,325,881 $104,125,881 the first year and $102,325,881$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

_ 230 Item Details($) Appropriations($) ITEM 130. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 231 Item Details($) Appropriations($) ITEM 130. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 $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, $9,680,000 $11,980,000 the first year and $9,680,000 $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 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 May 15 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

_ 232 Item Details($) Appropriations($) ITEM 130. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 233 Item Details($) Appropriations($) ITEM 130. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 October 1 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 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, $20,000,000 each year $75,000,000 the first year and $65,000,000 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. Financial Assistance For Educational and General Services (11000) $104,410 $104,410 Sponsored Programs (11004) $4,410 $4,410 Outstanding Faculty Recognition (11009) $100,000 $100,000 Fund Sources: Special $104,410 $104,410 Authority: Outstanding Faculty Recognition Program: Discretionary Inclusion. The State Council of Higher Education for Virginia shall annually provide a grant to faculty members selected to be honored under the Outstanding Faculty Recognition program from such private funds as may be designated for this purpose. The faculty members shall be selected from public and private institutions of higher education in Virginia, but recipients of Outstanding Faculty Recognition Awards shall not be eligible for the awards in subsequent years. 132. Higher Education Academic, Fiscal, and Facility Planning and Coordination (11100) $34,546,518 $35,046,518 $37,371,518 $31,677,467 Higher Education Coordination and Review (11104) $20,764,493 $23,264,493 $17,570,442 Regulation of Private and Out-of-State Institutions (11105) $1,486,763 $1,486,763 Institutional Program Support (11107) $12,295,262 $12,795,262 $12,620,262 Fund Sources: General $32,904,189 $33,404,189 $35,729,189 $30,035,138 Special $1,452,329 $1,452,329 Trust and Agency $190,000 $190,000 Authority: § 23.1-200, § 23.1-203, § 23.1-1107, § 23.1-629, § 23.1-903.4. A. 1. It is the intent of the General Assembly to provide general fund support to contract at a level equivalent to the Tuition Assistance Grant undergraduate award with Mary Baldwin University for Virginia women resident students to participate in the Virginia

_ 234 Item Details($) Appropriations($) ITEM 132. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Women's Institute for Leadership at Mary Baldwin University. 2. The amounts included in this Item are $372,899 the first year and $372,899 the second year from the general fund for the programmatic and financial administration of this program. 3. General fund appropriations provided under this contract may include financial incentive for the participating students at Mary Baldwin University in the Virginia Women's Institute for Leadership Program and funds to support programmatic administration. Students receiving this financial incentive will not be eligible for Tuition Assistance Grants. 4. By October 1 of each year, Mary Baldwin University shall report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, the Director, State Council of Higher Education for Virginia, and the Director, Department of Planning and Budget, on the number of students participating in the Virginia Women's Leadership Program, the number of in-state and out-of-state students receiving awards, the amount of the awards, the number of students graduating, and the number of students receiving commissions in the military. B. In discharging the responsibilities specified in § 23.1-219, Code of Virginia, the State Council of Higher Education for Virginia shall provide exemptions to individual proprietorships, associations, co-partnerships or corporations which are now or in the future will be using the words "college" or "university" in their training programs solely for their employees or customers, which do not offer degree-granting programs, and whose name includes the word "college" or "university" in a context from which it clearly appears that such entity is not an educational institution. C. Out of the appropriation for Higher Education Coordination and Review, $11,287,363 the first year and $11,612,363 the second year from the general fund is provided for continuation of the Virtual Library of Virginia. Funding for the Virtual Library of Virginia is provided for the benefit of students and faculty at the Commonwealth's public institutions of higher education and participating nonprofit, independent private colleges and universities. Out of this amount, $461,946 the first year and $461,946 the second year is earmarked to allow the participation of nonprofit, independent private colleges and universities. D. Out of this appropriation, $950,366 and ten positions the first year and $950,366 and ten positions the second year from nongeneral funds is provided to support higher education coordination and review services, including expenses incurred in the regulation and oversight of the private and out-of-state postsecondary institutions and proprietary schools operating in Virginia. These funds will be generated through fee schedules developed pursuant to § 23.1- 224, Code of Virginia. Out of this amount, $190,000 the first year and $190,000 the second year from nongeneral funds is designated to administration of the Student Tuition Guarantee Fund. E. The State Council of Higher Education for Virginia, in consultation with the House Appropriations Committee, the Senate Finance and Appropriations Committee, the Department of General Services, and the Department of Planning and Budget, shall develop a six-year capital outlay plan for higher education institutions including affiliated entities. As a part of this plan SCHEV shall consider (i) current funding mechanisms for capital projects and improvements at the Commonwealth's institutions of higher education, including general obligation bonds and other viable funding methods; (ii) mechanisms to assist private institutions of higher education in the Commonwealth with their capital needs. F. The Executive Director, State Council of Higher Education for Virginia, may appoint an advisory committee to assist the council with technology-enriched learning initiatives. The advisory committee may assist the council in (i) developing innovative, cost-effective, technology-enriched teaching and learning initiatives, including distance and distributed learning initiatives; (ii) improving cooperation among and between the public and private institutions of higher education in the Commonwealth; (iii) improving efficiency and expand the availability of technology-enriched courses; and (iv) facilitating the sharing of research and experience to improve student learning. G. In addition to the reviews conducted under § 23.1-206 and § 23.1-306, Code of Virginia, the State Council of Higher Education shall evaluate the progress of individual initiatives funded in this act as part of the incentive funding provided to colleges and universities with

_ 235 Item Details($) Appropriations($) ITEM 132. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 regard to improvements in retention, graduation, degree production and other criteria the Council deems appropriate. H. Out of this appropriation, $330,687 the first year and $330,687 $835,047 the second year from the general fund is designated to support research and analysis and the administration of a multi-agency longitudinal data system to improve consumer information and policy recommendations. I.1. As a condition of this appropriation, $12,000,000 the first year and $14,500,000 the second year from the general fund is designated for the Innovative Internship Fund and Program, § 23.1-903.4, Code of Virginia. The funding is designed to expand paid or credit-bearing student internship and other work-based learning opportunities in collaboration with Virginia employers. In furtherance of the goal of providing all postsecondary students in Virginia with one or more paid internships during their undergraduate course of study, funding shall be used for: (a) institutional grants to enhance engagement with employers related to internship placement and to assist students in securing and successfully completing internships, including students that traditionally do not participate in such programs; (b) matching grants to small and midsize Virginia- based employers to enable increased paid internship participation by small and midsize businesses and nonprofit organizations; (c) promotional expenditures to encourage expansion of internship programs and participation by business and nonprofit organizations in Virginia and to increase recruitment and retention of students; and (d) administrative and other expenditures to accomplish the purposes of the Innovative Internship Fund and Program and this paragraph. I.1. As a condition of this appropriation, $12,000,000 the first year and $8,500,000 the second year from the general fund is designated for the Innovative Internship Fund and Program, § 23.1-903.4, Code of Virginia. The funding is designed to expand paid or credit-bearing student internship and other work-based learning opportunities in collaboration with Virginia employers. In furtherance of the goal of providing all postsecondary students in Virginia with one or more paid internships during their undergraduate course of study, funding shall be used for: (a) institutional grants to enhance engagement with employers related to internship placement and to assist students in securing and successfully completing internships, including students that traditionally do not participate in such programs; (b) administrative and other expenditures to accomplish the purposes of the Innovative Internship Fund and Program and this paragraph.The Council shall establish a Memorandum of Understanding (MOU) with the Virginia Economic Development Partnership (VEDP) to transition the employer-focused outreach and engagement components of the Program to those entities in accordance with Item 113.T. The Council and VEDP shall consult with the partners identified in Item 113.T in the development of the MOU to facilitate their continuing collaboration. The MOU shall be completed and reported to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than June 30, 2025. 2. Institutional grants shall be awarded to support initiatives that establish or enhance an on-campus internship center or similar one-stop service to assist students and employers with intern placement and that are expected to produce a demonstrated increase in student participation in paid internship programs and work-based learning opportunities. Institutions shall be eligible for grants upon demonstrating that it is a key priority of the institution and its senior academic and administrative leadership to have a coordinated plan to expand internship participation by students, to incorporate internships in curricula, to report completion of internships and courses that include internships on student transcripts, and to remove administrative and financial barriers to internship opportunities. The plan shall include: (i) an implementation timeline, (ii) the allocation of resources and funding strategies to support internships, (iii) the assignment of dedicated personnel to facilitate placement of students in internships and engage with employers, (iv) the identification of how the institution will support students that are less likely to participate in internships and work-based learning opportunities, to be employed in an occupation related to their major upon completion of their certificate or degree, or to earn at or above the average earnings of graduates in their program major; (v) opportunities to align existing student employment opportunities on campus to include best practices of an internship program; and (vi) metrics for measuring, reporting, and regularly reviewing progress on the plan. Institutions that have not developed a plan may be eligible for

_ 236 Item Details($) Appropriations($) ITEM 132. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 planning grants as long as the planning grants are led by senior academic and administrative leadership. In determining the amount of grant awards, the Council shall consider the number of undergraduate students enrolled at the institution, the number of students at the institution who participate in internships, and the numerical and percentage increase in internship participation expected to result from the initiative. In addition, the Council shall increase grant awards based upon the following factors: (i) an institution's emphasis on internships that are part of pathways to full-time employment with Virginia-based employers; (ii) the institutional initiative's alignment with specific state or regional programs or partnerships related to economic growth and diversification or workforce development in Virginia; (iii) an institution's strength of commitment as reflected in its reallocation of institutional funds or solicitation of philanthropic support or business partnerships to support the initiative. This funding is intended to be recurring for institutions that demonstrate substantial yearly progress in achieving the objectives of the initiative as measured by the number of internships successfully completed by students. 3. In administering the program authorized in this paragraph, the Council shall (i) engage stakeholders from business and industry, secondary and higher education, economic development, and state agencies and entities that are successfully engaging employers or successfully operating internship programs; (ii) cooperate with the Virginia Economic Development Partnership and identified partners in carrying out the authority's responsibilities under Item 113.T for employer-focused activities that expand availability of and access to paid and credit-bearing internships and corresponding pathways leading to full-time Virginia-based employment; (iii) explore strategies in Virginia and elsewhere on successful institutional, regional, statewide or sector-based internship programs; (iv) gather and report consistent data across institutions regarding current institutional internship practices, scale, and outcomes; (v) develop internship readiness educational resources, delivery methods, and outreach and awareness activities for students and institutional career development personnel; and (vi) pursue shared services or other efficiency initiatives, including technological solutions. The Council and VEDP, in consultation with partners, shall establish goals and metrics for internships and work-based learning opportunities for employers, students, and institutions that support an increased number of students and employers participating in internships and work-based learning opportunities while ensuring the quality of the program. Institutions shall set goals and progress measures aligned with the metrics established by the Council and VEDP related to increasing the number of students participating in internships and work-based learning opportunities and shall develop a plan to ensure that existing programs and any new programs developed include internships or a work-based learning opportunity where appropriate. Institutions shall report to the Council annually regarding progress on these goals. Beginning in fiscal year 2027, the Council and VEDP shall submit an annual report to the Governor and the Chairs of the House Committee on Appropriations and Senate Committee on Finance and Appropriations on progress of meeting the goals and metrics, including institutional progress, and expenses incurred for the activities outlined in this item by November 1 of each year. 2. Institutional grants shall be awarded to support initiatives that are expected to produce a demonstrated increase in student participation in paid internship programs and work-based learning opportunities. Institutions shall be eligible for grants upon demonstrating that it is a key priority of the institution and its senior academic and administrative leadership to have a coordinated plan to expand internship participation by students, to incorporate internships in curricula, to report completion of internships and courses that include internships on student transcripts, and to remove administrative and financial barriers to internship opportunities. The plan shall include: (i) an implementation timeline, (ii) the allocation of resources and funding strategies to support internships, (iii) the assignment of dedicated personnel to facilitate placement of students in internships and engage with employers, (iv) the identification of how the institution will support students that are less likely to participate in internships and work-based learning opportunities, to be employed in an occupation related to their major upon completion of their certificate or degree, or to earn at or above the average earnings of graduates in their program major; (v) opportunities to align existing student employment opportunities on campus to include best practices of an internship program; and (vi) metrics for measuring, reporting, and regularly reviewing progress on the plan. Institutions that have not developed a plan may be eligible for planning grants as long as the planning grants are led by senior academic and administrative leadership. In determining the amount of grant awards, the Council shall consider the number of undergraduate students

_ 237 Item Details($) Appropriations($) ITEM 132. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 enrolled at the institution, the number of students at the institution who participate in internships, and the numerical and percentage increase in internship participation expected to result from the initiative. In addition, the Council shall increase grant awards based upon the following factors: (i) an institution's emphasis on internships that are part of pathways to full-time employment with Virginia-based employers; (ii) the institutional initiative's alignment with specific state or regional programs or partnerships related to economic growth and diversification or workforce development in Virginia; (iii) an institution's strength of commitment as reflected in its reallocation of institutional funds or solicitation of philanthropic support or business partnerships to support the initiative. This funding is intended to be recurring for institutions that demonstrate substantial yearly progress in achieving the objectives of the initiative as measured by the number of internships successfully completed by students. 3. Matching grants may be provided to small and midsize Virginia-based employers that agree to provide paid internships according to criteria established by the Council in consultation with the Virginia Department of Workforce Development and Advancement and the Virginia Talent and Opportunity Partnership. Such criteria shall include: (i) a limitation of eligibility to for-profit business and nonprofit organizations, excluding institutions of higher education, with physical operations and facilities in Virginia and 150 or fewer Virginia-based employees; (ii) certification of employer eligibility by the Council following a training program of reasonable duration and agreement by the employer to reasonable mentoring and reporting obligations; (iii) a limitation of grant awards to reimbursement, not to exceed $7,500 per internship, for a maximum of one-half of wages, including FICA, and workplace subsidies, including transportation, housing, and other internship-related expenses, paid to or for the benefit of a student participating in a qualifying internship; (iv) the minimum and maximum number of hours required to ensure the student gains valuable work experience; (v) a limitation of the qualifying number of internships per employer; and (vi) the maximum timeframe for employers to be eligible to receive the grants. Prioritization of grant awards may consider employers of 50 or fewer employees. Funding may also be used to support staffing agency services related to intern recruitment for employers with 250 or fewer Virginia-based employees who are not otherwise eligible for matching grants under this paragraph. 4. The Council, through the Virginia Talent and Opportunity Partnership, and in consultation with the Virginia Department of Workforce Development and Advancement and other stakeholders, shall develop and execute a promotional plan to raise awareness and foster expanded internship programs and participation by business and nonprofit organizations. The plan shall highlight the Commonwealth's goal to provide paid internship opportunities to all postsecondary students and shall provide for public recognition of employers based on their level of participation in internship programs. The plan shall include continued development of regional collaboratives among employers, educational organizations, and other regional stakeholders for the purpose of expanding internships in alignment with regional growth and diversification strategies and state and regional economic and workforce development initiatives. The plan also shall address the objective of encouraging secondary students in Virginia and outside Virginia to attend Virginia-based institutions of higher education and remain in the Commonwealth after completion through paid internships and pathways to full-time Virginia-based employment. 5. In administering the program authorized in this paragraph, the Council shall (i) engage stakeholders from business and industry, secondary and higher education, economic development, and state agencies and entities that are successfully engaging employers or successfully operating internship programs; (ii) explore strategies in Virginia and elsewhere on successful institutional, regional, statewide or sector-based internship programs; (iii) gather data on current institutional internship practices, scale, and outcomes; (iv) develop internship readiness educational resources, delivery methods, and outreach and awareness activities for employer partners, students, and institutional career development personnel; (v) pursue shared services or other efficiency initiatives, including technological solutions; and (vi) create a process to prioritize industry sectors and track key measures of performance in collaboration with the Virginia Office of Education Economics. J. In addition to the exceptions pursuant to § 2.2-3815, the provisions of the section shall

_ 238 Item Details($) Appropriations($) ITEM 132. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 not be construed to prevent the release of a social security number to the U.S. Census, U.S. Education Department, or other agency of the federal government, by the State Council of Higher Education for the purposes of data-matching to improve knowledge of the outcomes of education programs of the Commonwealth, including, but not limited, to earnings and education-related debt. In addition, the office of the workforce development advisor shall also have access to wage records collected by the Council. K. The State Council of Higher Education for Virginia shall collect annual dues on behalf of Virginia Sea Grant to support its operational costs. The Council shall make payments out of nongeneral funds in this appropriation to Virginia Sea Grant, and shall enter into a memorandum of understanding with Virginia Sea Grant to define fiscal responsibilities and establish reimbursement rates and processes for the delivery of services. L.1. The State Council of Higher Education for Virginia, in consultation with staff from the House Appropriations and Senate Finance and Appropriations Committee, Department of Planning and Budget, Secretary of Finance and Secretary of Education, as well as representatives of public higher education institutions, shall review financial aid awarding practices and tuition discounting strategies. 2. The Council shall review current state financial aid awarding policies and make recommendations to: (1) appropriately prioritize and address affordability for low- and middle-income students; (2) increase program efficiency and effectiveness in meeting state goals that align with The Virginia Plan; and (3) simplify communication and improve student understanding of eligibility criteria. The review shall also: (1) assess financial aid by income level and the utilization and reporting of tuition revenue used for financial aid and unfunded scholarships; and (2) consider the pros and cons of authorizing remittance of tuition and fees for merit scholarships for students of high academic achievement. M.1. The State Council of Higher Education for Virginia shall develop a plan for implementing a statewide survey on institutional expenditures by program and academic discipline at Virginia's public institutions to determine the effectiveness of spending related to the attainment of state and institutional goals and inform strategic decision-making. 2. The Council may review existing reporting capacities and other state examples of cost analysis by program and academic discipline in higher education to: (1) determine the Council's current capacity to conduct the survey; (2) determine any additional staff and financial support necessary for conducting such a survey; (3) determine the potential for long- range cost containments; and (4) detail a plan for survey implementation. N. Out of this appropriation, $250,000 the first year and $250,000 the second year from the general fund is designated for the Guidance to Postsecondary Success program. The program coordinates statewide efforts to increase college access and student success. O. The State Council of Higher Education for Virginia, in fulfilling the requirements under § 23.1-1304, Code of Virginia, may use online training modules that expand training beyond the initial orientation for Boards of Visitor members. P. Out of this appropriation, $500,000 the first year and $500,000 the second year from the general fund is provided to support a mental health workforce pilot at institutions of higher education in consultation with the Virginia Health Care Foundation. The pilot shall support the costs of required supervision for graduates of Masters of Social Work and Masters of Counseling programs seeking licensure. Eligible institutions include public institutions of higher education operating in Virginia. The State Council of Higher Education for Virginia shall report the outcomes of the pilot annually to the Governor and General Assembly. Q.1. As part of the biennial six-year financial plan required in the provisions of § 23.1-306, Code of Virginia, each public four-year institution of higher education, Richard Bland College, and the Virginia Community College System shall include in its six-year plan and amendments to its plan submitted to the State Council of Higher Education for Virginia (SCHEV) an official commitment and set of policies and practices to support freedom of expression and inquiry, free speech, academic freedom, and diversity of thought. 2. Each public four-year institution of higher education, Richard Bland College, and the Virginia Community College System shall also submit an annual report on freedom of

_ 239 Item Details($) Appropriations($) ITEM 132. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 expression and inquiry, free speech, academic freedom, and diversity of thought to the Secretary of Education, including related incidents and statistics from the prior academic year. R. As a condition of this appropriation, $174,000 and one position the first year and $174,000 and one position the second year from the general fund is designated for the establishment of a student loan ombudsman to provide timely assistance to student borrowers of any student education loan in the Commonwealth. The ombudsman will also be responsible for establishing and maintaining an online student loan borrower education course, which would cover key loan terms, documentation requirements, monthly payment obligations, income-based repayment options, loan forgiveness, and disclosure requirements. S. The Council shall (i) survey each public institution of higher education to determine how each such institution is addressing on-campus food insecurity, including specific methods, programs, sources of funding, expenditures, communications strategies, and staffing; (ii) Compile and make available to each such institution a guidance document containing best practices for leveraging all available resources and opportunities, including public benefits programs and donation programs, to ensure that students do not face food insecurity on campus; and (iii) report its findings and any recommendations to the Chairs of the House Committee on Appropriations, the House Committee on Education, the Senate Committee on Education and Health, and the Senate Committee on Finance and Appropriations no later than November 1, 2024. T. Out of this appropriation, $250,000 the first year and $250,000 the second year from the general fund is designated to establish and maintain a fund for excellence and innovation. The fund is designed to stimulate collaboration among public school divisions, community colleges, and universities to create and expand affordable student pathways and to pursue shared services and other efficiency initiatives at colleges and universities that lead to measurable cost reductions. Grants will be awarded on a competitive basis, with eligibility criteria determined by the State Council of Higher Education for Virginia. U. Out of this appropriation, $500,000 the first year from the general fund is provided to support a Hunger-Free Campus Food Pantry Grant Program. Funds shall not revert to the general fund at the end of fiscal year and shall be reappropriated for expenditure for the same purpose in the next fiscal year. 133. Higher Education Federal Programs Coordination (11200) $2,440,426 $2,440,426 Higher Education Federal Programs Coordination (11201) $2,440,426 $2,440,426 Fund Sources: Federal Trust $2,440,426 $2,440,426 Authority: Title 23.1, Chapter 2, Code of Virginia. Out of this appropriation, $2,440,426 the first year and $2,440,426 the second year from nongeneral funds is designated for grants to improve teacher quality (No Child Left Behind Act grant). 134. Financial Assistance for Public Education (Categorical) (17100) $3,000,000 $3,000,000 Early Awareness and Readiness Programs (17117) $3,000,000 $3,000,000 Fund Sources: Federal Trust $3,000,000 $3,000,000 Authority: Discretionary Inclusion. Out of this appropriation, $3,000,000 the first year and $3,000,000 the second year from nongeneral funds is designated for the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR-UP) grant. 135. Technology Assistance Services (18600) $200,000 $200,000 Distance Learning and Electronic Classroom (18602) $200,000 $200,000

_ 240 Item Details($) Appropriations($) ITEM 135. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: Special $200,000 $200,000 Authority: Code of Virginia, § 23.1-211 Out of this appropriation, $200,000 the first year and $200,000 the second year from nongeneral funds is designated to cover the costs of coordination and administration of the Virginia State Authorization Reciprocity Agreement (SARA) program as administered by the Southern Regional Education Board (SREB) and the National Council on State Authorization Reciprocity Agreements (NC-SARA). Total for State Council of Higher Education for Virginia $241,979,866 $316,579,866 $246,304,866 $302,710,815 General Fund Positions 52.00 52.00 53.00 Nongeneral Fund Positions 25.00 25.00 Position Level 77.00 77.00 78.00 Fund Sources: General $229,332,701 $288,932,701 $233,657,701 $290,063,650 Special $6,766,739 $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 § 1-52. CHRISTOPHER NEWPORT UNIVERSITY (242) 136. Educational and General Programs (10000) $109,137,716 $115,578,516 $109,137,716 Higher Education Instruction (100101) $57,933,969 $63,009,769 $57,933,969 Higher Education Research (100102) $1,961,180 $1,961,180 Higher Education Academic (100104) $12,495,329 $12,495,329 Higher Education Student Services (100105) $8,051,133 $8,051,133 Higher Education Institutional Support (100106) $12,275,046 $12,275,046 Operation and Maintenance Of Plant (100107) $16,421,059 $17,786,059 $16,421,059 Fund Sources: General $54,590,295 $60,491,095 $54,590,295 Higher Education Operating $54,547,421 $55,087,421 $54,547,421 Authority: Title 23.1, Chapter 14, 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. 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. C. 1. Out of this appropriation, $667,670 the first year and $667,670 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education.

_ 241 Item Details($) Appropriations($) ITEM 136. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Science (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. Christopher Newport University is expected to maintain increases in: a. Data Science and Technology awards of 5 annually over the base year. b. Science and Engineering awards of 15 annually over the base year. c. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees annually. 137. Higher Education Student Financial Assistance (10800) $12,429,410 $12,759,410 $12,419,360 Scholarships (10810) $12,400,347 $12,730,347 $12,390,297 Fellowships (10820) $29,063 $29,063 Fund Sources: General $8,499,410 $8,829,410 $8,489,360 Higher Education Operating $3,930,000 $3,930,000 Authority: Title 23.1, Chapter 14, Code of Virginia. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 138. Financial Assistance For Educational and General Services (11000) $1,498,882 $1,498,882 Sponsored Programs (11004) $1,498,882 $1,498,882 Fund Sources: Higher Education Operating $1,498,882 $1,498,882 Authority: Title 23.1, Chapter 14, Code of Virginia. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the university to cover sponsored program operations. 139. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $83,343,033 $83,343,033 Food Services (80910) $18,627,397 $18,627,397 Bookstores And Other Stores (80920) $709,796 $709,796 Residential Services (80930) $31,066,459 $31,066,459

_ 242 Item Details($) Appropriations($) ITEM 139. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Parking And Transportation Systems And Services (80940) $1,836,269 $1,836,269 Student Unions And Recreational Facilities (80970) $6,035,251 $6,035,251 Recreational And Intramural Programs (80980) $173,677 $173,677 Other Enterprise Functions (80990) $14,514,653 $14,514,653 Intercollegiate Athletics (80995) $10,379,531 $10,379,531 Fund Sources: Higher Education Operating $63,639,164 $63,639,164 Debt Service $19,703,869 $19,703,869 Authority: Title 23.1, Chapter 14, Code of Virginia. Total for Christopher Newport University $206,409,041 $213,179,841 $206,398,991 General Fund Positions 356.06 356.06 Nongeneral Fund Positions 603.68 603.68 Position Level 959.74 959.74 Fund Sources: General $63,089,705 $69,320,505 $63,079,655 Higher Education Operating $123,615,467 $124,155,467 $123,615,467 Debt Service $19,703,869 $19,703,869 § 1-53. THE COLLEGE OF WILLIAM AND MARY IN VIRGINIA (204) 140. Educational and General Programs (10000) $283,622,885 $291,471,785 $283,622,885 Higher Education Instruction (100101) $158,987,081 $166,835,981 $158,987,081 Higher Education Research (100102) $2,431,621 $2,431,621 Higher Education Public Services (100103) $31,293 $31,293 Higher Education Academic (100104) $41,415,059 $41,415,059 Higher Education Student Services (100105) $14,697,505 $14,697,505 Higher Education Institutional Support (100106) $39,281,523 $39,281,523 Operation and Maintenance Of Plant (100107) $26,778,803 $26,778,803 Fund Sources: General $75,466,460 $83,315,360 $75,466,460 Higher Education Operating $204,592,625 $204,592,625 Debt Service $3,563,800 $3,563,800 Authority: Title 23.1, Chapter 28, 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. 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. C. Out of this appropriation, $245,000 the first year and $245,000 the second year from the general fund is designated to support the Lewis B. Puller Jr. Veterans Benefits Clinic. D. Out of this appropriation, $287,850 and two positions the first year and $287,850 and two positions the second year from the general fund is designated to develop a specialization in military and veterans counseling within the existing clinical mental health counseling degree

_ 243 Item Details($) Appropriations($) ITEM 140. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 program and a post-graduate certificate in veterans counseling. E. The College of William and Mary may extend the authority granted to it under the Restructured Higher Education Financial and Administrative Operations Act (Title 23.1, Chapter 10, Code of Virginia) to Richard Bland College in a manner that is consistent with the Management Agreement By and Between the Commonwealth of Virginia and the College of William and Mary in Virginia, executed November 15, 2005 and subsequently amended to the provisions of the memorandum of understanding related to financial operations and other related administrative areas as executed by the presidents of both institutions on November 15, 2017 and as may subsequently be amended. F. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the amount of revenues to be collected for the educational and general program under the terms of the management agreement between the College of William and Mary and the Commonwealth, as set forth in Chapters 933 and 943 of the 2006 Acts of Assembly. G. 1. Out of this appropriation, $1,221,670 the first year and $1,221,670 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. The College of William and Mary is expected to maintain increases in: a. Data Science and Technology awards of 20 annually over the base year. b. Science and Engineering awards of 15 annually over the base year. c. Education awards of 5 annually over the base year. d. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees annually. H. Out of this appropriation, $250,000 and two positions the first year and $250,000 and two positions the second year from the general fund is designated for the development of the Public Policy's Whole of Government program. This program will provide a hybrid Master of Public Policy degree that will allow the first year to be completed online. I. The 4-VA, a public-private partnership among George Mason University, James Madison University, the University of Virginia, Virginia Tech, Old Dominion University, Virginia Military Institute, Virginia Commonwealth University, the College of William and Mary, and CISCO Systems, Inc., utilizes emerging technologies to promote collaboration and resource sharing to increase access, reduce time to graduation and reduce unit cost while maintaining and enhancing quality. Instructional talent across the eight institutions is leveraged in the delivery of programs in foreign languages, science, technology, engineering and mathematics. The 4-VA Management Board can expand this partnership to additional institutions as appropriate to meet the goals of the 4-VA

_ 244 Item Details($) Appropriations($) ITEM 140. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 initiative. It is expected that funding will be pooled by the management board as required to support continuing efforts of the 4-VA priorities and projects. J. Out of this appropriation, $500,000 the first year and $500,000 the second year from the general fund is designated to support operating expenses for research efforts connected with the Bray School in partnership with the Colonial Williamsburg Foundation. K. Out of this appropriation, $500,000 the first year from the general fund is designated to endow the Gamage Democracy Fellowship at the Colonial Williamsburg Foundation. The Fellowship will provide an international hub for education and advocacy of democracy through the continual, one-year salaried residency at the Colonial Williamsburg Foundation of an outstanding William and Mary graduate. Each fellow while in residency at the Colonial Williamsburg Foundation will develop international education programs in conjunction with The College of William and Mary and the Presidential Precinct. 141. Higher Education Student Financial Assistance (10800) $61,423,650 $61,589,650 $61,417,020 Scholarships (10810) $44,738,792 $44,904,792 $44,699,662 Fellowships (10820) $16,684,858 $16,717,358 Fund Sources: General $6,542,876 $6,708,876 $6,536,246 Higher Education Operating $54,880,774 $54,880,774 Authority: Title 23.1, Chapter 28, Code of Virginia. A. Higher education operating funds appropriated in this program may be allocated for need- based aid to Virginia undergraduate students to enhance the quality and diversity of the student body. B. The appropriation for the fund source Higher Education Operating in this Item shall be considered sum sufficient appropriation, which is an estimate of the revenue collected to meet student financial aid needs, under the terms of the management agreement between the university and the Commonwealth as set forth in Chapters 933 and 943 of the 2006 Acts of Assembly. C. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 142. Financial Assistance For Educational and General Services (11000) $32,339,735 $32,339,735 Sponsored Programs (11004) $32,339,735 $32,339,735 Fund Sources: General $75,000 $75,000 Higher Education Operating $32,264,735 $32,264,735 Authority: Title 23.1, Chapter 28, Code of Virginia. A. Out of this appropriation, $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 are designated to build research capacity in biomedical research and biomaterials engineering. B. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the university to cover sponsored program operations. 142.10 Historic and Commemorative Attraction Management (50200) $500,000 $0 Historic Landmarks and Facilities Management (50203) $500,000 $0

_ 245 Item Details($) Appropriations($) ITEM 142.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $500,000 $0 Authority: Title 23.1, Chapter 28, Code of Virginia. The amounts provided in this appropriation are designated for the support of James Monroe's Highland. 143. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $96,034,440 $96,034,440 Food Services (80910) $23,465,746 $23,465,746 Bookstores And Other Stores (80920) $799,578 $799,578 Residential Services (80930) $35,836,373 $35,836,373 Parking And Transportation Systems And Services (80940) $1,900,309 $1,900,309 Telecommunications Systems And Services (80950) $2,257,550 $2,257,550 Student Health Services (80960) $5,575,127 $5,575,127 Student Unions And Recreational Facilities (80970) $8,565,528 $8,565,528 Recreational And Intramural Programs (80980) $1,148,078 $1,148,078 Other Enterprise Functions (80990) $6,694,508 $6,694,508 Intercollegiate Athletics (80995) $9,791,643 $9,791,643 Fund Sources: Higher Education Operating $79,851,600 $79,851,600 Debt Service $16,182,840 $16,182,840 Authority: Title 23.1, Chapter 28, Code of Virginia. Total for The College of William and Mary in Virginia $473,420,710 $481,935,610 $473,414,080 General Fund Positions 558.16 558.16 Nongeneral Fund Positions 882.96 882.96 Position Level 1,441.12 1,441.12 Fund Sources: General $82,084,336 $90,599,236 $82,077,706 Higher Education Operating $371,589,734 $371,589,734 Debt Service $19,746,640 $19,746,640 Richard Bland College (241) 144. Educational and General Programs (10000) $21,280,884 $21,589,584 $21,280,884 Higher Education Instruction (100101) $11,405,938 $11,714,638 $11,405,938 Higher Education Public Services (100103) $4,500 $4,500 Higher Education Academic (100104) $1,076,911 $1,076,911 Higher Education Student Services (100105) $1,283,878 $1,283,878 Higher Education Institutional Support (100106) $5,234,735 $5,234,735 Operation and Maintenance Of Plant (100107) $2,274,922 $2,274,922 Fund Sources: General $14,571,445 $14,880,145 $14,571,445 Higher Education Operating $6,709,439 $6,709,439 Authority: Title 23.1, Chapter 28, 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. As Virginia's public colleges and universities approach full funding of the base

_ 246 Item Details($) Appropriations($) ITEM 144. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. C. In order to advance the goals of the Commonwealth of Virginia, the Virginia Plan for Higher Education and Richard Bland College, Richard Bland College may develop and deliver new, collaborative educational pathways and innovative educational models, including distance learning, technology-based instruction, prior learning assessments, work-based learning, and competency-based programs that lead to high-demand fields and industries critical to the economic development of the Petersburg region and Virginia. In addition, Richard Bland College may: 1. Continue to explore new and expanded partnership opportunities with the College of William and Mary as well as identify potential new higher education partners to pursue shared services and other options for cost reduction and increased efficiencies for any non-core business functions of the college. Unitization of shared services functions in the areas of Collections, Enterprise Resource Program (ERP), Procurement, and Accounts Payable will reduce overhead expenses and enable re-investment in the College's core business; 2. Identify higher education partners to strategically merge and align academic programming to advance the credential and completion goals outlined in the Virginia Plan for Higher Education; 3. Broker agreements between and among educational, industry, and non-profit partners and establish collaborative, innovative partnership agreements with school districts, public and private colleges and universities, economic development agencies, employers, philanthropic organizations, veterans organizations, public agencies and other partners as necessary to strengthen and streamline educational pathways from high school, to work-based learning, to baccalaureate and advanced degrees that prepare individuals, including nontraditional students and veterans, for entry into STEM-H and other high-demand careers in the Commonwealth; 4. Pilot and implement innovative educational approaches and technologies, and promote the development, delivery, and ongoing assessment of innovative, cost-effective degree programs and stackable credentials, including industry-recognized, competency-based credentials that are aligned with and responsive to the educational and workforce development needs of traditional and non-traditional students, including veterans and military personnel, and advance the economic development needs of employers and industries statewide; 5. Identify and implement new strategies to support economic and community development in Virginia and to expand opportunities for traditional and non-traditional students, including veterans, to prepare for high-demand fields. 6. The President of Richard Bland College shall submit a report on the institution's progress in exploring and expanding partnership opportunities for shared services and academic programming with other higher education partners to the Chairs of the House Committee on Appropriations, the House Committee on Education, the Senate Committee on Education and Health, and the Senate Committee on Finance and Appropriations no later than July 1 of each year. D. Out of this appropriation, $1,557,350 and 13 positions the first year and $1,557,350 and 13 positions the second year from the general fund is designated to address the staffing recommendations of the Auditor of Public Accounts related to financial management, information technology, human resources, financial aid, and operations. E. Out of this appropriation, $300,000 the first year and $300,000 the second year from the general fund is designated to support student success initiatives at Richard Bland College. Supported activities may include: (i) the implementation of Guided Pathways; (ii) the increase of course offerings related to diversity, equity, and inclusion; (iii) expansion of the College's health care service offerings for students; and (iv) expansion of student employment

_ 247 Item Details($) Appropriations($) ITEM 144. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 opportunities on campus. 145. Higher Education Student Financial Assistance (10800) $2,479,810 $2,531,810 $2,474,630 Scholarships (10810) $2,479,810 $2,531,810 $2,474,630 Fund Sources: General $2,419,810 $2,471,810 $2,414,630 Higher Education Operating $60,000 $60,000 Authority: Title 23.1, Chapter 28, Code of Virginia. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 146. Financial Assistance For Educational and General Services (11000) a sum sufficient, estimated at $15,000 $15,000 Sponsored Programs (11004) $15,000 $15,000 Fund Sources: Higher Education Operating $15,000 $15,000 Authority: Title 23.1, Chapter 28, Code of Virginia. 147. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $4,799,782 $4,799,782 Food Services (80910) $660,905 $660,905 Bookstores And Other Stores (80920) $200,000 $200,000 Residential Services (80930) $2,392,254 $2,392,254 Parking And Transportation Systems And Services (80940) $248,000 $248,000 Recreational And Intramural Programs (80980) $29,000 $29,000 Other Enterprise Functions (80990) $882,500 $882,500 Intercollegiate Athletics (80995) $387,123 $387,123 Fund Sources: Higher Education Operating $4,799,782 $4,799,782 Authority: Title 23.1, Chapter 28, Code of Virginia. Total for Richard Bland College $28,575,476 $28,936,176 $28,570,296 General Fund Positions 84.43 84.43 Nongeneral Fund Positions 41.41 41.41 Position Level 125.84 125.84 Fund Sources: General $16,991,255 $17,351,955 $16,986,075 Higher Education Operating $11,584,221 $11,584,221 Virginia Institute of Marine Science (268) 148. Educational and General Programs (10000) $32,716,726 $34,181,726 $32,716,726 $33,627,498 Higher Education Instruction (100101) $1,145,998 $1,145,998 Higher Education Research (100102) $14,516,788 $15,981,788 $14,516,788 $15,427,560 Higher Education Academic (100104) $6,833,162 $6,833,162 Higher Education Institutional Support (100106) $4,510,683 $4,510,683 Operation and Maintenance Of Plant (100107) $5,710,095 $5,710,095

_ 248 Item Details($) Appropriations($) ITEM 148. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $30,588,919 $32,053,919 $30,588,919 $31,499,691 Higher Education Operating $2,127,807 $2,127,807 Authority: Title 23.1, Chapter 28, and Title 28.2, Chapter 11, 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. If sufficient appropriations are not made available by the Commonwealth, it shall not be necessary for the Virginia Institute of Marine Science to reallocate funds from existing research projects to provide the funding for research mandated in the Code of Virginia or in the Appropriation Act. C. Out of this appropriation, $212,772 and four positions the first year and $212,772 $637,876 and four 6.85 positions the second year from the general fund is designated to support an Aquaculture Genetics and Breeding Technology Center at the Virginia Institute of Marine Science. The center shall coordinate its efforts with the repletion program of the Virginia Marine Resources Commission. D. It is the intent of the General Assembly that the development of a disease resistant native oyster remains a high priority for oyster-related research activities at the Virginia Institute of Marine Science. E. Out of this appropriation, $68,391 the first year and $68,391 the second year from the general fund is provided for the continuation of the Clean Marina Program. This additional funding will allow the Virginia Institute of Marine Science to provide education, outreach, and technical assistance to the Commonwealth's marinas in an effort to improve water quality. F. Out of this appropriation, $289,096 the first year and $289,096 the second year from the general fund is designated for the monitoring of the Chesapeake Bay's blue crab population. This additional support will permit the Virginia Institute of Marine Science to generate the data necessary to develop fishery management plans, determine in-danger habitats, and project the annual blue crab catch. G. Notwithstanding Chapter 719, 1999 Acts of Assembly, out of this appropriation, $159,579 the first year and $159,579 the second year from the general fund shall be provided to the Virginia Institute of Marine Science to support the Fishery Resource Grant Fund and Program. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the State Comptroller upon written request of the President of the College of William and Mary. H. Out of this appropriation, $432,894 and 3.15 positions the first year and $432,894 and 3.15 positions the second year from the general fund is designated to support research on sea level rise and state-of-the-art storm surge modeling, as well as for subcontracting with the College of William and Mary's Virginia Coastal Resilience Collaborative (VCRC) to conduct policy and legal analyses of stakeholder-driven adaptation responses to sea level rise, in support of the Commonwealth Center for Recurrent Flooding Resiliency. The center, a collaborative partnership involving the Virginia Institute of Marine Science, Old Dominion University, and the VCRC, shall work with municipalities both along coastal Virginia and throughout the Commonwealth to develop useful resilience strategies. I. Out of this appropriation, $125,000 the first year and $125,000 the second year from the general fund is designated for the establishment of a marine conservation fellowship program in partnership with Virginia-based marine science education programs and conservation museums. J. Out of this appropriation, $188,086 and one position the first year and $188,086 and one position the second year from the general fund is designated for supporting a network engineer, maintenance contracts, and staff training. K. Out of this appropriation, $406,075 and 2.70 positions the first year and $406,075 and 2.70

_ 249 Item Details($) Appropriations($) ITEM 148. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 positions the second year from the general fund is designated for a postdoctoral researcher and two research technicians, research-related supplies and materials, and ongoing service center costs to monitor the water quality of the Chesapeake Bay and its tributaries. L. Out of this appropriation, $403,000 the first year and $403,000 the second year from the general fund is designated for evaluating the ecological health of the Elizabeth River, monitoring the performance of past restoration projects, and providing scientific guidance on development of new restoration projects. Every fifth year a State of the Elizabeth River Scorecard report on pollution levels in the Elizabeth River shall be produced. The scorecard shall include, at a minimum, an assessment of fish health data including cancer levels, polycyclic aromatic hydrocarbons levels, and benthic community condition, in correlation with water and sediment contaminant analyses from the Elizabeth River. M. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the amount of revenues to be collected for the educational and general program under the terms of the management agreement between the College of William and Mary and the Commonwealth, as set forth in Chapters 933 and 943 of the 2006 Acts of Assembly. N. Out of this appropriation, $386,668 and 2.75 positions the first year and $386,668 and 2.75 positions the second year from the general fund is provided for an annual survey of submerged bay grasses and the development of best management practices for oyster aquaculture that supports co-existence with bay grasses. The survey is also intended to assist in evaluating attainment of water quality standards, permitting efforts of other state agencies, and evaluating progress towards meeting the Chesapeake Bay Program goals. O. Out of this appropriation, $185,000 the first year and $185,000 the second year from the general fund is provided for a cooperative research program on shellfish aquaculture and seagrass. The research program is intended to determine how aquaculture activity affects the recovery rate of ecologically functional eelgrass beds and develop a landscape- level ecological model that can inform management decisions about how to apportion habitats within the entire coastal bay system on Virginia's Eastern Shore. 149. Higher Education Student Financial Assistance (10800) $425,002 $437,502 Fellowships (10820) $425,002 $437,502 Fund Sources: General $425,002 $437,502 Authority: Title 23.1, Chapter 28, Code of Virginia. 150. Financial Assistance For Educational and General Services (11000) $30,312,794 $30,312,794 Eminent Scholars (11001) $75,496 $75,496 Sponsored Programs (11004) $30,237,298 $30,237,298 Fund Sources: Higher Education Operating $30,312,794 $30,312,794 Authority: Title 23.1, Chapter 28 and Title 28.2, Chapter 11, Code of Virginia. A. Out of the amounts for sponsored programs, $50,000 the first year and $50,000 the second year from nongeneral funds shall be paid from the Marine Fishing Improvement Fund to support the Mariculture and Marine Product Advisory Program. B. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the institute to cover sponsored program operations. Total for Virginia Institute of Marine Science $63,454,522 $64,919,522 $63,467,022 $64,377,794 General Fund Positions 322.57 322.57 329.42 Nongeneral Fund Positions 101.60 101.60 Position Level 424.17 424.17 431.02

_ 250 Item Details($) Appropriations($) ITEM 150. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $31,013,921 $32,478,921 $31,026,421 $31,937,193 Higher Education Operating $32,440,601 $32,440,601 Grand Total for The College of William and Mary in Virginia $565,450,708 $575,791,308 $565,451,398 $566,362,170 General Fund Positions 965.16 965.16 972.01 Nongeneral Fund Positions 1,025.97 1,025.97 Position Level 1,991.13 1,991.13 1,997.98 Fund Sources: General $130,089,512 $140,430,112 $130,090,202 $131,000,974 Higher Education Operating $415,614,556 $415,614,556 Debt Service $19,746,640 $19,746,640 § 1-54. GEORGE MASON UNIVERSITY (247) 151. Educational and General Programs (10000) $797,500,881 $808,632,881 $832,000,881 Higher Education Instruction (100101) $495,627,745 $506,759,745 $513,141,418 Higher Education Research (100102) $12,326,172 $12,940,192 Higher Education Public Services (100103) $3,072,097 $3,152,788 Higher Education Academic (100104) $99,114,872 $104,455,384 Higher Education Student Services (100105) $33,889,225 $35,584,904 Higher Education Institutional Support (100106) $86,808,792 $92,953,605 Operation and Maintenance Of Plant (100107) $66,661,978 $69,772,590 Fund Sources: General $251,619,051 $262,751,051 $251,619,051 Higher Education Operating $545,881,830 $580,381,830 Authority: Title 23.1, Chapter 15, Code of Virginia. A. This Item includes general and nongeneral fund appropriations to support institutional initiatives that help meet statewide goals as described in the Restructured Higher Education Financial and Administrative Operations Act of 2005 (Chapters 933 and 945, 2005 Acts of Assembly). B. Out of this appropriation, an amount estimated at $289,614 the first year and $289,614 the second year from the general fund and $124,120 the first year and $124,120 the second year from nongeneral funds are designated for the educational telecommunications project to provide graduate engineering education. For supplemental budget requests, the participating institutions and centers jointly shall submit a report in support of such requests to the State Council of Higher Education for Virginia for review and recommendation to the Governor and General Assembly. C. Out of this appropriation, $459,125 the first year and $459,125 the second year from the general fund is designated for the Institute for Conflict Analysis. D. 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. E. Out of this appropriation, $50,000 the first year and $50,000 the second year from the general fund is designated to support the Potomac Bay Science Center.

_ 251 Item Details($) Appropriations($) ITEM 151. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 F. Out of this appropriation, $400,000 the first year and $400,000 the second year from the general fund is designated to develop a pathway program to attract and train veterans for cyber security careers. G. The 4-VA, a public-private partnership among George Mason University, James Madison University, the University of Virginia, Virginia Tech, Old Dominion University, Virginia Military Institute, Virginia Commonwealth University, the College of William and Mary, and CISCO Systems, Inc., utilizes emerging technologies to promote collaboration and resource sharing to increase access, reduce time to graduation and reduce unit cost while maintaining and enhancing quality. Instructional talent across the eight institutions is leveraged in the delivery of programs in foreign languages, science, technology, engineering and mathematics. The 4-VA Management Board can expand this partnership to additional institutions as appropriate to meet the goals of the 4-VA initiative. It is expected that funding will be pooled by the management board as required to support continuing efforts of the 4-VA priorities and projects. H. 1. Out of this appropriation, $4,685,320 the first year and $4,685,320 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. George Mason University is expected to maintain increases in: a. Data Science and Technology awards of 50 annually over the base year. b. Science and Engineering awards of 35 annually over the base year. c. Healthcare awards of 35 annually over the base year. d. Education awards of 40 annually over the base year. e. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees annually. I. Out of this appropriation $50,000 the first year and $50,000 the second year from the general fund is designated for campus lighting, generators and other infrastructure at the School of Conflict Resolution at the Point of View facility. J. The Board of Visitors of George Mason University may participate in a joint venture or innovation agreement with an individual, corporation, governmental body or agency, partnership, association, or other entity to develop and deliver new, collaborative distance learning and technology-based instruction programs for traditional and non-traditional students, including veterans and military personnel. The Board may create or operate such entity accordingly. In the course of any venture or agreement, the Board may authorize a pilot and implementation of distance learning and technology-based instruction programs that are aligned with and responsive to the educational and workforce needs of traditional and non-traditional students. If the Board determines it is necessary to the development

_ 252 Item Details($) Appropriations($) ITEM 151. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 and delivery of distance learning and technology-based instruction programs, the Board may create or assist in the creation of; own in whole or in part or otherwise control; participate in or with any entities, public or private; and purchase, receive, subscribe for, own, use, employ, sell, pledge or otherwise acquire or dispose of (i) shares or obligations of, or interests in, any entity organized for any purpose within or outside the Commonwealth and (ii) obligations of any person or corporation. Prior to the execution of any joint venture or innovation agreement, George Mason University shall formally seek and receive approval from the State Council of Higher Education for Virginia and report on whether there will be any impact on current or future operations of the Online Virginia Network Authority. K. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the amount of revenues to be collected for the educational and general program under the terms of the management agreement between George Mason University and the Commonwealth, as set forth in Chapters 76 and 77, 2021 Acts of Assembly, Special Session I. 152. Higher Education Student Financial Assistance (10800) $122,877,744 $124,861,744 $123,262,124 Scholarships (10810) $115,890,428 $117,874,428 $116,052,308 Fellowships (10820) $6,987,316 $7,209,816 Fund Sources: General $81,181,744 $83,165,744 $81,566,124 Higher Education Operating $41,696,000 $41,696,000 Authority: Title 23.1, Chapter 15, Code of Virginia. A. Notwithstanding the provisions of § 4-5.01.5.b) of this Act, George Mason University is hereby authorized to transfer the balance of its discontinued student loan funds to an endowment fund established by the University to be used for undergraduate and graduate students in the Higher Education Student Financial Assistance Program. B. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. C. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the revenue collected to meet student financial aid needs, under the terms of the management agreement between George Mason University and the Commonwealth, as set forth in Chapters 76 and 77, 2021 Acts of Assembly, Special Session I. 153. Financial Assistance For Educational and General Services (11000) $318,335,000 $343,825,000 Eminent Scholars (11001) $1,000,000 $1,000,000 Sponsored Programs (11004) $317,335,000 $342,825,000 Fund Sources: General $2,106,250 $2,106,250 Higher Education Operating $316,228,750 $341,718,750 Authority: Title 23.1, Chapter 15, Code of Virginia. A. 1. Out of this appropriation, $956,250 the first year and $956,250 the second year from the general fund and $5,850,000 the first year and $5,850,000 the second year from nongeneral funds are designated to build research capacity in biomedical research and biomaterials engineering. 2. Out of this appropriation, $750,000 the first year and $750,000 the second year from the general fund is designated for applied research in simulation modeling and gaming. B. Out of this appropriation, $125,000 the first year and $125,000 the second year from the

_ 253 Item Details($) Appropriations($) ITEM 153. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 general fund is designated for Lyme Disease research and medical test development. C. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the university to cover sponsored program operations. D. Out of this appropriation, $275,000 the first year and $275,000 the second year from the general fund is designated for George Mason University, in collaboration with the Eastern Virginia Health Sciences Center, Old Dominion University, the University of Virginia, Virginia Commonwealth University, Virginia Tech-Carilion, INOVA, and Sentara Health System, to create the Virginia Commonwealth Clinical Research Network to serve as a network of institutions to conduct significant clinical trials in areas that include oncology, mental health and substance abuse. The Virginia Commonwealth Clinical Research Network would facilitate identifying and recruiting patients and expand access for researchers to a clinical base thereby creating greater opportunities for grant funding and the development commercialization of breakthrough products and services. 154. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $278,915,856 $295,655,856 Food Services (80910) $41,218,370 $43,087,921 Bookstores And Other Stores (80920) $2,122,995 $2,181,352 Residential Services (80930) $46,635,293 $49,056,482 Parking And Transportation Systems And Services (80940) $17,015,720 $17,768,150 Telecommunications Systems And Services (80950) $850,898 $951,654 Student Health Services (80960) $7,981,514 $9,050,887 Student Unions And Recreational Facilities (80970) $12,758,869 $13,350,658 Recreational And Intramural Programs (80980) $20,711,938 $21,539,848 Other Enterprise Functions (80990) $98,713,775 $105,174,937 Intercollegiate Athletics (80995) $30,906,484 $33,493,967 Fund Sources: Higher Education Operating $224,773,656 $241,513,656 Debt Service $54,142,200 $54,142,200 Authority: Title 23.1, Chapter 15, Code of Virginia. Total for George Mason University $1,517,629,481 $1,530,745,481 $1,594,743,861 General Fund Positions 1,082.14 1,082.14 Nongeneral Fund Positions 4,185.49 4,185.49 Position Level 5,267.63 5,267.63 Fund Sources: General $334,907,045 $348,023,045 $335,291,425 Higher Education Operating $1,128,580,236 $1,205,310,236 Debt Service $54,142,200 $54,142,200 § 1-55. JAMES MADISON UNIVERSITY (216) 155. Educational and General Programs (10000) $422,492,335 $427,431,235 $422,492,335 Higher Education Instruction (100101) $226,132,936 $231,071,836 $226,132,936 Higher Education Research (100102) $929,467 $929,467 Higher Education Public Services (100103) $1,818,665 $1,818,665 Higher Education Academic (100104) $55,988,950 $55,988,950 Higher Education Student Services (100105) $30,276,297 $30,276,297 Higher Education Institutional Support (100106) $60,667,831 $60,667,831 Operation and Maintenance Of Plant (100107) $46,678,189 $46,678,189

_ 254 Item Details($) Appropriations($) ITEM 155. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $158,056,836 $162,995,736 $158,056,836 Higher Education Operating $262,484,846 $262,484,846 Debt Service $1,950,653 $1,950,653 Authority: Title 23.1, Chapter 16, 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. 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. C. The 4-VA, a public-private partnership among George Mason University, James Madison University, the University of Virginia, Virginia Tech, Old Dominion University, Virginia Military Institute, Virginia Commonwealth University, the College of William and Mary, and CISCO Systems, Inc., utilizes emerging technologies to promote collaboration and resource sharing to increase access, reduce time to graduation and reduce unit cost while maintaining and enhancing quality. Instructional talent across the eight institutions is leveraged in the delivery of programs in foreign languages, science, technology, engineering and mathematics. The 4-VA Management Board can expand this partnership to additional institutions as appropriate to meet the goals of the 4-VA initiative. It is expected that funding will be pooled by the management board as required to support continuing efforts of the 4-VA priorities and projects. D. 1. Out of this appropriation, $2,445,920 the first year and $2,445,920 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. James Madison University is expected to maintain increases in: a. Data Science and Technology awards of 10 annually over the base year. b. Science and Engineering awards of 15 annually over the base year. c. Healthcare awards of 45 annually over the base year. d. Education awards of 15 annually over the base year. e. The 2016-17 year will serve as the base year for these purposes.

_ 255 Item Details($) Appropriations($) ITEM 155. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 4. SCHEV shall report on the progress toward these goals to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees annually. E. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the amount of revenues to be collected for the educational and general program under the terms of the management agreement between James Madison University and the Commonwealth, as set forth in Chapters 124 and 125 of the 2019 Acts of Assembly. 156. Higher Education Student Financial Assistance (10800) $36,710,476 $37,678,476 $37,051,466 Scholarships (10810) $35,485,855 $36,453,855 $35,801,845 Fellowships (10820) $1,224,621 $1,249,621 Fund Sources: General $23,107,676 $24,075,676 $23,448,666 Higher Education Operating $13,602,800 $13,602,800 Authority: Title 23.1, Chapter 16, Code of Virginia. A. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. B. The appropriation for the fund source Higher Education Operating in this Item shall be considered sum sufficient appropriation, which is an estimate of the revenue collected to meet student financial aid needs, under the terms of the management agreement between James Madison University and the Commonwealth as set forth in Chapters 124 and 125 of the 2019 Acts of Assembly. 157. Financial Assistance For Educational and General Services (11000) a sum sufficient, estimated at $58,250,000 $58,250,000 $59,859,363 Eminent Scholars (11001) $350,000 $350,000 Sponsored Programs (11004) $57,900,000 $57,900,000 $59,509,363 Fund Sources: Higher Education Operating $58,250,000 $58,250,000 $59,859,363 Authority: Title 23.1, Chapter 16, Code of Virginia. 158. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $275,698,469 $295,187,690 Food Services (80910) $87,349,003 $92,559,066 Bookstores And Other Stores (80920) $1,618,899 $1,635,088 Residential Services (80930) $45,505,956 $51,530,275 Parking And Transportation Systems And Services (80940) $8,997,820 $9,457,150 Telecommunications Systems And Services (80950) $2,021,213 $2,081,850 Student Health Services (80960) $7,743,772 $8,179,051 Student Unions And Recreational Facilities (80970) $8,786,996 $9,489,118 Recreational And Intramural Programs (80980) $16,493,445 $17,405,096 Other Enterprise Functions (80990) $24,101,299 $25,565,873 Intercollegiate Athletics (80995) $73,080,066 $77,285,123 Fund Sources: Higher Education Operating $233,166,347 $250,761,294

_ 256 Item Details($) Appropriations($) ITEM 158. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Debt Service $42,532,122 $44,426,396 Authority: Title 23.1, Chapter 16, Code of Virginia. Total for James Madison University $793,151,280 $799,058,180 $812,981,491 $814,590,854 General Fund Positions 1,309.22 1,309.22 Nongeneral Fund Positions 2,873.38 2,873.38 Position Level 4,182.60 4,182.60 Fund Sources: General $181,164,512 $187,071,412 $181,505,502 Higher Education Operating $567,503,993 $585,098,940 $586,708,303 Debt Service $44,482,775 $46,377,049 § 1-56. LONGWOOD UNIVERSITY (214) 159. Educational and General Programs (10000) $96,676,027 $97,857,927 $96,676,027 Higher Education Instruction (100101) $53,097,133 $54,279,033 $53,097,133 Higher Education Public Services (100103) $674,032 $674,032 Higher Education Academic (100104) $8,981,684 $8,981,684 Higher Education Student Services (100105) $5,892,626 $5,892,626 Higher Education Institutional Support (100106) $17,423,203 $17,423,203 Operation and Maintenance Of Plant (100107) $10,607,349 $10,607,349 Fund Sources: General $48,448,206 $49,630,106 $48,448,206 Higher Education Operating $48,227,821 $48,227,821 Authority: Title 23.1, Chapter 17, 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. 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. C. 1. Out of this appropriation, $547,000 the first year and $547,000 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and

_ 257 Item Details($) Appropriations($) ITEM 159. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. Longwood University is expected to maintain increases in: a. Science and Engineering awards of 5 annually over the base year. b. Healthcare awards of 5 annually over the base year. c. Education awards of 5 annually over the base year. d. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairman of the House Appropriations and Senate Finance and Appropriations Committees annually. 160. Higher Education Student Financial Assistance (10800) $12,693,088 $13,044,088 $12,718,568 Scholarships (10810) $12,651,824 $13,002,824 $12,672,304 Fellowships (10820) $41,264 $46,264 Fund Sources: General $9,697,449 $10,048,449 $9,722,929 Higher Education Operating $2,995,639 $2,995,639 Authority: Title 23.1, Chapter 17, Code of Virginia. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 161. Financial Assistance For Educational and General Services (11000) a sum sufficient, estimated at $5,678,393 $5,678,393 $5,828,393 Sponsored Programs (11004) $5,678,393 $5,678,393 $5,828,393 Fund Sources: Higher Education Operating $5,678,393 $5,678,393 $5,828,393 Authority: Title 23.1, Chapter 17, Code of Virginia. 162. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $64,882,672 $64,882,672 Food Services (80910) $8,139,258 $8,139,258 Bookstores And Other Stores (80920) $273,195 $273,195 Residential Services (80930) $22,354,254 $22,354,254 Parking And Transportation Systems And Services (80940) $989,591 $989,591 Telecommunications Systems And Services (80950) $951,620 $951,620 Student Health Services (80960) $974,226 $974,226 Student Unions And Recreational Facilities (80970) $3,179,541 $3,179,541 Recreational And Intramural Programs (80980) $2,172,334 $2,172,334 Other Enterprise Functions (80990) $16,807,306 $16,807,306 Intercollegiate Athletics (80995) $9,041,347 $9,041,347 Fund Sources: Higher Education Operating $57,295,361 $57,295,361 Debt Service $7,587,311 $7,587,311

_ 258 Item Details($) Appropriations($) ITEM 162. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: Title 23.1, Chapter 17, Code of Virginia. Total for Longwood University $179,930,180 $181,463,080 $179,955,660 $180,105,660 General Fund Positions 291.39 291.39 Nongeneral Fund Positions 471.67 471.67 Position Level 763.06 763.06 Fund Sources: General $58,145,655 $59,678,555 $58,171,135 Higher Education Operating $114,197,214 $114,197,214 $114,347,214 Debt Service $7,587,311 $7,587,311 § 1-57. NORFOLK STATE UNIVERSITY (213) 163. Educational and General Programs (10000) $144,350,199 $159,766,399 $144,350,199 Higher Education Instruction (100101) $77,247,725 $92,663,925 $77,247,725 Higher Education Research (100102) $199,975 $199,975 Higher Education Public Services (100103) $1,326,879 $1,326,879 Higher Education Academic (100104) $18,253,032 $18,253,032 Higher Education Student Services (100105) $7,234,752 $7,234,752 Higher Education Institutional Support (100106) $22,893,297 $22,893,297 Operation and Maintenance Of Plant (100107) $17,194,539 $17,194,539 Fund Sources: General $94,150,359 $109,566,559 $94,150,359 Higher Education Operating $50,199,840 $50,199,840 Authority: Title 23.1, Chapter 19, 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.1. Out of this appropriation, $5,350,128 the first year and $5,350,128 the second year from the general fund is designated for the Bachelor of Science academic programs in Electronics Engineering and Optical Engineering and Master of Science academic programs in Electronics Engineering, Optical Engineering, Computer Science, and Criminal Justice. 2. Out of the amounts for Educational and General Programs, $37,500 the first year and $37,500 the second year from the general fund is provided to serve in lieu of endowment income from the Eminent Scholars Program. C.1. Out of the amounts for Educational and General Programs, a maximum of $70,000 the first year and $70,000 the second year from the general fund is designated for the Dozoretz National Institute for Minorities in Applied Sciences. 2. Any unexpended balances in paragraphs B.1., B.2., and C.1. in this Item at the close of business on June 30 each year shall not revert to the surplus of the general fund, but shall be carried forward on the books of the State Comptroller and reappropriated in the succeeding year. Norfolk State University may expend any prior year end balances to support its educational and general activities or its auxiliary enterprise activities. D. 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

_ 259 Item Details($) Appropriations($) ITEM 163. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 increases on tuition and mandatory educational and general fees for in-state, undergraduate students to the extent possible. E. Out of this appropriation, $220,000 the first year and $220,000 the second year from the general fund is designated to increase retention and graduation of juniors and seniors in good academic standing and who have additional demonstrated need. F. 1. Out of this appropriation, $826,570 the first year and $826,570 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. Norfolk State University is expected to maintain increases in: a. Data Science and Technology awards of 5 annually over the base year. b. Science and Engineering awards of 5 annually over the base year. c. Healthcare awards of 5 annually over the base year. d. Education awards of 5 annually over the base year. e. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees annually. G. Out of this appropriation, $548,000 the first year and $548,000 the second year from the general fund is designated for the Center for African American Policy to provide non- partisan research on public policy issues affecting African Americans and other people of color. H. Norfolk State University, in partnership with Virginia State University, shall collaborate with Virginia Union University and Hampton University and various localities throughout the Commonwealth to (a) create Minority Small Business Launch and Innovation Centers that support entrepreneurship customized to minority community needs, (b) improve health outcomes of vulnerable and marginalized populations in their surrounding localities through research, education, workforce development and outreach, (c) expand and upgrade broadband and technology in order to close the digital divide and provide students with additional tech job training, (d) actively engage with local public school districts to provide opportunities and awareness of post-secondary programs and curriculum, and (e) support the creation of an HBCU NoVA Campus by establishing an off-campus instruction site at Northern Virginia Community College in order to provide an opportunity to expand the HBCU presence in Northern Virginia, and access and opportunity to an increasing population of students seeking a four-year degree. I. 1. Notwithstanding any other provisions of law, Norfolk State University is authorized to remit tuition and fees for merit scholarships for students of high academic achievement subject to the following limitations and restrictions:

_ 260 Item Details($) Appropriations($) ITEM 163. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 2. The number of such scholarships annually awarded to undergraduate Virginia students shall not exceed 20 percent of the fall headcount enrollment of Virginia students in undergraduate studies in the institution from the preceding academic year. The total value of such merit scholarships annually awarded shall not exceed in any year the amount arrived at by multiplying the applicable figure for undergraduate tuition and required fees by 20 percent of the headcount enrollment of Virginia students in undergraduate studies in the institution for the fall semester from the preceding academic year. 3. The number of such scholarships annually awarded to undergraduate non-Virginia students shall not exceed 20 percent of the fall headcount enrollment of non-Virginia students in undergraduate studies in the institution from the preceding academic year. The total value of such merit scholarships annually awarded shall not exceed in any year the amount arrived at by multiplying the applicable figure for undergraduate tuition and required fees by 20 percent of the fall headcount enrollment of non-Virginia students in undergraduate studies in the institution during the preceding academic year. 4. A scholarship awarded under this program shall entitle the holder to receive an annual remission of an amount not to exceed the cost of tuition and required fees to be paid by the student. 164. Higher Education Student Financial Assistance (10800) $39,769,371 $40,506,371 $39,833,271 Scholarships (10810) $39,257,069 $39,994,069 $39,310,969 Fellowships (10820) $512,302 $522,302 Fund Sources: General $34,636,504 $35,373,504 $34,700,404 Higher Education Operating $5,132,867 $5,132,867 Authority: Title 23.1, Chapter 19, Code of Virginia. A. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. B. 1. Out of this appropriation up to $7,222,765 the first year and $7,222,765 from the general fund is provided for an affordability program to offer financial assistance to Virginia students who are Pell grant eligible, meet university admissions requirements, and live within a 45 mile radius of the university. The program is designed to address regional needs relating to access and completion. Funds shall be used to provide last dollar or reduced tuition and fees to students for up to 150 percent of required credits to complete a certificate or degree. Priority shall be placed on students from Norfolk, Portsmouth, and Newport News and remaining funds may be used for room and board if available. It is the intention that the program may include up to 300 students at any one time. In the event that financial aid remains available after recruiting new students for fall semester, the remaining financial aid may be used to fund current students who meet the criteria and/or for eligible new students that enroll in the spring semester. 2. As part of the six-year plan process, the university shall submit an annual report of the program that includes number of students served, average financial need of students, total expenditures, average award per student, retention and completion rates, other student outcomes as defined by the university, and planned outcomes for the upcoming year. 3. The University shall submit a detailed budget and implementation plan, including how the institution will disseminate information about the program to area students, the projected size of each cohort, and how the institution will monitor and report on the success of the program. 165. Financial Assistance For Educational and General Services (11000) a sum sufficient, estimated at $20,231,943 $20,231,943

_ 261 Item Details($) Appropriations($) ITEM 165. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Sponsored Programs (11004) $20,231,943 $20,231,943 Fund Sources: Higher Education Operating $20,231,943 $20,231,943 Authority: Title 23.1, Chapter 19, Code of Virginia. 166. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $49,312,878 $49,312,878 $64,312,878 Food Services (80910) $1,368,865 $1,368,865 $7,983,023 Bookstores And Other Stores (80920) $393,740 $393,740 Residential Services (80930) $14,529,508 $14,529,508 Parking And Transportation Systems And Services (80940) $458,180 $458,180 Student Health Services (80960) $1,000,000 $1,000,000 Student Unions And Recreational Facilities (80970) $9,570,213 $9,570,213 Other Enterprise Functions (80990) $14,824,504 $14,824,504 Intercollegiate Athletics (80995) $7,167,868 $7,167,868 $15,553,710 Fund Sources: Higher Education Operating $40,488,242 $40,488,242 $55,488,242 Debt Service $8,824,636 $8,824,636 Authority: Title 23.1, Chapter 19, Code of Virginia. Total for Norfolk State University $253,664,391 $269,817,591 $253,728,291 $268,728,291 General Fund Positions 531.15 531.15 Nongeneral Fund Positions 689.97 689.97 Position Level 1,221.12 1,221.12 Fund Sources: General $128,786,863 $144,940,063 $128,850,763 Higher Education Operating $116,052,892 $116,052,892 $131,052,892 Debt Service $8,824,636 $8,824,636 § 1-58. OLD DOMINION UNIVERSITY (221) 167. Educational and General Programs (10000) $386,519,897 $398,280,097 $386,519,897 Higher Education Instruction (100101) $237,353,685 $249,113,885 $237,353,685 Higher Education Research (100102) $8,271,813 $8,271,813 Higher Education Public Services (100103) $311,015 $311,015 Higher Education Academic (100104) $53,531,014 $53,531,014 Higher Education Student Services (100105) $21,323,500 $21,323,500 Higher Education Institutional Support (100106) $35,120,760 $35,120,760 Operation and Maintenance Of Plant (100107) $30,608,110 $30,608,110 Fund Sources: General $203,150,681 $214,910,881 $203,150,681 Higher Education Operating $183,369,216 $183,369,216 Authority: Title 23.1, Chapter 20, Code of Virginia. A.1. 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). 2. Out of this appropriation, the university may allocate funds to expand enrollment

_ 262 Item Details($) Appropriations($) ITEM 167. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 capacity through expansion of distance learning, TELETECHNET and summer school. B. Out of this appropriation, $431,013 the first year and $431,013 the second year from the general fund and $198,244 the first year and $198,244 the second year from nongeneral funds are designated for the educational telecommunications project to provide graduate engineering education. For supplemental budget requests, the participating institutions and centers jointly shall submit a report in support of such requests to the State Council of Higher Education for Virginia for review and recommendation to the Governor and General Assembly. C. Notwithstanding § 1-610, Code of Virginia, Old Dominion University is hereby designated as the administrative agency for the Virginia Coordinate System. D. Notwithstanding § 23.1-506, Code of Virginia, the governing board of Old Dominion University may charge reduced tuition to any person enrolled in one of Old Dominion University's TELETECHNET sites or higher education centers who lives within a 50-mile radius of the site/center, is domiciled in, and is entitled to in-state tuition charges in the institutions of higher learning in any state, or the District of Columbia, which is contiguous to Virginia and which has similar reciprocal provisions for persons domiciled in Virginia. E. 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. F. Out of this appropriation, $320,000 the first year and $320,000 the second year from the general fund is designated to provide opportunity for 80 students per year to be engaged in STEM education using aerospace, high tech science, technology and engineering in partnership with NASA Wallops Flight Facility. Old Dominion University will collaborate with the Virginia Space Grant Consortium and STEM educators to identify the students who will participate in the program each year. The designated funding in this paragraph will not be considered as a resource for purposes of funding guidelines. G. Out of this appropriation, $409,200 and four positions the first year and $409,200 and four positions the second year from the general fund is designated to support modeling of socioeconomic impacts of recurrent flooding in support of the Commonwealth Center for Recurrent Flooding Resiliency. The center, a collaborative partnership involving Old Dominion University, the Virginia Institute of Marine Science, and the College of William and Mary's Virginia Coastal Resilience Collaborative, shall work with municipalities both along coastal Virginia and throughout the Commonwealth to develop useful resilience strategies. H. The 4-VA, a public-private partnership among George Mason University, James Madison University, the University of Virginia, Virginia Tech, Old Dominion University, Virginia Military Institute, Virginia Commonwealth University, the College of William and Mary, and CISCO Systems, Inc., utilizes emerging technologies to promote collaboration and resource sharing to increase access, reduce time to graduation and reduce unit cost while maintaining and enhancing quality. Instructional talent across the eight institutions is leveraged in the delivery of programs in foreign languages, science, technology, engineering and mathematics. The 4-VA Management Board can expand this partnership to additional institutions as appropriate to meet the goals of the 4-VA initiative. It is expected that funding will be pooled by the management board as required to support continuing efforts of the 4-VA priorities and projects. I. 1. Out of this appropriation, $3,611,790 the first year and $3,611,790 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows:

_ 263 Item Details($) Appropriations($) ITEM 167. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. Old Dominion University is expected to maintain increases in: a. Data Science and Technology awards of 15 annually over the base year. b. Science and Engineering awards of 40 annually over the base year. c. Healthcare awards of 40 annually over the base year. d. Education awards of 30 annually over the base year. e. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees annually. J. Out of this appropriation, $25,000 the first year and $25,000 the second year from the general fund is designated for the Marine Rescue Program, a collaborative program between Old Dominion University and the Virginia Aquarium and Marine Science Foundation to support rescue efforts for stranded and sick marine animals throughout the entire Virginia coastline region of the Chesapeake Bay. K. Out of this appropriation, $264,000 the first year and $264,000 the second year from the general fund is designated to provide more targeted internship experiences through the Commonwealth Science, Technology, Engineering, and Mathematics (STEM) Industry Internship Program, managed by the Virginia Space Grant Consortium. 168. Higher Education Student Financial Assistance (10800) $68,446,117 $70,581,117 $69,350,997 Scholarships (10810) $64,750,272 $66,885,272 $65,550,152 Fellowships (10820) $3,695,845 $3,800,845 Fund Sources: General $65,118,599 $67,253,599 $66,023,479 Higher Education Operating $3,327,518 $3,327,518 Authority: Title 23.1, Chapter 20, Code of Virginia. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 169. Financial Assistance For Educational and General Services (11000) $26,223,883 $26,223,883 Eminent Scholars (11001) $421,387 $421,387 Sponsored Programs (11004) $25,802,496 $25,802,496 Fund Sources: General $12,000,895 $12,000,895

_ 264 Item Details($) Appropriations($) ITEM 169. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Higher Education Operating $14,222,988 $14,222,988 Authority: Title 23.1, Chapter 20, Code of Virginia. A.1. Out of this appropriation, $2,099,838 and 14 positions the first year and $2,099,838 and 14 positions the second year from the general fund and $4,500,000 the first year and $4,500,000 the second year from nongeneral funds are designated to build research capacity in modeling and simulation, which shall include efforts to improve traffic management through modeling. 2. Out of this appropriation, $250,000 the first year and $250,000 the second year from the general fund is designated to support science, technology, engineering and mathematics (STEM), and health-related programs. Old Dominion University shall use these funds to promote the use of modeling and simulation in the medical industry. B. Out of this appropriation, $1,500,000 the first year and $1,500,000 the second year from the general fund is designated to expand research efforts at the Center for Bioelectrics, which uses electrical stimuli in the biomedical area to eliminate cancer cells and tumors without damaging healthy surrounding tissue, accelerate wound healing, and efficiently deliver DNA vaccines. Non-biomedical areas of research include reducing pollutants in exhaust and establishing effective ground penetrating radar. C. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the university to cover sponsored program operations. D. Out of this appropriation, $370,000 the first year and $370,000 the second year from the general fund is designated to the Virginia SmallSat Data Consortium, to support development of the Virginia Institute for Spaceflight and Autonomy. E. Out of this appropriation, $4,000,000 the first year and $4,000,000 the second year from the general fund is provided for the Hampton Roads Biomedical Research Consortium. F. Out of this appropriation, $250,000 the first year and $250,000 the second year from the general fund is designated to support a minority fellowship program partnership between Old Dominion University and the Virginia Symphony Orchestra. G. Out of this appropriation, $500,000 each year from the general fund is designated to support the Maritime Center for Mission Engineering Solutions and Workforce Training. H. Out of this appropriation, $1,500,000 each year from the general fund is designated to support the Institute for Coastal Adaptation and Resilience at Old Dominion University and its collaboration with the Chesapeake Bay Foundation. I. Out of this appropriation, $500,000 each year from the general fund is designated to support the necessary staffing, equipment, and related services for the Potomac Aquifer Recharge Monitoring Laboratory established in § 62.1-274, Code of Virginia. 170. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $121,861,551 $121,861,551 Food Services (80910) $5,271,296 $5,271,296 Bookstores And Other Stores (80920) $655,764 $655,764 Residential Services (80930) $38,607,137 $38,607,137 Parking And Transportation Systems And Services (80940) $6,732,078 $6,732,078 Telecommunications Systems And Services (80950) $906,134 $906,134 Student Health Services (80960) $3,754,531 $3,754,531 Student Unions And Recreational Facilities (80970) $8,398,826 $8,398,826 Recreational And Intramural Programs (80980) $4,215,657 $4,215,657 Other Enterprise Functions (80990) $19,151,860 $19,151,860 Intercollegiate Athletics (80995) $34,168,268 $34,168,268 Fund Sources: Higher Education Operating $95,386,189 $95,386,189 Debt Service $26,475,362 $26,475,362

_ 265 Item Details($) Appropriations($) ITEM 170. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: Title 23.1, Chapter 20, Code of Virginia. Old Dominion University is authorized to establish a self-supporting "instructional enterprise" fund to account for the revenues and expenditures of TELETECHNET classes offered at locations outside the Commonwealth of Virginia. Consistent with the self- supporting concept of an "enterprise fund," student tuition and fee revenues for TELETECHNET students at locations outside Virginia shall 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 University's Board of Visitors. Revenue and expenditures of the fund shall be accounted for in such a manner as to be auditable by the State Council of Higher Education for Virginia. Revenues in excess of expenditures shall be retained in the fund to support the entire TELETECHNET program. Full-time equivalent students generated through these programs shall be accounted for separately. Additionally, revenues which remain unexpended on the last day of the previous biennium and the last day of the first year of the current biennium shall be reappropriated and allotted for expenditure in the respective succeeding fiscal year. Total for Old Dominion University $603,051,448 $616,946,648 $603,956,328 General Fund Positions 1,090.51 1,090.51 Nongeneral Fund Positions 1,531.98 1,531.98 Position Level 2,622.49 2,622.49 Fund Sources: General $280,270,175 $294,165,375 $281,175,055 Higher Education Operating $296,305,911 $296,305,911 Debt Service $26,475,362 $26,475,362 Eastern Virginia Medical School (274) 171. Financial Assistance For Educational and General Services (11000) $70,835,159 $65,835,159 Sponsored Programs (11004) $595,612 $595,612 Medical Education (11005) $70,239,547 $65,239,547 Fund Sources: General $70,835,159 $65,835,159 Authority: Title 23.1, Chapter 30 and Chapter 87, Acts of Assembly of 2002, Chapter 756 and Chapter 778, Acts of Assembly of 2023. A. The appropriation in this item shall provide financial support for the continued operations of the schools and divisions existing as the Eastern Virginia Medical School prior to the effective date of Chapter 756 and Chapter 778 of the 2023 Acts of Assembly. B. The Department of Planning and Budget may transfer the appropriation from this item to Agency 221 Old Dominion University as necessary to facilitate the operations of the Eastern Virginia Health Sciences Center at Old Dominion University. C. Out of this appropriation, $595,612 the first year and $595,612 the second year from the general fund is designated to build research capacity in medical modeling and simulation. D. Out of this appropriation, $6,158,108 the first year and $6,158,108 the second year from the general fund is designated for treatment, care and maintenance of indigent Virginia patients through the medical school. The aid is to be apportioned on the basis of a plan to be approved, at the beginning of each biennium, by the Director, Department of Medical Assistance Services. E. Out of this appropriation, $1,225,700 the first year and $1,225,700 the second year from the general fund is designated to support financial aid for in-state medical and health professions students. F. Out of this appropriation, $658,597 the first year and $658,597 the second year from the general fund is designated for the operation of the Family Practice Residency program and

_ 266 Item Details($) Appropriations($) ITEM 171. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Family Practice Medical Student programs. G. Out of this appropriation, $60,620 the first year and $60,620 the second year from the general fund is designated to support the Eastern Virginia Area Health Education Center. H. The Eastern Virginia Health Sciences Center at Old Dominion University shall transfer funds to the Department of Medical Assistance Services to fully fund the state share for Medicaid supplemental payments to physicians affiliated with Eastern Virginia Medical School or the Eastern Virginia Health Sciences Center for Medicaid supplemental capitation payments to managed care organizations for the purpose of securing access to Medicaid physician's services in Eastern Virginia. The funds to be transferred must comply with 42 CFR 433.51. I. The Eastern Virginia Health Sciences Center at Old Dominion University is hereby authorized to transfer funds to the Department of Medical Assistance Services to fully fund the state share for Medicaid supplemental payments to the primary teaching hospitals affiliated with Eastern Virginia Medical School or the Eastern Virginia Health Sciences Center. These Medicaid supplemental fee-for-service and/or capitation payments to managed care organizations are for the purpose of securing access to hospital services in Eastern Virginia. The funds to be transferred must comply with 42 CFR 433.51. J. 1. Out of this appropriation, $1,250,000 the first year and $1,250,000 the second year from the general fund is designated to support accreditation requirements at the Eastern Virginia Health Sciences Center at Old Dominion University. 2. Out of this appropriation, $1,250,000 the first year and $1,250,000 the second year from the general fund is designated to support community health programs in partnership with Sentara Healthcare. K. Eastern Virginia Health Sciences Center is hereby authorized to transfer funds to the Department of Medical Assistance Services to fully fund the state share for Medicaid supplemental payments and managed care directed payments to primary teaching hospitals affiliated with Eastern Virginia Health Sciences Center. 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 Eastern Virginia Medical School that are in excess of fair market value or that alleviate pre-existing financial burdens of the school. Eastern Virginia Medical School is authorized to use general fund dollars to accomplish this transfer. As part of interagency agreements, the department shall require the public entities to attest to compliance with applicable CMS criteria. L. The unexpended balance from the $9,000,000 general fund appropriation provided in Chapter 1, 2023 Acts of Assembly, Special Session I, for costs associated with the conversion of employees into the state personnel system shall not be reappropriated in fiscal year 2025, but shall revert to the general fund. M. Out of this appropriation $35,000,000 the first year and $30,000,000 the second year from the general fund is provided to support ongoing operations of the Eastern Virginia Health Sciences Center at Old Dominion University. N. State employee as defined by § 2.2-2818 of the Code of Virginia includes the residents and fellows employed by the Eastern Virginia Health Sciences Center at Old Dominion University. Total for Eastern Virginia Medical School $70,835,159 $65,835,159 Fund Sources: General $70,835,159 $65,835,159 Grand Total for Old Dominion University $673,886,607 $687,781,807 $669,791,487 General Fund Positions 1,090.51 1,090.51 Nongeneral Fund Positions 1,531.98 1,531.98 Position Level 2,622.49 2,622.49 Fund Sources: General $351,105,334 $365,000,534 $347,010,214

_ 267 Item Details($) Appropriations($) ITEM 171. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Higher Education Operating $296,305,911 $296,305,911 Debt Service $26,475,362 $26,475,362 § 1-59. RADFORD UNIVERSITY (217) 172. Educational and General Programs (10000) $182,341,578 $186,224,678 $182,341,578 Higher Education Instruction (100101) $124,623,413 $128,506,513 $124,623,413 Higher Education Public Services (100103) $659,253 $659,253 Higher Education Academic (100104) $13,363,088 $13,363,088 Higher Education Student Services (100105) $6,986,590 $6,986,590 Higher Education Institutional Support (100106) $24,843,646 $24,843,646 Operation and Maintenance Of Plant (100107) $11,865,588 $11,865,588 Fund Sources: General $94,266,288 $98,149,388 $94,266,288 Higher Education Operating $88,075,290 $88,075,290 Authority: Title 23.1, Chapter 21, 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. 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. C. 1. Out of this appropriation, $1,028,460 the first year and $1,028,460 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. Radford University is expected to maintain increases in: a. Data Science and Technology awards of 5 annually over the base year. b. Science and Engineering awards of 5 annually over the base year. c. Healthcare awards of 10 annually over the base year. d. Education awards of 10 annually over the base year.

_ 268 Item Details($) Appropriations($) ITEM 172. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 e. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees annually. 5. Out of the amounts designated for degree production $300,000 the first year and $300,000 the second year is designated to support a flat-fee degree initiative for education programs. Radford University shall offer alternative tuition or fee structures, including discounted tuition, flat tuition rates, discounted student fees, or student fee and student services flexibility, to any first-time, incoming freshman undergraduate student who (i) has established domicile, as that term is defined in § 23.1-500 et seq., in the Commonwealth and (ii) enrolls full time with the intent to earn a degree in a program that leads to employment as a teacher in the region. Such an alternative tuition or fee structure may be renewed each year if the recipient maintains continuous full-time enrollment. If a recipient fails to maintain continuous full-time enrollment, subsequently enrolls in a noneligible degree program, or fails to complete the eligible degree program within four years, the institution shall convert the financial benefit received by the student to a financial obligation payable by the student to the institution on terms established by the institution. 173. Higher Education Student Financial Assistance (10800) $31,763,383 $32,372,383 $31,622,983 Scholarships (10810) $30,525,236 $31,134,236 $30,354,836 Fellowships (10820) $1,238,147 $1,268,147 Fund Sources: General $29,855,912 $30,464,912 $29,715,512 Higher Education Operating $1,907,471 $1,907,471 Authority: Title 23.1, Chapter 21, Code of Virginia. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 174. Financial Assistance For Educational and General Services (11000) a sum sufficient, estimated at $9,010,037 $9,010,037 Eminent Scholars (11001) $48,397 $48,397 Sponsored Programs (11004) $8,961,640 $8,961,640 Fund Sources: Higher Education Operating $9,010,037 $9,010,037 Authority: Title 23.1, Chapter 21, Code of Virginia. 175. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $68,977,308 $68,977,308 Food Services (80910) $19,251,178 $19,251,178 Bookstores And Other Stores (80920) $605,227 $605,227 Residential Services (80930) $16,275,025 $16,275,025 Parking And Transportation Systems And Services (80940) $1,657,550 $1,657,550 Telecommunications Systems And Services (80950) $659,898 $659,898 Student Health Services (80960) $3,242,356 $3,242,356 Student Unions And Recreational Facilities (80970) $6,101,566 $6,101,566 Recreational And Intramural Programs (80980) $1,659,883 $1,659,883 Other Enterprise Functions (80990) $5,324,675 $5,324,675 Intercollegiate Athletics (80995) $14,199,950 $14,199,950 Fund Sources: Higher Education Operating $64,777,308 $64,777,308

_ 269 Item Details($) Appropriations($) ITEM 175. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Debt Service $4,200,000 $4,200,000 Authority: Title 23.1, Chapter 21, Code of Virginia. Total for Radford University $292,092,306 $296,584,406 $291,951,906 General Fund Positions 631.39 631.39 Nongeneral Fund Positions 964.69 964.69 Position Level 1,596.08 1,596.08 Fund Sources: General $124,122,200 $128,614,300 $123,981,800 Higher Education Operating $163,770,106 $163,770,106 Debt Service $4,200,000 $4,200,000 § 1-60. UNIVERSITY OF MARY WASHINGTON (215) 176. Educational and General Programs (10000) $104,389,010 $109,800,310 $104,389,010 Higher Education Instruction (100101) $59,505,688 $64,916,988 $59,505,688 Higher Education Research (100102) $449,316 $449,316 Higher Education Public Services (100103) $580,981 $580,981 Higher Education Academic (100104) $11,251,355 $11,251,355 Higher Education Student Services (100105) $10,793,474 $10,793,474 Higher Education Institutional Support (100106) $13,570,733 $13,570,733 Operation and Maintenance Of Plant (100107) $8,237,463 $8,237,463 Fund Sources: General $48,787,432 $54,198,732 $48,787,432 Higher Education Operating $55,601,578 $55,601,578 Authority: Title 23.1, Chapter 18, 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. Out of this appropriation an amount estimated at $80,483 the first year and $80,483 the second year from the general fund and $36,130 the first year and $36,130 the second year nongeneral funds are designated for the educational telecommunications project to provide graduate engineering education. The participating institutions and centers shall jointly submit an annual report and operating plan to the State Council of Higher Education for Virginia in support of these funded activities. C. 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. D. Notwithstanding any other provision of law, the University of Mary Washington may enter into an agreement with the Fredericksburg Regional Alliance, a nonprofit organization dedicated to cooperative economic development efforts in the Fredericksburg region, for the purpose of expanding regional efforts in the field of economic development and research. E. 1. Out of this appropriation, $338,550 the first year and $338,550 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education.

_ 270 Item Details($) Appropriations($) ITEM 176. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. University of Mary Washington is expected to maintain increases in: a. Science and Engineering awards of 5 annually over the base year. b. Education awards of 5 annually over the base year. c. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairs of the House Appropriations and Senate Finance and Appropriation Committees annually. F. Out of this appropriation, $568,000 the first year and $568,000 the second year from the general fund is designated to support an educational partnership between regional K-12 school divisions, community colleges, University of Mary Washington and industry to develop a curriculum that accelerates time to degree, lowers cost, eliminates the skills gap and reduces reliance on student debt in the areas of Education, Healthcare and Cybersecurity. 177. Higher Education Student Financial Assistance (10800) $17,299,722 $17,533,722 $17,330,602 Scholarships (10810) $17,260,189 $17,494,189 $17,291,069 Fellowships (10820) $39,533 $39,533 Fund Sources: General $7,099,722 $7,333,722 $7,130,602 Higher Education Operating $10,200,000 $10,200,000 Authority: Title 23.1, Chapter 18, Code of Virginia. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 178. Financial Assistance For Educational and General Services (11000) a sum sufficient, estimated at $809,533 $809,533 Eminent Scholars (11001) $57,396 $57,396 Sponsored Programs (11004) $752,137 $752,137 Fund Sources: Higher Education Operating $809,533 $809,533 Authority: Title 23.1, Chapter 18, Code of Virginia. 179. Museum and Cultural Services (14500) $1,099,138 $1,099,138 Collections Management and Curatorial Services (14501) $1,099,138 $1,099,138

_ 271 Item Details($) Appropriations($) ITEM 179. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $781,117 $781,117 Special $318,021 $318,021 Authority: Title 23.1, Chapter 18 and Chapter 51, Acts of Assembly of 1960; § 23.1-1310, Code of Virginia. The amounts provided in this appropriation are designated for the support of Belmont, the estate and memorial gallery of American artist Gari Melchers. 180. Administrative and Support Services (19900) $1,700,000 $1,700,000 Operation of Higher Education Centers (19931) $1,700,000 $1,700,000 Fund Sources: General $1,250,000 $1,250,000 Special $450,000 $450,000 Authority: Title 23.1, Chapter 18, Code of Virginia. 181. Historic and Commemorative Attraction Management (50200) $527,898 $527,898 Historic Landmarks and Facilities Management (50203) $527,898 $527,898 Fund Sources: General $473,948 $473,948 Special $53,950 $53,950 Authority: Title 2.2, Chapter 2, § 2.2-208 Code of Virginia. The amounts provided in this appropriation are designated for the support of the James Monroe Museum and Memorial Library. 182. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $54,283,446 $54,283,446 Food Services (80910) $9,250,229 $9,250,229 Residential Services (80930) $21,837,387 $21,837,387 Parking And Transportation Systems And Services (80940) $697,640 $697,640 Telecommunications Systems And Services (80950) $2,856,953 $2,856,953 Student Health Services (80960) $622,506 $622,506 Student Unions And Recreational Facilities (80970) $5,412,958 $5,412,958 Recreational And Intramural Programs (80980) $1,074,831 $1,074,831 Other Enterprise Functions (80990) $9,762,736 $9,762,736 Intercollegiate Athletics (80995) $2,768,206 $2,768,206 Fund Sources: Higher Education Operating $48,844,818 $48,844,818 Debt Service $5,438,628 $5,438,628 Authority: Title 23.1, Chapter 18, Code of Virginia. Total for University of Mary Washington $180,108,747 $185,754,047 $180,139,627 General Fund Positions 231.66 231.66 Nongeneral Fund Positions 465.00 465.00 Position Level 696.66 696.66 Fund Sources: General $58,392,219 $64,037,519 $58,423,099 Special $821,971 $821,971 Higher Education Operating $115,455,929 $115,455,929 Debt Service $5,438,628 $5,438,628 § 1-61. UNIVERSITY OF VIRGINIA (207)

_ 272 Item Details($) Appropriations($) ITEM 183. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 183. Educational and General Programs (10000) $1,282,901,982 $1,288,878,682 $1,381,431,976 $1,416,844,750 Higher Education Instruction (100101) $652,475,806 $658,452,506 $694,110,641 $718,772,327 Higher Education Research (100102) $28,144,903 $29,416,005 Higher Education Public Services (100103) $20,052,601 $22,597,224 Higher Education Academic (100104) $224,449,075 $246,641,523 Higher Education Student Services (100105) $78,906,675 $91,966,748 Higher Education Institutional Support (100106) $138,171,304 $150,065,684 Operation and Maintenance Of Plant (100107) $140,701,618 $146,634,151 $157,385,239 Fund Sources: General $202,357,058 $208,333,758 $202,357,058 Higher Education Operating $1,080,544,924 $1,179,074,918 $1,214,487,692 Authority: Title 23.1, Chapter 22, 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.1. This appropriation includes an amount not to exceed $1,393,959 the first year and $1,393,959 the second year from the general fund for the operation of the Family Practice Residency Program and Family Practice medical student programs. This appropriation for Family Practice programs, whether ultimately implemented by contract, agreement or other means, is considered to be a grant. 2. The university shall report by July 1 annually to the Department of Planning and Budget an operating plan for the Family Practice Residency Program. 3. The University of Virginia, in cooperation with the Virginia Commonwealth University Health System Authority, shall establish elective Family Practice Medicine experiences in Southwest Virginia for both students and residents. 4. In the event the Governor imposes across-the-board general fund reductions, pursuant to his executive authority in § 4-1.02 of this act, the general fund appropriation for the Family Practice programs shall be exempt from any reductions, provided the general fund appropriation for the family practice program is excluded from the total general fund appropriation for the University of Virginia for purposes of determining the university's portion of the statewide general fund reduction requirement. C. 1. Out of this appropriation, $2,476,467 the first year and $2,476,467 the second year from the general fund and $1,714,900 the first year and $1,714,900 the second year from nongeneral funds is designated for the Virginia Foundation for Humanities and Public Policy. 2. Out of the total funding in paragraph C.1., $250,000 and two positions the first year and $250,000 and two positions the second year from the general fund and $714,900 and four positions the first year and $714,900 and four positions the second year from nongeneral funds is provided to support Discovery Virginia, an online archive to preserve elements of Virginia history, culture, and heritage, and make the materials accessible to the public. 3. Out of the total funding in paragraph C.1., $500,000 and 2.00 positions the first year and $500,000 and 2.00 positions the second year from the general fund and $1,000,000 and 4.15 positions the first year and $1,000,0000 and 4.15 positions the second year from nongeneral funds is provided to create curriculum materials for K-12 schools, establish a network of Humanities Ambassadors in public schools and libraries across the state, and support classroom visits by Foundation program staff to support student use of the Foundation for the Humanities resources. 4. Pursuant to House Joint Resolution 762, 1999 Session of the General Assembly, funds in this Item begin to address the objective of appropriating one dollar per capita for the support of the Foundation.

_ 273 Item Details($) Appropriations($) ITEM 183. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 D. Out of this appropriation, an amount estimated at $390,647 the first year and $390,647 the second year from the general fund and at least $468,850 the first year and at least $468,850 the second year from nongeneral funds are designated for the educational telecommunications project to provide graduate engineering education. For supplemental budget requests, the participating institutions and centers jointly shall submit a report in support of such requests to the State Council of Higher Education for Virginia for review and recommendation to the Governor and General Assembly. E. Out of this appropriation, $183,306 the first year and $183,306 the second year from the general fund, and at least $283,500 the first year and at least $283,500 the second year from nongeneral funds are designated for the independent Virginia Institute of Government at the University of Virginia Center for Public Service. F. Out of this appropriation, at least $148,577 the first year and $148,577 the second year from the general fund is designated for support of diabetes education and public service at the Virginia Center for Diabetes Professional Education at the University of Virginia. G. Out of this appropriation $304,927 the first year and $304,927 the second year from the general fund and $53,189 the first year and $53,189 the second year from nongeneral funds are designated for support of the State Arboretum at Blandy Farm. H. 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. I. The 4-VA, a public-private partnership among George Mason University, James Madison University, the University of Virginia, Virginia Tech, Old Dominion University, Virginia Military Institute, Virginia Commonwealth University, the College of William and Mary, and CISCO Systems, Inc., utilizes emerging technologies to promote collaboration and resource sharing to increase access, reduce time to graduation and reduce unit cost while maintaining and enhancing quality. Instructional talent across the eight institutions is leveraged in the delivery of programs in foreign languages, science, technology, engineering and mathematics. The 4-VA Management Board can expand this partnership to additional institutions as appropriate to meet the goals of the 4-VA initiative. It is expected that funding will be pooled by the management board as required to support continuing efforts of the 4-VA priorities and projects. J. Out of this appropriation, $190,000 the first year and $190,000 the second year from the general fund is designated for a program to expand health care services to rural and medically underserved areas through the use of physicians, nurse practitioners, other providers, and telemedicine. K. Out of this appropriation, $175,000 the first year and $175,000 the second year is designated to support the efforts of the Weldon Cooper Center to produce population estimates at least every other year in between census years. L. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the amount of revenues to be collected for the educational and general program under the terms of the management agreement between the University of Virginia and the Commonwealth, as set forth in Chapters 933 and 943, of the 2006 Acts of Assembly. M. 1. Out of this appropriation, $2,661,340 the first year and $2,661,340 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows:

_ 274 Item Details($) Appropriations($) ITEM 183. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. The University of Virginia is expected to maintain increases in: a. Data Science and Technology awards of 20 annually over the base year. b. Science and Engineering awards of 30 annually over the base year. c. Healthcare awards of 20 annually over the base year. d. Education awards of 10 annually over the base year. e. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees annually. N. Out of this appropriation, $150,000 the first year and $150,000 the second year from the general fund is designated to the Weldon Cooper Center for Public Service to increase its demographic projection capacity. 184. Higher Education Student Financial Assistance (10800) $160,626,072 $160,938,072 $167,940,896 Scholarships (10810) $69,462,253 $69,774,253 $76,624,577 Fellowships (10820) $91,163,819 $91,316,319 Fund Sources: General $18,423,384 $18,735,384 $18,628,074 Higher Education Operating $142,202,688 $149,312,822 Authority: Title 23.1, Chapter 22, Code of Virginia. A. Out of this appropriation, $250,000 the first year and $250,000 the second year from the general fund, shall be provided to support public-private sector partnerships in order to maximize the number of newly licensed nurses and increase the supply of nursing faculty. B. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the revenue collected to meet student financial aid needs, under the terms of the management agreement between the university and the Commonwealth as set forth in Chapters 933 and 943 of the 2006 Acts of Assembly. C. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 185. Financial Assistance For Educational and General Services (11000) $591,649,129 $623,074,705 Sponsored Programs (11004) $591,649,129 $623,074,705

_ 275 Item Details($) Appropriations($) ITEM 185. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $29,306,715 $29,306,715 Higher Education Operating $538,047,199 $568,015,062 Debt Service $24,295,215 $25,752,928 Authority: Title 23.1, Chapter22, Code of Virginia. A. Out of this appropriation, $1,744,245 the first year and $1,744,245 the second year from the general fund and $14,350,000 the first year and $14,350,000 the second year from nongeneral funds are designated to build research capacity in the areas of bioengineering and biosciences. B.1. Out of this appropriation, $22,500,000 the first year and $22,500,000 the second year from the general fund is designated for the support of cancer research. From this allocation, $2,500,000 the first year and $2,500,000 the second year from the general fund is designated for the support of pediatric cancer research. 2. The University of Virginia shall submit an annual report to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on its use of state funds in cancer research. C. Out of this appropriation, $4,112,500 the first year and $4,112,500 the second year from the general fund is designated for support of the Focused Ultrasound Center to support core programs and research activities. The funding provided in this paragraph supports the activities and research at the University of Virginia as designated by the Focused Ultrasound Foundation, including coordinated activities with Virginia Tech. D. Out of this appropriation, $950,000 the first year and $950,000 the second year from the general fund is designated to support the creation of the UVA Economic Development Accelerator. E. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the university to cover sponsored program operations. 186. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $190,840,682 $200,382,717 Food Services (80910) $5,370,300 $5,370,300 Residential Services (80930) $14,893,801 $24,435,836 Parking And Transportation Systems And Services (80940) $12,559,388 $12,559,388 Telecommunications Systems And Services (80950) $15,564,808 $15,564,808 Student Health Services (80960) $9,988,673 $9,988,673 Student Unions And Recreational Facilities (80970) $7,764,975 $7,764,975 Recreational And Intramural Programs (80980) $9,719,717 $9,719,717 Other Enterprise Functions (80990) $61,430,758 $61,430,758 Intercollegiate Athletics (80995) $53,548,262 $53,548,262 Fund Sources: Higher Education Operating $175,368,733 $184,137,170 Debt Service $15,471,949 $16,245,547 Authority: Title 23.1, Chapter 22, Code of Virginia. Total for University of Virginia $2,226,017,865 $2,232,306,565 $2,372,830,294 $2,408,243,068 General Fund Positions 1,088.78 1,088.78 Nongeneral Fund Positions 5,955.32 5,955.32 Position Level 7,044.10 7,044.10 Fund Sources: General $250,087,157 $256,375,857 $250,291,847 Higher Education Operating $1,936,163,544 $2,080,539,972 $2,115,952,746

_ 276 Item Details($) Appropriations($) ITEM 186. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Debt Service $39,767,164 $41,998,475 University of Virginia Medical Center (209) 187. State Health Services (43000) $3,069,386,506 $3,077,701,260 $3,201,715,712 $3,322,163,011 Inpatient Medical Services (43007) $1,242,475,124 $1,250,789,878 $1,298,483,888 $1,418,931,187 Outpatient Medical Services (43011) $825,890,054 $863,164,350 Administrative Services (43018) $1,001,021,328 $1,040,067,474 Fund Sources: Higher Education Operating $3,051,740,041 $3,060,054,795 $3,184,069,247 $3,304,516,546 Debt Service $17,646,465 $17,646,465 Authority: §§ 23.1, Chapter 22, Article 3 , Code of Virginia and Chapter 38, Acts of Assembly of 1978. A. The appropriation to the University of Virginia Medical Center provides for the care, treatment, health related services and education activities associated with Virginia patients, including indigent and medically indigent patients. Inasmuch as the University of Virginia Medical Center is a state teaching hospital, this appropriation is to be used to jointly support the education of health students through patient care provided by this appropriation. B. By July 1 of each year, the Director, Department of Medical Assistance Services shall approve a common criteria and methodology for determining free care attributable to the appropriations in this Item. The Medical Center will report to the Department of Medical Assistance Services expenditures for indigent, medically indigent, and other patients. The Auditor of Public Accounts and the State Comptroller shall monitor the implementation of these procedures. The Medical Center shall report by October 31 annually to the Department of Medical Assistance Services, the Comptroller and the Auditor of Public Accounts on expenditures related to this Item. Reporting shall be by means of the indigent care cost report and shall follow criteria approved by the Director, Department of Medical Assistance Services. C. Funding for Family Practice is included in the University of Virginia's Educational and General appropriation. Support for other residencies is included in the hospital appropriation. D. It is the intent of the General Assembly that the University of Virginia Medical Center – Hospital maintain its efforts to staff residencies and fellow positions to produce sufficient generalist physicians in medically underserved regions of the state. E. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the university to cover medical center operations. F. Notwithstanding anything contrary to law, the University of Virginia has authority to determine compensation paid to Medical Center employees in accordance with policies established by the Board of Visitors. G. In order to provide the state share for Medicaid supplemental payments to Medicaid provider private hospitals in which the University of Virginia Medical Center has a non- majority interest, the University of Virginia shall transfer to the Department of Medical Assistance Services public funds that comply with 42 C.F.R. § 433.51. 188. The June 30, 2024 and June 30, 2025 unexpended balances of the University of Virginia Medical Center are hereby reappropriated; their use is subject to approval of allotments by the Department of Planning and Budget. 189. A full accrual system of accounting shall be effected by the institution, subject to the authority of the State Comptroller, as stated in § 2.2-803, Code of Virginia, with the provison that appropriations for operating expenses may not be used for capital projects.

_ 277 Item Details($) Appropriations($) ITEM 189. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Total for University of Virginia Medical Center $3,069,386,506 $3,077,701,260 $3,201,715,712 $3,322,163,011 Nongeneral Fund Positions 8,142.22 8,762.22 8,206.22 9,059.22 Position Level 8,142.22 8,762.22 8,206.22 9,059.22 Fund Sources: Higher Education Operating $3,051,740,041 $3,060,054,795 $3,184,069,247 $3,304,516,546 Debt Service $17,646,465 $17,646,465 University of Virginia's College at Wise (246) 190. Educational and General Programs (10000) $45,349,883 $46,331,683 $45,349,883 $46,753,570 Higher Education Instruction (100101) $23,811,671 $24,793,471 $23,811,671 $25,215,358 Higher Education Public Services (100103) $701,211 $701,211 Higher Education Academic (100104) $5,407,991 $5,407,991 Higher Education Student Services (100105) $3,586,959 $3,586,959 Higher Education Institutional Support (100106) $6,530,833 $6,530,833 Operation and Maintenance Of Plant (100107) $5,311,218 $5,311,218 Fund Sources: General $31,037,503 $32,019,303 $31,037,503 Higher Education Operating $14,312,380 $14,312,380 $15,716,067 Authority: Title 23.1, Chapter 22, Article 2, 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. The software engineering curriculum being established to insure success of recent economic development projects in Southwest Virginia, shall be considered on its merits by the State Council of Higher Education for Virginia and shall not be dependent on funding by the Commonwealth. C. 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. D. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the amount of revenues to be collected for the educational and general program under the terms of the management agreement between the University of Virginia and the Commonwealth, as set forth in Chapters 933 and 943, of the 2006 Acts of Assembly. E. Notwithstanding § 23.1-203(3) of the Code of Virginia, the escalation of the University of Virginia's College at Wise (the College) to offer master's level degree programs is approved. Any new master's degree program proposed by the College shall be reviewed and approved or disapproved by the State Council of Higher Education for Virginia consistent with the Council's duties per § 23.1-203(5) of the Code of Virginia. 191. Higher Education Student Financial Assistance (10800) $6,385,755 $6,526,755 $6,339,175

_ 278 Item Details($) Appropriations($) ITEM 191. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Scholarships (10810) $6,385,755 $6,526,755 $6,339,175 Fund Sources: General $6,335,755 $6,476,755 $6,289,175 Higher Education Operating $50,000 $50,000 Authority: Title 23.1. Chapter 22, Article 2, Code of Virginia. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 192. Financial Assistance For Educational and General Services (11000) a sum sufficient, estimated at $5,663,186 $5,663,186 $12,345,227 Sponsored Programs (11004) $5,663,186 $5,663,186 $12,345,227 Fund Sources: Higher Education Operating $5,663,186 $5,663,186 $12,345,227 Authority: Title 23.1 Chapter 22, Article 2, Code of Virginia. 193. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $12,828,932 $12,828,932 $13,643,732 Food Services (80910) $294,528 $294,528 Bookstores And Other Stores (80920) $268,500 $268,500 Residential Services (80930) $4,876,119 $4,876,119 Parking And Transportation Systems And Services (80940) $165,211 $165,211 Student Health Services (80960) $211,363 $211,363 Student Unions And Recreational Facilities (80970) $1,354,660 $1,354,660 Recreational And Intramural Programs (80980) $123,400 $123,400 Other Enterprise Functions (80990) $2,056,994 $2,056,994 $2,871,794 Intercollegiate Athletics (80995) $3,478,157 $3,478,157 Fund Sources: Higher Education Operating $9,838,932 $9,838,932 $10,653,732 Debt Service $2,990,000 $2,990,000 Authority: Title 23.1, Chapter 22, Article 2, Code of Virginia. Total for University of Virginia's College at Wise $70,227,756 $71,350,556 $70,181,176 $79,081,704 General Fund Positions 223.46 223.46 Nongeneral Fund Positions 211.24 211.24 Position Level 434.70 434.70 Fund Sources: General $37,373,258 $38,496,058 $37,326,678 Higher Education Operating $29,864,498 $29,864,498 $38,765,026 Debt Service $2,990,000 $2,990,000 Grand Total for University of Virginia $5,365,632,127 $5,381,358,381 $5,644,727,182 $5,809,487,783 General Fund Positions 1,312.24 1,312.24 Nongeneral Fund Positions 14,308.78 14,928.78 14,372.78 15,225.78

_ 279 Item Details($) Appropriations($) ITEM 193. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Position Level 15,621.02 16,241.02 15,685.02 16,538.02 Fund Sources: General $287,460,415 $294,871,915 $287,618,525 Higher Education Operating $5,017,768,083 $5,026,082,837 $5,294,473,717 $5,459,234,318 Debt Service $60,403,629 $62,634,940 § 1-62. VIRGINIA COMMONWEALTH UNIVERSITY (236) 194. Educational and General Programs (10000) $778,096,233 $785,359,433 $778,096,233 $757,096,233 Higher Education Instruction (100101) $494,323,196 $501,586,396 $494,323,196 $473,323,196 Higher Education Research (100102) $16,528,253 $16,528,253 Higher Education Public Services (100103) $9,799,053 $9,799,053 Higher Education Academic (100104) $112,139,634 $112,139,634 Higher Education Student Services (100105) $27,207,829 $27,207,829 Higher Education Institutional Support (100106) $60,312,944 $60,312,944 Operation and Maintenance Of Plant (100107) $57,785,324 $57,785,324 Fund Sources: General $295,566,208 $302,829,408 $295,566,208 Higher Education Operating $482,530,025 $482,530,025 $461,530,025 Authority: Title 23.1, Chapter 23, 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.1. Out of this appropriation, $4,336,607 the first year and $4,336,607 the second year from the general fund is provided for the operation of the Family Practice Residency Program and Family Practice medical student programs. This appropriation for Family Practice programs, whether ultimately implemented by contract, agreement or other means, is considered to be a grant. 2. The university shall report by July 1 annually to the Department of Planning and Budget an operating plan for the Family Practice Residency Program. 3. The university, in cooperation with the University of Virginia, shall establish elective Family Practice Medicine experiences in Southwest Virginia for both students and residents. 4. In the event the Governor imposes across-the-board general fund reductions, pursuant to his executive authority in § 4-1.02 of this act, the general fund appropriation for the Family Practice programs shall be exempt from any reductions, provided the general fund appropriation for the family practice program is excluded from the total general fund appropriation for Virginia Commonwealth University for purposes of determining the University's portion of the statewide general fund reduction requirement. C. Out of this appropriation, an amount estimated at $332,140 the first year and $332,140 the second year from the general fund and $168,533 the first year and $168,533 the second year from nongeneral funds are designated for the educational telecommunications project to provide graduate engineering education. For supplemental budget requests, the participating institutions and centers jointly shall submit a report in support of such requests to the State Council of Higher Education for Virginia for review and recommendation to the Governor and General Assembly. D.1. Out of this appropriation, not less than $386,685 the first year and not less than $536,685 the second year from the general fund is designated for the Virginia Center on Aging. This includes $319,750 the first year and $319,750 the second year for the

_ 280 Item Details($) Appropriations($) ITEM 194. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Alzheimer's and Related Diseases Research Award Fund. 2. Out of this appropriation, $253,244 the first year and $253,244 the second year from the general fund and $356,250 the first year and $356,250 the second year from nongeneral funds are designated for the operation of the Virginia Geriatric Education Center and the Geriatric Academic Career Awards Program, both to be administered by the Virginia Center on Aging. 3. Funding designated in paragraphs D.1. and D.2. of this item are intended as a pass-through payment to support the Center on Aging and dementia-related research by investigators throughout the Commonwealth. These funds shall be exempt from supplantation assessment or other budget management plans at Virginia Commonwealth University. All other funding support for the center shall be maintained by the university at least at the level provided in fiscal year 2019. E. All costs for maintenance and operation of the physical plant of the School of Engineering, Phase I and future renovations, repairs, and improvements as they become necessary shall be financed from nongeneral funds. F. Out of this appropriation, $300,000 the first year and $300,000 the second year from the general fund is designated for support of the Council on Economic Education. G. Out of this appropriation, $192,753 the first year and $192,753 the second year from the general fund is designated for support of the Education Policy Institute. H.1. Notwithstanding any other provisions of law, Virginia Commonwealth University is authorized to remit tuition and fees for merit scholarships for students of high academic achievement subject to the following limitations and restrictions: 2. The number of such scholarships annually awarded to undergraduate Virginia students shall not exceed 20 percent of the fall headcount enrollment of Virginia students in undergraduate studies in the institution from the preceding academic year. The total value of such merit scholarships annually awarded shall not exceed in any year the amount arrived at by multiplying the applicable figure for undergraduate tuition and required fees by 20 percent of the headcount enrollment of Virginia students in undergraduate studies in the institution for the fall semester from the preceding academic year. 3. The number of such scholarships annually awarded to undergraduate non-Virginia students shall not exceed 20 percent of the fall headcount enrollment of non-Virginia students in undergraduate studies in the institution from the preceding academic year. The total value of such merit scholarships annually awarded shall not exceed in any year the amount arrived at by multiplying the applicable figure for undergraduate tuition and required fees by 20 percent of the fall headcount enrollment of non-Virginia students in undergraduate studies in the institution during the preceding academic year. 4. A scholarship awarded under this program shall entitle the holder to receive an annual remission of an amount not to exceed the cost of tuition and required fees to be paid by the student. I. Out of this appropriation, $252,595 the first year and $252,595 the second year from the general fund is provided for the Medical College of Virginia Palliative Care Partnership. 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, $500,000 the first year and $500,000 the second year from the general fund is designated for the Virginia Commonwealth University School of Pharmacy to support the Center for Compounding Practice and Research. The allocation will serve to support any costs associated with creating the Center including facility-related expenses as well as the purchase of the compounding equipment necessary for this state of the art teaching

_ 281 Item Details($) Appropriations($) ITEM 194. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 and research facility and will be leveraged as a matching gift with private funds. The Center will train Pharm.D. students to meet technical compounding demands, provide continuing education to registered pharmacists and conduct ongoing research on compounded medications. L. Out of this appropriation, $255,000 the first year and $255,000 the second year from the general fund is designated to support a substance abuse fellowship program and a sickle cell opiod management program at the Virginia Commonwealth University School of Medicine. M. Out of this appropriation, $235,000 the first year and $235,000 the second year from the general fund is designated to support a partnership between Virginia Commonwealth University and the Virginia Repertory Theatre at the historic November Theatre (formally known as the Empire Theatre). N. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the amount of revenues to be collected for the educational and general program under the terms of the management agreement between Virginia Commonwealth University and the Commonwealth, as set forth in Chapters 594 and 616, of the 2008 Acts of Assembly. O. 1. Out of this appropriation, $4,273,380 the first year and $4,273,380 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. Virginia Commonwealth University is expected to maintain increases in: a. Data Science and Technology awards of 20 annually over the base year. b. Science and Engineering awards of 30 annually over the base year. c. Healthcare awards of 40 annually over the base year. d. Education awards of 20 annually over the base year. e. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees annually. P. The 4-VA, a public-private partnership among George Mason University, James Madison University, the University of Virginia, Virginia Tech, Old Dominion University, Virginia Military Institute, Virginia Commonwealth University, the College of William and Mary, and CISCO Systems, Inc., utilizes emerging technologies to promote collaboration and resource sharing to increase access, reduce time to graduation and reduce unit cost while maintaining and enhancing quality. Instructional talent across the eight institutions is leveraged in the delivery of programs in foreign languages, science, technology, engineering and mathematics. The 4-VA Management Board can expand this

_ 282 Item Details($) Appropriations($) ITEM 194. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 partnership to additional institutions as appropriate to meet the goals of the 4-VA initiative. It is expected that funding will be pooled by the management board as required to support continuing efforts of the 4-VA priorities and projects. Q. Out of this appropriation, $3,000,000 the first year and $3,000,000 the second year from the general fund is designated to fund research and programming activities at the Research Institute for Social Equity within the L. Douglas Wilder School of Government and Public Affairs at Virginia Commonwealth University. The University shall conduct social equity research and analysis, work collaboratively with Virginia Union University, expand the Minority Political Leadership Institute, expand social equity training and development, and increase its racial equity and social justice tools and resources. R. As a condition of this appropriation, $475,000 each year from the general fund is designated to support a program between Rappahannock Community College and Virginia Commonwealth University Health System to create a certified sonographer education and training program in order to address significant workforce shortages across the Commonwealth. Funding shall support capital, equipment, and staffing needs to create two training labs in the Rappahannock Community College service region. 195. Higher Education Student Financial Assistance (10800) $116,312,595 $118,427,595 $116,770,495 $137,770,495 Scholarships (10810) $111,571,411 $113,686,411 $111,866,811 $132,866,811 Fellowships (10820) $4,741,184 $4,903,684 Fund Sources: General $61,664,006 $63,779,006 $62,121,906 Higher Education Operating $54,648,589 $54,648,589 $75,648,589 Authority: Title 23.1, Chapter 23, Code of Virginia. A. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the revenue collected to meet student financial aid needs, under the terms of the management agreement between the university and the Commonwealth as set forth in Chapters 933 and 943 of the 2006 Acts of Assembly. B. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 196. Financial Assistance For Educational and General Services (11000) $356,394,910 $356,394,910 $387,394,910 Eminent Scholars (11001) $3,063,732 $3,063,732 Sponsored Programs (11004) $353,331,178 $353,331,178 $384,331,178 Fund Sources: General $26,762,500 $26,762,500 Higher Education Operating $319,526,130 $319,526,130 $350,526,130 Debt Service $10,106,280 $10,106,280 Authority: Title 23.1, Chapter 23, Code of Virginia. A. Out of this appropriation, $1,162,500 the first year and $1,162,500 the second year from the general fund and $6,600,000 the first year and $6,600,000 the second year from nongeneral funds are designated to build research capacity in the areas of biomedical engineering and regenerative medicine. B. Out of this appropriation, $22,500,000 the first year and $22,500,000 the second year from

_ 283 Item Details($) Appropriations($) ITEM 196. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 the general fund is designated for the support of cancer research. Virginia Commonwealth University shall submit an annual report to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on its use of state funds in cancer research. C. Out of this appropriation, $350,000 the first year and $350,000 the second year from the general fund is designated to support the Parkinson's and Movement Disorders Center. D. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the university to cover sponsored program operations. 197. State Health Services (43000) $39,152,534 $39,152,534 $54,152,534 State Health Services Technical Support And Administration (43012) $39,152,534 $39,152,534 $54,152,534 Fund Sources: Higher Education Operating $39,152,534 $39,152,534 $54,152,534 Authority: Discretionary Inclusion. This appropriation includes funding to support 238 instructional and administrative faculty positions and for administrative and classified positions which provide services, through internal service agreements, to the Virginia Commonwealth University Health System Authority. 198. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $167,953,274 $167,953,274 $182,953,274 Food Services (80910) $22,040,916 $22,040,916 $37,040,916 Bookstores And Other Stores (80920) $5,338,412 $5,338,412 Residential Services (80930) $32,237,397 $32,237,397 Parking And Transportation Systems And Services (80940) $24,869,578 $24,869,578 Telecommunications Systems And Services (80950) $5,676,016 $5,676,016 Student Health Services (80960) $6,471,205 $6,471,205 Student Unions And Recreational Facilities (80970) $14,560,559 $14,560,559 Recreational And Intramural Programs (80980) $11,859,159 $11,859,159 Other Enterprise Functions (80990) $26,835,845 $26,835,845 Intercollegiate Athletics (80995) $18,064,187 $18,064,187 Fund Sources: Higher Education Operating $149,624,317 $149,624,317 $164,624,317 Debt Service $18,328,957 $18,328,957 Authority: Title 23.1, Chapter 23, Code of Virginia. 199. Administrative and Support Services (19900) $47,597,562 $47,597,562 Operation of Higher Education Centers (19931) $47,597,562 $47,597,562 Fund Sources: Higher Education Operating $47,597,562 $47,597,562 Authority: Title 23.1, Chapter 23, Code of Virginia. A.1. Out of this appropriation, $45,058,639 the first year and $45,058,639 the second year from nongeneral funds is designated to support the university's branch campus in Qatar. 2. Notwithstanding § 2.2-1802 of the Code of Virginia, Virginia Commonwealth University is authorized to maintain a local bank account in Qatar and non-U.S. countries to facilitate business operations the VCU Qatar Campus. These accounts are exempt from the Securities for Public Deposits Act, Title 2.2, Chapter 44 of the Code of Virginia.

_ 284 Item Details($) Appropriations($) ITEM 199. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 3. Procurements and expenditures from the local bank account(s) are not subject to the Virginia Public Procurement Act and the Commonwealth Accounting Policies and Procedures (CAPP) Manual. Virginia Commonwealth University will institute procurement policies based on competitive procurement principles, except as otherwise stated within these policies. Expenditures from the local bank account will be recorded in the Commonwealth Accounting and Reporting System by Agency Transaction Vouchers, as appropriated herewith with revenue recognized as equal to the expenditures. 4. Notwithstanding § 2.2-1149 of the Code of Virginia, Virginia Commonwealth University is authorized to approve operating, income and capital leases in Qatar under policies and procedures developed by the University. 5. Virginia Commonwealth University is authorized to establish and hire staff (non-faculty) positions in Qatar under policies and procedures developed by the University. These employees, who are employed solely to support the Qatar Campus are not considered employees of the Commonwealth of Virginia and are not subject to the Virginia Personnel Act. Employees hired as University and Academic Professionals are considered employees of the Commonwealth of Virginia and are subject to the university's policies, Management Agreement, and applicable law. 6. The Board of Visitors of Virginia Commonwealth University is authorized to establish policies for the Qatar Campus. Total for Virginia Commonwealth University $1,505,507,108 $1,514,885,308 $1,505,965,008 $1,566,965,008 General Fund Positions 1,507.80 1,507.80 Nongeneral Fund Positions 3,792.29 3,792.29 Position Level 5,300.09 5,300.09 Fund Sources: General $383,992,714 $393,370,914 $384,450,614 Higher Education Operating $1,093,079,157 $1,093,079,157 $1,154,079,157 Debt Service $28,435,237 $28,435,237 § 1-63. VIRGINIA COMMUNITY COLLEGE SYSTEM (260) 200. Educational and General Programs (10000) $1,080,055,383 $1,089,558,483 $1,080,055,383 Higher Education Instruction (100101) $482,400,381 $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 $571,752,212 $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

_ 285 Item Details($) Appropriations($) ITEM 200. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 286 Item Details($) Appropriations($) ITEM 200. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 287 Item Details($) Appropriations($) ITEM 200. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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, $250,000$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 instructionassistance for an automotive apprenticeship program 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. 201. Higher Education Student Financial Assistance (10800) a sum sufficient, estimated at $166,169,861 $169,005,861 $167,100,971

_ 288 Item Details($) Appropriations($) ITEM 201. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Scholarships (10810) $166,169,861 $169,005,861 $167,100,971 Fund Sources: General $127,722,555 $130,558,555 $128,653,665 Higher Education Operating $38,447,306 $38,447,306 Authority: Title 23.1, Chapter 29, Code of Virginia. A. Out of this appropriation, $150,000 the first year and $150,000 the second year from the general fund is designated for Tidewater Community College to support an apprenticeship program for Virginia's shipyard workers. All general fund amounts appropriated for this apprenticeship program shall be used to provide scholarships to shipyard workers enrolled in the program. The conditions for receiving a scholarship shall be those conditions described in § 23.1-2912, Code of Virginia. B. Funding in this Item shall be allocated for the Virginia Guarenteed Assistance Program, the Commonwealth Award and need-based student financial assistance for industry-based certifications or related programs that do not qualify for other sources of student financial assistance. C. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. D.1. Out of this appropriation, $34,500,000 the first year and $34,500,000 the second year from the general fund is designated for the Get Skilled, Get a Job, Give Back Program (G3 Program) pursuant to § 23.1-2911.2. The programs covered under the G3 Program by Classification of Instructional Program (CIP) Codes are as follows: CIP Code Description 11.0101 Computer and Information Sciences, General 11.0103 Information Technology 11.0201 Computer Programming/ Programmer, General 11.0701 Computer Science 11.0801 Web Page, Digital/Multimedia and Information Resources Design 11.0901 Computer Systems Networking and Telecommunications 11.1001 Network and System Administration/ Administrator 11.1003 Computer and Information Systems Security/Information Assurance 12.0500 Cooking and Related Culinary Arts, General 13.0101 Education, General 13.1013 Education/Teaching of Individuals with Autism 13.1501 Teacher Assistant/Aide 13.1202 Elementary Education and Teaching 13.1205 Secondary Education and

_ 289 Item Details($) Appropriations($) ITEM 201. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Teaching 14.0101 Engineering, General 15.0000 Engineering and Engineering- Related Fields 15.0101 Architectural Engineering Technology/Technician 15.0201 Civil Engineering Technology/Technician 15.0303 Electrical, Electronic and Communications Engineering Technology/Technician 15.0305 Telecommunications Technology/Technician 15.0599 Environmental Control Technologies/Technicians, Other 15.0612 Industrial Technology/Technician 15.0613 Manufacturing Engineering Technology/Technician 15.0699 Industrial Production Technologies/Technicians, Other 15.0899 Mechanical Engineering Related Technologies/Technicians, Other 15.0901 Mining Technology/Technician 15.1301 Drafting and Design Technology/Technician, General 15.1302 CAD/CADD Drafting and/or Design Technology/Technician 15.1303 Architectural Drafting and Architectural CAD/CADD 15.1401 Nuclear Engineering Technology/Technician 15.9999 Engineering Technologies and Engineering-Related Fields, Other 19.0707 Family and Community Services 19.0709 Child Care Provider/Assistant 30.0101 Biological and Physical Sciences 41.0101 Biology Technician/Biotechnology Laboratory Technician 43.0102 Corrections 43.0103 Criminal Justice/Law Enforcement Administration 43.0104 Criminal Justice/Safety Studies 43.0106 Forensic Science and

_ 290 Item Details($) Appropriations($) ITEM 201. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Technology 43.0107 Criminal Justice/Police Science 43.0203 Fire Science/Fire-fighting 43.0303 Critical Infrastructure Protection 43.0406 Homeland Security, Other 43.9999 Homeland Security, Law Enforcement, Firefighting and Related Protective Services, Other 46.0000 Construction Trades 46.0302 Electrician 47.0000 Mechanic and Repair Technologies / Technicians 47.0101 Electrical/Electronics Equipment Installation and Repair, General 47.0105 Industrial Electronics Technology/Technician 47.0201 Heating, Air Conditioning, Ventilation and Refrigeration Maintenance Technology/Technician 47.0603 Autobody/Collision and Repair Technology/Technician 47.0604 Automobile/Automotive Mechanics Technology/Technician 47.0605 Diesel Mechanics Technology/Technician 47.0607 Airframe Mechanics and Aircraft Maintenance Technology/Technician 48.0000 Precision Production 48.0501 Machine Tool Technology/Machinist 48.0508 Welding Technology/Welder 48.0599 Precision Metal Working, Other 48.0701 Woodworking, General 51.0601 Dental Assisting/Assistant 51.0602 Dental Hygiene/Hygienist 51.0603 Dental Laboratory Technology/Technician 51.0707 Health Information/Medical Records Technology/Technician 51.0708 Medical Transcription/ Transcriptionist 51.0713 Medical Insurance Coding Specialist/Coder 51.0799 Health and Medical Administrative Services, Other 51.0801 Medical/Clinical Assistant 51.0803 Occupational Therapist

_ 291 Item Details($) Appropriations($) ITEM 201. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Assistant 51.0805 Pharmacy Technician/Assistant 51.0806 Physical Therapy Technician/Assistant 51.0808 Veterinary/Animal Health Technology/Technician and Veterinary Assistant 51.0904 Emergency Medical Technology/Technician (EMT Paramedic) 51.0907 Medical Radiologic Technology/Science - Radiation Therapist 51.0908 Respiratory Care Therapy/Therapist 51.0909 Surgical Technology/Technologist 51.0910 Diagnostic Medical Sonography/Sonographer and Ultrasound Technician 51.0911 Radiologic Technology/Science - Radiographer 51.0912 Physician Assistant 51.0999 Allied Health Diagnostic, Intervention, and Treatment Professions, Other 51.1004 Clinical/Medical Laboratory Technician 51.1005 Clinical Laboratory Science/Medical Technology/Technologist 51.1009 Phlebotomy Technician/Phlebotomist 51.1105 Pre-Nursing Studies 51.1501 Substance Abuse/Addiction Counseling 51.1504 Community Health Services/Liaison/Counseling 51.1508 Mental Health Counseling/Counselor 51.1599 Mental and Social Health Services and Allied Professions, Other 51.1801 Opticianry/Ophthalmic Dispensing Optician 51.2706 Medical Informatics 51.3101 Dietetics/Dietitian 51.3501 Massage Therapy/Therapeutic Massage 51.3801 Registered Nursing/Registered Nurse 51.3899 Registered Nursing, Nursing Administration, Nursing Research and Clinical

_ 292 Item Details($) Appropriations($) ITEM 201. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Nursing, Other 51.3901 Licensed Practical/Vocational Nurse Training 51.3902 Nursing Assistant/Aide and Patient Care Assistant/Aide 52.0901 Hospitality Administration / Management, General 2. a. By December 1 of each year, the Office of Education and Labor Market Alignment within the Virginia Economic Development Partnership Authority System shall evaluate the skills and training including those provided through high school career and technical education, credentials, certifications, apprenticeships, internships, and other degree and non- degree programs needed for Virginians to fill jobs available in certified regional council areas. b. Based on this evaluation, the Office of Education and Labor Market Alignment within the Virginia Economic Development Partnership Authority System shall make recommendations to the Governor and General Assembly what programs should be offered in each region that qualify for financial assistance under the G3 Program. c. All additions and changes to the eligible high-demand fields for which programs may be offered pursuant to this item shall be approved by the General Assembly prior to implementation. 3. In order to be eligible for financial assistance under this program at a qualified public institution, an applicant shall: a. Receive a total household income less than or equal to four hundred percent of the Federal Poverty Level; b. Be enrolled or accepted for enrollment as a full-time or part-time student at an approved institution in an approved program specific to a high-demand field, as specified in paragraph D.1., and shall be enrolled in a minimum of six credit hours per semester, or in an eligible non-credit program; c. Have submitted complete applications for federal and state student financial aid programs for which they may be eligible. d. In addition, healthcare workers, first responders and other essential workers as defined under Phase 1a and 1b of the Center for Disease Control (CDC) and Virginia Department of Health (VDH) and that are serving in the frontline of the COVID-19 pandemic shall, subject to the provisions of paragraph D.1. of this item, be eligible for programs offered under the G- 3 initiative that enhance or upgrade their skills at no cost during the period that is covered under the state of emergency and for two years thereafter. 4. In order to remain eligible for financial assistance under this program at an approved institution, a participating student shall: a. Meet standards for Satisfactory Academic Progress and maintain the required grade point average established by federal Higher Education Act of 1965 Title IV requirements; b. Demonstrate reasonable progress to complete their specific program of study to earn an associate degree in no more than three years; c. Not exceed 150 percent of required credits of certificate or degree. 5. a. Payments out of this appropriation shall provide (i) grants up to the amount necessary to pay for the last-dollar cost of the enrolled institution's tuition, mandatory fees, and textbook stipend for eligible students after all other qualified federal and state financial aid, and (ii) a Student Support Incentive Grant up to $2,250 per year for eligible students who are enrolled full-time and receive full Federal Pell Grants. b. Each Student Support Incentive Grant shall be distributed to the eligible students in two equal payments, with the first disbursement after the census date for the enrollment period is reached, and the final disbursement at the end of the term of which the students qualified.

_ 293 Item Details($) Appropriations($) ITEM 201. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Students who withdraw or stop attending during the term shall not receive additional payments and shall be subject to repayment of the funds already received. An eligible student may receive up to $900 per semester and up to $450 per Summer Term. 6. a. Funds for marketing and public awareness efforts to increase participation in the program are contained in Item 200 of this act. b. The governing boards of Virginia's public associate degree-granting institutions shall ensure that program participation does not exceed budget appropriation. 7. a. No later than September 1 of each year, each Virginia public associate degree- granting institution shall submit to the State Council of Higher Education for Virginia and the Virginia Community College System a report with data from the previous fiscal year on program participation and completion, including data on what high-demand fields are supported by students at each institution. b. The Council and System shall work collaboratively to compile the data provided by each public associate degree-granting institution and report such data, in aggregate and by institution annually, to the Governor, the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, the Senate Education and Health Committee, and the House Education Committee. The report must include student enrollment, retention rates between terms and academic years, wage data including median wages prior to enrollment and one year after completion of a credential or degree, wage rates of students who have not enrolled in over a year and did not complete a credential, and a comparison of demand of jobs and completion rates. The report must disaggregate the information above by program of study, college, and student income level at start of program. 8. a. No later than May 1, 2025, the Director, Department of Planning and Budget shall transfer $15,000,000 from G3 Program fund balances to Item 130 G. for use in the New Economy Workforce Credential Grant Program. b. No later than May 1, 2025, the Director, Department of Planning and Budget shall transfer $500,000 from G3 Program fund balances to Item 203 B.3. for the A.L. Philpott Manufacturing Extension Partnership, with Patrick and Henry Community College currently acting as fiscal agent, as a match for a grant from the U.S. Department of Energy to develop the Virginia Smart Manufacturing Accelerator program, covering all of Virginia. 202. Financial Assistance For Educational and General Services (11000) $60,736,044 $60,736,044 Sponsored Programs (11004) $60,736,044 $60,736,044 Fund Sources: Higher Education Operating $60,736,044 $60,736,044 Authority: Title 23.1, Chapter 29, Code of Virginia. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the university to cover sponsored program operations. 203. Economic Development Services (53400) $74,027,341 $75,027,341 $74,027,341 $94,027,341 Management of Workforce Development Program Services (53427) $74,027,341 $75,027,341 $74,027,341 $94,027,341 Fund Sources: General $11,876,314 $12,376,314 $11,876,314 Higher Education Operating $62,151,027 $62,651,027 $62,151,027 $82,151,027 Authority: Title 23.1, Chapter 29, Code of Virginia. A. Out of this appropriation, $125,000 the first year and $125,000 the second year from the general fund is provided to continue planning for the advanced integrated

_ 294 Item Details($) Appropriations($) ITEM 203. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 manufacturing technology program at Virginia Peninsula Community College. B.1. Out of this appropriation, $666,162 the first year and $666,162 the second year from the general fund is designated for the A.L. Philpott Manufacturing Extension Partnership, a political subdivision of the Commonwealth per § 23.1-3101, Code of Virginia, doing business as Genedge Alliance, at with Patrick and Henry Community College currently acting as fiscal agent. 2. Out of this appropriation, $1,086,350 the first year and $1,086,350 the second year from the general fund is designated for the A.L. Philpott Manufacturing Extension Partnership at, with Patrick and Henry Community College currently acting as fiscal agent, for an ongoing match for a grant from the U.S. Department of Commerce to develop a manufacturer assistance program covering most all of Virginia. C. It is the intent of the General Assembly that noncredit business and industry work-related training courses and programs offered by community colleges be funded at a ratio of 30 percent from the general fund and 70 percent from nongeneral funds. Out of this appropriation, $664,647 in the first year and $664,647 in the second year from the general fund is designated for this purpose. These funds may be combined with funds of $249,243 the first year and $249,243 the second year already included in the Virginia Community College System budget for the "Virginia Works" program. The funds will be allocated by formula to all colleges based on the number of individuals served by non-credit activities. D.1. As recommended by House Joint Resolution No. 622 (1997), the Joint Subcommittee to Study Noncredit Education for Workforce Training in the Commonwealth, the Virginia Community College System is directed to establish one or more Institutes of Excellence responsible for development of statewide training programs to meet current, high demand workforce needs of the Commonwealth. Out of this appropriation, at least $664,647 the first year and $664,647 the second year from the general fund is available to support the Institutes of Excellence. 2. Under the guidance of the Virginia Workforce Council, authorized in Title 2.2, Chapter 26, Article 25, Code of Virginia, the Virginia Community College System shall submit to the Chairs of the Senate Finance and Appropriations and House Appropriations Committees by November 4 of each year a report detailing the financing, activities, accomplishments and plans for the Institutes of Excellence and the four workforce development centers, and outcomes of the appropriations for 23 workforce coordinators and for non-credit training. The report shall include, but not be limited to: a. performance measures to be used to evaluate the effectiveness of the workforce coordinators at all 23 colleges; b. detailed information on number of students trained, employers served and courses offered; the types of certifications awarded; and the participation by local governments and the public or private sector, and other data relevant to the activities of the four regional workforce development centers; c. the number of students trained, employers served and courses offered through noncredit instruction, and the amounts of local government, public or private sector funding used to match this appropriation; and d. the amount or percentage of private and public funding contributed for the institutes' programming and operating needs; the number of private and public partnerships involved in the institutes' programming; the number of faculty and colleges affected by the institutes' programming; and performance measures to be used to evaluate the sharing or broadcasting of information and new/improved/updated curricula to other Virginia Community College campuses. E. Out of this appropriation, $1,196,820 and 23 positions the first year and $1,196,820 and 23 positions the second year from the general fund is provided for staff who will be responsible for coordinating workforce training in the campus service area. The staff will work with local business and industry to determine training needs, coordinate with local economic development personnel, the local workforce training council, and other providers. It is the General Assembly's intent that the Virginia Community College System maximize these

_ 295 Item Details($) Appropriations($) ITEM 203. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 positions by encouraging funding matches at the local level. F. Out of this appropriation, $470,880 and four positions the first year and $470,880 and four positions the second year from the general fund is provided for four workforce training centers: the Peninsula Workforce Development Center (Virginia Peninsula Community College), $78,480 and one position the first year and $78,480 and one position the second year; the Regional Center for Applied Technology Training (Danville Community College), $156,960 and one position the first year and $156,960 and one position the second year; a Workforce Development Center at Paul D. Camp Community College, $156,960 and one position the first year and $156,960 and one position the second year; and the Central Virginia Manufacturing Technology Training Center in the Lynchburg area, $78,480 and one position the first year and $78,480 and one position the second year. Each center shall provide a 25 percent match prior to the release of state funding. G. Out of this appropriation, $250,000 the first year and $250,000 the second year from the general fund is designated to continue the pre-hire immersion training program. H. Out of this appropriation, $460,000 the first year and $460,000 the second year from the general fund is designated to support the veteran's credit for prior learning application. I. Out of this appropriation, $104,950 the first year and $104,950 the second year from the general fund is designated to support career and technical education at Laurel Ridge Community College's Luray-Page County Center with a focus on healthcare and medical programs. J. Out of this appropriation, $310,000 the first year and $310,000 the second year from the general fund is designated to support a program between Virginia Western Community College, Botetourt County Public Schools, and local industry partners to meet the demand for mechatronic technicians. The program goal is to prepare 100 Mechatronic Engineering Technicians over five years using established career pathways with Botetourt County Public Schools and Virginia Western Community College and a sustainable faculty preparation program. K. Out of this appropriation, $300,000 the first year and $300,000 the second year from the general fund is designated to support a program between Virginia Western Community College, Roanoke City Public Schools and local industry partners to create a Career Technical dual track program to allow high school students the opportunity to complete high school with both a diploma and a workforce credential / certificate. L. Out of this appropriation, $500,000 the first year and $500,000 the second year from the general fund is designated towards supporting a construction pre-hire immersion training program at two community colleges. M. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the university to cover workforce development program operations. 204. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $53,821,317 $53,821,317 $33,821,317 Food Services (80910) $1,238,576 $1,238,576 Bookstores And Other Stores (80920) $14,447,297 $14,447,297 $4,447,297 Parking And Transportation Systems And Services (80940) $18,487,416 $18,487,416 $8,487,416 Student Unions And Recreational Facilities (80970) $19,648,028 $19,648,028 Fund Sources: Higher Education Operating $37,710,554 $37,710,554 $17,710,554 Debt Service $16,110,763 $16,110,763 Authority: Title 23.1, Chapter 29, Code of Virginia.

_ 296 Item Details($) Appropriations($) ITEM 205. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 205. The appropriations in this section are for the following community colleges: College I.D. Community College College I.D. Community College 61 System Office 80 Northern Virginia 70 Shared Services Center 85 Patrick and Henry 91 Blue Ridge 77 Paul D. Camp 92 Central Virginia 82 Piedmont 87 Mountain Gateway 78 Rappahannock 79 Danville 76 Southside Virginia 84 Eastern Shore 94 Southwest Virginia 97 Germanna 93 Virginia Peninsula 83 J. Sargeant Reynolds 95 Tidewater 90 Brightpoint 96 Virginia Highlands 98 Laurel Ridge 86 Virginia Western 99 Mountain Empire 88 Wytheville 75 New River Total for Virginia Community College System $1,434,809,946 $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 $711,351,081 $724,190,181 $712,282,191 Higher Education Operating $707,348,102 $707,848,102 $707,348,102 Debt Service $16,110,763 $16,110,763 § 1-64. VIRGINIA MILITARY INSTITUTE (211) 206. Educational and General Programs (10000) $57,906,536 $58,742,636 $58,406,536 Higher Education Instruction (100101) $29,003,625 $29,839,725 $29,003,625 Higher Education Public Services (100103) $97,554 $97,554 Higher Education Academic (100104) $1,846,302 $2,346,302 Higher Education Student Services (100105) $4,353,155 $4,353,155 Higher Education Institutional Support (100106) $12,161,025 $12,161,025 Operation and Maintenance Of Plant (100107) $10,444,875 $10,444,875 Fund Sources: General $24,082,775 $24,918,875 $24,082,775 Higher Education Operating $33,423,761 $33,923,761 Debt Service $400,000 $400,000 Authority: Title 23.1, Chapter 25, Code of Virginia. A. This Item includes general and nongeneral fund appropriations to support institutional initiatives that help meet statewide goals as described in the Restructured Higher Education Financial and Administrative Operations Act of 2005 (Chapters 933 and 945, 2005 Acts of Assembly). B. 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

_ 297 Item Details($) Appropriations($) ITEM 206. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 students to the extent possible. C. Resources determined by the State Council of Higher Education for Virginia to be uniquely military shall be excluded from the base adequacy funding guidelines. D. 1. Out of this appropriation, $395,740 the first year and $395,740 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. Virginia Military Institute is expected to maintain increases in: a. Data Science and Technology awards of 5 annually over the base year. b. Science and Engineering awards of 5 annually over the base year. c. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees annually. E. The 4-VA, a public-private partnership among George Mason University, James Madison University, the University of Virginia, Virginia Tech, Old Dominion University, Virginia Military Institute, Virginia Commonwealth University, the College of William and Mary, and CISCO Systems, Inc., utilizes emerging technologies to promote collaboration and resource sharing to increase access, reduce time to graduation and reduce unit cost while maintaining and enhancing quality. Instructional talent across the eight institutions is leveraged in the delivery of programs in foreign languages, science, technology, engineering and mathematics. The 4-VA Management Board can expand this partnership to additional institutions as appropriate to meet the goals of the 4-VA initiative. It is expected that funding will be pooled by the management board as required to support continuing efforts of the 4-VA priorities and projects. F. Out of this appropriation, $3,120,387 the first year and $3,120,387 the second year from the general fund is designated to address the One Corps initiatives related to Title IX Coordination, the Commandant Staff, the Legal Affairs Office, Academic and Student Programs, Compliance and Reporting and Commemorations and Memorials as well as targeted staff salary compression issues. 207. Higher Education Student Financial Assistance (10800) $6,226,568 $6,291,568 $6,230,388 Scholarships (10810) $6,226,568 $6,291,568 $6,230,388 Fund Sources: General $1,626,568 $1,691,568 $1,630,388 Higher Education Operating $4,600,000 $4,600,000 Authority: Title 23.1, Chapter 25, § 23.1-2506, Code of Virginia.

_ 298 Item Details($) Appropriations($) ITEM 207. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 A. Out of the amounts for Scholarships and Loans, the institute shall provide for State Cadetships and for discretionary student aid. B. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 208. Financial Assistance For Educational and General Services (11000) a sum sufficient, estimated at $894,898 $894,898 Eminent Scholars (11001) $200,000 $200,000 Sponsored Programs (11004) $694,898 $694,898 Fund Sources: Higher Education Operating $894,898 $894,898 Authority: Title 23.1, Chapter 25, Code of Virginia. 209. Unique Military Activities (11300) $10,764,162 $11,089,162 $10,764,162 Fund Sources: General $5,859,671 $6,184,671 $5,859,671 Higher Education Operating $4,904,491 $4,904,491 Authority: Discretionary Inclusion. A.1. Personnel associated with performance of activities designated by the State Council of Higher Education for Virginia to be uniquely military shall be excluded from the calculation of employment guidelines. 2. It is the intent of the General Assembly that nonresident cadets receive the same general fund support in the Unique Military program as resident cadets. 210. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $30,418,510 $30,418,510 Food Services (80910) $7,497,369 $7,497,369 Bookstores And Other Stores (80920) $1,174,021 $1,174,021 Residential Services (80930) $2,080,471 $2,080,471 Student Health Services (80960) $232,440 $232,440 Student Unions And Recreational Facilities (80970) $1,838,039 $1,838,039 Recreational And Intramural Programs (80980) $955,874 $955,874 Other Enterprise Functions (80990) $11,245,395 $11,245,395 Intercollegiate Athletics (80995) $5,394,901 $5,394,901 Fund Sources: Higher Education Operating $27,920,510 $27,920,510 Debt Service $2,498,000 $2,498,000 Authority: Title 23.1, Chapter 25, Code of Virginia. Total for Virginia Military Institute $106,210,674 $107,436,774 $106,714,494 General Fund Positions 203.71 203.71 Nongeneral Fund Positions 292.06 292.06 Position Level 495.77 495.77 Fund Sources: General $31,569,014 $32,795,114 $31,572,834 Higher Education Operating $71,743,660 $72,243,660 Debt Service $2,898,000 $2,898,000 § 1-65. VIRGINIA POLYTECHNIC INSTITUTE AND STATE UNIVERSITY (208)

_ 299 Item Details($) Appropriations($) ITEM 210. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 211. Educational and General Programs (10000) $1,018,752,882 $1,031,635,882 $1,018,752,882 $1,059,268,911 Higher Education Instruction (100101) $627,276,084 $640,159,084 $627,276,084 $652,360,889 Higher Education Research (100102) $26,063,840 $26,063,840 $27,105,825 Higher Education Public Services (100103) $26,826,751 $26,826,751 $27,195,069 Higher Education Academic (100104) $108,025,045 $108,025,045 $112,418,797 Higher Education Student Services (100105) $29,498,030 $29,498,030 $30,702,494 Higher Education Institutional Support (100106) $101,561,931 $101,561,931 $105,921,807 Operation and Maintenance Of Plant (100107) $99,501,201 $99,501,201 $103,564,030 Fund Sources: General $260,638,674 $273,521,674 $260,638,674 Higher Education Operating $758,114,208 $758,114,208 $798,630,237 Authority: Title 23.1, Chapter 26, 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. Out of this appropriation shall be expended an amount estimated at $869,882 the first year and $869,882 the second year from the general fund and $436,357 the first year and $436,357 the second year from nongeneral funds are designated for the educational telecommunications project to provide graduate engineering education. For supplemental budget requests, the participating institutions and centers jointly shall submit a report in support of such requests to the State Council of Higher Education for Virginia for review and recommendation to the Governor and General Assembly. C. Out of this appropriation, $301,219 the first year and $301,219 the second year from the general fund is designated to support the Marion duPont Scott Equine Center of the Virginia-Maryland Regional College of Veterinary Medicine. D. Out of this appropriation, $225,588 the first year and $225,588 the second year from the general fund is designated to support tobacco research for medicinal purposes and field tests at sites in Blackstone and Abingdon. E. 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. F. Out of this appropriation, $288,000 the first year and $288,000 the second year from the general fund is designated to develop a STEM Industry Internship program in partnership with the Virginia Space Grant Consortium, Virginia Regional Technology Councils and industry. The program will provide 75 undergraduate students across the Commonwealth an opportunity to centrally apply for real world work experience and provide Virginia's industries with access to qualified interns. Virginia Tech will partner with the Virginia Space Grant Consortium and work with Virginia's Regional Technology Councils who will serve as the program's conduit to industry, advertising the program and linking with interested industry partners. G. The 4-VA, a public-private partnership among George Mason University, James

_ 300 Item Details($) Appropriations($) ITEM 211. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Madison University, the University of Virginia, Virginia Tech, Old Dominion University, Virginia Military Institute, Virginia Commonwealth University, the College of William and Mary, and CISCO Systems, Inc., utilizes emerging technologies to promote collaboration and resource sharing to increase access, reduce time to graduation and reduce unit cost while maintaining and enhancing quality. Instructional talent across the eight institutions is leveraged in the delivery of programs in foreign languages, science, technology, engineering and mathematics. The 4-VA Management Board can expand this partnership to additional institutions as appropriate to meet the goals of the 4-VA initiative. It is expected that funding will be pooled by the management board as required to support continuing efforts of the 4-VA priorities and projects. H. Out of this appropriation, $2,000,000 the first year and $2,000,000 the second year from the general fund is designated to support a cyber range platform to be used for cyber security training by students in Virginia's public high schools, community colleges, and four-year institutions. Virginia Tech shall form a consortium among participating institutions, and shall serve as the coordinating entity for use of the platform. The consortium should initially include all Virginia public institutions with a certification of academic excellence from the federal government. I. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the amount of revenues to be collected for the educational and general program under the terms of the management agreement between Virginia Polytechnic Institute and State University and the Commonwealth, as set forth in Chapters 933 and 943, of the 2006 Acts of Assembly. J. 1. Out of this appropriation, $5,215,880 the first year and $5,215,880 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. Virginia Tech is expected to maintain increases in: a. Data Science and Technology awards of 60 annually over the base year. b. Science and Engineering awards of 100 annually over the base year. c. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees annually. K. The Virginia Tech Carilion School of Medicine is hereby authorized to transfer funds to the Department of Medical Assistance Services to fully fund the state share for Medicaid supplemental payments and managed care directed payments to primary teaching hospitals affiliated with Virginia Tech Carilion School of Medicine. 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

_ 301 Item Details($) Appropriations($) ITEM 211. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 transfer. As part of interagency agreements, the department shall require the public entities to attest to compliance with applicable CMS criteria. 212. Higher Education Student Financial Assistance (10800) $51,005,454 $52,342,454 $51,729,334 $63,597,615 Scholarships (10810) $43,998,129 $45,335,129 $44,484,509 $56,352,790 Fellowships (10820) $7,007,325 $7,244,825 Fund Sources: General $37,576,596 $38,913,596 $38,300,476 Higher Education Operating $13,428,858 $13,428,858 $25,297,139 Authority: Soil Scientist Scholarships: Title 23.1, Chapter 26, and § 23.1-615, Code of Virginia., A. Out of the amount for Scholarships, the following sums shall be made available from the general fund for: 1. Soil Scientist Scholarships, $11,000 the first year and $11,000 the second year. 2. Scholarships, internships, and graduate assistantships administered by the Multicultural Academic Opportunities Program at the university, $86,500 the first year and $86,500 the second year. Eligible students must have financial need and participate in an academic support program. B. The appropriation for the fund source Higher Education Operating in this Item shall be considered a sum sufficient appropriation, which is an estimate of the revenue collected to meet student financial aid needs, under the terms of the management agreement between the university and the Commonwealth as set forth in Chapters 933 and 943 of the 2006 Acts of Assembly. C. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. 213. Financial Assistance For Educational and General Services (11000) $426,237,963 $426,237,963 $494,528,874 Sponsored Programs (11004) $426,237,963 $426,237,963 $494,528,874 Fund Sources: General $10,388,544 $10,388,544 Higher Education Operating $415,849,419 $415,849,419 $484,140,330 Authority: Title 23.1, Chapter 26, Code of Virginia. A. Out of this appropriation, $2,388,544 the first year and $2,388,544 the second year from the general fund and $15,000,000 the first year and $15,000,000 the second year from nongeneral funds are designated to build research capacity in the areas of bioengineering, biomaterials and nanotechnology. B. Virginia Polytechnic Institute and State University is authorized to establish a self- supporting "instructional enterprise" fund to account for the revenues and expenditures of the Institute for Distance and Distributed Learning (IDDL) classes offered to students at locations outside the Commonwealth of Virginia. Consistent with the self-supporting concept of an "enterprise fund," student tuition and fee revenues for IDDL students at locations outside Virginia shall exceed all direct and indirect costs of providing instruction to those students. The Board of Visitors shall set tuition and fee rates to meet this requirement and shall set other policies regarding the IDDL as may be appropriate.

_ 302 Item Details($) Appropriations($) ITEM 213. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Revenue and expenditures of the fund shall be accounted for in such a manner as to be auditable by the Auditor of Public Accounts. As a part of this "instructional enterprise" fund Virginia Tech is authorized to establish a program in which Internet-based (on-line) courses, certificate, and entire degree programs, primarily at the graduate level, are offered to students in Virginia who are not enrolled for classes on the Blacksburg campus or one of the extended campus locations. Tuition generated by Virginia students taking these on-line courses and tuition from IDDL students at locations outside Virginia shall be retained in the fund to support the entire IDDL program and shall not be used by the state to offset other Educational and General costs. Revenues in excess of expenditures shall be retained in the fund to support the entire IDDL program. Full-time equivalent students generated through these programs shall be accounted for separately. Additionally, revenues which remain unexpended on the last day of the previous biennium and the last day of the first year of the current biennium shall be reappropriated and allotted for expenditure in the respective succeeding fiscal year. C. 1. Out of this appropriation, $4,000,000 the first year and $4,000,000 the second year from the general fund is designated to support and enhance brain disorder research. 2. Out of this appropriation, $1,000,000 the first year and $1,000,000 the second year from the general fund is designated for the Fralin Biomedical Research Institute to research the efficacy of making electroencephalogram combined transcranial magnetic stimulation available for veterans, first responders, and law-enforcement officers. D. The Higher Education Operating fund source listed in this Item is considered to be a sum sufficient appropriation, which is an estimate of funding required by the university to cover sponsored program operations. E. Out of this appropriation, $1,000,000 the first year and $1,000,000 the second year from the general fund is designated for support of the Focused Ultrasound Research Program to support core programs and research activities. The funding in this paragraph supports the activities and research at Virginia Tech as designated by the Focused Ultrasound Foundation, including coordinated activities with the University of Virginia. F. Out of this appropriation, $500,000 the first year and $500,000 the second year from the general fund is designated to support the necessary staffing, equipment, and related services for the Potomac Aquifer Recharge Monitoring Laboratory established in § 62.1-274, Code of Virginia. 214. Unique Military Activities (11300) $3,649,074 $3,974,074 $3,649,074 Fund Sources: General $3,649,074 $3,974,074 $3,649,074 Authority: Discretionary Inclusion. A.1. Personnel associated with performance of activities designated by the State Council of Higher Education for Virginia to be uniquely military shall be excluded from the calculation of employment guidelines. 2. It is the intent of the General Assembly that nonresident cadets receive the same general fund support in the Unique Military program as resident cadets. 215. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $340,047,023 $340,047,023 $357,972,180 Food Services (80910) $66,468,292 $66,468,292 $70,752,771 Residential Services (80930) $58,232,659 $58,232,659 $61,986,282 Parking And Transportation Systems And Services (80940) $15,410,327 $15,410,327 $16,403,663 Telecommunications Systems And Services (80950) $22,688,606 $22,688,606 $24,151,092 Student Health Services (80960) $12,823,082 $12,823,082 $13,649,647

_ 303 Item Details($) Appropriations($) ITEM 215. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Student Unions And Recreational Facilities (80970) $21,146,032 $21,146,032 $22,509,086 Recreational And Intramural Programs (80980) $9,666,642 $9,666,642 $10,289,746 Other Enterprise Functions (80990) $69,379,269 $69,379,269 $73,997,779 Intercollegiate Athletics (80995) $64,232,114 $64,232,114 Fund Sources: Higher Education Operating $340,047,023 $340,047,023 $357,972,180 Authority: Title 23.1, Chapter 26, Code of Virginia. Total for Virginia Polytechnic Institute and State University $1,839,692,396 $1,854,237,396 $1,840,416,276 $1,979,016,654 General Fund Positions 1,890.53 1,890.53 Nongeneral Fund Positions 4,933.45 4,933.45 Position Level 6,823.98 6,823.98 Fund Sources: General $312,252,888 $326,797,888 $312,976,768 Higher Education Operating $1,527,439,508 $1,527,439,508 $1,666,039,886 Virginia Cooperative Extension and Agricultural Experiment Station (229) 216. Educational and General Programs (10000) $110,096,190 $110,846,190 $110,096,190 Higher Education Research (100102) $48,349,270 $49,099,270 $48,349,270 Higher Education Public Services (100103) $56,988,720 $56,988,720 Higher Education Academic (100104) $847,669 $847,669 Operation and Maintenance Of Plant (100107) $3,910,531 $3,910,531 Fund Sources: General $90,418,035 $91,168,035 $90,418,035 Higher Education Operating $19,678,155 $19,678,155 Authority: Title 23.1,Chapter 26, Article 2 , Code of Virginia. A. Appropriations for this agency shall include operating expenses for research and investigations, and the several regional and county agricultural experiment stations under its control, in accordance with law. B.1. It is the intent of the General Assembly that the Cooperative Extension Service gives highest priority to programs and services which comprised the original mission of the Extension Service, especially agricultural programs at the local level. The university shall ensure that the service utilizes information technology to the extent possible in the delivery of programs. 2. The budget of this agency shall include and separately account for local payments. Virginia Polytechnic Institute and State University, in conjunction with Virginia State University, shall report, by fund source, actual expenditures for each program area and total actual expenditures for the agency, annually, by September 1, to the Department of Planning and Budget and the House Appropriations and Senate Finance Committees. The report shall include all expenditures from local support funds. C. The Virginia Cooperative Extension and Agricultural Experiment Station shall not charge a fee for testing the soil on property used for commercial farming. D. It is the intent of the General Assembly that the general fund share for the Virginia Cooperative Extension and Agriculture Experiment Station shall be 95 percent. E. The appropriation for the fund source Higher Education Operating in this Item shall be

_ 304 Item Details($) Appropriations($) ITEM 216. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 considered a sum sufficient appropriation, which is an estimate of the amount of revenues to be collected for the educational and general program under the terms of the management agreement between Virginia Polytechnic Institute and State University and the Commonwealth, as set forth in Chapters 933 and 943, of the 2006 Acts of Assembly. Total for Virginia Cooperative Extension and Agricultural Experiment Station $110,096,190 $110,846,190 $110,096,190 General Fund Positions 731.24 731.24 Nongeneral Fund Positions 388.27 388.27 Position Level 1,119.51 1,119.51 Fund Sources: General $90,418,035 $91,168,035 $90,418,035 Higher Education Operating $19,678,155 $19,678,155 Grand Total for Virginia Polytechnic Institute and State University $1,949,788,586 $1,965,083,586 $1,950,512,466 $2,089,112,844 General Fund Positions 2,621.77 2,621.77 Nongeneral Fund Positions 5,321.72 5,321.72 Position Level 7,943.49 7,943.49 Fund Sources: General $402,670,923 $417,965,923 $403,394,803 Higher Education Operating $1,547,117,663 $1,547,117,663 $1,685,718,041 § 1-66. VIRGINIA STATE UNIVERSITY (212) 217. Educational and General Programs (10000) $122,276,343 $133,486,443 $122,276,343 Higher Education Instruction (100101) $77,599,046 $88,809,146 $77,599,046 Higher Education Research (100102) $2,275,250 $2,275,250 Higher Education Public Services (100103) $120,473 $120,473 Higher Education Academic (100104) $7,371,728 $7,371,728 Higher Education Student Services (100105) $8,311,200 $8,311,200 Higher Education Institutional Support (100106) $18,004,746 $18,004,746 Operation and Maintenance Of Plant (100107) $8,593,900 $8,593,900 Fund Sources: General $77,075,140 $88,285,240 $77,075,140 Higher Education Operating $45,201,203 $45,201,203 Authority: Title 23.1, Chapter 27, 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.1. Out of this appropriation, $3,790,639 the first year and $3,790,639 the second year from the general fund is designated for continued enhancement of the existing Bachelor of Science academic programs in Computer Science, Manufacturing Engineering, Computer Engineering, Mass Communications and Criminal Justice, and the doctoral program in Education. 2. Out of this appropriation, $37,500 the first year and $37,500 the second year from the general fund is provided to serve in lieu of endowment income for the Eminent Scholars Program. 3. Any unexpended balances in paragraphs B.1. and B.2. in this Item at the close of business on June 30 each year shall not revert to the surplus of the general fund but shall be carried

_ 305 Item Details($) Appropriations($) ITEM 217. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 forward on the books of the State Comptroller and reappropriated in the succeeding year. Virginia State University may expend any prior year end balances to support its educational and general activities or its auxiliary enterprise activities. C. This appropriation includes $200,000 the first year and $200,000 the second year from the general fund to increase the number of faculty with terminal degrees to at least 85 percent of the total teaching faculty. D. Out of this appropriation, Virginia State University is authorized to use up to $600,000 the first year and $600,000 the second year from the general fund to address extremely critical deferred maintenance deficiencies in its facilities, including residence halls and dining facilities. E. 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. F. Out of this appropriation, $1,300,000 the first year and $1,300,000 the second year from the general fund is designated to support the Manufacturing Engineering and Logistics Technology program. G. 1. Out of this appropriation, $480,710 the first year and $480,710 the second year from the general fund is designated to address increased degree production in Data Science and Technology, Science and Engineering, Healthcare, and Education. 2. Degree production shall be measured for Bachelors, Masters, Doctorates and First Professional awards as follows: a. Data Science and Technology awards shall be based on completion data contained in the State Council of Higher Education for Virginia, C-16 completion report; b. Science and Engineering awards shall be based on completion data contained in the State Council of Higher Education for Virginia (SCHEV), C-1 A1 completion report for the following programs Biological and Biomedical Science (26), Engineering (14) less those already counted in paragraph 2 a., Engineering Technologies (15), and Physical Sciences (40); c. Healthcare awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Health Professions and Related Programs (51); and d. Education awards shall be based on completion data contained in the SCHEV C-1 A1 completion report for the Education Programs (13). 3. Virginia State University is expected to maintain increases in: a. Data Science and Technology awards of 5 annually over the base year. b. Science and Engineering awards of 5 annually over the base year. c. Education awards of 5 annually over the base year. d. The 2016-17 year will serve as the base year for these purposes. 4. SCHEV shall report on the progress toward these goals to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees annually. H. Out of this appropriation, an amount estimated at $299,286 the first year and $299,286 the second year from the general fund and $224,464 the first year and $224,464 the second year from nongeneral funds are designated for the educational telecommunications project to provide graduate engineering education. For supplemental budget requests, the participating institutions and centers jointly shall submit a report in support of such

_ 306 Item Details($) Appropriations($) ITEM 217. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 requests to the State Council of Higher Education for Virginia for review and recommendation to the Governor and General Assembly. I. Virginia State University, in partnership with Norfolk State University, shall collaborate with Virginia Union University and Hampton University and various localities throughout the Commonwealth to (a) create Minority Small Business Launch and Innovation Centers that support entrepreneurship customized to minority community needs, (b) improve health outcomes of vulnerable and marginalized populations in their surrounding localities through research, education, workforce development and outreach, (c) expand and upgrade broadband and technology in order to close the digital divide and provide students with additional tech job training, (d) actively engage with local public school districts to provide opportunities and awareness of post-secondary programs and curriculum, and (e) support the creation of an HBCU NoVA Campus by establishing an off-campus instruction site at Northern Virginia Community College in order to provide an opportunity to expand the HBCU presence in Northern Virginia, and access and opportunity to an increasing population of students seeking a four-year degree. 218. Higher Education Student Financial Assistance (10800) $33,392,448 $34,020,448 $33,516,878 Scholarships (10810) $32,790,089 $33,418,089 $32,909,519 Fellowships (10820) $602,359 $607,359 Fund Sources: General $26,795,421 $27,423,421 $26,919,851 Higher Education Operating $6,597,027 $6,597,027 Authority: Title 23.1, Chapter 27, Code of Virginia. A. Up to 15 percent of the funding in this item may be used to support Virginia Guaranteed Assistance Program eligible students for (1) priority funding who are enrolled in Data Science and Technology, Science and Engineering, Healthcare and Education programs and (2) as a grant for students in innovative internship programs provided that the institutions has at least one private sector partner and the grant is matched equally by the partner with non-state funding and / or the institution from private funds. B. 1. Out of this appropriation up to $7,222,765 the first year and $7,222,765 the second year from the general fund is provided for an affordability program to offer financial assistance to Virginia students who are Pell grant eligible, meet university admissions requirements, and live within a 45 mile radius of the university. The program is designed to address regional needs relating to access and completion. Funds shall be used to provide last dollar or reduced tuition and fees to students for up to 150 percent of required credits to complete a certificate or degree. Priority shall be placed on students from Matoaca, Petersburg, and Colonial Heights high schools, and remaining funds may be used for room and board if available. It is the intention that the program may include up to 300 students total at any one time. In the first and second year, in the event that financial aid remains available after recruiting new students for fall semester, the remaining financial aid may be used to fund current students who meet the criteria and/or for eligible new students that enroll in the spring semester. 2. As part of the six-year plan process, the university shall submit an annual report of the program that includes number of students served, average financial need of students, total expenditures, average award per student, retention and completion rates, other student outcomes as defined by the university, and planned outcomes for the upcoming year. 219. Financial Assistance For Educational and General Services (11000) a sum sufficient, estimated at $35,638,161 $35,638,161 $42,138,161 Sponsored Programs (11004) $35,638,161 $35,638,161 $42,138,161 Fund Sources: Higher Education Operating $35,638,161 $35,638,161 $42,138,161 Authority: Title 23.1, Chapter 27, Code of Virginia.

_ 307 Item Details($) Appropriations($) ITEM 219. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 220. Higher Education Auxiliary Enterprises (80900) a sum sufficient, estimated at $55,715,794 $55,715,794 $77,715,794 Food Services (80910) $13,489,606 $13,489,606 $17,489,606 Bookstores And Other Stores (80920) $1,451,001 $1,451,001 Residential Services (80930) $20,574,870 $20,574,870 $27,444,870 Parking And Transportation Systems And Services (80940) $417,467 $417,467 $767,467 Telecommunications Systems And Services (80950) $0 $115,000 Student Health Services (80960) $1,046,036 $1,046,036 Student Unions And Recreational Facilities (80970) $3,278,662 $3,278,662 Other Enterprise Functions (80990) $6,705,300 $6,705,300 $13,205,300 Intercollegiate Athletics (80995) $8,752,852 $8,752,852 $12,917,852 Fund Sources: Higher Education Operating $45,383,249 $45,383,249 $67,383,249 Debt Service $10,332,545 $10,332,545 Authority: Title 23.1, Chapter 27, Code of Virginia. Total for Virginia State University $247,022,746 $258,860,846 $247,147,176 $275,647,176 General Fund Positions 391.47 391.47 Nongeneral Fund Positions 489.89 489.89 Position Level 881.36 881.36 Fund Sources: General $103,870,561 $115,708,661 $103,994,991 Higher Education Operating $132,819,640 $132,819,640 $161,319,640 Debt Service $10,332,545 $10,332,545 Cooperative Extension and Agricultural Research Services (234) 221. Educational and General Programs (10000) $16,897,121 $16,897,121 $18,297,121 Higher Education Research (100102) $7,008,216 $7,008,216 $7,463,216 Higher Education Public Services (100103) $9,125,777 $9,125,777 $10,070,777 Higher Education Institutional Support (100106) $95,531 $95,531 Operation and Maintenance Of Plant (100107) $667,597 $667,597 Fund Sources: General $9,332,567 $9,332,567 Higher Education Operating $7,564,554 $7,564,554 $8,964,554 Authority: Title 23.1, Chapter 27, § 23.1-2704, Title 23, Chapter 13, Code of Virginia. A. Out of this appropriation, $392,107 the first year and $392,107 the second year from the general fund is designated for support of research and extension activities aimed at the production of hybrid striped bass in Virginia farm ponds. No expenditures will be made from these funds for other purposes without the prior written permission of the Secretary of Education. B. The Extension Division budgets shall include and separately account for local payments. Virginia State University, in conjunction with Virginia Polytechnic Institute

_ 308 Item Details($) Appropriations($) ITEM 221. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 and State University, shall report, by fund source, actual expenditures for each program area and total actual expenditures for the Extension Division, annually, by September 1, to the Department of Planning and Budget and the House Appropriations and Senate Finance and Appropriations Committees. The report shall include all expenditures from local support funds. C. Out of this appropriation, $394,000 the first year and $394,000 the second year from the general fund is designated for the Small-Farmer Outreach Training and Technical Assistance Program to provide outreach and business management education to small farmers. D. All appropriation not otherwise obligated in this Item may be used for any Extension related activities or operational expenses. Total for Cooperative Extension and Agricultural Research Services $16,897,121 $16,897,121 $18,297,121 General Fund Positions 58.75 58.75 Nongeneral Fund Positions 86.00 86.00 Position Level 144.75 144.75 Fund Sources: General $9,332,567 $9,332,567 Higher Education Operating $7,564,554 $7,564,554 $8,964,554 Grand Total for Virginia State University $263,919,867 $275,757,967 $264,044,297 $293,944,297 General Fund Positions 450.22 450.22 Nongeneral Fund Positions 575.89 575.89 Position Level 1,026.11 1,026.11 Fund Sources: General $113,203,128 $125,041,228 $113,327,558 Higher Education Operating $140,384,194 $140,384,194 $170,284,194 Debt Service $10,332,545 $10,332,545 § 1-67. FRONTIER CULTURE MUSEUM OF VIRGINIA (239) 222. Museum and Cultural Services (14500) $3,715,305 $3,715,305 Collections Management and Curatorial Services (14501) $78,986 $78,986 Education and Extension Services (14503) $1,397,664 $1,397,664 Operational and Support Services (14507) $2,238,655 $2,238,655 Fund Sources: General $2,914,884 $2,914,884 Special $800,421 $800,421 Authority: Title 23.1, Chapter 32, Article 2, Code of Virginia. A. Any revenue generated by the Frontier Culture Museum of Virginia from the development of its properties pursuant to § 23.1-3203, Code of Virginia, may be retained by the museum to support agency operations. Such revenues shall be deposited into a special fund which shall be created on the books of the State Comptroller. Amounts in this fund shall be appropriated consistent with the provisions of this act. B. The Governor may authorize the conveyance of any interest in property or improvements thereon held by the Commonwealth to the American Frontier Culture Foundation. Total for Frontier Culture Museum of Virginia $3,715,305 $3,715,305 General Fund Positions 22.50 22.50 Nongeneral Fund Positions 15.00 15.00 Position Level 37.50 37.50

_ 309 Item Details($) Appropriations($) ITEM 222. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $2,914,884 $2,914,884 Special $800,421 $800,421 § 1-68. GUNSTON HALL (417) 223. Museum and Cultural Services (14500) $1,605,931 $1,605,931 Education and Extension Services (14503) $369,202 $369,202 Operational and Support Services (14507) $1,236,729 $1,236,729 Fund Sources: General $1,374,193 $1,374,193 Special $231,738 $231,738 Authority: Title 23.1, Chapter 32, Article 3, Code of Virginia. A. The Offices of the Secretary of Education and the Secretary of Finance shall perform a programmatic and financial review of Gunston Hall, including a review of their capital projects and their ongoing operations. The Office of the Secretary of Education shall report its findings to the Chairs of the House Appropriations and the Senate Finance and Appropriations Committees by November 1, 2025. Total for Gunston Hall $1,605,931 $1,605,931 General Fund Positions 12.00 12.00 Nongeneral Fund Positions 3.00 3.00 Position Level 15.00 15.00 Fund Sources: General $1,374,193 $1,374,193 Special $231,738 $231,738 § 1-69. JAMESTOWN-YORKTOWN FOUNDATION (425) 224. Museum and Cultural Services (14500) $22,656,275 $22,656,275 Collections Management and Curatorial Services (14501) $816,645 $816,645 Education and Extension Services (14503) $9,021,406 $9,021,406 Operational and Support Services (14507) $12,818,224 $12,818,224 Fund Sources: General $13,073,744 $13,073,744 Special $9,582,531 $9,582,531 Authority: Title 23.1, Chapter 32, Article 4, Code of Virginia. A. Out of the amounts for Operational and Support Services, the Director is authorized to expend from special funds amounts not to exceed $3,500 the first year and $3,500 the second year for entertainment expenses commonly borne by businesses. Such expenses shall be recorded separately by the agency. B. With the prior written approval of the Director, Department of Planning and Budget, nongeneral fund revenues which are unexpended by the end of the fiscal year may be paid to the Jamestown-Yorktown Foundation, Inc. for the specific purposes determined by the Board of Trustees in support of Foundation programs. C. It is the intent of the General Assembly that the Jamestown-Yorktown Foundation be authorized to fill all positions authorized in this act and all part-time (wage) positions funded in this act, notwithstanding § 4-7.01 of this act. Total for Jamestown-Yorktown Foundation $22,656,275 $22,656,275 General Fund Positions 113.00 113.00 Nongeneral Fund Positions 63.00 63.00 Position Level 176.00 176.00 Fund Sources: General $13,073,744 $13,073,744 Special $9,582,531 $9,582,531

_ 310 Item Details($) Appropriations($) ITEM 224. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 § 1-70. THE LIBRARY OF VIRGINIA (202) 225. Archives Management (13700) $7,754,857 $7,754,857 $12,554,857 Management of Public Records (13701) $1,236,882 $1,236,882 Management of Archival Records (13702) $2,417,166 $2,417,166 Historical and Cultural Publications (13703) $781,141 $781,141 Archival Research Services (13704) $1,419,861 $1,419,861 Conservation-Preservation of Historic Records (13705) $887,762 $887,762 Circuit Court Record Preservation (13706) $1,012,045 $1,012,045 $5,812,045 Fund Sources: General $4,006,290 $4,006,290 Special $3,418,110 $3,418,110 $8,218,110 Federal Trust $330,457 $330,457 Authority: Title 42.1, Chapters 1 and 7, Code of Virginia. A. The Librarian of Virginia shall report annually to the Secretary of Education on progress in the processing and preserving of circuit court records. B. The Librarian of Virginia and the State Archivist shall conduct an annual study of The Library of Virginia's archival preservation needs and priorities, and shall report annually by December 1 to the Governor and the Chairs of the Senate Finance and Appropriations and House Appropriations Committees of the General Assembly on The Library of Virginia's progress to date in reducing its archival backlog. 226. Statewide Library Services (14200) $7,019,811 $12,174,124 $7,019,811 Cooperative Library Services (14201) $2,651,222 $2,651,222 Consultation to Libraries (14203) $781,927 $781,927 Research Library Services (14206) $3,586,662 $8,740,975 $3,586,662 Fund Sources: General $3,530,025 $8,684,338 $3,530,025 Special $289,602 $289,602 Federal Trust $3,200,184 $3,200,184 Authority: Title 42.1, Chapters 1 and 3, Code of Virginia. A. It is the intent of the General Assembly to continue to provide electronic resources for public libraries and to provide universal access to all citizens of the Commonwealth. First priority shall be the ability to access the Internet in local public libraries. B. Out of this appropriation, $5,154,313 the first year from the general fund is provided to support the Print Collections Inventory Control Project. Any balances for the purposes specified in this paragraph that are unexpended on June 30, 2025, and June 30, 2026, shall not revert to the general fund but shall be carried forward and reappropriated for the same purpose. 227. Financial Assistance for Educational, Cultural, Community, and Artistic Affairs (14300) $26,797,584 $26,797,584 $27,429,726 State Formula Aid for Local Public Libraries (14301) $26,797,584 $26,797,584 $27,429,726 Fund Sources: General $26,797,584 $26,797,584 $27,429,726 Authority: Title 42.1, Chapter 3, Code of Virginia. A. It is the objective of the Commonwealth that all local public libraries receiving state aid

_ 311 Item Details($) Appropriations($) ITEM 227. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 provide access to their patrons to worldwide electronic information on the Internet. It is the intent of the General Assembly that local public libraries receiving state aid invest in the technology necessary to provide or enhance this service. B. Included in this appropriation is $190,070 the first year and $190,070 the second year from the general fund to supplement the state formula aid distribution provided in Title 42.1, Code of Virginia, for Fairfax Public Library System. C. Out of this appropriation, $1,000,000 the first year and $1,000,000 the second year from the general fund of the total amounts for aid to libraries may be used for summer reading materials and programs or for STEAM instructional materials. D. It is the objective of the Commonwealth to fully fund the state formula for state aid to local libraries. It is the objective of the General Assembly to complete a phase-in of additional funding in fiscal year 2026. 228. Administrative and Support Services (19900) $13,297,009 $13,297,009 General Management and Direction (19901) $4,855,709 $4,855,709 Information Technology Services (19902) $4,916,687 $4,916,687 Physical Plant Services (19915) $3,524,613 $3,524,613 Fund Sources: General $10,994,720 $10,994,720 Special $1,259,199 $1,259,199 Federal Trust $1,043,090 $1,043,090 Authority: Title 42.1, Chapter 1, Code of Virginia. A. In the event that any budget reduction actions are required, the Director, Department of Planning and Budget, shall exclude from any reduction target calculations the rent plan included in the Library of Virginia budget. B. Out of this appropriation, $1,436,000 the first year and $1,436,000 the second year from the general fund is provided to support the cost of fees incurred from necessary information technology services that are out of scope of the Virginia Information and Technologies Agency. Total for The Library Of Virginia $54,869,261 $60,023,574 $54,869,261 $60,301,403 General Fund Positions 143.09 143.09 Nongeneral Fund Positions 63.91 63.91 Position Level 207.00 207.00 Fund Sources: General $45,328,619 $50,482,932 $45,328,619 $45,960,761 Special $4,966,911 $4,966,911 $9,766,911 Federal Trust $4,573,731 $4,573,731 § 1-71. THE SCIENCE MUSEUM OF VIRGINIA (146) 229. Museum and Cultural Services (14500) $12,299,708 $12,299,708 $12,549,708 Collections Management and Curatorial Services (14501) $10,000 $10,000 Education and Extension Services (14503) $5,550,693 $5,550,693 Operational and Support Services (14507) $6,739,015 $6,739,015 $6,989,015 Fund Sources: General $6,732,165 $6,732,165 $6,982,165 Special $5,317,543 $5,317,543 Federal Trust $250,000 $250,000 Authority: Title 23.1, Chapter 32, Article 5, Code of Virginia.

_ 312 Item Details($) Appropriations($) ITEM 229. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 A. This appropriation from the general fund shall be in addition to any appropriation from nongeneral funds, notwithstanding any contrary provisions in this act. B. Out of this appropriation, $351,314 the first year and $351,314 the second year from the general fund is designated for debt service costs for payments under the Master Equipment Lease Program (MELP) for the purchase of new equipment for the Dome. C. Out of this appropriation, $150,000 the first year and $150,000 the second year is provided to pilot a STEM partnership between the Science Museum of Virginia, the Virginia Air and Space Center, and the Virginia Living Museum for programs that promote achievement for K- 12 students in Hampton Roads and across the state, leveraging technology in the vital STEM component of the workforce pipeline. D. Purchase of items for resale at retail outlets and food services operations open to the public operated by the Science Museum of Virginia shall be exempt from the provisions of the Virginia Public Procurement Act (§ 2.2-4300 et. seq.) of the Code of Virginia. However, such purchase procedures shall provide for competition where practicable. Total for The Science Museum of Virginia $12,299,708 $12,299,708 $12,549,708 General Fund Positions 59.84 59.84 62.84 Nongeneral Fund Positions 34.16 34.16 Position Level 94.00 94.00 97.00 Fund Sources: General $6,732,165 $6,732,165 $6,982,165 Special $5,317,543 $5,317,543 Federal Trust $250,000 $250,000 § 1-72. VIRGINIA MUSEUM OF NATURAL HISTORY (942) 230. Museum and Cultural Services (14500) $4,152,902 $4,156,827 $4,229,827 Collections Management and Curatorial Services (14501) $231,335 $231,335 $304,335 Education and Extension Services (14503) $347,174 $347,174 Operational and Support Services (14507) $2,529,609 $2,529,609 Scientific Research (14508) $1,044,784 $1,048,709 Fund Sources: General $3,505,220 $3,505,220 $3,578,220 Special $552,086 $556,011 Federal Trust $95,596 $95,596 Authority: Title 10.1, Chapter 20, Code of Virginia. Total for Virginia Museum of Natural History $4,152,902 $4,156,827 $4,229,827 General Fund Positions 41.00 41.00 Nongeneral Fund Positions 10.50 10.50 Position Level 51.50 51.50 Fund Sources: General $3,505,220 $3,505,220 $3,578,220 Special $552,086 $556,011 Federal Trust $95,596 $95,596 § 1-73. VIRGINIA COMMISSION FOR THE ARTS (148)

_ 313 Item Details($) Appropriations($) ITEM 231. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 231. Financial Assistance for Educational, Cultural, Community, and Artistic Affairs (14300) $6,180,398 $8,330,398 $5,430,398 Financial Assistance to Cultural Organizations (14302) $5,775,463 $7,925,463 $5,025,463 Administration of Grants for Cultural and Artistic Affairs (14307) $404,935 $404,935 Fund Sources: General $5,340,172 $7,490,172 $4,590,172 Dedicated Special Revenue $11,000 $11,000 Federal Trust $829,226 $829,226 Authority: Title 23.1, Chapter 32, Article 7, Code of Virginia. A. In the allocation of grants to arts organizations, the Commission shall give preference to the performing arts. B. It is the objective of the Commonwealth to fund the Virginia Commission for the Arts at an amount that equals one dollar for each resident of Virginia. C. 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. D. Out of this appropriation, $750,000 the first year from the general fund is provided to the town of Abingdon to support the William King Museum. E. Out of this appropriation, $150,000 the first year from the general fund is provided to the City of Richmond for the Elegba Folklore Society to support cultural education and enrichment through the arts. 232. Museum and Cultural Services (14500) $926,451 $926,451 Operational and Support Services (14507) $926,451 $926,451 Fund Sources: General $796,222 $796,222 Federal Trust $130,229 $130,229 Authority: Title 23.1, Chapter 32, Article 7, Code of Virginia. A. 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. Total for Virginia Commission for the Arts $7,106,849 $9,256,849 $6,356,849 General Fund Positions 6.00 6.00 Position Level 6.00 6.00 Fund Sources: General $6,136,394 $8,286,394 $5,386,394 Dedicated Special Revenue $11,000 $11,000 Federal Trust $959,455 $959,455 § 1-74. VIRGINIA MUSEUM OF FINE ARTS (238) 233. Museum and Cultural Services (14500) $47,542,825 $47,791,734 $47,542,825 Collections Management and Curatorial Services (14501) $9,280,128 $9,280,128 Education and Extension Services (14503) $9,651,165 $9,651,165 Operational and Support Services (14507) $28,611,532 $28,860,441 $28,611,532 Fund Sources: General $13,286,032 $13,534,941 $13,286,032 Special $6,452,595 $6,452,595

_ 314 Item Details($) Appropriations($) ITEM 233. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Enterprise $7,479,910 $7,479,910 Dedicated Special Revenue $20,074,288 $20,074,288 Federal Trust $250,000 $250,000 Authority: Title 23.1, Chapter 32, Article 6, Code of Virginia. A. The appropriation in this Item from the general fund shall be in addition to any appropriation from nongeneral funds, notwithstanding any contrary provision of this act. B. Nongeneral fund revenues included in this Item under Dedicated Special Revenue will be restricted for the uses specified by the donors and shall not be subject to interagency transfers or appropriation reductions. C. The Comptroller of Virginia shall establish a special revenue account fund detail code for nongeneral funds donated to the Virginia Museum of Fine Arts by private donors and volunteers who sponsor fundraising activities to support the museum's general operations, exhibitions, and programs, and entertainment expenses commonly borne by businesses. Such expenses shall be recorded separately by the museum. D. Out of this appropriation, $158,513 in the first year and $158,513 in the second year from the general fund is provided to cover the service fee in lieu of taxes levied by the City of Richmond. E. Purchase of items for resale at retail outlets and food services operations open to the public operated by the Virginia Museum of Fine Arts shall be exempt from the provisions of the Virginia Public Procurement Act (§ 2.2-4300 et. seq.) of the Code of Virginia. However, such purchase procedures shall provide for competition where practicable. Total for Virginia Museum of Fine Arts $47,542,825 $47,791,734 $47,542,825 General Fund Positions 141.50 141.50 Nongeneral Fund Positions 212.00 212.00 Position Level 353.50 353.50 Fund Sources: General $13,286,032 $13,534,941 $13,286,032 Special $6,452,595 $6,452,595 Enterprise $7,479,910 $7,479,910 Dedicated Special Revenue $20,074,288 $20,074,288 Federal Trust $250,000 $250,000 § 1-75. NEW COLLEGE INSTITUTE (938) 234. Administrative and Support Services (19900) $4,686,850 $5,186,850 $4,686,850 Operation of Higher Education Centers (19931) $4,686,850 $5,186,850 $4,686,850 Fund Sources: General $3,101,809 $3,601,809 $3,101,809 Special $1,585,041 $1,585,041 Authority: Title 23.1, Chapter 31, Article 4, Code of Virginia. A. It is the intent of the General Assembly that the New College Institute, the Institute for Advanced Learning and Research, and the Southern Virginia Higher Education Center coordinate their activities, both instructional and research, to the maximum extent possible to best meet the needs of the citizens of the region, to ensure effective utilization of resources, and to avoid unnecessary duplication. The three entities shall report annually by October 1 to the Secretary of Education and the State Council of Higher Education and the Department of Planning and Budget on their joint efforts in this regard. B. The requirements of § 4-5.05 shall not apply to this appropriation. C. Notwithstanding any other provision of law, New College Institute is authorized to retain I VETO ITEM 234. ON PAGES 314-315 /s/ Glenn Youngkin 5-2-25

_ 315 Item Details($) Appropriations($) ITEM 234. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 the income generated by the rental of space at the Building on Baldwin in Martinsville, VA to outside entities. Total for New College Institute $4,686,850 $5,186,850 $4,686,850 General Fund Positions 23.00 23.00 Nongeneral Fund Positions 6.00 6.00 Position Level 29.00 29.00 Fund Sources: General $3,101,809 $3,601,809 $3,101,809 Special $1,585,041 $1,585,041 § 1-76. INSTITUTE FOR ADVANCED LEARNING AND RESEARCH (885) 235. Economic Development Services (53400) $8,041,336 $8,246,336 Regional Research, Technology, Education, and Commercialization Services (53421) $8,041,336 $8,246,336 Fund Sources: General $8,041,336 $8,246,336 Authority: Title 23.1, Chapter 31, Article 3, Code of Virginia. A. It is the intent of the General Assembly that the Institute for Advanced Learning and Research, the New College Institute, and the Southern Virginia Higher Education Center coordinate their activities, both instructional and research, to the maximum extent possible to best meet the needs of the citizens of the region, to ensure effective utilization of resources, and to avoid unnecessary duplication. The three entities shall report annually by October 1 to the Secretary of Education and the State Council of Higher Education on their joint efforts in this regard. B. The requirements of § 4-5.05 shall not apply to this appropriation. C. This Item includes no funds for the agency's use of leased property for engagement activities. Total for Institute for Advanced Learning and Research $8,041,336 $8,246,336 Fund Sources: General $8,041,336 $8,246,336 § 1-77. ROANOKE HIGHER EDUCATION AUTHORITY (935) 236. Administrative and Support Services (19900) $2,802,652 $3,447,824 $2,884,652 Operation of Higher Education Centers (19931) $2,802,652 $3,447,824 $2,884,652 Fund Sources: General $2,802,652 $3,447,824 $2,884,652 Authority: Title 23.1, Chapter 31, Article 5, Code of Virginia. A. The requirements of § 4-5.05 shall not apply to this appropriation. Total for Roanoke Higher Education Authority $2,802,652 $3,447,824 $2,884,652 Fund Sources: General $2,802,652 $3,447,824 $2,884,652 § 1-78. SOUTHERN VIRGINIA HIGHER EDUCATION CENTER (937) 237. Administrative and Support Services (19900) $10,079,222 $10,079,222 $8,879,222 Operation of Higher Education Centers (19931) $10,079,222 $10,079,222 $8,879,222

_ 316 Item Details($) Appropriations($) ITEM 237. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $5,793,075 $5,793,075 Special $4,286,147 $4,286,147 $3,086,147 Authority: Title 23.1, Chapter 31, Article 6, Code of Virginia. A. It is the intent of the General Assembly that the Southern Virginia Higher Education Center, the Institute for Advanced Learning and Research, and the New College Institute coordinate their activities, both instructional and research, to the maximum extent possible to best meet the needs of the citizens of the region, to ensure effective utilization of resources, and to avoid unnecessary duplication. The three entities shall report annually by October 1 to the Secretary of Education and the State Council of Higher Education for Virginia on their joint efforts in this regard. B. Out of this appropriation, $139,633 the first year and $139,633 the second year from the general fund is designated for the educational telecommunications project to provide graduate engineering education. For supplemental budget requests, the participating institutions and centers jointly shall submit a report in support of such requests to the State Council of Higher Education for Virginia for review and recommendation to the Governor and the General Assembly. C. Out of this appropriation, $266,000 and four positions the first year and $266,000 and four positions the second year from the general fund is designated for additional operational support of the Southern Virginia Higher Education Center and its efforts to provide STEM programs and specialized workforce training to the citizens of Southside Virginia. D. Out of this appropriation, $731,250 and eight positions the first year and $731,250 and eight positions the second year from the general fund and $782,100 and 3.5 positions the first year and $782,100 and 3.5 positions the second year from nongeneral funds are designated to maintain workforce advancement programs in the areas of health care, manufacturing, information technology, and STEM that were originally established through short-term grants in order to expand the credentials-to-career pipeline for key industry sectors in Southside Virginia. E. Out of this appropriation, $127,055 the first year and $127,055 the second year from the general fund is designated for debt service costs under the Master Equipment Leasing Program (MELP) for the acquisition of technical training equipment. In addition to these costs, $394,125 and six positions the first year and $394,125 and six positions the second year from the general fund and $233,375 the first year and $233,375 the second year from nongeneral funds are designated for the staff and operational costs associated with the Career Tech Academy, providing automation and robotics technical training to high school students from the counties of Charlotte, Halifax, and Mecklenburg. F. The Southern Virginia Higher Education Center is authorized to provide specialized workforce training consistent with grant agreements and memoranda of understanding with employers that existed as of January 1, 2016. The center will seek opportunities to collaborate with local community colleges in meeting the continuing goals of these programs and on new training needs identified by employers. If the local community colleges are unable to meet the training needs identified by employers, then the center is authorized to seek other education providers or to offer specialized workforce training independent of the local community colleges. G. The requirements of § 4-5.05 shall not apply to this appropriation. Total for Southern Virginia Higher Education Center $10,079,222 $10,079,222 $8,879,222 General Fund Positions 41.80 41.80 Nongeneral Fund Positions 29.50 29.50 Position Level 71.30 71.30 Fund Sources: General $5,793,075 $5,793,075 Special $4,286,147 $4,286,147 $3,086,147

_ 317 Item Details($) Appropriations($) ITEM 237. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 § 1-79. SOUTHWEST VIRGINIA HIGHER EDUCATION CENTER (948) 238. Administrative and Support Services (19900) $5,599,447 $5,599,447 General Management and Direction (19901) $46,831 $46,831 Operation of Higher Education Centers (19931) $5,552,616 $5,552,616 Fund Sources: General $4,316,600 $4,316,600 Special $1,282,847 $1,282,847 Authority: Title 23.1, Chapter 31, Article 7, Code of Virginia. A. The board of trustees of the Southwest Virginia Higher Education Center may establish and administer agreements with out-of-state institutions certified to operate in Virginia pursuant to § 23.1-219 Code of Virginia for such institutions to provide undergraduate- level and graduate-level instructional programs at the Center. B. Out of the appropriation for this item, $1,500,000 the first year and $1,500,000 the second year from the general fund shall be deposited to the Virginia Rural Information Technology Apprenticeship Grant Fund, as established in § 23.1-3129.1 Code of Virginia, for the purpose of awarding grants on a competitive basis from the Fund to small, rural information technology businesses in qualifying localities to establish apprenticeship programs. Total for Southwest Virginia Higher Education Center $5,599,447 $5,599,447 General Fund Positions 29.00 29.00 Nongeneral Fund Positions 3.00 3.00 Position Level 32.00 32.00 Fund Sources: General $4,316,600 $4,316,600 Special $1,282,847 $1,282,847 § 1-80. SOUTHEASTERN UNIVERSITIES RESEARCH ASSOCIATION DOING BUSINESS FOR JEFFERSON SCIENCE ASSOCIATES, LLC (936) 239. Financial Assistance For Educational and General Services (11000) $1,547,651 $1,547,651 Sponsored Programs (11004) $1,547,651 $1,547,651 Fund Sources: General $1,547,651 $1,547,651 Authority: Discretionary Inclusion. A. This appropriation represents the Commonwealth of Virginia's contribution to the Southeastern Universities Research Association Doing Business for Jefferson Science Associates, LLC, for the support of the Thomas Jefferson National Accelerator Facility (Jefferson Lab) located at Newport News, Virginia. This contribution includes funds to support faculty positions and industry-led research that will promote economic development opportunities in the Commonwealth. B. Out of this appropriation, $500,000 the first year and $500,000 the second year from the general fund is designated to provide funding to expand a center for nuclear femtography and to support high performance data facility related programs in partnership with the Commonwealth's research universities. C. This nonstate agency is exempt from the match requirement of § 2.2-1505, Code of Virginia and § 4-5.05 of this act. Total for Southeastern Universities Research Association Doing Business for Jefferson Science Associates, LLC $1,547,651 $1,547,651 Fund Sources: General $1,547,651 $1,547,651 240. Not set out.

_ 318 Item Details($) Appropriations($) ITEM 240. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 § 1-81. VIRGINIA COLLEGE BUILDING AUTHORITY (941) 241. Authority: Chapter 597, Acts of Assembly of 1986. A.1. The purpose of this Item is to provide an ongoing program for the acquisition and replacement of instructional and research equipment at state-supported institutions of higher education in accordance with the intent and purpose of Chapter 597, Acts of Assembly of 1986. 2. The Governor shall annually present to the General Assembly through the Commonwealth's budget process, the estimated payments and the corresponding total value of equipment to be acquired. B.1. The State Council of Higher Education for Virginia shall establish and maintain procedures through which institutions of higher education apply for allocations made available under the program, and shall develop guidelines and recommendations for the apportionment of such equipment to each state-supported institution of higher education. 2. The Authority shall finance equipment for educational institutions in accordance with § 23.1-1207, Code of Virginia, and according to terms and conditions approved through the Commonwealth's budget and appropriation process. Bonds or notes issued by the Virginia College Building Authority to finance equipment may be sold and issued at the same time with other obligations of the Authority as separate issues or as a combined issue. Each institution shall make available such additional detail on specific equipment to be purchased as may be requested by the Governor or the General Assembly. If emergency acquisitions are necessary when the General Assembly is not in session, the Governor may approve such acquisitions. The Governor shall report his approval of such acquisitions to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees. 3. Amounts for debt service payments for allocations provided by this Item shall be provided pursuant to Item 264 of this act. C.1. Transfer of the appropriation in Item 264 of this act to the Virginia College Building Authority shall be subject to the approval of the Secretary of Finance. An allocation of $183,300,000 made in the 2022-2024 biennium brings the total amount of equipment acquired through the program to approximately $1,999,964,424. 2. Allocations of $95,150,000 the first year and $97,650,000 the second year will be made to support the purchase of additional equipment to enhance instructional and research activity at Virginia's public colleges and universities. Allocations are as follows: FY 2025 FY 2026 Prior FY 2025 FY 2026 Research Research Institution Allocations Allocation Allocation Allocation Allocation George Mason University $119,169,755 $3,947,024 $3,947,024 $474,407 $474,407 Old Dominion University $131,016,213 $5,016,192 $5,016,192 $329,078 $329,078 University of Virginia $369,970,226 $10,458,476 $10,458,476 $12,689,341 $12,689,341 Virginia Commonwealth University $237,978,749 $6,853,430 $6,853,430 $5,995,552 $4,995,552 Virginia Polytechnic Institute and State University $367,195,402 $10,331,639 $10,331,639 $5,240,458 $9,240,458 College of William and Mary $67,071,124 $2,300,493 $2,300,493 $595,857 $595,857 Christopher Newport University $19,405,141 $754,464 $754,464 $0 $0

_ 319 Item Details($) Appropriations($) ITEM 241. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 University of Virginia's College at Wise $7,646,857 $250,681 $250,681 $0 $0 James Madison University $61,588,787 $2,309,646 $2,309,646 $0 $0 Longwood University $19,347,567 $743,433 $743,433 $0 $0 University of Mary Washington $20,593,398 $655,746 $655,746 $0 $0 Norfolk State University $54,133,439 $2,350,108 $2,350,108 $0 $0 Radford University $44,558,626 1,744,993 $1,744,993 $0 $0 Virginia Military Institute $22,571,018 $886,084 $886,084 $0 $0 Virginia State University $34,199,643 $1,342,189 $1,342,189 $0 $0 Richard Bland College $4,577,156 $160,149 $160,149 $0 $0 Virginia Community College System $384,874,381 $17,596,542 $17,596,542 $0 $0 Virginia Institute of Marine Science $12,333,958 $362,100 $362,100 $175,307 $175,307 Virginia Cooperative Extension and Agricultural Experiment Station $4,000,000 $0 $0 $0 $0 Southwest Virginia Higher Education Center $1,944,051 $80,111 $80,111 $0 $0 Roanoke Higher Education Authority $1,615,331 $77,623 $77,623 $0 $0 Institute for Advanced Learning and Research $7,661,688 $274,172 $274,172 $0 $0 Southern Virginia Higher Education Center $1,199,316 $595,790 $95,790 $0 $0 New College Institute $617,166 $34,486 $34,486 $0 $0 Eastern Virginia Medical School $4,695,432 $524,429 $524,429 $0 $0 TOTAL $1,999,964,424 $69,650,000 $69,150,000 $25,500,000 $28,500,000 D. Out of the allocations for the Virginia Community College System, $5,000,000 the first year and $5,000,000 the second year is designated to support the equipment needs of Workforce Development activities, including those related to the New Economy Industry Credential Assistance Training Grant Program. E. The allocations for Eastern Virginia Medical School may be utilized by Old Dominion University to ensure the continued operations of the schools and divisions existing as Eastern Virginia Medical School prior to the effective date of Chapters 756 and 778, 2023 Acts of Assembly. F. Out of this allocation, $10,500,000 the first year and $13,500,000 the second year is designated to support the equipment needs of institutions involved in the Bioscience

_ 320 Item Details($) Appropriations($) ITEM 241. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Research initiative. Of these amounts, $7,500,000 each year is allocated to the University of Virginia for the Manning Institute for Biotechnology, $4,000,000 the second year is allocated to Virginia Tech for the Patient Research Center and $3,000,000 the first year and $2,000,000 the second year is allocated to Virginia Commonwealth University for the Medicines for All Institute. G. Out of this allocation, $500,000 the first year is designated to support replacement equipment in the Welding Lab at Southern Virginia Higher Education Center to serve adult and high school welding students. Total for Virginia College Building Authority $0 $0 TOTAL FOR OFFICE OF EDUCATION $27,998,383,472 $29,018,400,026 $28,561,935,323 $29,829,016,765 General Fund Positions 19,272.89 19,272.89 19,301.24 Nongeneral Fund Positions 43,162.05 43,782.05 43,226.05 44,105.55 Position Level 62,434.94 63,054.94 62,498.94 63,406.79 Fund Sources: General $13,487,856,903 $13,915,953,212 $13,639,745,179 $14,019,373,555 Special $50,821,852 $65,821,852 $50,825,777 $54,425,777 Higher Education Operating $11,618,537,163 $11,627,891,917 $11,990,067,744 $12,401,088,086 Commonwealth Transportation $1,796,906 $1,796,906 Enterprise $7,479,910 $7,479,910 Trust and Agency $915,840,603 $1,006,738,652 $1,015,840,603 $1,087,249,747 Debt Service $308,781,595 $312,907,180 Dedicated Special Revenue $100,335,288 $220,335,288 $100,335,288 $130,335,288 Federal Trust $1,506,933,252 $1,863,600,694 $1,442,936,736 $1,814,360,316

_ 321 Item Details($) Appropriations($) ITEM 242. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 OFFICE OF FINANCE § 1-82. SECRETARY OF FINANCE (190) 242. Administrative and Support Services (79900) $816,339 $816,339 General Management and Direction (79901) $816,339 $816,339 Fund Sources: General $816,339 $816,339 Authority: Title 2.2, Chapter 2, Article 5; § 2.2-201, Code of Virginia. A. The Secretary of Finance, in consultation with other affected secretaries, is hereby authorized to order the State Comptroller to transfer to the general fund a reasonable sum, as determined by the State Comptroller, from annual charges of internal service funds and enterprise funds that exceed the cost of providing services or that represent over- recoveries from the general fund. B. The Secretary of Finance shall engage internal or third-party assistance to perform a risk assessment of executive branch agency internal controls for administering and disbursing federal pandemic relief funds, economic stimulus, or loan funds. Upon engaging internal or third-party assistance, the Secretary of Finance shall consult with the Auditor of Public Accounts and executive branch agencies conducting similar risk assessments or audits regarding the scope of work performed by the Auditor of Public Accounts and such executive branch agencies over federal funds. The Secretary of Finance shall provide oversight over any resulting contracts and compile the findings and provide a report to the Governor, the Chair of the House Appropriations Committee and the Chair of the Senate Finance and Appropriations Committee by November 1 of each year. Total for Secretary of Finance $816,339 $816,339 General Fund Positions 4.00 4.00 Position Level 4.00 4.00 Fund Sources: General $816,339 $816,339 § 1-83. DEPARTMENT OF ACCOUNTS (151) 243. Financial Systems Development and Management (72400) $3,501,869 $3,501,869 $4,377,782 Financial Systems Development (72401) $246,492 $246,492 $410,007 Financial Systems Maintenance (72402) $668,729 $668,729 $913,996 Computer Services (72404) $2,586,648 $2,586,648 $3,053,779 Fund Sources: General $3,501,869 $3,501,869 $4,377,782 Authority: Title 2.2, Chapter 8, Code of Virginia. 244. Accounting Services (73700) $11,471,240 $11,471,240 $11,924,553 General Accounting (73701) $5,438,769 $5,438,769 Disbursements Review (73702) $1,118,558 $1,118,558 Payroll Operations (73703) $1,501,367 $1,501,367 $1,693,461 Financial Reporting (73704) $3,412,546 $3,412,546 $3,673,765 Fund Sources: General $10,362,948 $10,362,948 $10,816,261 Special $1,108,292 $1,108,292

_ 322 Item Details($) Appropriations($) ITEM 244. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: Title 2.2, Chapter 8, and § 2.2-1822, Code of Virginia. A.1. There is hereby created on the books of the State Comptroller the Commonwealth Charge Card Rebate Fund. Rebates earned in any fiscal year on the Commonwealth's statewide charge card program shall be deposited to the Commonwealth Charge Card Rebate Fund. The cost of administration of the program as well as rebates due to political subdivisions and payments due to the federal government are hereby appropriated from the fund. All remaining rebate revenue in the fund shall be deposited to the general fund by June 30 of each year. 2. The Department of Accounts is authorized to include the administrative costs estimated at $80,000 per year for executing entries in the Commonwealth's accounting system for Level III institutions as defined in Chapter 675, 2009 Acts of Assembly, in the program costs appropriated from the fund. B. Notwithstanding the provisions of §§ 17.1-286 and 58.1-3176, Code of Virginia, the State Comptroller shall not make payments to the Circuit Court clerks on amounts directly deposited into the State Treasury by General District Courts, Juvenile and Domestic Relations General District Courts, Combined District Courts, and the Magistrates System. The State Comptroller shall continue to make payments, in accordance with §§ 17.1-286 and 58.1-3176, Code of Virginia, to the respective clerks on those amounts directly deposited into the state treasury by the Circuit Courts. C.1. There is hereby created in the state treasury a special nonreverting fund that shall be known as the Federal Repayment Reserve Fund. The Fund shall be established on the books of the Comptroller and shall consist of such moneys as the State Comptroller determines will be required to repay the federal government its share of any rebates, Internal Service Fund profits, transfers to the general fund or amounts arising from other sources. 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 the fiscal year shall not revert to the general fund but shall remain in the Fund. The Comptroller shall hold all moneys in this Fund until such payment is required by the federal government. 2. On an ongoing basis, agencies shall coordinate with the State Comptroller to identify amounts due to be returned to the federal government. The State Comptroller shall transfer those amounts to the Fund on or before June 30 of each year. D. The Department of Accounts is authorized to charge employees a mandatory fee of up to 15 cents for each payroll deduction administered under the Supplemental Insurance and Annuities program. Reimbursement by the employing agency is prohibited. 245. Service Center Administration (82600) $4,050,220 $4,241,035 Payroll Service Bureau (82601) $4,050,220 $4,241,035 Fund Sources: Internal Service $4,050,220 $4,241,035 Authority: Title 2.2, Chapter 8, Code of Virginia. A. The appropriation for the Payroll Service Bureau is sum sufficient and amounts shown are estimates from an internal service fund which shall be paid solely from revenues derived from charges for services. B.1. The Department of Accounts shall operate the payroll service center to support the salaried and wage employees of all agencies identified by the Department of Planning and Budget. The agencies so identified shall cooperate with the Department of Accounts in transferring such records and functions as may be required. The payroll service center shall provide services to employees to include, but not be limited to, payroll, benefit enrollment and leave accounting. The Department of Accounts shall be responsible for all accounting reconciliations for these services; however, each employing agency shall remain fully responsible for certifying the accuracy of each payroll paid to its employees. This certification shall be in such form as the Comptroller directs. 2.a. The Department of Accounts shall recover the cost of services provided by the payroll service center through interagency transactions as determined by the State Comptroller.

_ 323 Item Details($) Appropriations($) ITEM 245. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 b. The Department of Accounts is authorized to charge the following rates to agencies participating in the payroll service center based on the type and number of W-2 forms processed in the Cardinal Human Capital Management (HCM) system. Criteria FY 2025 FY 2026 Wage employees $132.59 $142.92 Salaried employees $155.99 $168.14 Non-Virginia employees $545.97 $588.49 C.1. The Department of Accounts shall operate a fiscal service center to support the operations of all agencies identified by the Department of Planning and Budget. The agencies so identified shall cooperate with the Department of Accounts in transferring such records and functions as may be required. The service center shall provide services to agencies to include accounts payable processing, travel voucher processing, related reconciliations, and such other fiscal services as may be appropriate. 2. The Department of Accounts shall recover the cost of services provided by the fiscal service center through interagency transactions as determined by the State Comptroller. D. Nothing in this section shall prohibit additional agencies from using the services of the centers; however, such additions shall be subject to approval by the affected cabinet secretary and the Secretary of Finance. 246. Information Systems Management and Direction (71100) $45,422,533 $45,810,683 Financial Oversight for Performance Budgeting System (71107) $3,272,531 $3,400,931 Financial Oversight for Cardinal System (71108) $42,150,002 $42,409,752 Fund Sources: Internal Service $45,422,533 $45,810,683 Authority: Title 2.2 Chapter 8, Code of Virginia A. The appropriation for Financial Oversight for Performance Budgeting System and Financial Oversight for Cardinal System is sum sufficient and amounts shown are estimates from internal service funds for the Commonwealth's enterprise applications which shall be paid solely from revenues derived from charges for services. All users of the Commonwealth's enterprise applications shall be assessed a surcharge based on licenses, transactions, or other meaningful methodology as determined by the Secretary of Finance and the owner of the enterprise application, which shall be deposited in the fund. Additionally, the State Comptroller shall recover the cost of services provided for the administration of the fund through interagency transactions as determined by the State Comptroller. 1. Out of this appropriation, the Performance Budgeting System is appropriated $3,272,531 the first year and $3,400,931 the second year from internal service fund revenues. 2. Out of this appropriation, the Cardinal Financial System is appropriated $20,493,396 the first year and $20,678,421 the second year from internal service fund revenues. 3. Out of this appropriation, the Cardinal Human Capital Management (HCM) system is appropriated $21,656,606 the first year and $21,731,331 the second year from internal service fund revenues. 4. The State Comptroller shall submit revised projections of revenues and expenditures for the internal service funds for the Commonwealth's enterprise applications and estimates of any anticipated changes to fee schedules in accordance with § 4-5.03 of this act. 5. In the event that expenses of the enterprise applications become due before costs have been fully recovered in the department's internal service fund, a treasury loan shall be provided to the department to finance these costs. This treasury loan shall be repaid from the proceeds collected in the funds. B. 1. In order to capitalize on the efficiencies and benefits of the successfully implemented

_ 324 Item Details($) Appropriations($) ITEM 246. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Commonwealth Enterprise Resource Planning system, Cardinal, a Cardinal Governance Committee (CGC) shall be established to evaluate and recommend expansion options for the Cardinal Financials and Human Capital Management (HCM) applications. The CGC shall analyze expansion opportunities in both the financial and human resources arenas that will most benefit Commonwealth state agencies in meeting their agency missions and core objectives. Additionally, this evaluation will analyze opportunities that could possibly allow for the decommissioning of agency-based systems in favor of the Commonwealth's enterprise system to improve efficiency and cost effectiveness. Once these opportunities are evaluated and finalized, the CGC shall present recommendations to the Commonwealth's Secretary of Finance and Secretary of Administration for review. Upon their approval of any such recommendations, the Cardinal Program will have the authority to proceed with these projects, subject to available funding. 2. In order to support and maintain the Cardinal project initiative, a working capital advance (WCA) of up to $12,000,000 is provided to the Cardinal program as start-up funding in anticipation of final approved funding. No funds shall be drawn and expended from this WCA without the prior approval of the Secretary of Finance. 3. The State Comptroller shall report on the plan to upgrade Cardinal Financials with the latest functional updates, including the cost of upgrades, timeline, and opportunities to deactivate other agency stand-alone accounting systems. This report shall also include options and cost estimates for restoring a Business Intelligence application for Cardinal Financials. The State Comptroller shall submit this report by no later than October 1, 2025, to the Department of Planning and Budget and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees. 247. Administrative and Support Services (79900) $1,734,964 $1,734,964 $2,399,555 General Management and Direction (79901) $1,734,964 $1,734,964 $2,399,555 Fund Sources: General $1,734,964 $1,734,964 $2,399,555 Authority: Title 2.2, Chapter 8, Code of Virginia. As a condition of the appropriation in this Item, the department shall provide to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees the expenditure and revenue reports necessary for timely legislative oversight of state finances. The necessary reports include monthly and year-end versions and shall be provided in an interactive electronic format agreed upon by the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, or their designees, and the Comptroller. Delivery of these reports shall occur by way of electronic mail or other methods to ensure their receipt within 48 hours of their initial run after the close of the business month. 248. In the event of default by a unit, as defined in § 15.2-2602, Code of Virginia, on payment of principal of or interest on any of its general obligation bonded indebtedness when due, the State Comptroller, in accordance with § 15.2-2659, Code of Virginia, is hereby authorized to make such payment to the bondholder, or paying agent for the bondholder, and to recover such payment and associated costs of publication and mailing from any funds appropriated and payable by the Commonwealth to the unit for any and all purposes. 249. In the event of default by any employer participating in the health insurance program authorized by § 2.2-1204, Code of Virginia, in the remittance of premiums or other fees and costs of the program, the State Comptroller is hereby authorized to pay such premiums and costs and to recover such payments from any funds appropriated and payable by the Commonwealth to the employer for any purpose. The State Comptroller shall make such payments upon receipt of notice from the Director, Department of Human Resource Management, that such payments are due and unpaid from the employer. 250. The State Comptroller shall make calculations of payments and transfers related to interest earned on federal funds, interest receivable on state funds advanced on behalf of federal programs, and direct cost reimbursements due from the federal government pursuant to Item

_ 325 Item Details($) Appropriations($) ITEM 250. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 263 of this act. Total for Department of Accounts $66,180,826 $66,759,791 $68,753,608 General Fund Positions 115.00 115.00 126.00 Nongeneral Fund Positions 54.00 54.00 Position Level 169.00 169.00 180.00 Fund Sources: General $15,599,781 $15,599,781 $17,593,598 Special $1,108,292 $1,108,292 Internal Service $49,472,753 $50,051,718 Department of Accounts Transfer Payments (162) 251. Financial Assistance to Localities - General (72800) a sum sufficient, estimated at $495,380,000 $495,380,000 Distribution of Rolling Stock Taxes (72806) $6,530,000 $6,530,000 Distribution of Recordation Taxes (72808) $20,000,000 $20,000,000 Financial Assistance to Localities - Rental Vehicle Tax (72810) $50,000,000 $50,000,000 Distribution of Sales Tax Revenues from Certain Public Facilities (72811) $2,000,000 $2,000,000 Distribution of Tennessee Valley Authority Payments in Lieu of Taxes (72812) $1,250,000 $1,250,000 Distribution of the Virginia Communications Sales and Use Tax (72816) $350,000,000 $350,000,000 Distribution of Payments to Localities for Enhanced Emergency Communications Services (72817) $37,000,000 $37,000,000 Distribution of Sales Tax Revenues from Certain Tourism Projects (72819) $600,000 $600,000 Distribution of Historic Triangle Sales Tax Collections (72820) $28,000,000 $28,000,000 Fund Sources: General $30,380,000 $30,380,000 Trust and Agency $50,000,000 $50,000,000 Dedicated Special Revenue $415,000,000 $415,000,000 Authority: §§ 15.2-5914, 58.1-608.3, 58.1-662, 58.1-816, 58.1-1736, 58.1-1741, 58.1- 2658.1, and 58.1-3406, Code of Virginia. A.1. In order to carry out the provisions of § 58.1-645 et seq., Code of Virginia, there is hereby appropriated a sum sufficient amount of nongeneral fund revenues estimated at $350,000,000 in the first year and $350,000,000 in the second year equal to the revenues collected pursuant to § 58.1-645 et seq., Code of Virginia, from the Virginia Communications Sales and Use Tax. All revenue received by the Commonwealth pursuant to the provisions of § 58.1-645 et seq., Code of Virginia, shall be paid into the state treasury and deposited to the Virginia Communications Sales and Use Tax Fund and shall be distributed pursuant to § 58.1-662, Code of Virginia, and Item 270 of this act. For the purposes of the State Comptroller's preliminary and final annual reports required by § 2.2-813, Code of Virginia, however, all deposits to and disbursements from the fund shall be accounted for as part of the general fund of the state treasury. 2. It is the intent of the General Assembly that all such revenues be distributed to counties, cities, and towns, the Department for the Deaf and Hard-of-Hearing, and to the Department of Taxation for the costs of administering the Virginia Communications Sales and Use Tax Fund. B. In order to carry out the provisions of § 58.1-1734 et seq., Code of Virginia, there is hereby appropriated a sum sufficient amount of nongeneral fund revenues estimated at

_ 326 Item Details($) Appropriations($) ITEM 251. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 $50,000,000 in the first year and $50,000,000 in the second year equal to the revenues collected pursuant to A. 2. of § 58.1-1736 Code of Virginia, from the Virginia Motor Vehicle Rental Tax. C. In order to carry out the provisions of § 56-484:17 et seq., Code of Virginia, there is hereby appropriated a sum sufficient amount of nongeneral fund revenues estimated at $37,000,000 in the first year and $37,000,000 in the second year equal to the revenues collected pursuant to § 56-484.17:1, Code of Virginia, from the Virginia Wireless Tax. D. In order to carry out the provisions of § 58.1-603.2, there is hereby appropriated a sum sufficient amount of nongeneral fund revenues estimated at $28,000,000 the first year and $28,000,000 the second year equal to the revenues collected pursuant to § 58.1-603.2, Code of Virginia, from the additional state sales and use tax in the Historic Triangle. E.1. Out of this appropriation, amounts estimated at $20,000,000 the first year and $20,000,000 the second year from the general fund shall be deposited into the Hampton Roads Regional Transit Fund, as provided in § 33.2-2600.1, Code of Virginia, from revenues collected pursuant to § 58.1-816 B., Code of Virginia. 2. Notwithstanding the provisions of § 58.1-816, Code of Virginia, the appropriation in this Item for the distribution of recordation taxes is not subject to the sum sufficient provisions of this Item. 252. Revenue Stabilization Fund (73500) Authority: Title 2.2, Chapter 18, Article 4, Code of Virginia. On or before November 1 of each year, the Auditor of Public Accounts shall report to the General Assembly the certified tax revenues collected in the most recently ended fiscal year. The auditor shall, at the same time, provide his report on the 15 percent limitation and the amount that could be paid into the fund in order to satisfy the mandatory deposit requirement of Article X, Section 8 of the Constitution of Virginia as well as the additional deposit requirement of § 2.2-1829, Code of Virginia. 252.10 Revenue Cash Reserve (23700) $294,482,240 $0 Appropriated Revenue Reserve (23701) $294,482,240 $0 Fund Sources: General $294,482,240 $0 Authority: Title 2.2, Chapter 18, Article 4.1, Code of Virginia 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. 253. Personnel Management Services (70400) $31,359,934 $31,359,934 Employee Flexible Benefits Services (70420) $31,359,934 $31,359,934 Fund Sources: Trust and Agency $31,359,934 $31,359,934 Authority: Title 2.2, Chapter 8, Code of Virginia. 254. Financial Assistance for Health Research (40700) $1,846,151 $2,346,151 $1,846,151 Health Research Grant Administration Services (40701) $1,846,151 $2,346,151 $1,846,151 Fund Sources: General $500,000 $0 Dedicated Special Revenue $1,846,151 $1,846,151 Authority: Title 2.2, Chapter 8, Code of Virginia. A. The Department of Accounts is authorized to disburse, as fiscal agent for the Commonwealth Health Research Board, funds received from the Virginia Retirement System pursuant to § 32.1-162.28, Code of Virginia.

_ 327 Item Details($) Appropriations($) ITEM 254. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 B. Out of this appropriation, $500,000 the first year from the general fund is provided for deposit to the Florence Neal Cooper Smith Sickle Cell Research Endowment Fund, established by House Bill 2500 of the 2025 Acts of Assembly, held on the books of the Commonwealth, as administered by the Commonwealth Health Research Board. 255. Personal Property Tax Relief Program (74600) $950,000,000 $950,000,000 Reimbursements to Localities for Personal Property Tax Relief (74601) $950,000,000 $950,000,000 Fund Sources: General $950,000,000 $950,000,000 Authority: Discretionary Inclusion. A.1. Out of this appropriation, $950,000,000 the first year and $950,000,000 the second year from the general fund is provided to be used to implement a program which provides equitable tax relief from the personal property tax on vehicles. 2. The amounts appropriated in this Item provide for a local reimbursement level of 70 percent in tax years 2004 and 2005. The local reimbursement level for tax year 2006 is set at $950,000,000 pursuant Chapter 1, 2004 Acts of Assembly, Special Session I. Payments to localities with calendar year 2006 car tax payment due dates prior to July 1, 2006, shall not be reimbursed until after July 1, 2006, except as otherwise provided in paragraph D of this Item. B. Notwithstanding the provisions of subsection B of § 58.1-3524, Code of Virginia, as amended by Chapter 1, 2004 Acts of Assembly, Special Session I, the determination of each county's, city's and town's share of the total funds available for reimbursement for personal property tax relief pursuant to that subsection shall be pro rata based upon the actual payments to such county, city or town pursuant to Title 58.1, Chapter 35.1, Code of Virginia, for tax year 2004 as compared to the actual payments to all counties, cities and towns pursuant to that chapter for tax year 2004, made with respect to reimbursement requests submitted on or before December 31, 2005, as certified in writing by the Auditor of Public Accounts not later than March 1, 2006. Notwithstanding the provisions of the second enactment of Chapter 1, 2004 Acts of Assembly, Special Session I, this paragraph shall become effective upon the effective date of this act. C. The requirements of subsection C 2 of § 58.1-3524 and subsection E of § 58.1-3912, Code of Virginia, as amended by Chapter 1, 2004 Acts of Assembly, Special Session I, with respect to the establishment of tax rates for qualifying vehicles and the format of tax bills shall be deemed to have been satisfied if the locality provides by ordinance or resolution, or as part of its annual budget adopted pursuant to Title 15.2, Chapter 25, Code of Virginia, or the provisions of a local government charter or Title 15.2, Chapter 4, 5, 6, 7 or 8, Code of Virginia, if applicable, specific criteria for the allocation of the Commonwealth's payments to such locality for tangible personal property tax relief among the owners of qualifying vehicles, and such locality's tax bills provide a general description of the criteria upon which relief has been allocated and set out, for each qualifying vehicle that is the subject of such bill, the specific dollar amount of relief so allocated. D. The Secretary of Finance may authorize advance payment, from funds appropriated in this Item, of sums otherwise due a town on and after July 1, 2006, for personal property tax relief under the provisions of Chapter 1, 2004 Acts of Assembly, Special Session I, if the Secretary finds that such town (1) had a due date for tangible personal property taxes on qualified vehicles for tax year 2006 falling between January 1 and June 30, 2006, (2) had a due date for tangible personal property taxes on qualified vehicles for tax year 2004 falling between January 1 and June 30, 2004, (3) received reimbursements pursuant to the provisions of Title 58.1, Chapter 35.1, Code of Virginia, between January 1 and June 30, 2004, (4) utilizes the cash method of accounting, and (5) would suffer fiscal hardship in the absence of such advance payment. E. It is the intention of the General Assembly that reimbursements to counties, cities and towns that had a billing date for tax year 2004 tangible personal property taxes with respect to qualifying vehicles falling between January 1 and June 30, 2004, and received personal property tax relief reimbursement with respect to tax year 2004 from the

_ 328 Item Details($) Appropriations($) ITEM 255. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Commonwealth between January 1 and June 30, 2004, pursuant to the provisions of Title 58.1, Chapter 35.1, Code of Virginia, as it existed prior to the amendments effected by Chapter 1, 2004 Acts of Assembly, Special Session I, be made by the Commonwealth with respect to sums attributable to such spring billing dates not later than August 15 of each fiscal year. Total for Department of Accounts Transfer Payments $1,478,586,085 $1,773,568,325 $1,478,586,085 Nongeneral Fund Positions 1.00 1.00 Position Level 1.00 1.00 Fund Sources: General $980,380,000 $1,275,362,240 $980,380,000 Trust and Agency $81,359,934 $81,359,934 Dedicated Special Revenue $416,846,151 $416,846,151 Grand Total for Department of Accounts $1,544,766,911 $1,839,749,151 $1,545,345,876 $1,547,339,693 General Fund Positions 115.00 115.00 126.00 Nongeneral Fund Positions 55.00 55.00 Position Level 170.00 170.00 181.00 Fund Sources: General $995,979,781 $1,290,962,021 $995,979,781 $997,973,598 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 § 1-84. DEPARTMENT OF PLANNING AND BUDGET (122) 256. Planning, Budgeting, and Evaluation Services (71500) $9,315,486 $9,315,486 Budget Development and Budget Execution Services (71502) $6,482,200 $6,558,244 Forecasting and Regulatory Review Services (71505) $1,471,791 $1,463,419 Program Evaluation Services (71506) $704,561 $712,133 Administrative Services (71598) $656,934 $581,690 Fund Sources: General $9,315,486 $9,315,486 Authority: Title 2.2, Chapter 15, Code of Virginia. A. The Department of Planning and Budget shall be responsible for continued development and coordination of an integrated, systematic policy analysis, planning, budgeting, performance measurement and evaluation process within state government. B. The Department of Planning and Budget shall be responsible for the continued development and coordination of a review process for strategic plans and performance measures of the state agencies. The review process shall assess on a periodic basis the structure and content of the plans and performance measures, and the processes used to develop and implement the plans and measures with the goal of improving the efficiency and effectiveness of state government operations. C.1. Notwithstanding § 2.2-1508, Code of Virginia, or any other provisions of law, on or before December 20, the Department of Planning and Budget shall deliver to the presiding officer of each house of the General Assembly a copy of the budget document containing the explanation of the Governor's budget recommendations. This copy may be in electronic format.

_ 329 Item Details($) Appropriations($) ITEM 256. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 2. The Department of Planning and Budget shall include in the budget document the amount of projected spending and projected net tax-supported state debt for each year of the biennium on a per capita basis. For this purpose, "spending" is defined as total appropriations from all funds for the cited fiscal years as shown in the Budget Bill. The most current population estimates from the Weldon Cooper Center for Public Services shall be used to make the calculations. D. Notwithstanding any contrary provision of law, any school division may request the Department of Planning and Budget to assist in the coordination of a school efficiency review for the division. Such assistance shall be at the discretion of the Director of the Department of Planning and Budget. Each participating school division shall pay 100 percent of the cost of the review. E. The Department of Planning and Budget shall provide a time and date stamp on all fiscal impact statements on bills to be considered by the General Assembly and posted on the Legislative Information System. If a fiscal impact statement is revised the new version shall clearly indicate as such. Each fiscal impact statement shall include a descriptive total of the general fund and nongeneral fund amounts of all paragraphs contained in the fiscal impact statement which describe how the costs were calculated. This descriptive total may be included in a final paragraph or table labeled with the discrete cost items by fund source and totaled. Total for Department of Planning and Budget $9,315,486 $9,315,486 General Fund Positions 59.00 59.00 Position Level 59.00 59.00 Fund Sources: General $9,315,486 $9,315,486 § 1-85. DEPARTMENT OF TAXATION (161) 257. Planning, Budgeting, and Evaluation Services (71500) $6,176,511 $5,176,511 $5,946,893 Tax Policy Research and Analysis (71507) $3,899,793 $2,899,793 Appeals and Rulings (71508) $1,415,043 $1,415,043 $2,185,425 Revenue Forecasting (71509) $861,675 $861,675 Fund Sources: General $6,176,511 $5,176,511 $5,946,893 Authority: §§ 2.2-1503, 15.2-2502, 58.1-202, 58.1-207, 58.1-210, 58.1-213, 58.1-816, and 58.1-3406, and Title 10.1, Chapter 14, Code of Virginia. A. The Department of Taxation shall continue the staffing and responsibility for the revenue forecasting of the Commonwealth Transportation Funds, including the Department of Motor Vehicles Special Fund, as provided in § 2.2-1503, Code of Virginia. The Department of Motor Vehicles shall provide the Department of Taxation with direct access to all data records and systems required to perform this function. The Department of Planning and Budget shall effectuate the transfer of three full-time equivalent positions and sufficient funding to ensure the successful consolidation of this function. B. Notwithstanding the provisions of § 58.1-202.2, Code of Virginia, no report on public- private partnership contracts shall be required in years following the final report upon the completion of contract or when no such contract is active. C. The Department of Taxation shall report no later than September 1 on an annual basis, to the Chairmen of the House Appropriations, House Finance and Senate Finance and Appropriation Committees, on the amount of state sales and use tax revenues authorized to be remitted for the preceding fiscal year under the provisions of § 58.1-608.3, § 58.1- 3851.1, and § 58.1-3851.2, of the Code of Virginia, as amended by the 2015 General Assembly. D. Out of this appropriation, $1,000,000 the first year from the general fund shall be used

_ 330 Item Details($) Appropriations($) ITEM 257. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 for initial costs associated with the replacement of the Department of Taxation's Integrated Revenue Management System (IRMS). Such funds shall be allocated in accordance with continued efforts related to the workgroup required by Item 273 Paragraph D of the 2022 and 2023 Appropriation Acts. Accordingly, the workgroup is hereby continued and directed to review the plan for implementation of an IRMS modernization project as developed by the Department of Taxation based upon recommendations of the workgroup's 2022 assessment. Such review shall include consideration of methodologies for refactoring and replacement, the project roadmap and timeline, costs and funding structure, and the governance structure required for the modernization effort. In addition, the workgroup shall provide periodic oversight of the implementation of the IRMS modernization 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 Virginia Information Technologies Agency. The workgroup shall submit an update on its findings and recommendations to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by November 1, 2024, with an annual executive summary of the interim activity of the project implementation by November 1 of each subsequent year until implementation of a new system is complete. E. The Department of Taxation shall assess implementing market-based sourcing for sales in the corporate income apportionment formula. The Department shall assess the administrative feasibility, the impact on major classifications of corporations operating in Virginia, the impact on corporate expansion within and into Virginia, and the projected impact on Virginia's tax revenue as a result of adopting market-based sourcing. The Department shall present recommendations to the Joint Subcommittee on Tax Policy for evaluation of the fiscal implications and incorporate any feedback from the Joint Subcommittee prior to the submission of the final report. The Department may establish a work group of stakeholders with the Secretary of Finance and the Chairs of the House Finance, House Appropriations, and Senate Finance and Appropriations Committees participating in selecting its members. The Department shall submit a report with recommendations by November 15, 2025 to the Chairs of House Finance, House Appropriations, and Senate Finance and Appropriations Committees. F. The Department of Taxation shall convene a work group composed of tax practitioners experienced in the preparation of corporate tax returns involving net operating losses, including members recommended by the Taxation Section of the Virginia Bar Association and the Virginia Society of Certified Public Accountants. The work group shall study the treatment of net operating losses in Virginia when compared to other states and shall make recommendations to simplify such treatment in Virginia. The work group shall consider at a minimum: (i) transition rules to the proposed simplified method of determining net operating losses; (ii) the effective date of any such transition; and (iii) what legislative, regulatory, or guideline amendments would be necessary to best effectuate such transition. The work group shall complete its meetings by October 1, 2025, and the Department shall submit a report of the work group's findings and recommendations to the Chairs of the Senate Finance and Appropriations, House Finance, and House Appropriations Committee by November 1, 2025. 258. Revenue Administration Services (73200) $70,323,247 $1,048,866,247 $69,918,101 $71,430,406 Tax Return Processing (73214) $7,428,573 $10,388,685 $7,392,923 $12,134,439 Customer Services (73217) $15,014,313 $990,597,201 $15,014,313 $11,785,102 Compliance Audit (73218) $26,718,919 $26,718,919 Compliance Collections (73219) $16,186,507 $16,186,507 Legal and Technical Services (73222) $4,974,935 $4,605,439 Fund Sources: General $58,592,613 $1,037,135,613 $58,074,467 $59,586,772 Special $10,282,214 $10,282,214 $10,940,214 Dedicated Special Revenue $1,448,420 $1,561,420 $903,420 Authority: Title 3.2; Title 58.1, Code of Virginia.

_ 331 Item Details($) Appropriations($) ITEM 258. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 A. Pursuant to § 58.1-1803, Code of Virginia, the Tax Commissioner is hereby authorized to contract with private collection agencies for the collection of delinquent accounts. The State Comptroller is hereby authorized to deposit collections from such agencies into the Contract Collector Fund (§ 58.1-1803, Code of Virginia). Revenue in the Contract Collector Fund may be used to pay private collection agencies/attorneys and perform oversight of their operations, upgrade systems and data interfaces, and retain experts to perform analysis of receivables and collection techniques. Any balance in the fund remaining after such payment shall be deposited into the appropriate general, nongeneral, or local fund no later than June 30 of each year. B.1. The Department of Taxation is authorized to retain, as special revenue, its reasonable share of any court fines and fees to reimburse the department for any ongoing operational collection expenses. 2. Any form of state debt assigned to the Department of Taxation for collection may be collected by the department in the same manner and means as state taxes may be collected pursuant to Title 58.1, Chapter 18, Code of Virginia. C. The Department of Taxation is hereby appropriated revenues from the Communications Sales and Use Tax Trust Fund to recover the direct cost of administration incurred by the department in implementing and collecting this tax as provided by § 58.1-662, Code of Virginia. D. The Tax Commissioner shall have the authority to waive penalties and grant extensions of time to file a return or pay a tax, or both, to any class of taxpayers when the Tax Commissioner in his discretion finds that the normal due date has, or would, cause undue hardship to taxpayers who were, or would be, unable to use electronic means to file a return or pay a tax because of a power or systems failure that causes the department's electronic filing or payment systems to be nonfunctional for all or a portion of a day on or about the due date for a return or payment. E. The Department of Taxation is hereby appropriated Land Conservation Incentive Act fees imposed under § 58.1-513 C. 2., Code of Virginia, on the transferring of the value of the donated interest. The Code of Virginia specifies such fees will be used by the Departments of Taxation and Conservation and Recreation to recover the direct cost of administration incurred in implementing the Virginia Land Conservation Act. F. In the event that the United States Congress adopts legislation allowing local governments, with the assistance of the Commonwealth, to collect delinquent local taxes using offsets from federal income taxes, the Department of Accounts shall provide a treasury loan to the Department of Taxation to finance the costs of modifying the agency's computer systems to implement this federal debt setoff program. This treasury loan shall be repaid from the proceeds collected from the offsets of federal income taxes collected on behalf of localities by the Department of Taxation. G. 1. All revenue received by the Commonwealth pursuant to the provisions of § 58.1-645 et seq., Code of Virginia, shall be paid into the state treasury and deposited to the Virginia Communications Sales and Use Tax Fund and shall be distributed pursuant to § 58.1-662, Code of Virginia, and Items 251 and 270 of this act. For the purposes of the Comptroller's preliminary and final annual reports required by § 2.2-813, Code of Virginia, however, all deposits to and disbursements from the Fund shall be accounted for as part of the general fund of the state treasury. 2. It is the intent of the General Assembly that all such revenues be distributed to counties, cities, and towns, the Department for the Deaf and Hard-of-Hearing, and for the costs of administering the Virginia Communications Sales and Use Tax. H. Notwithstanding the provisions of § 58.1-478, Code of Virginia, effective July 1, 2011, every employer whose average monthly liability can reasonably be expected to be $1,000 or more and the aggregate amount required to be withheld by any employer exceeds $500 shall file the annual report required by § 58.1-478, Code of Virginia, and all forms required by § 58.1-472, Code of Virginia, using an electronic medium using a format prescribed by the Tax Commissioner. Waivers shall be granted only if the Tax Commissioner finds that this requirement creates an unreasonable burden on the

_ 332 Item Details($) Appropriations($) ITEM 258. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 employer. All requests for waiver shall be submitted to the Tax Commissioner in writing. I. Notwithstanding the provisions of § 58.1-214, Code of Virginia, the department shall not be required to mail its forms and instructions unless requested by a taxpayer or his representative. J.1. Notwithstanding the provisions of § 58.1-609.12, Code of Virginia, no report on the fiscal, economic and policy impact of the miscellaneous Retail Sales and Use Tax exemptions under § 58.1-609.10, Code of Virginia, shall be required after the completion of the final report in the first five-year cycle of the study, due December 1, 2011. The Department of Taxation shall satisfy the requirement of § 58.1-609.12 that it study and report on the annual fiscal impact of the Retail Sales and Use Tax exemptions for nonprofit entities provided for in § 58.1-609.11, Code of Virginia, by publishing such fiscal impact on its website. 2. Notwithstanding the provisions of § 58.1-202, Code of Virginia, no report detailing the total amount of corporate income tax relief provided in Virginia shall be required after the completion of such report due on October 1, 2013. The Department of Taxation shall satisfy the requirement of § 58.1-202 that it issue an annual report detailing the total amount of corporate income tax relief provided in Virginia by publishing its Annual Report on its website. K. 1. Notwithstanding any provision of the Code of Virginia or this act to the contrary, a. Effective January 1, 2013, all corporations are required to file estimated tax payments and their annual income tax return and final payment using an electronic medium in a format prescribed by the Tax Commissioner . b. Effective July 1, 2013, every employer shall file the annual report required by § 58.1-478 and all forms required by § 58.1-472, Code of Virginia, using an electronic medium in a format prescribed by the Tax Commissioner. c. Effective January 1, 2015, for taxable years beginning on and after January 1, 2014, every pass-through entity shall file the annual return required by § 58.1-392, Code of Virginia, and make related payments using an electronic medium in a format prescribed by the Tax Commissioner. d. i. Effective until January 1, 2020, all estates and trusts are required to file estimated tax payments pursuant to § 58.1-490 et seq., Code of Virginia, and their annual income tax return pursuant to § 58.1-381, Code of Virginia, and final payment using an electronic medium in a format prescribed by the Tax Commissioner. ii. Effective January 1, 2020, annual income tax returns of estates and trusts required pursuant to § 58.1-381, Code of Virginia, that are prepared by an income tax return preparer, as defined in § 58.1-302, Code of Virginia, must be filed using an electronic medium in a format prescribed by the Tax Commissioner. e. Taxpayers subject to the taxes imposed pursuant to § 58.1-320 and required to pay estimated tax pursuant to § 58.1-490 et seq., shall be required to file and remit using an electronic medium in a format prescribed by the Tax Commissioner all installment payments of estimated tax and all payments made with regard to a return or an extension of time to file if (i) any one such payment exceeds or is required to exceed $1,500, or if (ii) the taxpayer's total tax liability exceeds or can be reasonably expected to exceed $6,000 in any taxable year beginning on or after January 1, 2022. This requirement shall apply to any payments made on and after July 1, 2022. The Department of Taxation shall provide reasonable advanced notice to taxpayers affected by this requirement. 2. The Tax Commissioner shall have the authority to waive the requirement to file or pay by electronic means. Waivers shall be granted only if the Tax Commissioner finds that this requirement creates an unreasonable burden on the person required to use an electronic medium. All requests for waiver shall be submitted to the Tax Commissioner in writing. L.1. Notwithstanding any other provision of law, Retail Sales and Use Tax returns and payments shall be made using an electronic medium prescribed by the Tax Commissioner beginning with the June 2012 return, due July 2012, for monthly filers and, for less frequent filers, with the first return they are required to file after July 1, 2013.

_ 333 Item Details($) Appropriations($) ITEM 258. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 2. Notwithstanding any other provision of law, Out-of-State Dealer's Use Tax and Business Consumer's Use Tax returns and payments shall be made using an electronic medium prescribed by the Tax Commissioner beginning with the July 2017 return, due August 2017, for monthly filers and, for less frequent filers, with the first return they are required to file after August 1, 2017. 3. The Tax Commissioner shall have the authority to waive the requirement to file by electronic means upon a determination that the requirement would cause an undue hardship. All requests for waiver shall be transmitted to the Tax Commissioner in writing. M. The Department of Taxation is hereby appropriated revenues from the Virginia Motor Vehicle Rental Tax to recover the direct cost of administration incurred by the department in implementing and collecting this tax as provided by § 58.1-1741, Code of Virginia. N. Notwithstanding the provisions of § 58.1-490 et seq., Code of Virginia, 1. Effective for taxable years beginning on or after January 1, 2015, a taxpayer shall be permitted to file a declaration of estimated tax with the Department of Taxation instead of with the commissioner of the revenue and notwithstanding the provisions of § 58.1-306, Code of Virginia, the department may so advise taxpayers. 2. Effective January 1, 2015, every treasurer who receives an estimated income tax return, declaration or voucher pursuant to § 58.1-495 of the Code of Virginia shall transmit such return, declaration or voucher to the Department of Taxation using an electronic medium in a format prescribed by the Tax Commissioner. O. Notwithstanding any provision of the Code of Virginia or this act to the contrary, the Department of Taxation is authorized to provide Form 1099 in an electronic format to taxpayers. The Tax Commissioner shall ensure that taxpayers may elect to receive the electronic version of the form. P. The Department of Taxation is hereby appropriated revenues from the E-911 Wireless Tax to recover the direct cost of administration incurred by the department in implementing and collecting this tax as provided by § 56-484.17:1, Code of Virginia. Q. The Department of Taxation is hereby appropriated revenues from the assessment for expenses pursuant to §§ 38.2-400 and 38.2-403, Code of Virginia, to recover any costs related to the Insurance Premiums License Tax that are incurred by the Department of Taxation, as provided in § 58.1-2533, Code of Virginia. R. The Department of Taxation is authorized to recover the administrative costs associated with debt collection initiatives under the U.S. Treasury Offset Program authorized by § 2.2-4809, not to exceed twenty percent of revenues generated pursuant to such debt collection initiatives. Such sums are in addition to any fees charged by outside collections contractors and/or enhanced collection revenues returned to the Commonwealth. S.1. Notwithstanding any other provision of the Code of Virginia or this act to the contrary, effective July 1, 2015, the Department of Taxation is hereby authorized to charge a fee of $5.00 per copy of a tax return requested by a taxpayer or a representative thereof. 2. The Tax Commissioner shall have the authority to waive such fee. Waivers shall be granted only if the Tax Commissioner finds that this requirement creates an unreasonable burden on the person requesting such copies. All requests for waiver shall be submitted to the Tax Commissioner in writing. T. Notwithstanding any other provision of the Code of Virginia or this act to the contrary, effective January 1, 2016, the Department of Taxation shall not provide to the local commissioners of the revenue or any other local officials copies of federal tax forms or schedules, including but not limited to, federal Schedules C (1040), C-EZ (1040), D (1040), E (1040), or F (1040), or federal Forms 4562 or 2106, or copies of Virginia Schedule 500FED, unless such schedules or forms are attached to a Virginia income tax return and submitted to the department in an electronic format by the taxpayer.

_ 334 Item Details($) Appropriations($) ITEM 258. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 U.1. Notwithstanding any other provision of law, Vending Machine Dealer's Sales Tax, Motor Vehicle Rental Tax and Fee, Communications Taxes, and Tobacco Products Tax returns shall be filed using an electronic medium prescribed by the Tax Commissioner beginning with the July 2016 return, due August 2016, for monthly filers and, for less frequent filers, with the first return they are required to file after July 1, 2016. 2. Notwithstanding any other provision of law, Litter Tax returns shall be filed and any payments shall be made using an electronic medium prescribed by the Tax Commissioner beginning with the first return required to be filed after January 1, 2018. 3. Notwithstanding any other provision of law, Form R-1 Business Registration Form shall be filed using an electronic medium prescribed by the Tax Commissioner beginning July 1, 2024. 4. The Tax Commissioner shall have the authority to waive the requirement to file by electronic means upon a determination that the requirement would cause an undue hardship. All requests for waiver shall be transmitted to the Tax Commissioner in writing. V.1. Notwithstanding any other provision of law, effective July 1, 2017, the Department of Taxation shall charge a fee of $275 for each request, except those requested by the local assessing officer, for a letter ruling to be issued pursuant to § 58.1-203, Code of Virginia, or for an advisory opinion issued pursuant to §§ 58.1-3701 or 58.1-3983.1, Code of Virginia; $50 for each request for an offer in compromise with respect to doubtful collectability authorized by § 58.1-105, Code of Virginia; and $100 for each request for permission to change a corporation's filing method pursuant to § 58.1-442, Code of Virginia. 2. The Tax Commissioner shall have the authority to waive such fees. Waivers shall be granted only if the Tax Commissioner finds that such fee creates an unreasonable burden on the person making such request. All requests for waiver shall be submitted to the Tax Commissioner in writing. 3. Revenues received from the above fees shall be deposited into the general fund in the state treasury. W. Notwithstanding the provisions of § 38.2-5601, Code of Virginia, the Department of Taxation shall not be required to update the Virginia Medical Savings Account Plan report after the completion of such report due on December 31, 2016. X.1. Every payment settlement entity required to file information returns under § 6050W of the Internal Revenue Code shall, within thirty days of the relevant federal deadline for filing such returns, submit to the Department of Taxation electronically either (i) a duplicate of all such information returns or (ii) a duplicate of such information returns related to participating payees with a Virginia state address or Virginia state taxpayers. 2. The Tax Commissioner shall have the authority to waive the requirement to submit this information upon a determination that the requirement would cause an unreasonable burden. In addition, the Tax Commissioner shall have the authority to waive the requirement to submit this information electronically upon a determination that the requirement would cause an unreasonable burden. All requests for waiver shall be transmitted to the Tax Commissioner in writing. Y. The Department of Taxation is hereby appropriated revenues from the Disposable Plastic Bag Tax to recover any administrative costs for collecting the tax incurred by the Department of Taxation as provided by § 58.1-3835 (C), Code of Virginia. Z. The Department of Taxation is hereby appropriated revenues from the tobacco products tax imposed under § 58.1-1021.02 of the Code of Virginia to recover any administrative costs for implementing the tax on heated tobacco products incurred by the Department of Taxation as provided by Item 3-5.19(D) of this Act. AA.1. Notwithstanding § 58.1-1803 A, or any other provision of law, the Department of Taxation may appoint a collector in any county or city, including the treasurer thereof, to collect delinquent state taxes at any time, even if such delinquent state taxes were not assessed at least 90 days previously therein.

_ 335 Item Details($) Appropriations($) ITEM 258. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 2. Notwithstanding § 58.1-1803 B, or any other provision of law, the Department of Taxation may appoint collectors or contract with collection agencies to collect delinquent state taxes at any time, even if such delinquent state taxes were not assessed at least 90 days previously therein. BB. In order to carry out the provisions of § 58.1-4200 et seq., Code of Virginia, there is hereby appropriated a sum sufficient amount of nongeneral fund revenues estimated at $16,700,000 in the first year and $23,000,000 in the second year equal to the revenues collected pursuant to § 58.1-4216, Code of Virginia, from the gross receipts tax on skill game machines. CC. Notwithstanding the provisions of § 4-3.02 of this act, the State Comptroller may authorize an interest-free treasury loan for the Department of Taxation to fund costs associated with the implementation of skill game oversight as enacted by the 2024 General Assembly of Virginia. The amount of the treasury loan may include costs as estimated to be incurred by the Department for the administration, regulation, enforcement, and oversight of skill game machines in accordance with legislation passed by the 2024 General Assembly. The Secretary of Finance may extend the repayment plan for any such interest-free treasury loan for a period of longer than twelve months as needed to support state costs associated with the administration and regulation of skill game machines. Intended repayment of the treasury loan is with revenues anticipated from fines, fees, and taxes collected pursuant to the legislation. DD.The Director, Department of Planning and Budget, is authorized to provide nongeneral fund appropriation to the Authority in the amounts necessary to reflect expenditures in accordance with this paragraph. EE. Out of this appropriation, $658,000 the first year and $771,000 the second year from the Electronic Nicotine Delivery Systems Fund, which shall be transferred from the Office of the Attorney General, shall be used for the costs associated with the implementation of House Bill 790 and Senate Bill 582 from the 2024 Session. FF. Notwithstanding any other provision of law, beginning July 1, 2017, fees collected by the Department of Taxation for the cigarette exemption certificate application authorized by Code of Virginia § 58.1-623.2 shall be used to offset the Department's direct costs of administration related to the cigarette exemption certificate. Any amount collected from such fees in excess of the Department's direct costs as of June 30 in even-numbered years, beginning with the fiscal year ending June 30, 2026, shall be deposited to the general fund. GG.1. There is hereby established in the state treasury and on the books of the State Comptroller a special nonreverting fund known as the Income Tax Rebate Fund. Interest earned on moneys in the Fund shall be credited to the general fund. 2. Out of this appropriation, $977,780,000 the first year from the general fund shall be deposited into the Income Tax Rebate Fund. Moneys in the Fund shall be used solely for the purpose of providing the tax rebate authorized in subparagraph 3 below. The information statement attached to the tax rebate checks issued pursuant with this item shall state, "the enclosed Tax Relief for Working Virginians was authorized by the 2025 General Assembly." 3. In addition to any refund due pursuant to § 58.1-309 of the Code of Virginia, and for taxable years beginning on and after January 1, 2024, but before January 1, 2025, an individual filing a return on or before November 3, 2025 or married persons filing a joint return on or before November 3, 2025 shall be issued a refund in an amount up to $200 for an individual, or $400 for married persons filing a joint return. An individual shall only be allowed a refund pursuant to this Item up to the amount of such individual's tax liability after the application of any deductions, subtractions, or credits to which the individual is entitled pursuant to Chapter 3 (§ 58.1-300 et seq.) of Title 58.1 of the Code of Virginia. Married persons filing a joint return shall only be allowed a refund pursuant to this Item up to the amount of such married persons tax liability after the application of any deductions, subtractions, or credits to which the married persons are entitled pursuant to Chapter 3 of Title 58.1 of the Code of Virginia. Any refund issued pursuant to this Item shall be subject to collection under the provisions of the Setoff Debt Collection

_ 336 Item Details($) Appropriations($) ITEM 258. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Act (§ 58.1-520 et seq. of the Code of Virginia). For taxpayers filing a return before July 1, 2025, refunds due pursuant to this Item shall be issued on or before October 15, 2025. In no case shall any interest be paid on any refund due pursuant to this Item. HH. Notwithstanding any other provision of the Code of Virginia or this act to the contrary, the Department of Taxation shall not be required to comply with the provisions of Virginia Code § 59.1-293.12 requiring unannounced investigations every 24 months to verify that a retail dealer is not selling retail tobacco products to persons under 21 years of age. 259. Tax Value Assistance to Localities (73400) $2,377,024 $2,377,024 $2,513,062 Training for Local Assessors (73401) $160,394 $160,394 $296,432 Valuation and Assessment Assistance for Localities (73410) $2,216,630 $2,216,630 Fund Sources: General $835,047 $835,047 $971,085 Special $1,541,977 $1,541,977 Authority: Title 58.1, Chapters 32, 34, 35, 36, and 39 and §§ 58.1-202, subdivisions 6, 10, and 11, 58.1-206; §§ 58.1-2655, 58.1-3239, 58.1-3278, and 58.1-3374, Code of Virginia. A. The department is hereby authorized to recover from participating localities, as special funds, the direct costs associated with assessor/property tax and local valuation and assessments training classes. In accordance with § 58.1-206, Code of Virginia, the assessing officers and board members attending shall continue to be reimbursed for the actual expenses incurred by their attendance at the programs. B. In the expenditure of funds out of its appropriations for determination of true values of locally taxable real estate for use by the Board of Education in state school fund distributions, the Department of Taxation shall use a sufficiently representative sampling of parcels, in accordance with the classification system as established in § 58.1-208, Code of Virginia, to reflect actual true values; further, the department shall, upon request of any local school board, review its initial determination and promptly inform the Board of Education of corrections in such determination. C. Notwithstanding any other provision of law, the requirement that the Department of Taxation print and distribute local tax forms, instructions, and property tax books shall be satisfied by the posting of such documents on the department's web site. 260. Administrative and Support Services (79900) $54,864,665 $188,328,909 $54,864,665 $60,630,056 General Management and Direction (79901) $30,066,690 $30,630,934 $30,066,690 $30,812,012 Information Technology Services (79902) $24,797,975 $157,697,975 $24,797,975 $29,818,044 Fund Sources: General $54,711,211 $188,175,455 $54,711,211 $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.

_ 337 Item Details($) Appropriations($) ITEM 260. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. Out of this appropriation, $131,000,000 the first year from the general fund is 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. Total for Department of Taxation $133,741,447 $1,245,748,691 $132,336,301 $140,520,417 General Fund Positions 930.00 930.00 933.00 Nongeneral Fund Positions 56.00 56.00 Position Level 986.00 986.00 989.00 Fund Sources: General $120,315,382 $1,232,322,626 $118,797,236 $126,981,352 Special $11,977,645 $11,977,645 $12,635,645 Dedicated Special Revenue $1,448,420 $1,561,420 $903,420 § 1-86. DEPARTMENT OF THE TREASURY (152) 261. Investment, Trust, and Insurance Services (72500) $68,012,631 $69,627,631 $65,212,631 $74,428,875 Debt Management (72501) $5,193,546 $1,393,546 Insurance Services (72502) $57,759,448 $59,374,448 $58,759,448 $67,774,482 Banking and Investment Services (72503) $5,059,637 $5,059,637 $5,260,847 Fund Sources: General $7,798,672 $9,413,672 $3,998,672 $13,103,039 Special $126,365 $126,365 Commonwealth Transportation $185,187 $185,187 Trust and Agency $59,852,407 $60,852,407 $60,964,284 Dedicated Special Revenue $50,000 $50,000

_ 338 Item Details($) Appropriations($) ITEM 261. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: Title 2.2, Chapter 18, Code of Virginia. A. The Department of the Treasury shall take into account the claims experience of each agency and institution when setting premiums for the general liability program. B. Coverage provided by the VARISK plan for constitutional officers shall be extended to any action filed against a constitutional officer or appointee of a constitutional officer before the Equal Employment Opportunity Commission or the Virginia State Bar. C. Notwithstanding the provisions of § 33.2-1919 and § 33.2-1927, Code of Virginia, the Northern Virginia Transportation Commission and the Potomac Rappahannock Transportation Commission are authorized to obtain liability policies for the Commissions' joint project, the Virginia Railway Express, consisting of liability insurance and a program of self-insurance maintained by the Commissions and administered by the Department of the Treasury's Division of Risk Management or by an independent third party selected by the Commissions, which liability policies shall be deemed to meet the requirements of § 8.01- 195.3, Code of Virginia. In addition, the Director of the Department of Rail and Public Transportation is authorized to work with the Northern Virginia Transportation Commission and the Potomac Rappahannock Transportation Commission to obtain the foregoing liability policies for the Commissions. In obtaining liability policies, the Director of the Department of Rail and Public Transportation shall advise the Commissions regarding compliance with all applicable public procurement and administrative guidelines. D. The Virginia Public School Authority shall transfer to the Department of the Treasury each year an amount necessary to recover the direct and indirect costs incurred by the department in the administration of the Virginia Public School Authority programs. E. The Department of the Treasury shall provide to the State Compensation Board the premiums, by local constitutional office and individual regional jail, required to fund the Constitutional Officer and Regional Jail Fund of the State Insurance Reserve Trust Fund. The premiums provided to the Department of the Treasury by the actuary shall be calculated using factors such as claims experience by local constitutional office and individual regional jail, each local constitutional office and individual regional jail's total number of positions, and local and regional jail average daily populations. F. Notwithstanding §2.2-1836, Code of Virginia the Department of the Treasury, Division of Risk Management is authorized to initiate Cyber coverage for state agencies under the Property Plan after July 1, 2020. G. The Department of the Treasury, in consultation with the the Department of Taxation, is directed to review surplus lines insurance policies procured by state agencies and authorities and submit a report to the Chairs of the House Appropriations Committee and the Senate Finance and Appropriations Committee. The review shall estimate the benefit from exempting state agencies and authorities from being charged the insurance premium license tax by licensed surplus line brokers on insurance policies procured. H. Included in the appropriation for this item is a total amount not to exceed $3,800,000 the first year from the general fund to be utilized towards loan payoffs of water and wastewater infrastructure debt incurred by the Town of Craigsville. The Department of Treasury is directed to utilize funds from the appropriation in this paragraph to directly pay lenders of the Town through which water and sewer infrastructure was financed. I.1. Out of this appropriation, $9,003,762 the second year from the general fund is provided to make payments to individuals in accordance with § 8.01-195.11, Code of Virginia, and corresponding legislation passed by the 2025 General Assembly. Notwithstanding subsection D. of § 8.01-195.11 of the Code of Virginia, no amounts shall be deducted for transition grants received. 2. Out of the amounts in this paragraph shall be paid $398,655 the second year from the general fund for the relief of Mr. Keshawn Clarence Duffy pursuant to § 8.01-195.11 of the Code of Virginia. 3. Out of the amounts in this paragraph shall be paid $5,835,758 the second year from the general fund for the relief of Mr. Marvin Leon Grimm, Jr. pursuant to § 8.01-195.11 of the

_ 339 Item Details($) Appropriations($) ITEM 261. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Code of Virginia. 4. Out of the amounts in this paragraph shall be paid $134,045 the second year from the general fund for the relief of Mr. Michael Haas pursuant to § 8.01-195.11 of the Code of Virginia. 5. Out of the amounts in this paragraph shall be paid $2,635,304 the second year from the general fund for the relief of Mr. Gilbert Merritt, III, pursuant to § 8.01-195.11 of the Code of Virginia. 262. Revenue Administration Services (73200) $16,063,613 $16,278,613 $15,607,347 $16,418,648 Unclaimed Property Administration (73207) $8,011,292 $8,226,292 $8,011,292 $8,638,063 Accounting and Trust Services (73213) $2,103,014 $2,103,014 $2,255,137 Check Processing and Bank Reconciliation (73216) $2,579,482 $2,579,482 Administrative Services (73220) $3,369,825 $2,913,559 $2,945,966 Fund Sources: General $5,008,056 $4,551,790 $4,698,289 Special $467,004 $467,004 Trust and Agency $9,989,189 $10,204,189 $9,989,189 $10,653,991 Dedicated Special Revenue $599,364 $599,364 Authority: Title 2.2, Chapter 18 and Title 55.1, Chapter 25, Code of Virginia. A. Included in this Item is a sum sufficient nongeneral fund appropriation for personal services and other operating expenses to process checks issued by the Department of Social Services. The estimated cost, excluding actual postage costs, is $170,000 the first year and $170,000 the second year. B. Included in this Item is a sum sufficient nongeneral fund appropriation for administrative expenses to process the Virginia Employment Commission (VEC) and Virginia Retirement System (VRS) checks. The estimated cost for VEC is $1,500 the first year and $1,500 the second year, and for VRS is $15,000 the first year and $15,000 the second year. C.1. The amounts for Unclaimed Property Administration are for administrative and related support costs of the Uniform Disposition of Unclaimed Property Act, to be paid solely from revenues derived pursuant to the act. 2. The amounts also include a sum sufficient nongeneral fund amount estimated at $2,000,000 the first year and $2,000,000 the second year to pay fees for compliance services and securities portfolio custody services for unclaimed property administration. 3. Notwithstanding § 55.1-2525.C of the Uniform Disposition of Unclaimed Property Act, the State Treasurer is not required to publish any item of less than $250. D. The State Treasurer is authorized to charge institutions of higher education participating in the private college financing program of the Virginia College Building Authority an annual administrative fee of up to 10 basis points of the then outstanding principal amount financed for each project in addition to a share of direct costs of issuance as determined by the State Treasurer. Revenue collected from this administrative fee shall be deposited to a special fund in the Department of the Treasury to compensate the department for direct and indirect staff time and expenses involved with this program. E.1. The State Treasurer is authorized to charge qualified public depositories holding public deposits, as defined in § 2.2-4401, Code of Virginia, an annual administrative fee of not more than one-half of one basis point of their average public deposit balances over a twelve month period. The State Treasurer shall issue guidelines to effect the implementation of this fee. However, the total fees collected from all qualified depositories shall not exceed $200,000 in any one year.

_ 340 Item Details($) Appropriations($) ITEM 262. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 2. Any regulations or guidelines necessary to implement or change the amount of the fee may be adopted without complying with the Administrative Process Act (§ 2.2-4000 et seq.) provided that input is solicited from qualified public depositories. Such input requires only that notice and an opportunity to submit written comments be given. F. The State Treasurer shall work with universities and community colleges to develop policies and procedures which minimize the use of paper checks when issuing any reimbursements of student loan balances. These efforts should include reimbursement through debit cards, direct deposits, or other electronic means. G. The Virginia Public School Authority shall transfer to the Department of the Treasury each year an amount necessary to recover the direct and indirect cost incurred by the department in the accounting and financial reporting of the Virginia Public School Authority programs. H. The State Treasurer shall transfer funds as set forth in § 10.1-1330(C), Code of Virginia. 263. 1. There is hereby appropriated to the Department of the Treasury a sum sufficient for the transfer to the federal government, in accordance with the provisions of the federal Cash Management Improvement Act of 1990 and related federal regulations, of the interest owed by the state on federal funds advanced to the state for federal assistance programs, where such funds are held by the state from the time they are deposited in the state's bank account until they are paid out to redeem warrants, checks or payments by other means. This sum sufficient appropriation is funded from the interest earned on federal funds deposited and invested by the state. The actual amount for transfer shall be established by the State Comptroller. 2. When permitted by applicable federal laws or administrative regulations, the State Comptroller shall first offset and reduce the amount to be transferred by any and all amounts of interest payments calculated to be received by the state from the federal government, where such payments are due to the state because the state was required to disburse its own funds for federal program purposes prior to the receipt of federal funds. 3. Should the interest payments calculated to be made by the federal government to the state exceed the interest calculated to be transferred from the state to the federal government, reduced by the federally approved direct cost reimbursement to the state, the State Comptroller shall then notify the federal government of the net amount of interest due to the state and shall record such net interest, upon its receipt, as interest revenue earned by the general fund. Total for Department of the Treasury $84,076,244 $85,906,244 $80,819,978 $90,847,523 General Fund Positions 31.70 31.70 32.95 Nongeneral Fund Positions 87.30 87.30 88.05 Position Level 119.00 119.00 121.00 Fund Sources: General $12,806,728 $14,421,728 $8,550,462 $17,801,328 Special $593,369 $593,369 Commonwealth Transportation $185,187 $185,187 Trust and Agency $69,841,596 $70,056,596 $70,841,596 $71,618,275 Dedicated Special Revenue $649,364 $649,364 § 1-87. TREASURY BOARD (155) 264. Bond and Loan Retirement and Redemption (74300) $1,055,120,400 $1,043,008,147 $1,089,441,170 $1,047,160,071 Debt Service Payments on General Obligation Bonds (74301) $41,187,314 $40,958,214 $33,743,986 $33,517,136

_ 341 Item Details($) Appropriations($) ITEM 264. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Debt Service Payments on Public Building Authority Bonds (74303) $369,073,180 $364,877,486 $379,077,905 $375,705,634 Debt Service Payments on College Building Authority Bonds (74304) $644,859,906 $637,172,447 $676,619,279 $637,937,301 Fund Sources: General $1,018,988,890 $1,006,876,637 $1,053,890,028 $1,011,608,929 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 $23,779,600 $0 $0 $13,028,600 $0 $0 2015B Refunding $11,340,750 $0 $14,880,000 $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 Projected debt service & expenses $100,000 $0 $100,000 $0 Total Service Area $41,187,314 $40,958,214 $0 $33,743,986 $33,517,136 $0 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 $8,414,675 $5,889,375 $645,000 $8,417,675 $0 $645,000 $0 2014B $2,014,388 $0 $2,012,972 $0 2014C Refunding $34,601,050 $31,600,750 $0 $34,600,400 $0 $0 2015A $17,297,845 $0 $17,296,720 $0 2015B Refunding $11,263,075 $0 $11,263,075 $0 2016A $14,377,100 $0 $14,379,225 $0

_ 342 Item Details($) Appropriations($) ITEM 264. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 Projected debt service and expenses $11,256,407 $250,000 $0 $38,176,313 $15,163,287 $0 Total Service Area $366,339,713 $362,144,019 $2,733,467 $376,626,265 $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 Mechanical Upgrades $14,479,670 Loudoun County Adult Detention Center - Expansion and Renovation $9,975,250 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 Montgomery County Jail $221,051 New River Valley Regional Jail $144,022

_ 343 Item Details($) Appropriations($) ITEM 264. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 2020A & B $20,154,950 $20,155,700 2020B Refunding $7,477,287 $6,206,018 2021A $32,914,300 $32,915,050

_ 344 Item Details($) Appropriations($) ITEM 264. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 & expenses $49,113,641 $250,000 $82,501,695 $4,652,563 Subtotal 21st Century $550,740,968 $544,263,414 $579,590,091 $544,126,759 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 $15,767,938 $0 $31,534,938 $13,762,292 Subtotal Equipment $94,118,938 $92,909,033 $97,029,188 $93,810,542 Total Service Area $644,859,906 $637,172,447 $676,619,279 $637,937,301 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 University $5,192,295 $5,192,295 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 Virginia Military Institute $400,470 $400,470 Virginia State University $773,577 $773,577 Richard Bland College $10,830 $10,830

_ 345 Item Details($) Appropriations($) ITEM 264. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 & Mary $3,020,288 $2,957,968 $259,307 $3,118,744 $3,098,080 $259,307 University of Virginia $13,730,800 $13,447,481 $1,088,024 $14,178,399 $14,084,454 $1,088,024 Virginia Polytechnic Institute and State University $13,564,278 $13,410,836 $992,321 $14,006,448 $13,913,645 $992,321 Virginia Military Institute $1,163,328 $1,139,325 $88,844 $1,201,251 $1,193,292 $88,844 Virginia State University $1,762,143 $1,725,783 $108,886 $1,819,586 $1,807,529 $108,886 Norfolk State University $1,575,607 $1,543,096 $108,554 $1,626,969 $1,616,188 $108,554 Longwood University $976,044 $955,904 $54,746 $1,007,861 $1,001,183 $54,746 University of Mary Washington $860,921 $843,157 $97,063 $888,985 $883,095 $97,063 James Madison University $3,032,305 $2,969,737 $254,504 $3,131,153 $3,110,406 $254,504 Radford University $2,290,979 $2,243,707 $135,235 $2,365,661 $2,349,987 $135,235 Old Dominion University $6,585,695 $6,702,689 $374,473 $6,800,377 $6,755,319 $374,473 Virginia Commonwealth University $8,997,781 $8,812,123 $401,647 $9,291,093 $9,229,532 $401,647 Richard Bland College $210,258 $205,919 $2,027 $217,112 $215,673 $2,027 Christopher Newport University $990,526 $970,088 $17,899 $1,022,816 $1,016,039 $17,899 University of Virginia's College at Wise $329,116 $322,325 $19,750 $339,844 $337,593 $19,750 George Mason University $5,181,998 $5,327,956 $205,665 $5,350,922 $5,315,467 $205,665 Virginia Community College System $23,102,276 $22,625,588 $633,657 $23,855,369 $23,697,308 $633,657 Virginia Institute of Marine Science $475,396 $465,587 $0 $490,894 $487,641 $0 Roanoke Higher Education Authority $101,910 $99,807 $0 $105,232 $104,535 $0 Southwest Virginia Higher Education Center $105,177 $103,007 $0 $108,605 $107,886 $0 Institute for Advanced $359,957 $0 $371,691 $0

_ 346 Item Details($) Appropriations($) ITEM 264. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Learning and Research $352,530 $369,228 Southern Virginia Higher Education Center $125,761 $123,167 $0 $129,861 $129,001 $0 New College Institute $45,276 $44,342 $0 $46,752 $46,442 $0 Eastern Virginia Medical School $688,516 $674,309 $0 $710,961 $706,250 $0 TOTAL $89,276,336 $88,066,431 $4,842,602 $92,186,586 $91,575,773 $4,842,602 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. A. There is hereby appropriated to the Treasury Board a sum sufficient from the general fund to pay obligations incurred pursuant to Article X, Sections 9 (a), 9 (c), and 9 (d), of the Constitution of Virginia, as follows: 1. Section 9 (a) To meet emergencies and redeem previous debt obligations. 2. Section 9 (c) Debt for certain revenue-producing capital projects. 3. Section 9 (d) Debt for variable rate obligations secured by general fund appropriations and a payment agreement with the Treasury Board. 4. For payment of the principal of and the interest on obligations, issued in accordance with the cited Sections 9 (c) and 9 (d), in the event pledged revenues are insufficient to meet the obligation of the Commonwealth. B. There is hereby appropriated to the Treasury Board a sum sufficient to pay debt service expected at the time of issuance to be paid from subsidies under federal programs and for arbitrage rebate amounts and other penalties to the United States Government for bonds issued by the Commonwealth pursuant to Article X, Sections 9 (a), 9 (b), 9 (c), and 9 (d) (obligations secured by General Fund appropriations to Treasury Board) of the Constitution of Virginia. Total for Treasury Board $1,055,120,400 $1,043,008,147 $1,089,441,170 $1,047,160,071 Fund Sources: General $1,018,988,890 $1,006,876,637 $1,053,890,028 $1,011,608,929 Higher Education Operating $31,526,576 $31,526,576

_ 347 Item Details($) Appropriations($) ITEM 265. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Dedicated Special Revenue $645,000 $645,000 Federal Trust $3,959,934 $3,379,566 § 1-88. BOARD OF ACCOUNTANCY (226) 266. Regulation of Professions and Occupations (56000) $2,767,913 $2,767,913 Accountant Regulation (56001) $2,767,913 $2,767,913 Fund Sources: Dedicated Special Revenue $2,767,913 $2,767,913 Authority: Title 54.1, Chapter 44, Code of Virginia. Total for Board of Accountancy $2,767,913 $2,767,913 Nongeneral Fund Positions 15.00 15.00 Position Level 15.00 15.00 Fund Sources: Dedicated Special Revenue $2,767,913 $2,767,913 TOTAL FOR OFFICE OF FINANCE $2,830,604,740 $4,227,311,971 $2,860,843,063 $2,838,767,442 General Fund Positions 1,139.70 1,139.70 1,154.95 Nongeneral Fund Positions 213.30 213.30 214.05 Position Level 1,353.00 1,353.00 1,369.00 Fund Sources: General $2,158,222,606 $3,554,714,837 $2,187,349,332 $2,164,497,032 Special $13,679,306 $13,679,306 $14,337,306 Higher Education Operating $31,526,576 $31,526,576 Commonwealth Transportation $185,187 $185,187 Internal Service $49,472,753 $50,051,718 Trust and Agency $151,201,530 $151,416,530 $152,201,530 $152,978,209 Dedicated Special Revenue $422,356,848 $422,469,848 $421,811,848 Federal Trust $3,959,934 $3,379,566

_ 348 Item Details($) Appropriations($) ITEM 267. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 OFFICE OF HEALTH AND HUMAN RESOURCES § 1-89. SECRETARY OF HEALTH AND HUMAN RESOURCES (188) 267. Administrative and Support Services (79900) $964,759 $964,759 General Management and Direction (79901) $964,759 $964,759 Fund Sources: General $964,759 $964,759 Authority: Title 2.2, Chapter 2; Article 6, and § 2.2-200, Code of Virginia. A.1. The Secretary of Health and Human Resources, in collaboration with the Office of the Attorney General and the Secretary of Public Safety and Homeland Security, shall present a six-year forecast of the adult offender population presently incarcerated in the Department of Corrections and approaching release who meet the criteria set forth in Chapter 863 and Chapter 914 of the 2006 Acts of Assembly, and who may be eligible for evaluation as sexually violent predators (SVPs) for each fiscal year within the six-year forecasting period. As part of the forecast, the secretary shall report on: (i) the number of Commitment Review Committee (CRC) evaluations to be completed; (ii) the number of eligible inmates recommended by the CRC for civil commitment, conditional release, and full release; (iii) the number of civilly committed residents of the Virginia Center for Behavioral Rehabilitation who are eligible for annual review; and (iv) the number of individuals civilly committed to the Virginia Center for Behavioral Rehabilitation and granted conditional release from civil commitment in a state SVP facility. The secretary shall complete a summary report of current SVP cases and a forecast of SVP eligibility, civil commitments, and SVP conditional releases, including projected bed space requirements, to the Governor and Senate Finance and Appropriations and House Appropriations Committees by November 15 of each year. 2. As part of the forecast process, the Department of Corrections shall administer a STATIC- 99 screening to all potential Sexually Violent Predators eligible for civil commitment pursuant to § 37.2-900 et seq., Code of Virginia, within six months of admission to the Department of Corrections. The results of such screenings shall be provided to the commissioner of the Department of Behavioral Health and Developmental Services (DBHDS) on a monthly basis and used for the SVP population forecast process. 3. The Office of the Attorney General shall also provide to the commissioner of DBHDS, on a monthly basis, the status of all SVP cases pending before their office for purposes of forecasting the SVP population. B.1. The Secretary of Health and Human Resources, in collaboration with the Secretary of Administration and the Secretary of Public Safety and Homeland Security, shall convene an interagency workgroup to oversee the development of a statewide integrated electronic health record (EHR) system. The workgroup shall include the Department of Behavioral Health and Developmental Services (DBHDS), the Virginia Department of Health, the Department of Corrections, the Department of Planning and Budget, staff of the House Appropriations and Senate Finance and Appropriations Committees, and other agencies as deemed appropriate by the respective Secretaries. The purpose of the workgroup shall be to evaluate common business requirements for electronic health records to ensure consistency and interoperability with other partner state and local agencies and public and private health care entities to the extent allowed by federal and state law and regulations. The goal of the workgroup is to develop an integrated EHR which may be shared as appropriate with other partner state and local agencies and public and private health care entities. The workgroup shall evaluate the DBHDS statement of work developed for its EHR system and the DBHDS platform for potential adaption and/or use by state agencies in order to develop an integrated statewide EHR. 2. The workgroup shall also maintain an implementation timeline, cost estimates, and assess other issues that may need to be addressed in order to implement an integrated statewide EHR system. The timeline and cost estimates shall be used by the respective agencies to coordinate implementation. The workgroup shall report on its activities and any recommendations to the Joint Subcommittee on Heath and Human Resources Oversight by November 1 of each year. C.1. The Secretary of Health and Human Resources shall report to the Chairs of the House

_ 349 Item Details($) Appropriations($) ITEM 267. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Appropriations and Senate Finance and Appropriations Committees and to the Behavioral Health Commission by December 1, 2024 a plan detailing how funds appropriated during the 2023 and 2024 Sessions of the General Assembly shall be expended to expand and modernize the comprehensive crisis services system. 2. The plan shall include how funding for new crisis stabilization units and crisis receiving centers are being strategically deployed and the information provided shall include: (i) the unmet needs the new unit will address; (ii) the capacity of community services boards or private providers to staff the proposed unit; (iii) the unit's ability to serve individuals under a temporary detention order; (iv) the expected initial and ongoing costs of the proposed unit; and (v) the planned timeframe for when the unit would become operational. D. The Secretary of Health and Human Resources shall report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees and to the Behavioral Health Commission by December 1, 2024, on plans to implement the Certified Community Behavioral Health Clinic (CCBHC) model in the Commonwealth, how adopting the CCBHC model could improve access to community-based behavioral health services and their quality, and barriers to implementation of the CCBHC model in the Commonwealth. E. The Secretary of Health and Human Resources shall take an inventory of all call centers operated or contracted by agencies, including contracted Medicaid managed care organizations, in the Health and Human Resources Secretariat. Specifically, the inventory shall include for each call center: (i) the purpose of the call center; (ii) the annual contract amount and agency fund sources used to pay the contract; (iii) the term and expiration date of the contract; (iv) an assessment of any duplication between the call centers; and (v) any recommendations for potential consolidation. The Secretary shall report the detailed list of call centers with requested information by September 1, 2024, to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees. Total for Secretary of Health and Human Resources $964,759 $964,759 General Fund Positions 5.00 5.00 Position Level 5.00 5.00 Fund Sources: General $964,759 $964,759 Children's Services Act (200) 268. Protective Services (45300) $435,341,242 $472,383,965 $435,341,242 $498,650,250 Financial Assistance for Child and Youth Services (45303) $435,341,242 $472,383,965 $435,341,242 $498,650,250 Fund Sources: General $377,708,913 $414,751,636 $377,708,913 $441,017,921 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 $319,037,048$438,012,921 the second year from the general fund and $57,632,329 the first year and $57,632,329$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

_ 350 Item Details($) Appropriations($) ITEM 268. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 $287,822,698$406,798,571 the second year from the general fund and $8,419,998 the first year and $8,419,998$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, $55,666,865$92,709,588 the first year and $55,666,865 the second year from the general fund and $1,000,000 the first year and $1,000,000 the second year from 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 each yearthe 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 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

_ 351 Item Details($) Appropriations($) ITEM 268. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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: 1.a. Allocations. Tthe 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. Local Match. 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,

_ 352 Item Details($) Appropriations($) ITEM 268. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 4. Local Administrative Costs. 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. Definition. 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-

_ 353 Item Details($) Appropriations($) ITEM 268. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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. Administrative and Support Services (49900) $2,939,446 $2,939,446 $2,997,986 General Management and Direction (49901) $2,939,446 $2,939,446 $2,997,986 Fund Sources: General $2,939,446 $2,939,446 $2,997,986 Authority: Title 2.2, Chapter 26, Code of Virginia. A. The Office of Children's Services may enter into a memorandum of understanding with the Department of Social Services for the provision of routine administrative support services. B.1. Out of this appropriation, $100,000 the first year and $100,000 the second year from the general fund shall be provided to the Office of Children's Services (OCS) to contract with the Virginia Department of Education's Office of Special Education to conduct a review of private day placement decisions in those localities with a higher than average number of placements and make recommendations to the local education agency. OCS shall, on its website by October 1 of each year, (i) show the number of students in private day placements by locality; (ii) calculate the ratio of children in private day placements to the number of students in the local education agency (LEA); and (iii) identify the LEAs that exceed the statewide average of private day placements compared to the LEA's enrollment. 2. The Office of Comprehensive Services, in coordination with the Virginia Department of

_ 354 Item Details($) Appropriations($) ITEM 269. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Education's Office of Special Education, shall report to the General Assembly by October 1 of each year: (i) recommendations made to each LEA and progress made in improving the LEA's ability to serve students; (ii) an assessment of barriers to students returning to a LEA from a private day placement including instances when the LEA refuses or is unable to provide a less restrictive environment due to a lack of available transition services and recommendations for returning students to public school who are deemed eligible; and (iii) trends in behavioral and emotional diagnoses including students on home-based instruction that may require private day placements. C. The Office of Children's Services shall collect annually from each local Children's Services Act program the number of program staff by full- and part-time status and the administrative budget broken out by state and local funding to understand local program resources and target technical assistance to the most under-sourced local programs. Total for Children's Services Act $438,280,688 $475,323,411 $438,280,688 $501,648,236 General Fund Positions 16.00 16.00 Position Level 16.00 16.00 Fund Sources: General $380,648,359 $417,691,082 $380,648,359 $444,015,907 Federal Trust $57,632,329 $57,632,329 Grand Total for Secretary of Health and Human Resources $439,245,447 $476,288,170 $439,245,447 $502,612,995 General Fund Positions 21.00 21.00 Position Level 21.00 21.00 Fund Sources: General $381,613,118 $418,655,841 $381,613,118 $444,980,666 Federal Trust $57,632,329 $57,632,329 § 1-90. DEPARTMENT FOR THE DEAF AND HARD-OF-HEARING (751) 270. Social Services Research, Planning, and Coordination (45000) $3,651,778 $3,701,778 $3,651,778 $3,726,322 Technology Services for Deaf and Hard-of-Hearing (45004) $2,062,834 $2,112,834 $2,062,834 Consumer, Interpreter, and Community Support Services (45005) $1,112,541 $1,112,541 Administrative Services (45006) $476,403 $476,403 $550,947 Fund Sources: General $1,394,496 $1,444,496 $1,394,496 $1,469,040 Special $2,081,782 $2,081,782 Federal Trust $175,500 $175,500 Authority: Title 51.5, Chapter 13, Code of Virginia. A. Up to $48,529 the first year and up to $48,529123,073 the second year from the general fund is provided to the Department offor the Deaf and Hard-of-Hearing (DDHH) to contract with the Department for Aging and Rehabilitative Services (DARS) for the provision of shared administrative services. The scope of the services and specific costs shall be outlined in a memorandum of understanding (MOU) between DDHH and DARS subject to the approval of the respective agency heads. Any revision to the MOU shall be reported by DARS to the Director, Department of Planning and Budget within 30 days. B. Out of this appropriation, an amount estimated at $1,581,782 the first year and $1,581,782 the second year from special funds shall be used to cover the cost of providing telecommunications relay service as defined in §51.5-115, Code of Virginia.

_ 355 Item Details($) Appropriations($) ITEM 270. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 C.1. Notwithstanding § 58.1-662 of the Code of Virginia, prior to the distribution of monies from the Communications Sales and Use Tax Trust Fund to counties, cities and towns, there shall be distributed monies in the fund to pay for the Technology Assistance Program. This requirement shall not change any other distributions required by law from the Communications Sales and Use Tax Trust Fund. 2. Out of this appropriation, $500,000 the first year and $500,000 the second year from special funds shall be used for the Technology Assistance Program. D. Out of this appropriation, $40,000 the first year and $40,000 the second year from the general fund shall be used to contract with a provider for the provision of equipment distribution and community services to deaf and hard-of-hearing individuals in the southwest Virginia region. E. Out of this appropriation, $238,200 the first year and $238,200 the second year from the general fund shall be used to support the cost of a deaf mentor program for children. F.1. The Department for the Deaf and Hard-of-Hearing (DDHH) shall report on the anticipated statewide transition to Real-Time Text (RTT) and associated forms of digital telecommunication technology as related to relay services. The report shall include information on: (i) the features of RTT and any other digital telecommunication technology that is being considered for use as related to statewide relay services; (ii) the estimated cost for the Commonwealth to transition from analog to digital relay services and an accompanying explanation of the methodology used for the cost estimate; (iii) a six-year projection of anticipated operating costs for a statewide digital relay platform and an accompanying explanation of the methodology used for the cost estimate; (iv) a proposed timeline for transitioning from analog to digital relay services and an operationalization plan for the agency's preferred digital relay platform; (v) a description of any potential legislative impacts or proposed changes associated with a transition to digital relay services; (vi) a description of any potential impact (including cost) to existing DDHH programming, including the Technology Assistance Program; and (vii) a description of any potential impact (including cost) to relay service providers, users, state agencies, or relevant third parties resulting from a transition to digital relay services. The department shall submit the report with all requested information by September 15, 2025, to the Director, Department of Planning and Budget and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees. The department shall not initiate any transition from analog to digital relay services prior to submitting the above report, nor shall they do so without obtaining authorization from the General Assembly. 2. Out of this appropriation, $50,000 the first year from the general fund shall be used to contract with a third party to assist in developing the report on the anticipated statewide transition to RTT and digital relay services as defined in Item 270 F.1. The appropriation in this paragraph shall be used to fulfill contract costs associated with developing the report and shall not be used for any other purpose. The Director, Department of Planning and Budget, shall unallot this appropriation until DDHH provides documentation of contract costs, and shall only allot the amount needed to satisfy the contract. Any unexpended balance in this paragraph at year end intended to pay remaining contract costs shall not revert to the general fund but shall be carried forward to the subsequent fiscal year. Total for Department for the Deaf and Hard-Of- Hearing $3,651,778 $3,701,778 $3,651,778 $3,726,322 General Fund Positions 8.37 8.37 9.37 Nongeneral Fund Positions 2.63 2.63 Position Level 11.00 11.00 12.00 Fund Sources: General $1,394,496 $1,444,496 $1,394,496 $1,469,040 Special $2,081,782 $2,081,782 Federal Trust $175,500 $175,500

_ 356 Item Details($) Appropriations($) ITEM 270. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 § 1-91. DEPARTMENT OF HEALTH (601) 271. Higher Education Student Financial Assistance (10800) $20,007,021 $20,007,021 $20,107,021 Scholarships (10810) $20,007,021 $20,007,021 $20,107,021 Fund Sources: General $18,321,000 $18,321,000 $18,421,000 Dedicated Special Revenue $85,000 $85,000 Federal Trust $1,601,021 $1,601,021 Authority: §§ 23.1-614 and 32.1-122.5:1 through 32.1-122.10, Code of Virginia. A. This appropriation shall only be used for the provision of loans or scholarships in accordance with regulations promulgated by the Board of Health, or for the administration, management, and reporting thereof. The department may move appropriation between scholarship or loan repayment programs as long as the scholarship or loan repayment is in accordance with the regulations promulgated by the Board of Health. B. 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. C.1. Out of this appropriation, $7,350,000 the first year and $7,350,000 the second year from the general fund shall be provided to the Virginia Department of Health for the Virginia Behavioral Health Loan Repayment Program. Eligible practitioners include: psychiatrists, licensed clinical psychologists, licensed clinical social workers, licensed professional counselors, child and adolescent psychiatrists, child and adolescent psychiatry Fellows, psychiatric physician assistants, psychiatric pharmacists, psychiatric registered nurses, and psychiatric nurse practitioners. The program shall include a tiered incentive system as follows: (i) Tier I providers: child and adolescent psychiatrists, child and adolescent psychiatry Fellows, psychiatric nurse practitioners, psychiatric registered nurses, and psychiatrists; (ii) Tier II providers: licensed clinical psychologists, licensed clinical social workers, and licensed professional counselors; and (iii) Tier III providers: mental health service professionals defined in § 54.1-2400.1 of the Code of Virginia who are not set forth in C.1. as Tier I or Tier II providers. 2. For each eligible year of service provided, the practitioner shall receive a year of applicable loan repayment award in return. Loan repayment checks will be submitted at the end of each year of service. Payments will be made directly to the lender. Practitioners must agree to a minimum of two years of practice for the behavioral health provider with the ability for two one-year renewals. The program shall require preference be given to applicants choosing to practice in underserved areas which must be a federally designated mental Health Professional Shortage Area or Medically Underserved Area within the Commonwealth. Practitioners are required to practice at Community Services Boards, behavioral health authorities, state mental health facilities, free clinics, federally qualified health centers, academic medical centers, stand-alone inpatient psychiatric facilities that serve uninsured or medically underserved populations and/or communities, and other similar health safety net organizations in order to be eligible for the program. The award amount is up to 25 percent of student loan debt, not to exceed $50,000 per year for Tier I professionals or $20,000 per year for Tier II professionals. In no instance shall the loan repayment exceed the total student loan debt. 3. No match contribution from practice sites or the community is required. Loan repayment awards shall be tax exempt. 4. The program shall have an Advisory Board, composed of representatives from stakeholder organizations and community members as determined by the department. The Advisory Board will meet annually and provide guidance regarding effective outreach and feedback on both programmatic processes and impact. The department shall provide an annual report to the Advisory Board on successes, challenges and opportunities with the program. 5. The Board of Health shall develop regulations consistent with this language in order for the

_ 357 Item Details($) Appropriations($) ITEM 271. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 department to administer the program. D.1. Out of this appropriation, $3,500,000 the first year and $3,500,000 $3,600,000 the second year from the general fund shall be provided to the Virginia Department of Health to establish a Nursing Preceptor Incentive Program. The department shall collaborate with the State Council of Higher Education for Virginia, the Virginia Nurses Association, the Virginia Healthcare and Hospital Association, and other relevant stakeholders on a nursing student preceptor grant program. The program shall offer up to a $5,000 incentive for any Virginia licensed physician, physician's assistant, licensed practical nurse, registered nurse, or advanced practice registered nurse (APRN) who, in conjunction with a licensed and accredited Virginia public or private not-for-profit school of nursing, provides a clinical education rotation of 250 hours, which is certified as having been completed by the school. The amount of the incentive may be adjusted based on the actual number of hours completed during the clinical education rotation. The program shall seek to reduce the shortage of registered nurse clinical education opportunities and establish new preceptor rotations for nursing students, especially in high demand fields such as psychiatry and anesthesiology. 2. The Virginia Health Workforce Development Authority shall develop the process for the consideration of requests for funding from the Nursing Preceptor Incentive Program. E. Out of this appropriation, $35,000 the first year and $35,000 the second year from the general fund is provided for the Nurse Loan Repayment Program to provide loan repayments for certified nurse aides. The total loan repayment allowed per certified nurse aide is limited to no more than $1,000. F.1. Out of this appropriation, $1,936,000 the first year and $1,936,000 the second year from the general fund shall be used to fund nursing scholarship and loan repayment programs to recruit and retain nurses and nurse faculty, consistent with § 32.1-122.6:01 of the Code of Virginia, the Nursing Preceptor Incentive Program established in Chapter 552, 2021 Special Session I, Acts of Assembly, the Virginia Nurse Practitioner/Nurse Midwife scholarship program, the Nurse Educator Scholarship Program pursuant to 12VAC5-545- 10, the Nurse Loan Repayment Program authorized in § 32.1-122.6:04, Code of Virginia, and the Long-Term Facility Nursing Scholarship Program, authorized in § 54.1-3011.2, Code of Virginia. 2. Of the appropriation in paragraph F.1., $64,000 the first year and $64,000 the second year from the general fund shall be provided to fund the Long-Term Facility Nursing Scholarship, authorized in § 54.1-3011.2, Code of Virginia. The program shall offer a scholarship for any Virginia student accepted for enrollment or enrolled in an approved education program in the Commonwealth of Virginia to become a certified nurse aide, licensed practical nurse, or registered nurse, and who commits to work in a long-term care facility after graduation. For each year of scholarship money received, the participant agrees to engage in the equivalent of one year of full-time nursing practice in a long-term care facility in the Commonwealth. 3. Of the appropriation in paragraph F.1., $936,000 the first year and $936,000 the second year from the general fund shall be provided for nursing scholarship, loan repayment and incentive programs based on priorities as identified by the Commissioner of Health and the ability of the department to expedite funding to recipients. 4. Of the appropriation in paragraph F.1., $300,000 the first year and $300,000 the second year from the general fund may be provided to create a scholarship to support licensed practical nurses serving as a school nurse or school nurse assistant to become a registered nurse, as funds are available. The department shall collaborate with the Department of Education in developing the scholarship program in accordance with the recommendations from the 2021 "Report of the Department of Education on School Health Personnel in Virginia Public Schools: Recommendations for Qualifications and Training". The program shall offer a scholarship, not greater than $10,000, for any licensed practical nurse currently serving as a Virginia school nurse to complete the training and education requirements to become a registered nurse in an approved education program in the Commonwealth of Virginia. For each year of the scholarship money received, the student must maintain employment as a school nurse and agree to engage in the equivalent of one year of full-time employment as a school nurse after

_ 358 Item Details($) Appropriations($) ITEM 271. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 graduation. Full-time employment during school is not required and does not count towards the required one-year service obligation. G. The Virginia Department of Health shall publish and regularly update on its website information about all health and behavioral health care scholarship and loan repayment programs so that information is readily available to the public. In addition, the department shall notify nursing schools and nursing programs throughout the Commonwealth of the availability of nursing scholarship and loan repayment program funding, including information about the Nursing Preceptor Incentive Program, prior to each academic year in a timely manner to accept applications and process them. H. Out of this appropriation, $4,000,000 the first year and $4,000,000 the second year from the general fund shall be provided to the Earn to Learn Nursing Education Acceleration program. The department shall establish criteria for making grants from the program, including application guidelines and metrics for evaluation. Grants shall be awarded for the purpose of forming collaborative clinical training arrangements between high schools, colleges and universities, hospitals, and health providers, increasing the number of nursing students receiving necessary clinical training to achieve certification, and creating and ensuring employment opportunities for nursing students. To be eligible for grants, applicants must provide employment opportunities to students at each student's current certification level with compensation consistent with other employees at identical certification levels and must demonstrate that the grant application will increase on a net basis the number of nursing graduates achieving sufficient clinical hours to achieve higher nursing certifications when compared to averages over the past five years. I. The Virginia Department of Health (VDH) shall expand the Mary Marshall Scholarship Program to include humanitarian parolees as eligible participants. In addition, VDH shall expand the program to provide scholarships of up to 100 percent of the fees required to obtain a Credential Service Evaluation Profession Report and the English Language Proficiency Report for those individuals who graduated from a nursing education program in a foreign country as required by VDH prior to admission for licensure. 272. Emergency Medical Services (40200) $51,079,420 $51,079,420 Financial Assistance for Non Profit Emergency Medical Services Organizations and Localities (40203) $33,892,001 $33,892,001 State Office of Emergency Medical Services (40204) $17,187,419 $17,187,419 Fund Sources: General $430,000 $430,000 Special $21,223,640 $21,223,640 Dedicated Special Revenue $29,016,692 $29,016,692 Federal Trust $409,088 $409,088 Authority: §§ 32.1-111.1 through 32.1-111.16, 32.1-116.1 through 32.1-116.3, and 46.2-694 A 13, Code of Virginia. A. Distributions made under § 46.2-694 A 13 b (iii), Code of Virginia, shall be made only to nonprofit emergency medical services organizations. The Virginia Department of Health shall develop and implement a plan to ensure timely quarterly distributions of $4.25 for Life funding to the Virginia Association of Volunteer Rescue Squads beginning quarterly in May 2021. B.1. Out of this appropriation, $1,045,375 the first year and $1,045,375 the second year from the Virginia Rescue Squad Assistance Fund and $2,052,723 the first year and $2,052,723 the second year from the special emergency medical services fund shall be provided to the Department of State Police for aviation (med-flight) operations. 2. The Office of Emergency Medical Services shall determine an amount of funding for each hospital, eligible for funding from the Trauma Center Fund, that receives patients through Virginia State Police's (VSP) med-flight operations in the Richmond area in order to support the paramedics or flight nurses provided by Chesterfield County. The Office shall take into account the overall costs of such paramedics or flight nurses, excluding any direct state appropriation, and determine a cost allocation for the hospital based on their share of the total number of VSP med-flight patients transported to the hospital for the prior fiscal year.

_ 359 Item Details($) Appropriations($) ITEM 272. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Effective July 1, 2025, the amount assessed for a hospital shall reduce the amount of the hospital's Trauma Center Fund payment for the fiscal year. The Office shall transfer the assessed amount from the Trauma Center Fund to Chesterfield County as appropriate during the fiscal year. The Office of Emergency Medical Services shall provide a report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by October 1, 2024, describing their planned cost allocation pursuant to this paragraph. C. The State Health Commissioner shall review current funding provided to trauma centers to offset uncompensated care losses, report on feasible long-term financing mechanisms, and examine and identify potential funding sources on the federal, state and local level that may be available to Virginia's trauma centers to support the system's capacity to provide quality trauma services to Virginia citizens. As sources are identified, the commissioner shall work with any federal and state agencies and the Trauma System Oversight and Management Committee to assist in securing additional funding for the trauma system. D. The Virginia Department of Health shall make at least one annual distribution from the Trauma Center Fund, established pursuant to § 18.2-270.01, Code of Virginia, to eligible hospitals based on the available funding at the time of distribution. E.1.Notwithstanding any other provision of law or regulation, the Board of Health shall not modify the geographic or designated service areas of designated regional emergency medical services councils in effect on January 1, 2008, or make such modifications a criterion in approving or renewing applications for such designation or receiving and disbursing state funds. E.2. Notwithstanding any other provision of law, the Board of Health shall not modify the geographic or designated service areas of designated regional emergency medical services councils without consulting relevant stakeholders, including existing regional councils, the Director of the Office of Emergency Medical Services, Emergency Medical Services personnel, community leaders, and any other public, private, and volunteer agency relevant to the decision. 3. Prior to making any change to the boundaries of existing regional emergency medical services councils, the Board of Health shall notify the existing councils of the changes it seeks to make. 4. The Board of Health shall report annually by September 1 to the General Assembly on (i) the status of existing regional emergency medical services councils; (ii) any changes it plans on making to regional council boundaries; and (iii) the actions it has taken to gather stakeholder input before implementing any changes. F. Notwithstanding any other provision of law or regulation, funds from the $0.25 of the $4.25 for Life fee shall be provided for the payment of the initial basic level emergency medical services certification examination provided by the National Registry of Emergency Medical Technicians (NREMT). The Board of Health shall determine an allocation methodology upon recommendation by the State EMS Advisory Board to ensure that funds are available for the payment of initial NREMT testing and distributed to those individuals seeking certification as an Emergency Medical Services provider in the Commonwealth of Virginia. G. Out of this appropriation, $190,000 the first year and $190,000 the second year from the Virginia Rescue Squad Assistance Fund shall be provided for national background checks on persons applying to serve as a certified or non-certified provider in a licensed emergency medical services agency. The Office of Emergency Medical Services may transfer funding to the Office of State Police for national background checks as necessary. H.1. Out of this appropriation, $430,000 the first year and $430,000 the second year from the general fund shall be provided to the Virginia Department of Health to implement the Northern Virginia Firefighter Occupational Cancer Screening Pilot Program. Funding shall be contingent on the demonstration of an equal amount of matching funds each year provided by a health system-affiliated cancer screening center that has a contractual agreement to conduct the pilot program. Any balances for the purposes specified in this

_ 360 Item Details($) Appropriations($) ITEM 272. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 paragraph which are unexpended on June 30, 2025, shall not revert to the general fund but shall be carried forward and reappropriated. 2. The pilot program shall be designed to (i) contract with a health system-affiliated cancer screening center located in Planning District 8 to implement the pilot program, (ii) be multi- year, and (iii) screen at least 450 firefighters annually, distributed among firefighters serving localities in Planning District 8. The design of the pilot program should include: (i) the use of an occupational cancer screening and risk assessment for eligible firefighters within a defined age and risk band; (ii) a randomized clinical trial investigating the optimal type of full-body imaging for cancer early-detection for the unique occupational cancer risk of firefighters; and (iii) an independent evaluation of the pilot program, assessing the effectiveness of the screening program and results of the clinical trials and their potential for use by other hospitals and health systems across Virginia, in partnership with the public safety divisions in their localities. 3. The Virginia Department of Health shall provide an interim report on the pilot program to the Chairs of the House Appropriations Committee and Senate Finance and Appropriations Committee by December 1, 2025 and a report on the evaluation upon completion of the pilot program. 273. Medical Examiner and Anatomical Services (40300) $20,974,550 $20,974,550 Anatomical Services (40301) $755,257 $755,257 Medical Examiner Services (40302) $20,219,293 $20,219,293 Fund Sources: General $17,994,475 $17,994,475 Special $1,492,740 $1,492,740 Federal Trust $1,487,335 $1,487,335 Authority: §§ 32.1-277 through 32.1-304, Code of Virginia. Any unexpended general fund appropriation for the purpose of providing salaries to employees and for unfilled positions in the Office of the Chief Medical Examiner remaining in this Item on the last day of each fiscal year shall not revert to the general fund, but shall be reappropriated in the following fiscal year. 274. Vital Records and Health Statistics (40400) $9,470,393 $9,470,393 Health Statistics (40401) $1,135,593 $1,135,593 Vital Records (40402) $8,334,800 $8,334,800 Fund Sources: Special $8,803,837 $8,803,837 Federal Trust $666,556 $666,556 Authority: §§ 8.01-217, 32.1-249 through 32.1-276, Code of Virginia; and P.L. 93-353, as amended, Federal Code. A. Effective July 1, 20042025, the standard vital records fee shall be $12.00 and the fee for the expedited record search shall be $48.00$53.00. B. Notwithstanding § 32.1-273.D, Code of Virginia, the revenues generated from the sale of birth, marriage, or divorce records in state administered health districts shall be distributed between the districts that issue the records and the Division of Vital Records. The revenues will be split with 65 percent remaining in the district to support the costs of that district and 35 percent to be transferred to the Division of Vital Records to support ongoing infrastructure costs associated with the collection, retention and issuance of the Commonwealth's vital records. C. Notwithstanding § 32.1-273.1., Code of Virginia, two dollars of each fee collected by the State Registrar shall be deposited by the Comptroller to the Virginia Vital Statistics Automation Fund. 275. Communicable Disease Prevention and Control (40500) $253,718,468 $253,763,468 $191,148,466 Immunization Program (40502) $62,778,087 $62,778,087 $19,640,225

_ 361 Item Details($) Appropriations($) ITEM 275. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Tuberculosis Prevention and Control (40503) $2,520,820 $2,520,820 Sexually Transmitted Disease Prevention and Control (40504) $5,004,150 $5,004,150 $6,004,150 Disease Investigation and Control Services (40505) $85,764,259 $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 $16,422,521 $17,722,521 Fund Sources: General $15,585,003 $15,585,003 $16,585,003 Special $2,900,493 $2,900,493 Dedicated Special Revenue $13,519,145 $13,564,145 Federal Trust $221,713,827 $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. 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.

_ 362 Item Details($) Appropriations($) ITEM 275. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 363 Item Details($) Appropriations($) ITEM 275. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. Health Research, Planning, and Coordination (40600) $24,441,725 $24,331,725 $25,030,406 Health Research, Planning and Coordination (40603) $4,833,106 $4,723,106 Regulation of Health Care Facilities (40607) $16,912,088 $16,912,088 $17,610,769 Certificate of Public Need (40608) $1,805,325 $1,805,325 Cooperative Agreement Supervision (40609) $891,206 $891,206 Fund Sources: General $6,387,762 $6,277,762 $7,450,743 Special $3,593,948 $3,593,948 Dedicated Special Revenue $627,006 $627,006 Federal Trust $13,833,009 $13,833,009 $13,358,709 Authority: §§ 32.1-102.1 through 32.1-102.11; 32.1-122.01 through 32.1-122.08; and 32.1-123 through 32.1-138.5, Code of Virginia; and P.L. 96-79, as amended, Federal Code; and Title XVIII and Title XIX of the U.S. Social Security Act, Federal Code. A.1. Supplemental funding for the regional health planning agencies shall be provided from the following sources: 2. Special funds from Certificate of Public Need (40608) application fees in excess of those required to operate the COPN Program, provided the program may retain special fund balances each year equal to three months operational needs in case of revenue shortfalls in the subsequent year. 3. The Department of Health shall revise annual agreements with the regional health planning agencies to require an annual independent financial audit to examine the use of state funds and the reasonableness of those expenditures. B. Failure of any regional health planning agency to establish or sustain business operations shall cause funds to revert to the Central Office to support health planning and Certificate of Public Need functions. C. Out of this appropriation, $690,000 the first year and $690,000 the second year from the general fund shall be provided to the Virginia Office of Rural Health, as the state match for the federal Office of Rural Health Policy Grant. D. Out of this appropriation, $278,000 the first year and $278,000 the second year shall be provided to the department from statewide indirect cost recoveries to match federal funds and support the programs of the Office of Licensure and Certification. Amounts recovered in excess of the special fund appropriation shall be deposited to the general fund. E. The Virginia Department of Health (VDH) in collaboration with the Department of Health Professions shall issue risk mitigation guidelines on the prescription of the class of potent pain medicines known as extended-release and long-acting (ER/LA) opioid analgesics to include co-prescription of an opioid antagonist, approved by the U.S. Food and Drug Administration (FDA), for administration by family members or caregivers in a non-medically supervised environment. F. The Virginia Department of Health shall provide administrative and technical support to the Virginia Partners in Prayer Program through its Office of Health Equity. The cost of

_ 364 Item Details($) Appropriations($) ITEM 276. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 this support is estimated to be approximately $20,000 per year and shall be funded within its existing appropriation. G. The provisions of § 32.1-102.4 (B), Code of Virginia, shall not apply to nursing homes. H. Out of this appropriation, $60,000 the first year and $60,000 the second year from the general fund shall be provided to contract with the Virginia Telehealth Network to provide consultation to advisory groups, track implementation and facilitate changes to the Statewide Telehealth Plan. I. Out of this appropriation, $319,883 the second year from the general fund shall be provided to establish and administer uniform options for intermediate disciplinary actions on hospitals, nursing homes, hospices, home care organizations, managed care health insurance plan licensees, and private review agents. J. Prior to the Board of Health establishment of or changes to the fees for the issuance, change or renewal of a nursing home license to cover the cost of operating the hospital and nursing home licensure and inspection program, the Commissioner of Health shall convene a stakeholder meeting to examine options for phasing in changes in fees to mitigate the impact on nursing homes, including options which would include state support. 277. State Health Services (43000) $166,335,152 $167,001,819 $170,281,207 Child and Adolescent Health Services (43002) $14,055,383 $14,722,050 Women's and Infant's Health Services (43005) $11,965,510 $11,965,510 $12,518,710 Chronic Disease Prevention, Health Promotion, and Oral Heath (43015) $13,883,833 $13,883,833 $16,383,833 Injury and Violence Prevention (43016) $4,522,981 $4,522,981 $4,749,169 Women, Infants, and Children (WIC) and Community Nutrition Services (43017) $121,907,445 $121,907,445 Fund Sources: General $9,011,554 $9,178,221 $12,357,609 Special $3,254,327 $3,254,327 Dedicated Special Revenue $59,343,095 $59,343,095 $59,443,095 Federal Trust $94,726,176 $95,226,176 Authority: §§ 32.1-11, 32.1-77, 32.1-89, and 32.1-90, Code of Virginia; P.L. 94-566, as amended, Title V of the U.S. Social Security Act and Title X of the U.S. Public Health Service Act, Federal Code; and P.L. 95-627, as amended, Federal Code. A. Out of this appropriation, $999,804 the first year and $999,804 the second year from special funds is provided to support the newborn screening program and its expansion pursuant to Chapters 717 and 721, Act of Assembly of 2005, and Chapter 531, 2018 Acts of Assembly. Fee revenues sufficient to fund the Department of Health's costs of the program and its expansion shall be transferred from the Division of Consolidated Laboratory Services. B. The Special Supplemental Nutrition Program for Women, Infants, and Children is exempt from the requirements of the Administrative Process Act (§ 2.2-4000 et seq.). C. Out of this appropriation, $450,000 the first year and $450,000 the second year from the general fund shall be provided to the department's sickle cell program to address rising pediatric caseloads in the current program. Any remaining funds shall be used to develop transition services for youth who will require adult services to ensure appropriate medical services are available and provided for youth who age out of the current program. D. It is the intent of the General Assembly that the State Health Commissioner continue providing services through child development clinics and access to children's dental services. E.1. Out of this appropriation, $124,470 the first year and $124,470 the second year from the general fund and $82,980 the first year and $82,980 the second year from nongeneral funds shall be provided for the Virginia Department of Health to establish and administer a Perinatal

_ 365 Item Details($) Appropriations($) ITEM 277. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Quality Collaborative. The Perinatal Quality Collaborative shall work to improve pregnancy outcomes for women and newborns by advancing evidence-based clinical practices and processes through continuous quality improvement with an initial focus on pregnant women with substance use disorder and infants impacted by neonatal abstinence syndrome. 2. Out of this appropriation, $315,000 the first year and $315,000 the second year from the general fund shall be provided to support efforts by the Virginia Neonatal Perinatal Collaborative (VNPC) to decrease maternal mortality and morbidity. Funding shall be used for a coordinator position for community engagement, training and education; the development of a pilot program of the Centers for Disease Control's levels of care assessment tool (LOCATe) tool in the Richmond metropolitan region and Tidewater region; and development of a Project ECHO tele-education model for education and training. Funding shall also be used to assist the VNPC with expanding capacity to address these issues through the use of software to advance data analytics. F. Out of this appropriation, $880,000 the first year and $880,000 the second year from the general fund is provided for a comprehensive adult program for sickle cell disease. G. Out of this appropriation, $333,333 the first year and $500,000 the second year from the general fund is provided as state match for additional federal awards to support evidence-based home visiting services from the federal Maternal Infant Early Childhood Home Visiting program. H.1. Out of this appropriation, $2,500,000 the second year from the general fund shall be provided to pilot perinatal health hub programs throughout the Commonwealth. The Virginia Department of Health, in collaboration with the Virginia Neonatal Perinatal Collaborative, shall provide two-year grant awards for community-based providers (hubs) to improve perinatal outcomes and to reduce maternal and infant mortality in their communities. 2. The Virginia Department of Health, in collaboration with the Virginia Neonatal Perinatal Collaborative, and in consultation with the Department of Medical Assistance Services, shall establish grant application selection and award criteria. Essential elements shall include: (i) a description of how the funds will be utilized and a description of the services to be provided, (ii) a description of the populations who will be served, (iii) a requirement for collaboration with local and regional stakeholders, (iv) a required physical presence in the region in which a hub will be located, (v) a contractual collaboration with a regional birthing hospital and/or obstetrical clinic for pregnant and postpartum families in the region which the hub is located, (vi) partnerships and/or contracts with Medicaid managed care organizations for the purpose of sharing data and collaboration, (vii) the use of evidence based quality standards as defined by the Virginia Neonatal Perinatal Collaborative and the Health Resources Services Administration, (viii) an evaluation of program impact on populations served, and (ix) a plan for future sustainability. 3. The Virginia Department of Health, in collaboration with the Virginia Neonatal Perinatal Collaborative, shall develop a report that includes, but is not limited to, a listing of participating community providers and award amounts, a description of services provided, a description of populations served, the number of individuals served, and an assessment of health outcomes and program effectiveness. This report shall be provided to the Governor, and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on or before June 30, 2026. Any unexpended balance in this paragraph at the close of business on June 30, 2026, associated with perinatal hubs shall not revert to the general fund but shall be carried forward and reappropriated. I. Out of this appropriation, $100,000 the second year from the Commonwealth Opioid Abatement and Remediation fund shall be provided for one-time costs associated with the development of the Opioid Impact Reduction Registry. J. The Virginia Department of Health shall maintain a list of all agencies and organizations that submit requests for and receive opioid antagonists through its distribution program. At least quarterly, the department shall submit a report to the Chairs of the House Appropriations Subcommittee on Health and Human Resources,

_ 366 Item Details($) Appropriations($) ITEM 277. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 House Health and Human Services Committee, Senate Finance and Appropriations Subcommittee on Health and Human Resources, and Senate Subcommittee on Health, and the Chair of the Virginia Opioid Abatement Authority with the following information: (i) name of the agency or organization; (ii) county or town/city service area; (iii) quantity, along with the specific formulation and dosage of opioid antagonist, requested by the agency or organization in its most recent order, and the date the request was made; and (iv) quantity, along with the specific formulation and dosage of opioid antagonist, received by the agency or organization in response to its most recent order, and the date the request was fulfilled. K. Out of this appropriation, $126,188 the second year from the general fund is provided to support the provisions of House Bill 2088 and Senate Bill 2041, as passed during the 2025 Regular Session of the General Assembly. 278. Community Health Services (44000) $333,295,343 $333,295,343 $330,778,122 Local Dental Services (44002) $4,014,643 $4,014,643 Restaurant and Food Safety, Well and Septic Permitting and Other Environmental Health Services (44004) $46,797,821 $46,797,821 Local Family Planning Services (44005) $34,786,538 $34,786,538 Support for Local Management, Business, and Facilities (44009) $90,342,635 $90,342,635 $91,310,581 Local Maternal and Child Health Services (44010) $42,503,017 $42,503,017 Local Immunization Services (44013) $25,178,843 $25,178,843 $21,193,676 Local Communicable Disease Investigation, Treatment, and Control (44014) $33,214,596 $33,214,596 Local Personal Care Services (44015) $5,135,030 $5,135,030 Local Chronic Disease and Prevention Control (44016) $12,025,317 $12,025,317 Local Nutrition Services (44018) $33,391,871 $33,391,871 Population Health (44019) $5,905,032 $5,905,032 $6,405,032 Fund Sources: General $145,054,440 $149,054,440 $150,100,706 Special $125,999,794 $125,999,794 $126,421,474 Dedicated Special Revenue $3,828,640 $3,828,640 Federal Trust $58,412,469 $54,412,469 $50,427,302 Authority: §§ 32.1-11 through 32.1-12, 32.1-31, 32.1-163 through 32.1-176, 32.1-198 through 32.1-211, 32.1-246, and 35.1-1 through 35.1-26, Code of Virginia; Title V of the U.S. Social Security Act; and Title X of the U.S. Public Health Service Act. A.1. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, the State Health Commissioner shall charge a fee of no more than $425.00, for a construction permit for on- site sewage systems designed for less than 1,000 gallons per day, and alternative discharging systems not supported with certified work from an onsite soil evaluator or a professional engineer working in consultation with an onsite soil evaluator. 2. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, the State Health Commissioner shall charge a fee of no more than $350.00, for the certification letter for less than 1,000 gallons per day not supported with certified work from an onsite soil evaluator or a professional engineer working in consultation with an onsite soil evaluator. 3. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, the State Health Commissioner shall charge a fee of no more than $225.00, for a construction permit for an onsite sewage system designed for less than 1,000 gallons per day when the application is supported with certified work from a licensed onsite soil evaluator. 4. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, the State Health Commissioner shall charge a fee of no more than $320.00, for the certification letter for less

_ 367 Item Details($) Appropriations($) ITEM 278. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 than 1,000 gallons per day supported with certified work from an onsite soil evaluator or a professional engineer working in consultation with an onsite soil evaluator. 5. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, the State Health Commissioner shall charge a fee of no more than $300.00, for a construction permit for a private well. 6. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, the State Health Commissioner shall charge a fee of no more than $1,400.00, for a construction permit or certification letter designed for more than 1,000 gallons per day. 7. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, and starting July 1, 2019, the State Health Commissioner shall charge a fee of $425.00, for a permit to repair an onsite sewage system or an alternative discharging system designed for less than 1,000 gallons per day not supported with certified work from an onsite soil evaluator or a professional engineer working in consultation with an onsite soil evaluator. This fee shall be waived for persons with income below 200 percent of the federal poverty guidelines as established by the United States Department of Health and Human Services when the application is for a pit privy or for a repair of a failing onsite or alternative discharging sewage system. 8. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, and starting July 1, 2019, the State Health Commissioner shall charge a fee of $225.00, for a permit to repair or voluntarily upgrade an onsite sewage system or alternative discharging system designed for less than 1,000 gallons per day supported with certified work from an onsite soil evaluator or a professional engineer. This fee shall be waived for persons with income below 200 percent of the federal poverty guidelines as established by the United States Department of Health and Human Services when the application is for a pit privy or for a repair of a failing onsite or alternative discharging sewage system. 9. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, and starting July 1, 2019, the State Health Commissioner shall charge a fee of $150.00, to provide written authorizations pursuant to § 32.1-165 not supported with certified work from a qualified professional. 10. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, and starting July 1, 2019, the State Health Commissioner shall charge a fee of $100.00, to provide written authorizations pursuant to § 32.1-165 supported with certified work from a qualified professional. 11. Notwithstanding § 32.1-163 through § 32.1-176, Code of Virginia, and starting July 1, 2019, the State Health Commissioner shall charge a fee of $1,400.00, for a permit to repair or voluntarily upgrade an onsite sewage system designed for more than 1,000 gallons per day. B. The State Health Commissioner shall appoint two manufacturers to the Advisory Committee on Sewage Handling and Disposal, representing one system installer and the Association of Onsite Soil Engineers. C. The State Health Commissioner is authorized to develop, in consultation with the regulated entities, a hotel, campground, and summer camp plan and specification review fee, not to exceed $40.00, a restaurant plan and specification review fee, not to exceed $40.00, an annual hotel, campground, and summer camp permit renewal fee, not to exceed $40.00, and an annual restaurant permit renewal fee, not to exceed $40.00 to be collected from all establishments, except K-12 public schools, that are subject to inspection by the Department of Health pursuant to §§ 35.1-13, 35.1-14, 35.1-16, and 35.1-17, Code of Virginia. However, any such establishment that is subject to any health permit fee, application fee, inspection fee, risk assessment fee or similar fee imposed by any locality as of January 1, 2002, shall be subject to this annual permit renewal fee only to the extent that the Department of Health fee and the locally imposed fee, when combined, do not exceed the fee amount listed in this paragraph. This fee structure shall be subject to the approval of the Secretary of Health and Human Resources. D. Pursuant to the Department of Health's Policy Implementation Manual (#07-01),

_ 368 Item Details($) Appropriations($) ITEM 278. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 individuals who participate in a local festival, fair, or other community event where food is sold, shall be exempt from the annual temporary food establishment permit fee of $40.00 provided the event is held only one time each calendar year and the event takes place within the locality where the individual resides. E. The State Health Commissioner shall work with public and private dental providers to develop options for delivering dental services in underserved areas, including the use of public-private partnerships in the development and staffing of facilities, the use of dental hygiene and dental students to expand services and enhance learning experiences, and the availability of reimbursement mechanisms and other public and private resources to expand services. F.1. Out of this appropriation, $3,000,000 the first year from the Temporary Assistance for Needy Families (TANF) block grant and $3,000,000 the second year from the general fund shall be provided for the purpose of expanding access to long acting reversible contraceptives (LARC). The Virginia Department of Health shall establish and manage memorandums of understanding with qualified health care providers who will provide access to LARCs to patients whose income is below 250 percent of the federal poverty level, the Title X family planning program income eligibility requirement. Providers shall be reimbursed for the insertion and removal of LARCs at Medicaid rates. As part of the pilot program, the department, in cooperation with the Department of Medical Assistance Services and stakeholders, shall develop a plan to improve awareness and utilization of the Plan First program and include outreach efforts to refer women who have a diagnosis of substance use disorder and who seek family planning services to the Plan First program or participating providers in the pilot program. 2. The Virginia Department of Health shall report on metrics to measure the effectiveness of the program such as impacts on morbidity, reduction in abortions and unplanned pregnancies, and impacts on maternal health such as an increase in the length of time between births, among others. In addition, the department shall collect data on the number of women served who also sought treatment for substance use disorder. The department shall submit a report to the Governor, the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, the Secretary of Health and Human Resources, and the Director, Department of Planning and Budget, that describes the program, and metrics used to measure results, actual program expenditures, and projected expenditures by September 1 of each year. 3. Out of this appropriation, $1,000,000 the first year from the Temporary Assistance for Needy Families (TANF) block grant and $1,000,000 the second year from the general fund shall be made available to supplement the funding provided under paragraph F.1. of this Item to expand access to FDA-approved contraceptives, that are not long acting reversible contraceptives. The Virginia Department of Health shall establish and manage memoranda of understanding with qualified health care providers who have existing contracts pursuant to paragraph F.1. of this Item or to new ones if funding is available. Providers shall be reimbursed for the cost of the contraceptives, as provided under this paragraph, at Medicaid rates. 4. The appropriation as described under paragraphs F.1. and F.3. of this Item shall be used to expand access to both LARC and non-LARC contraceptives and the Virginia Department of Health is authorized to use funds in either paragraph to supplement the funds in the other paragraph for the purposes described. G. Out of this appropriation, $1,000,000 the first year and $1,000,000 the second year from the general fund shall be provided to the Department of Health for the operation of the Resource Mothers program. H.1. The Department of Health, in cooperation with the Department of Environmental Quality, shall work with the Middle Peninsula Planning District Commission to initiate a three-year pilot program to analyze an engineered septic unit that houses and treats all sewage effluent in a vertically elevated, self-contained unit suitable for areas with high water tables and flooding in Coastal Virginia. Such vertically elevated septic system, including holding tank and treatment unit, shall have no physical contact with land; shall be vertically elevated on columns, piers, or other structures that provide for the flow of surface water underneath the septic unit; shall be elevated above the storm surge and flood inundation levels; and shall be designed to meet pollution removal standards of the Department of Health and Department of

_ 369 Item Details($) Appropriations($) ITEM 278. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Environmental Quality. The treated sewage discharge from the vertically elevated septic system may include surface, engineered wetland, or other appropriate discharge approaches that comply with regulations for alternative onsite sewage systems (12VAC5- 613 et seq.). Such vertically elevated septic system shall be installed in an upland location in the Middle Peninsula outside of any designated Resource Protection Area or floodplain. 2. By December 1 of each year, the Middle Peninsula Planning District Commission shall submit a report to the Governor and General Assembly with the following information: (i) the feasibility of elevating the parts of septic systems vulnerable to rising sea levels; (ii) optimal system design, or range of designs, for vertically elevated septic systems capable of withstanding sea level rise and chronic flooding that meets effluent standards; (iii) recommendations for legal or regulatory changes, if any, to authorize the use of vertically elevated septic systems; (iv) recommendations for amending current septic system permit requirements to allow for the use of vertically elevated septic systems; (v) recommendations for financing the installation of vertically elevated septic systems; (vi) the expected date of completion of the pilot program; (vii) installation and projected average annual maintenance costs for a vertically elevated septic system over 10 years; and (viii) any other pertinent information. I. The Virginia Department of Health shall prepare a request for funding the state share of new or escalated rent increases at local health departments and submit the request for inclusion in the Governor's introduced budget annually. J. Out of this appropriation, $3,200,000 the first year and $3,200,000 the second year from the general fund shall be provided to support Community Health Worker positions at Virginia's local health districts. The agency shall prioritize supporting Community Health Worker positions at local health districts that serve localities with the highest rates of maternal mortality. If the Virginia Department of Health receives approval to continue to use federal funds to support these positions in the first year, the Director, Department of Planning and Budget shall unallot this appropriation in the first year equivalent to the amount of federal funds received for this purpose. 279. Financial Assistance to Community Human Services Organizations (49200) $37,479,983 $39,179,983 $31,479,983 $34,239,983 Payments to Human Services Organizations (49204) $37,479,983 $39,179,983 $31,479,983 $34,239,983 Fund Sources: General $37,479,983 $39,179,983 $31,479,983 $34,239,983 Authority: § 32.1-2, Code of Virginia. A.1. Out of this appropriation, $3,232,946 the first year and $3,232,946 the second year from the general fund shall be used to contract with Families Forward. In the event that the Families Forward changes its name; the provisions of this item shall apply to the successor organization provided that the required program purposes outlined in paragraph A.2. through A.4. are still achieved. 2. The purpose of the program is to develop, expand, and operate a network of local public-private partnerships providing comprehensive care coordination, family support and preventive medical and dental services to low-income, at-risk children. 3. The general fund appropriation in this Item for the Families Forward projects shall not be used for administrative costs. 4. Families Forward shall continue to pursue raising funds and in-kind contributions from local communities. It is the intent of the General Assembly that the Families Forward program increases its efforts to raise funds from local communities and other private or public sources with the goal of reducing reliance on general fund appropriations in the future. 5. Of this appropriation, from the amounts in paragraph A.1., $24,679 the first year and $24,679 the second year from the general fund shall be used to contract with CHIP of

_ 370 Item Details($) Appropriations($) ITEM 279. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Roanoke and shall be used as matching funds to support three full-time equivalent public health nurse positions to services in the Roanoke Valley and Allegheny Highlands. B. Out of this appropriation $53,241 the first year and $53,241 the second year from the general fund shall be used to contract with the Alexandria Neighborhood Health Services, Inc. to promote the health of women in Alexandria, Arlington, Fairfax County, and Falls Church, to prevent illness and injury and provide early treatment for serious health conditions. The contract with Alexandria Neighborhood Health Services Inc. (ANHSI) shall require that ANHSI provide comprehensive women's health care with a focus on preventative health services and screenings to low income, uninsured women. Women's health care services shall focus on preventative screenings. Blood pressure screening and body mass index shall be performed at each visit. The organization shall pursue raising funds and in-kind contributions from the local community. C. Out of this appropriation $5,982 the first year and $5,982 the second year from the general fund shall be used to contract with the Louisa County Resource Council to promote, develop, and encourage activities to deliver community-based services to disadvantaged Louisa County residents. The contract with Louisa County Resource Council shall require that the council provide assistance to income-eligible residents in meeting various needs of the clients including medication assistance, outreach assistance, and medical care referrals by exploring affordable options. The council shall continue to pursue raising funds and in-kind contributions from the local community. D. Out of this appropriation, $7,837 the first year and $7,837 the second year from the general fund shall be used to contract with the Olde Towne Medical Center. The contract with Olde Towne Medical Center shall require that the center provide cost effective, comprehensive primary and preventive health care (including obstetrical care) and oral health care to the uninsured, Medicaid, and Medicare residents in the City of Williamsburg, James City County, and York County. The population served shall include adults and children. E.1. Out of this appropriation, $433,750 the first year and $433,750 the second year from the general fund shall be used to contract with the Virginia Community Healthcare Association (VCHA). The contract with VCHA shall require that the association purchase pharmaceuticals and medically necessary pharmacy supplies, and to provide pharmacy services to low-income, uninsured patients of the Community and Migrant Health Centers throughout Virginia. The uninsured patients served with these funds shall have family incomes no greater than 200 percent of the federal poverty level. The amount allocated to each Community and Migrant Health Center shall be determined through an allocation methodology developed by the Virginia Community Healthcare Association. The allocation methodology shall ensure that funds are distributed such that the Community and Migrant Health Centers are able to serve the pharmacy needs of the greatest number of low-income, uninsured persons. The Virginia Community Healthcare Association shall establish accounting and reporting mechanisms to track the disbursement and expenditure of these funds. 2. Out of this appropriation, $175,000 the first year and $175,000 the second year from the general fund shall be used to contract with the Virginia Community Healthcare Association. The contract with VCHA shall require that the association expand access to care provided through community health centers. 3. Out of this appropriation, $4,300,000 the first year and $4,300,000 the second year from the general fund shall be used to contract with the Virginia Community Healthcare Association. The contract with VCHA shall require that the association support community health center operating costs for services provided to uninsured clients. The amount allocated to each Community and Migrant Health Center shall be determined through an allocation methodology developed by the Virginia Community Healthcare Association. The allocation methodology shall ensure that funds are distributed such that the Community and Migrant Health Centers are able to serve the needs of the greatest number of uninsured persons. The Virginia Community Healthcare Association shall establish accounting and reporting mechanisms to track the disbursement and expenditure of these funds. 4. Out of this appropriation, $500,000 the second year from the general fund shall be provided to contract with the Virginia Community Healthcare Association (VCHA). The contract with VCHA shall require that the association use additional funding to enable

_ 371 Item Details($) Appropriations($) ITEM 279. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Federally Qualified Health Centers to continue providing comprehensive medical, dental, maternal, and mental health services to the most vulnerable and uninsured Virginians, primarily in rural and urban settings. 5. Out of this appropriation $1,000,000 from the general fund the second year shall be provided for a pilot program to provide non-emergency medical transportation services for uninsured Virginians living in medically underserved or unserved areas in the catchment area of a federally qualified health center. Priority shall be given to serving persons living in rural localities. F.1. Out of this appropriation, $1,321,400 the first year and $1,321,400 the second year from the general fund shall be used to contract with the Virginia Association of Free and Charitable Clinics (VAFCC). The contract with VAFCC shall require that the organization purchase pharmaceuticals and medically necessary pharmacy supplies, and to provide pharmacy services to low-income, uninsured patients of the Free Clinics throughout Virginia. The amount allocated to each Free Clinic shall be determined through an allocation methodology developed by the Virginia Association of Free and Charitable Clinics. The allocation methodology shall ensure that funds are distributed such that the Free Clinics are able to serve the pharmacy needs of the greatest number of low-income, uninsured adults. The Virginia Association of Free and Charitable Clinics shall establish accounting and reporting mechanisms to track the disbursement and expenditure of these funds. 2. Out of this appropriation, $175,000 the first year and $175,000 the second year from the general fund shall be used to contract with the Virginia Association of Free and Charitable Clinics (VAFCC). The contract with VAFCC shall require the organization to expand access to health care services. 3. Out of this appropriation, $6,800,000 the first year and $6,800,000 $7,300,000 the second year from the general fund shall be used to contract with the Virginia Association of Free and Charitable Clinics (VAFCC). The contract with VAFCC shall require that the organization support free clinic operating costs for services provided to uninsured clients. The amount allocated to each free clinic shall be determined through an allocation methodology developed by the Virginia Association of Free and Charitable Clinics. The allocation methodology shall ensure that funds are distributed such that the free clinics are able to serve the needs of the greatest number of uninsured persons. The Virginia Association of Free and Charitable Clinics shall establish accounting and reporting mechanisms to track the disbursement and expenditure of these funds. G. Out of this appropriation, $29,303 the first year and $29,303 the second year from the general fund shall be used to contract with HealthWorks of Herndon. The contract with HealthWorks of Herndon (HWH) shall require that HWH provide treatment and prevention services, including health care services and mental health counseling, to low income and uninsured adults and children residing in the communities of Herndon, Reston, Chantilly, and Centreville in Fairfax County. These services shall include comprehensive primary health care with integrated behavioral health care to adult and children, prescription medications, diagnostic and lab testing, specialty referrals, and preventive screenings. Children's services shall include school physicals and sports physicals. Patients will also have access to oral health care through HealthWorks Dental Program. H. Out of this appropriation, $164,758 the first year and $164,758 the second year from the general fund shall be used to contract with the Southwest Virginia Graduate Medical Education Consortium. The contract with Southwest Virginia Graduate Medical Education (GMEC) shall require GMEC to create and support medical residency preceptor sites in rural and underserved communities in Southwest Virginia. I. Out of this appropriation, $355,555 the first year and $355,555 the second year from the general fund shall be used to contract with the regional AIDS resource and consultation centers and one local early intervention and treatment center. J. Out of this appropriation, $57,963 the first year and $57,963 the second year from the general fund shall be used to contract with the Arthur Ashe Health Center in Richmond. The contract with the Arthur Ashe Health Center shall require that the center provide HIV

_ 372 Item Details($) Appropriations($) ITEM 279. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 early intervention and treatment for HIV infected patients who reside within the City of Richmond. K. Out of this appropriation, $10,663 the first year and $10,663 the second year from the general fund shall be used to contract with the Health Brigade for AIDS related services. The contract with the Health Brigade shall require that the clinic provide financial assistance and support groups and conduct an education and outreach program for HIV positive clients in Central Virginia. L.1. Out of this appropriation, $4,680,571 the first year and $4,680,571 $5,180,571 the second year from the general fund shall be used to contract with the Virginia Health Care Foundation. The contract with the Virginia Health Care Foundation (VHCF) shall require that the general fund shall be matched with local public and private resources and shall be awarded to proposals which enhance access to primary health care for Virginia's uninsured and medically underserved residents, through innovative service delivery models. The foundation, in coordination with the Virginia Department of Health, the Area Health Education Centers program, the Joint Commission on Health Care, and other appropriate organizations, is encouraged to undertake initiatives to reduce health care workforce shortages. The foundation shall account for the expenditure of these funds by providing the Governor, the Secretary of Health and Human Resources, the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees, the State Health Commissioner, and the Chairman of the Joint Commission on Health Care with a certified audit and full report on the foundation's initiatives and results, including evaluation findings, not later than October 1 of each year for the preceding fiscal year ending June 30. 2. The contract with the Virginia Health Care Foundation shall require that 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 since its inception. The report shall include certification that an amount equal to the state appropriation for the preceding fiscal year ending June 30 has been matched from private and local government sources during that fiscal year. 3. Of this appropriation, from the amounts in paragraph L.1., $125,000 the first year and $125,000 the second year from the general fund shall be used to contract with the Virginia Health Care Foundation (VHCF). The contract with VHCF shall require that the general fund shall be provided to the foundation to expand the Pharmacy Connection software program to unserved or underserved regions of the Commonwealth. 4. Of this appropriation, from the amounts in paragraph L.1., $205,000 the first year and $205,000 the second year from the general fund shall be used to contract with the Virginia Health Care Foundation (VHCF). The contract with VHCF shall require that the general fund shall be used to contract with the foundation for the Rx Partnership to improve access to free medications for low-income Virginians. 5. Of this appropriation, from the amounts in paragraph L.1., $2,350,000 the first year and $2,350,000 the second year from the general fund shall be used to contract with the Virginia Health Care Foundation (VHCF). The contract with VHCF shall require that the general fund be provided to the foundation to increase the capacity of the Commonwealth's health safety net providers to expand services to unserved or underserved Virginians. Of this amount, (i) $850,000 the first year and $850,000 the second year shall be used to underwrite service expansions and/or increase the number of patients served at existing sites or at new sites, (ii) $1,350,000 the first year and $1,350,000 the second year shall be used for Medication Assistance Coordinators who provide outreach assistance, and (iii) $150,000 the first year and $150,000 the second year shall be made available for locations with existing medication assistance programs. 6. Of this appropriation, from the amounts in paragraph L.1., $500,000 the second year from the general fund shall be used to contract with the Virginia Health Care Foundation (VHCF) for community grants to expand access to maternal mental health services through (i) community organizations serving individuals residing in health care deserts or low income communities, and (ii) community organizations with less than $5,000,000 in annual revenue. M.1. Out of this appropriation, $1,272,313 the first year and $1,272,313 the second year from

_ 373 Item Details($) Appropriations($) ITEM 279. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 the general fund shall be used to support the administration of the patient level data base, including the outpatient data reporting system. The department shall establish a contract for this service. 2. Out of this appropriation from the amounts in paragraph M.1., $1,025,000 the first year and $1,025,000 the second year from the general fund the second year shall be used to contract with the Virginia All Payer Claims Database. 3. The Virginia Department of Health shall amend its contracts with Virginia Health Information requiring the organization to develop a strategic plan to expand the Emergency Department Care Coordination Program to a statewide comprehensive health information exchange making pertinent data available to all verified providers and the state including the Virginia Department of Health, the Department of Medical Assistance Services, and the Department of Behavioral Health and Developmental Services. The plan shall address how to appropriately and securely share data in order to facilitate care, improve continuity, and reduce costly duplicate testing and procedures. The plan shall prioritize connection to the Virginia Department of Health for hospital admission data as soon as possible to contribute to accurate COVID reporting and response. 4. Out of this appropriation, $110,000 the second year from the general fund shall be used to contract with Virginia Health Information to allow for a data sharing agreement with the Prescription Monitoring Program to use data from the Virginia All Payer Claims Database to display patient non-fatal overdose information, pursuant to the passage of House Bill 1902 in the 2025 Session. The Department of Health shall include in its budget submissions to the Governor for the 2026-28 budget any necessary general fund requirements for ongoing support for the data sharing agreement. N. Out of this appropriation, $105,000 the first year and $105,000 the second year from the general fund shall be used to contract with the Statewide Sickle Cell Chapters of Virginia (SSCCV). The contract with SSCCV shall require that the general fund shall be used to provide for grants to community-based programs that provide patient assistance, education, and family-centered support for individuals suffering from sickle cell disease. The SSCCV shall develop criteria for distributing these funds including specific goals and outcome measures. A report shall be submitted to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees detailing program outcomes by October 1 of each year. O. Out of this appropriation, $141,280 the first year and $141,280 the second year from the general fund shall be used to contract with the Virginia Dental Health Foundation for the Mission of Mercy (M.O.M.) dental project. The contract with the Virginia Dental Health Foundation for the Mission of Mercy (M.O.M.) dental project shall require the Foundation to conduct Mission of Mercy (M.O.M) Projects that provide no cost dental services in identified underserved areas. P. Out of this appropriation, $32,559 the first year and $32,559 the second year from the general fund shall be used to contract with the Community Health Center of the Rappahannock Region to provide medical, dental, and behavioral health services to low income and/or uninsured residents in the Rappahannock region. The contract with the center shall require the center to include acute and chronic disease management services, lab and diagnostic services, medication assistance, physical examinations, diagnosis and treatment of sexually transmitted infections, immunizations, women's health services (including family planning and pap smears), preventive and restorative dental services, and behavioral health services. Q. Out of this appropriation, $4,071,750 the first year and $1,571,750 the second year from the general fund shall be used to contract with the Hampton Roads Proton Beam Therapy Institute at Hampton University, LLC. The contract with Hampton Roads Proton Beam Therapy Institute shall require that the institute support efforts for proton therapy in the treatment of cancerous tumors with fewer side effects. R.1. Out of this appropriation, $75,000 the first year and $75,000 the second year from the general fund shall be provided to Special Olympics Virginia for the Special Olympics Healthy Athlete Program.

_ 374 Item Details($) Appropriations($) ITEM 279. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 2. Out of this appropriation, $300,000 the first year and $300,000 the second year from the general fund shall be provided to Special Olympics Virginia for Unified Champion Schools. S. 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 the Riverside Shore Memorial Hospital (RSMH) for obstetrical healthcare services. The contract shall require that the RSMH provide obstetrical services to the residents of the Eastern Shore of Virginia. T. Out of this appropriation, $393,801 the first year and $393,801 the second year from the general fund shall be provided to develop a new data collection program to address prescription drug price transparency, pursuant to the provisions of House Bill 2007, 2021 Special Session I. The department shall establish a contract for this service. U. Out of this appropriation, $700,289 the first year and $700,289 the second year from the general fund shall be used to contract with the ASK Childhood Cancer Foundation to facilitate the provision of pediatric cancer support services by pediatric cancer treatment centers in Virginia. V. The Virginia Department of Health shallOut of this appropriation, $816,750 the first year and $816,750 the second year from the general fund shall be provided to contract with the Virginia Center for Health Innovation for actions necessary to facilitate and continue the work of the Virginia Task Force on Primary Care. The purpose of the task force is to enhance the financing, quality and delivery of primary care in the Commonwealth. The task force shall continue work on: (i) building stakeholder coalitions; (ii) advancing the use of data/communication systems; (iii) defining payment models; (iv) describing primary care infrastructure; (v) identifying markers of high value care; and (vi) promoting innovations in telehealth. W. Out of this appropriation, $750,000 the first year and $750,000 the second year from the general fund shall be provided to the Amyotrophic Lateral Sclerosis (ALS) Association for ALS assistance including support for a durable medical equipment loan program, multidisciplinary ALS clinics, adaptive communication programming, transportation stipends, and grants for respite care. X. Out of this appropriation, $500,000 the first year and $500,000 the second year from the general fund shall be provided to Samaritan House to support services to victims of domestic and sexual violence, human trafficking, and homelessness in Southeast Virginia. Y. Out of this appropriation, $500,000 the first year from the general fund shall be provided to Prince William UVA Health to purchase a Hologic 3Dimensions Mammography System to provide 3D mammograms through mobile van outreach services in Prince William County. Z. Out of this appropriation, $1,617,272 the first year and $1,617,272 the second year from the general fund shall be provided to the Virginia Health Workforce Development Authority as state match for federal Health Resources and Services Administration grant to support the Area Health Education Centers Program and health workforce responsibilities pursuant to legislation passed during the 2024 Regular Session of the Virginia General Assembly. AA. Out of this appropriation, $500,000 the first year and $500,000 the second year from the general fund shall be provided to Healthier757 to promote health literacy in Medicaid and lower-income populations of Hampton Roads. BB. Out of this appropriation, $3,000,000 the first year from the general fund shall be provided to Greene County to support the construction of the White Run Reservoir water impoundment to provide drought mitigation, protect Rapidan River stream flow, and create water supply sustainability. The funding shall be matched on a three-to-one ratio. The Director, Department of Planning and Budget shall unallot the funding until the County provides documentation that it has secured at least $9,000,000 in other funding for the project. Any remaining balance for this purpose that remains on June 30, 2025, shall be reappropriated in the following fiscal year for the same purpose. CC. Out of this appropriation, $300,000 the first year and $300,000 the second year from the general fund shall be used to contract with Capital Caring Health to provide inpatient hospice and palliative care at the Adler Inpatient Hospice Center in Aldie, Virginia.

_ 375 Item Details($) Appropriations($) ITEM 279. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 DD. Out of this appropriation, $1,250,000 the first year from the general fund shall be provided to Greensville County to improve emergency response time for the Liberty Road community. 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. EE. Out of this appropriation, $450,000 the first year from the general fund shall be provided to contract with the Free Clinic of Central Virginia in Lynchburg. The contract with the Free Clinic of Central Virginia shall require that the clinic establish an emergency dental location and provide comprehensive dental treatment. 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. The funds shall be used solely for costs not covered by insurance. FF. Out of this appropriation, $150,000 from the general fund the second year shall be provided to Birmingham Green to establish the Birmingham Green Workforce Development Training Center to improve the Certified Nurses Assistant (CNA) program, introduce new career training opportunities for its workforce and to further health care career opportunities for staff from other health care operations. 280. Drinking Water Improvement (50800) $139,436,004 $164,436,004 $138,936,004 $140,739,602 Drinking Water Regulation (50801) $15,521,324 $15,521,324 $17,324,922 Drinking Water Construction Financing (50802) $122,918,859 $147,918,859 $122,918,859 Public Health Toxicology (50805) $995,821 $495,821 Fund Sources: General $17,419,071 $42,419,071 $16,919,071 $18,722,669 Special $6,941,130 $6,941,130 Dedicated Special Revenue $19,864,132 $19,864,132 Federal Trust $95,211,671 $95,211,671 Authority: §§ 32.1-163 through 32.1-176.7, 32.1-246, 32.1-246.1, and 62.1-44.18 through 62.1-44.19:9, Code of Virginia; and P.L. 92-500, P.L. 93-523 and P.L. 95-217, Federal Code. A. It is the intent of the General Assembly that the Virginia Department of Health be the agency designated to receive and manage general and nongeneral funds appropriated pursuant to the federal Safe Drinking Water Act of 1996. B. The fee schedule for charges to community waterworks shall be adjusted to the level necessary to cover the cost of operating the Waterworks Technical Assistance Program, consistent with § 32.1-171.1, Code of Virginia, and shall not exceed $3.00 per connection to all community waterworks. C. Any positions necessary for the Office of Drinking Water to perform regulatory functions in dispersing federal State and Local Recovery Funds (SLRF) pursuant to the American Rescue Plan Act of 2021 (ARPA) for drinking water infrastructure shall be restricted positions and shall expire at the end of the grant period. D. 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 the Virginia Department of Health to implement a Water Sampling Verification Program. The program shall ensure sampling is valid and representative of the actual water quality and conditions at the waterworks. E. Out of this appropriation, $6,464,800 the first year and $6,464,800 the second year from the general fund is provided as state match for additional federal awards for the Drinking Water State Revolving Fund from the Infrastructure Investment and Jobs Act (P.L. 117-58). F. Out of this appropriation, $3,624,600 the first year and $3,624,600 the second year from the general fund is provided as state match for additional federal awards for the Drinking Water State Revolving Fund from the Safe Drinking Water Act.

_ 376 Item Details($) Appropriations($) ITEM 280. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 G. Out of this appropriation, $500,000 the first year from the general fund shall be provided for the Virginia Department of Health to conduct a cost analysis of implementing pending federal Per- and Polyfluorinated Substances (PFAS) regulations for Virginia local water systems and to implement pending federal Environmental Protection Agency Copper Rules for water system lead service lines. The report shall include the results of the cost analysis, possible funding models, and identify federal funding that may be available. The department shall submit the report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by December 1, 2024. H. Out of this appropriation, $1,803,598 the second year from the general fund shall be provided to ensure compliance with the Safe Drinking Water Act, National Primary Drinking Water Regulations, Virginia Public Water Supplies Law, Virginia Waterworks Regulations, and to support Office of Drinking Water programs. The Office of Drinking Water shall provide a report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by October 1, 2025, describing actions taken to maintain compliance with federal and state regulations. I.1. Out of this appropriation, $25,000,000 the first year from the general fund shall be provided for the Virginia Department of Health to provide one-time grants to localities to upgrade or replace existing drinking water infrastructure. The Department shall develop guidelines establishing: (i) criteria for grant eligibility; (ii) conditions to be included in the grants; and (iii) grant distribution priorities. Among the factors that shall be included in criteria for grant eligibility and in the grant distribution priorities shall be the financial condition of the locality wherein a grant is sought and a locality's effort to access additional funding for the proposed drinking water infrastructure project from other sources. Localities must be able to provide evidence of critical drinking water needs, such as occurrences of boil advisories, systems failures, or evidence of contaminants, such as polyfloroalkyl substances (PFAS) and gross alpha reactivity, in the drinking water. 2. To receive a grant, localities must provide proof of at least a 25.0 percent match for the cost of a project. No grant to a locality shall fully fund a drinking water project. 3. The Department shall report to the Chairs of the Senate Finance and Appropriations and House Appropriations Committees on the number of applications received for grants, the total grants and grant amounts awarded, the localities to which grants will be awarded, and the description of drinking water infrastructure projects for which the grants will be used no later than December 1, 2025. 4. The Department shall give priority consideration for grants to Greene County and the Town of Bowling Green, as both localities have demonstrated outstanding critical drinking water needs. 5. The Department may use up to $250,000 of the funds in paragraph I.1. for administration costs of providing drinking water infrastructure grants to localities. 6. Any unexpended balances in paragraph I.1. 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. 281. Environmental Health Hazards Control (56500) $16,139,037 $16,257,588 $15,739,037 $15,857,588 State Office of Environmental Health Services (56501) $6,796,977 $6,915,528 $6,396,977 $6,515,528 Shellfish Sanitation (56502) $3,685,755 $3,685,755 Bedding and Upholstery Inspection (56503) $954,406 $954,406 Radiological Health and Safety Regulation (56504) $4,701,899 $4,701,899 Fund Sources: General $8,551,846 $8,670,397 $8,551,846 $8,670,397 Special $3,616,036 $3,616,036 Dedicated Special Revenue $2,574,148 $2,174,148 Federal Trust $1,397,007 $1,397,007

_ 377 Item Details($) Appropriations($) ITEM 281. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: §§ 2.2-4002 B 16; 28.2-800 through 28.2-825; and 32.1-212 through 32.1-245, Code of Virginia. A. Out of this appropriation, $12,500 the first year and $12,500 the second year from the general fund shall be provided for the activities of the Sewage Appeals Review Board. B. Out of this appropriation, $1,013,720 the first year and $1,013,720 the second year from the general fund shall be provided to establish, operate, and develop necessary databases for a Chesapeake Bay Septic Pilot program. The pilot program, through local health departments, shall provide oversight of the septic tank pump out and inspection programs in the Eastern Shore, Middle Peninsula, and Northern Neck regions of Virginia. C. Out of this appropriation, $400,000 the first year is provided from the Commonwealth Opioid Abatement and Remediation fund to establish a one-year demonostration project to implement testing for the analysis of fentanyl and norfentanyl in wastewater in up to three geographically diverse localities. The agency shall provide a report on the findings and conclusions of the demonstration project to the Governor, the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees, and Director, Department of Planning and Budget at the conclusion of the demonstration project. D. Out of this appropriation, $118,551 the first year and $118,551 the second year from the general fund shall be provided to establish, operate, and develop necessary databases for a rainwater harvesting system permitting program. 282. Emergency Preparedness (77500) $35,035,546 $35,035,546 Emergency Preparedness and Response (77504) $35,035,546 $35,035,546 Fund Sources: Federal Trust $35,035,546 $35,035,546 Authority: §§ 32.1-2, 32.1-39, and 32.1-42, Code of Virginia. 283. Administrative and Support Services (49900) $35,292,057 $35,292,057 $36,439,586 General Management and Direction (49901) $16,495,071 $16,495,071 $16,795,071 Information Technology Services (49902) $5,821,624 $5,821,624 $6,669,153 Accounting and Budgeting Services (49903) $7,819,344 $7,819,344 Human Resources Services (49914) $3,056,363 $3,056,363 Procurement and Distribution Services (49918) $2,099,655 $2,099,655 Fund Sources: General $23,580,043 $23,580,043 $24,727,572 Special $10,229,479 $10,229,479 Federal Trust $1,482,535 $1,482,535 Authority: §§ 3.2-5206 through 3.2-5216, 32.1-11.3 through 32.1-23, 35.1-1 through 35.1- 7, and 35.1-9 through 35.1-28, Code of Virginia. A. Out of this appropriation, $150,000 the first year and $150,000 the second year from the general fund shall be provided for agency costs related to onboarding to ConnectVirginia, transition costs to convert the agency's node on ConnectVirginia to the state agency node, and provide support to other state agencies in their onboarding efforts. B.1. The Emergency Department Care Coordination Advisory Council (ED Council), under the department's governance and direction shall: advise the State Health Commissioner regarding the operation of, changes to, and outcome measures for the Emergency Department Care Coordination Program (EDCC) for the purpose of improving the quality of patient care services. The ED Council shall include representatives from the following, as required in the ED Council Bylaws; the Commonwealth, hospitals & health systems, health plans, and providers. 2. Neither the department nor its contractor shall be obligated to enhance or expand the program without HITECH Act funds or alternative funds. 3. The department, in coordination with the ED Council, shall report annually to the

_ 378 Item Details($) Appropriations($) ITEM 283. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Secretary of Health and Human Resources and the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees on progress, including, but not limited to: (i) the participation rate of hospitals and health systems, providers and subscribing health plans; (ii) strategies for sustaining the program and methods to continue to improve care coordination; and (iii) the impact on health care utilization and quality goals such as reducing the frequency of visits by high-volume Emergency Department utilizers and avoiding duplication of health care services. C. Inpatient hospitals shall report the admission source of any individuals meeting the criteria for voluntary or involuntary psychiatric commitment as outlined in § 16.1-338, 16.1-339, 16.1-340.1, 16.1-345, 37.2-805, 37.2-809, or 37.2-904, Code of Virginia, to the Board of Health. The Board shall collect and share any and all data regarding the admission source of individuals admitted to inpatient hospitals as a psychiatric patient, pursuant to § 32.1-276.6, Code of Virginia, with the Department of Behavioral Health and Developmental Services. D. The Virginia Department of Health 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. E. The State Health Commissioner shall establish a task force to assist with the promulgation of regulations and the certification process of doulas, as well as to serve as an informational resource for policy related matters for the Virginia Department of Health (VDH). The task force will include private provider organizations such as Birth in Color RVA, Urban Baby Beginnings, Motherhood Collective and any other organization or agency representatives deemed appropriate by VDH. F. Out of this appropriation, $557,010 the first year and $557,010 the second year from the general fund shall be provided to establish the Office of Grants Administration. The office shall collaborate with Virginia Department of Health programs for the coordination of grant proposals, tracking the status of current grant awards and grant funded positions, providing training on grant administration, and ensuring compliance with federal, state, and local regulations. The Department shall provide a report on the status of current grants, which shall include the grantor and grant name, award amount, duration, expenditure data, number of grant funded positions, and commitment of state funds to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees, and the Director, Department of Planning and Budget by October 15 each year. G.1. On or before November 1, 2024, the Virginia Department of Health shall review the financial and operational status of the agency, including a review of each program area. This review shall include, at a minimum, an assessment of budget, fiscal, procurement, human resources, and grant management functions. In addition, the review shall identify all measures that have been put in place to ensure adequate central oversight and internal controls. The department shall develop and implement a corrective action plan for any organizational deficiencies uncovered during this review. The State Health Commissioner of the Virginia Department of Health shall provide the results of the review to the Director, Department of Planning and Budget and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by November 15, 2024. 2. The Virginia Department of Health shall conduct a quarterly review of each program area to ensure that projected spending is on track to not exceed its total appropriation. The Commissioner of the Virginia Department of Health shall provide a quarterly update including, no later than 30 days after the end of each quarter, a status report on program spending that indicates whether spending is consistent with the available appropriation to the Director, Department of Planning and Budget and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees. H. The Virginia Department of Health shall inventory all fees collected by the agency for its operations. The Department shall provide a report: (i) that lists every fee collected by the agency; (ii) provides the legal authority for each fee and whether or not the agency has discretion to change it; (iii) that contains the amount of the fee and the revenue generated by the fee over the prior three fiscal years; (iv) that lists the last time the fee was increased or

_ 379 Item Details($) Appropriations($) ITEM 283. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 decreased; and (v) on whether the fee is sufficient to cover the costs of the activity for which it is collected and to include a recommendation on the fee amount that is appropriate. The Department shall submit the report to the Director, Department of Planning and Budget and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by October 1, 2024. I. The Virginia Department of Health (VDH) shall report on progress made on implementing the recommendations based on the Department of Planning and Budget's evaluation of VDH's grant management practices to improve its grants management capabilities to the Joint Subcommittee on Health and Human Resources Oversight no later than September 1, 2025. J. VDH shall (i) identify the causes for problems related to late payments and funding underutilization for VDH-administered nursing incentive programs; (ii) develop and implement a plan to address the causes; and (iii) report to the Joint Subcommittee on Health and Human Resources Oversight on its progress in addressing identified problems, including the percentage of payments made within 30 days and the proportion of available funding that VDH has utilized. K. The State Health Commissioner shall provide semi-annual written and in-person reports on the agency's progress implementing the recommendations from the Joint Legislative and Audit Review Commission to the Joint Subcommittee on Health and Human Resources Oversight through at least December 2026 and each year thereafter, until the Joint Subcommittee is satisfied with the implementation of the recommendations. L. Out of this appropriation, $300,000 the second year from the general fund shall be provided to hire at least two full-time positions to support internal audit and information security audit functions. Total for Department of Health $1,142,704,699 $1,169,523,250 $1,136,406,366 $1,081,181,890 General Fund Positions 1,614.50 1,614.50 1,615.50 Nongeneral Fund Positions 2,271.00 2,271.00 Position Level 3,885.50 3,885.50 3,886.50 Fund Sources: General $299,815,177 $326,633,728 $297,371,844 $309,700,157 Special $188,055,424 $188,055,424 $188,477,104 Dedicated Special Revenue $128,857,858 $128,502,858 $128,602,858 Federal Trust $525,976,240 $522,476,240 $454,401,771 § 1-92. DEPARTMENT OF HEALTH PROFESSIONS (223) 284. Higher Education Student Financial Assistance (10800) $65,000 $65,000 Scholarships (10810) $65,000 $65,000 Fund Sources: Special $65,000 $65,000 Authority: § 54.1-3011.2, Chapter 30, Code of Virginia. 285. Regulation of Professions and Occupations (56000) $49,901,385 $49,901,385 $51,076,385 Technical Assistance to Regulatory Boards (56044) $49,901,385 $49,901,385 $51,076,385 Fund Sources: Special $0 $1,175,000 Trust and Agency $1,688,791 $1,688,791

_ 380 Item Details($) Appropriations($) ITEM 285. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Dedicated Special Revenue $48,212,594 $48,212,594 Authority: Title 54.1, Chapter 25, Code of Virginia. A. That the regulations the Board of Dentistry is required to promulgate pursuant to Chapter 413, 2023 Acts of Assembly, shall be promulgated to be effective within 280 days of enactment. B.1.Effective July 1, 2024, as a condition for licensure, the Board of Medicine and the Board of Nursing shall require all practitioners with authority to prescribe behavioral health medications to children and adolescents to provide families with (i) a plan on medication management and access after hours and on weekends and holidays or in emergencies, (ii) a working means of contacting the prescriber either telephonically or electronically with a response time within 48 hours to address questions or concerns with prescribed behavioral health medications for children and adolescents, and (iii) guidance documents either in a paper format or through a website on how to obtain help related to medication management, prescription refills or medication overdose after hours. In addition, the Boards shall require that any provider that closes their practice must make medical records available to families no later than one week after closure. The department shall have the authority to implement these changes prior to completion of any regulatory process undertaken in order to effect such change. B.2. The Board of Medicine and the Board of Nursing shall convene a workgroup to study best practices regarding patient medication management for behavioral health medications to children and adolescents, provider-patient communication with respect to medication management, and provider availability when a child or adolescent is prescribed a behavioral health medication. The workgroup shall include representatives from relevant professional organizations, healthcare stakeholders, subject matter experts, and parents of children receiving behavioral health medications. The workgroup shall report its findings and recommendations to the Chairs of the House Committee of Health and Human Services and the Senate Committee on Education and Health by December 1, 2025. C. The Board of Counseling shall promulgate regulations that align with the regulations adopted by the Department of Behavioral Health and Developmental Services for peer recovery specialist-trainees in accordance with this Act. The department shall have the authority to promulgate emergency regulations to implement these changes within 280 days or less from the enactment of this Act. D.1. Out of this appropriation, up to $600,000 the second year from the Commonwealth Opioid Abatement and Remediation (COAR) opioid settlement funds shall be provided to the Department of Health Professions for systems changes to the Prescription Monitoring Program to implement the provisions of House Bill 1902, passed by the 2025 General Assembly. These funds shall remain unallotted until the cost estimates for such systems changes are reviewed and approved by the Director, Department of Planning and Budget. 2.The Department of Health Professions shall include in its budget submissions to the Governor for the 2026-28 budget any necessary general fund requirements for ongoing support for the data sharing agreement. E.1. By June 30, 2026, the Department of Health Professions (DHP) shall provide the Virginia Health Care Foundation (VHCF) a useable electronic file (CSV, Excel spreadsheet) with record-level, de-identified data collected via the most recent license renewal period for each individual licensed behavioral health (BH) professional practicing in Virginia as a psychiatrist, child and adolescent psychiatrist, psychiatric-mental health nurse practitioner, psychiatric physician assistant, licensed clinical social worker, licensed professional counselor, licensed clinical psychologist and, if available, licensed marriage and family therapist. 2. The following specific data fields shall be provided to VHCF for each licensee: unique record identifier; birthyear; race and ethnicity; gender; practice site information (each locality of practice; number of hours worked/week at each site; hours/week worked virtually at each Virginia work site); forms of payment accepted (with ability to identify the proportion of each type of BH profession accepting only cash, and the proportion of each type of BH profession accepting only Medicaid as a payment source, as well as Medicaid in combination

_ 381 Item Details($) Appropriations($) ITEM 285. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 with each other payer source option available to licensees – e.g., Medicaid + Medicare, Medicaid + Medicare + Private Insurance); plans to reduce clinical hours in next two years; and anticipated time to retirement. 3. DHP shall also provide VHCF a code book, data definitions and/or user guides in an electronic format (Word, Excel, PDF) so it can clearly understand the data elements and their structure (alphanumeric, multiple responses – to include all possible options a licensee may select, open/free response). This code book shall also include record length and record count; known data quality issues and related documentation regarding resolution and, to the extent possible, impact on the data set and/or data functionality; and changes to policy and/or administrative practices that may have impacted the data set and implementation date. 4. VHCF shall protect the confidentiality and security of record-level data provided by the DHP and interim or working documents and/or data files consistent with state and federal law. Total for Department of Health Professions $49,966,385 $49,966,385 $51,141,385 Nongeneral Fund Positions 306.00 306.00 Position Level 306.00 306.00 Fund Sources: Special $65,000 $65,000 $1,240,000 Trust and Agency $1,688,791 $1,688,791 Dedicated Special Revenue $48,212,594 $48,212,594 § 1-93. DEPARTMENT OF MEDICAL ASSISTANCE SERVICES (602) 286. Pre-Trial, Trial, and Appellate Processes (32100) $12,787,539 $11,924,436 $14,373,976 $13,678,267 Reimbursements for Medical Services Related to Involuntary Mental Commitments (32107) $12,787,539 $11,924,436 $14,373,976 $13,678,267 Fund Sources: General $12,787,539 $11,924,436 $14,373,976 $13,678,267 Authority: § 37.2-809, Code of Virginia. A. Any balance, or portion thereof, in Reimbursements for Medical Services Related to Involuntary Mental Commitments (32107), may be transferred between Items 34, 35, 36, and 286 as needed, to address any deficits incurred for Involuntary Mental Commitments by the Supreme Court or the Department of Medical Assistance Services. B. Out of this appropriation, payments may be made to licensed health care providers for medical screening and assessment services provided to persons with mental illness while in emergency custody pursuant to § 37.2-808, Code of Virginia. C. 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), Medicaid Program Services (45600), and Medical Assistance Services for Low Income Children (46600), if available, into this Item. 287. Children's Health Insurance Program Delivery (44600) $397,018,729 $448,492,560 $419,474,431 $477,247,425 Reimbursements for Medical Services Provided Under the Family Access to Medical Insurance Security Plan (44602) $396,504,165 $447,842,497 $418,939,801 $476,531,297 CHIP Health Services Initiatives for Family Access to Medical Insurance Security Medical Services (44636) $514,564 $650,063 $534,630 $716,128

_ 382 Item Details($) Appropriations($) ITEM 287. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $119,830,013 $138,300,003 $127,669,711 $149,922,961 Dedicated Special Revenue $14,065,627 $14,065,627 Federal Trust $263,123,089 $296,126,930 $277,739,093 $313,258,837 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. 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.

_ 383 Item Details($) Appropriations($) ITEM 287. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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) $23,551,886,420 $25,132,314,024 $25,120,006,619 $26,316,442,804 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) $33,170,217 $41,620,380 $34,139,694 $51,309,093 Reimbursements for Medical Services (45609) $13,135,903,244 $13,824,223,326 $13,736,364,318 $14,205,862,824 Reimbursements for Long-Term Care Services (45610) $2,563,379,249 $2,715,130,659 $2,802,074,125 $2,968,979,072 Payments for Healthcare Coverage for Low- Income Uninsured Adults (45611) $7,748,564,616 $8,480,470,565 $8,476,559,388 $9,019,422,721 Fund Sources: General $6,569,608,332 $6,857,733,973 $6,938,713,631 $7,240,645,423 Dedicated Special Revenue $2,063,554,209 $2,259,799,827 $2,186,985,425 $2,291,018,540 Federal Trust $14,918,723,879 $16,014,780,224 $15,994,307,563 $16,784,778,841 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 the second year from the general fund and $29,552,860 the first year and $30,508,352 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

_ 384 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $451,670,000$500,515,662 the first year and $455,960,000$440,500,000 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

_ 385 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 386 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 387 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 388 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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 implementation effective date of July 1, 20242025. 2. In development of a singleThe managed care contract with the selected managed care organizations, the department 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 implementation of efforts to reprocure the new managed care contracts on a quarterly basis to the 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 Contracts, 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 upon contract

_ 389 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 implementation 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 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 contracts. 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

_ 390 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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, 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.

_ 391 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 392 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Pharmacy and Therapeutics Committee shall be composed of 8 to 1216 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-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

_ 393 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 394 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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,

_ 395 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 $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

_ 396 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 397 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 398 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 399 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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-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

_ 400 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 public institutions of higher education and Virginia community colleges, that wish to participate in the program referenced in Item 288, paragraph OO.9., may employ or retain private legal counsel, in consultation with the Division of Risk Management, to advise or represent the public entity in such participation. Costs for such legal counsel shall be borne by 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. I VETO ITEM 288.OO.9.d. ON PAGE 400 /s/ Glenn Youngkin 5-2-25

_ 401 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 402 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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; 1918 residents who began their residencies in July 2022; 3040 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., $1,000,000$300,000 the first year and $1,000,000$450,000 the second year from the general fund and $1,000,000$300,000 the first year and $1,000,000$450,000 the second year from nongeneral funds shall be used for supplemental payments to fund graduate medical residencies for 206 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., $500,000$300,000 the first year and $500,000$400,000 the second year from the general fund and $500,000$300,000 the first year and $500,000$400,000 the second year from nongeneral funds shall be used for supplemental payments to fund graduate medical residencies for 106 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. Two of these residencies shall be awarded to Johnston Memorial Hospital contingent on the hospital's intent to apply for and accept the residencies. 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

_ 403 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 August 15October 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 (32 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 and 1 OB/GYN residencies.

_ 404 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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), and the 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 24 Psychiatry residencies. The department shall make supplemental payments to Children's Hospital of the King's Daughters for 3 Pediatric residencesresidencies and 2 Child &and Adolescent Psychiatry residencies 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 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-

_ 405 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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, 2026. 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.

_ 406 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 407 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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

_ 408 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 409 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 410 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 411 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 412 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 413 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 414 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 415 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 416 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 417 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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

_ 418 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 419 Item Details($) Appropriations($) ITEM 288. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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. Medical Assistance Services (Non-Medicaid) (46400) $821,702 $821,702 Insurance Premium Payments for HIV-Positive Individuals (46403) $556,702 $556,702 Reimbursements from the Uninsured Medical Catastrophe Fund (46405) $265,000 $265,000 Fund Sources: General $781,702 $781,702 Dedicated Special Revenue $40,000 $40,000

_ 420 Item Details($) Appropriations($) ITEM 289. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: §32.1-330.1 and §32.1-324.3, Code of Virginia. A. Out of this appropriation, $556,702 the first year and $556,702 the second year from the general fund shall be provided for insurance payment assistance to HIV-infected persons in accordance with § 32.1-330.1, Code of Virginia, except that the eligibility threshold for assistance shall allow a maximum income of no more than 250 percent of the federal poverty threshold. B. Out of this appropriation, $225,000 the first year and $225,000 the second year from the general fund shall be transferred to the Uninsured Medical Catastrophe Fund under § 32.1- 324.3, Code of Virginia. 290. Medical Assistance Services for Low Income Children (46600) $247,129,944 $311,181,127 $266,290,790 $335,777,427 Reimbursements for Medical Services Provided to Low-Income Children (46601) $247,129,944 $311,181,127 $266,290,790 $335,777,427 Fund Sources: General $82,447,645 $104,833,980 $89,206,542 $114,503,632 Federal Trust $164,682,299 $206,347,147 $177,084,248 $221,273,795 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. Medical Assistance Management Services (Forecasted) (49600) $47,421,627 $47,421,627 $48,298,297 Medicaid payments for enrollment and utilization related contracts (49601) $44,836,320 $44,836,320 $45,712,990 CHIP payments for enrollment and utilization related contracts (49632) $2,585,307 $2,585,307 Fund Sources: General $14,392,754 $14,392,754 $14,709,915 Dedicated Special Revenue $3,604,941 $3,604,941 $3,726,115 Federal Trust $29,423,932 $29,423,932 $29,862,267 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. Amounts appropriated in this Item shall fund administrative expenditures associated with contracts between the department and companies providing dental benefit services, consumer- directed payroll services, claims processing, behavioral health management services and disease state/chronic care programs for Medicaid and FAMIS recipients. 292. Administrative and Support Services (49900) $317,165,151 $320,635,151 $350,856,604 $356,653,548 General Management and Direction (49901) $298,478,415 $301,948,415 $332,169,868 $337,966,812 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 $80,776,137 $81,923,962 $85,824,654 $88,379,375 Special $7,329,800 $7,329,800

_ 421 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Dedicated Special Revenue $10,162,173 $10,249,348 $10,218,212 $10,257,513 Federal Trust $218,897,041 $221,132,041 $247,483,938 $250,686,860 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.

_ 422 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 explain any material differences in expenditures compared to the official Medicaid forecast, adjusted to reflect budget actions from each General Assembly Session. The main purpose of each meeting shall be to review and discuss the most recent Medicaid expenditures to determine the program's financial status. At each meeting, the department shall report on enrollment trends by eligibility category and indicate differences in actual enrollment as compared to the most recent forecast of enrollment. If necessary, the department shall provide options to bring expenditures in line with available resources. At each meeting, the department 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, the department shall report on utilization and other trends in the managed care programs. 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.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.

_ 423 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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, 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. 5. The department shall publish a document on its website, updated annually, that lists all policy changes, including their fiscal impact, for the Medicaid program for the preceding fiscal year.

_ 424 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 retardation 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 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

_ 425 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 Ffacilities. 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.

_ 426 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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 three 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.

_ 427 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 428 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 429 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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

_ 430 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $24,574,231,112 $26,272,790,627 $26,219,245,749 $27,548,919,470 General Fund Positions 274.02 274.02 276.52 Nongeneral Fund Positions 292.98 292.98 295.48 Position Level 567.00 567.00 572.00 Fund Sources: General $6,880,624,122 $7,209,890,810 $7,270,962,970 $7,622,621,275 Special $7,329,800 $7,329,800

_ 431 Item Details($) Appropriations($) ITEM 292. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Dedicated Special Revenue $2,091,426,950 $2,287,759,743 $2,214,914,205 $2,319,107,795 Federal Trust $15,594,850,240 $16,767,810,274 $16,726,038,774 $17,599,860,600 § 1-94. DEPARTMENT OF BEHAVIORAL HEALTH AND DEVELOPMENTAL SERVICES (720) 293. Regulation of Public Facilities and Services (56100) $12,396,832 $12,396,832 $13,060,590 Regulation of Health Care Service Providers (56103) $12,396,832 $12,396,832 $13,060,590 Fund Sources: General $8,165,639 $8,165,639 $8,829,397 Special $3,467,612 $3,467,612 Federal Trust $763,581 $763,581 Authority: Title 37.2, Chapter 4, Code of Virginia. A. The department shall post on its Web site information concerning (i) any application for initial licensure of or renewal of a license, denial of an application for an initial license or renewal of a license, or issuance of provisional licensure of for any residential facility for children located in the locality and (ii) all inspections and investigations of any residential facility for children licensed by the department, including copies of any reports of such inspections or investigations. Information concerning inspections and investigations of residential facilities for children shall be posted on the department's Web site within seven days of the issuance of any report and shall be maintained on the department's website for a period of at least six years from the date on which the report of the inspection or investigation was issued. B. The Department of Behavioral Health and Developmental Services, in collaboration with the Department of Medical Assistance Services, shall have the authority to promulgate emergency regulations to align licensing regulations with the modifications being made to Medicaid behavioral health services pursuant to Item 288 of this Act. To implement these changes, the Department of Behavioral Health and Developmental Services shall promulgate emergency regulations to become effective within 280 days from the enactment of this Act. C. The State Board of Behavioral Health and Developmental Services shall amend its regulations as necessary for persons in the process of completing necessary hours of supervision for certification through the Department of Behavioral Health and Developmental Services to be eligible for registration through the Department of Health Professions as a peer recovery specialist-trainee for approval as a Medicaid provider type for the provision of mental health and substance use peer supported services. The board shall promulgate emergency regulations to amend its peer recovery specialist regulations in order to implement the changes for peer support specialist-trainees to become effective within 280 days of the enactment of this Act. 294. A. It is the intent of the General Assembly that the Department of Behavioral Health and Developmental Services proceed in transforming its system of care into a model that embodies best practices and state-of-the art services. The consumer-driven system of services and supports shall promote self-determination, empowerment, recovery, resilience, health, and the highest possible level of consumer participation in all aspects of community life. The transformed system shall include investments in a suitable array and adequate quantity of community-based services, with an emphasis on consumer choice and the appropriate use of facility resources. State facilities shall be redesigned to ensure high quality care, efficient operation, and capacity necessary for persons most in need of such care. Amounts authorized herein, and in related legislation, shall be used to support the transformation of the system of care and to promote the provision of behavioral health and developmental services in the most efficient and appropriate setting. The Department of Behavioral Health and Developmental Services may consider the use of public-private partnerships to deliver behavioral health and intellectual disability services as part of the

_ 432 Item Details($) Appropriations($) ITEM 294. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 comprehensive behavioral health and intellectual disability system of care, in facilities that are being planned for renovation or replacement. These partnerships may include contracts with private entities for facility operations, unless the Department of Behavioral Health and Developmental Services can demonstrate that continued state operation of the facility is at least as cost effective and provides at least an equivalent or higher level quality care than operation by a private entity. B. Notwithstanding any law to the contrary, on July 1, of each year, the State Comptroller shall transfer to the general fund any special revenue fund balance accumulated by the Department of Behavioral Health and Developmental Services in excess of $25,000,000. Any special fund revenue alloted for the implementation of electronic health records shall not be counted in the balance. C.1. Notwithstanding §4-5.10, §4-5.09 of this Act and paragraph C. of § 2.2-1156, Code of Virginia, the Department of Behavioral Health and Developmental Services is hereby authorized to deposit the entire proceeds of the sales of surplus land at state-owned behavioral health and intellectual disability facilities into a revolving trust fund. The trust fund may initially be used for expenses associated with restructuring such facilities. Remaining proceeds after such expenses shall be dedicated to continuing services for current patients as facility services are restructured. Thereafter, the fund will be used to enhance services to individuals with mental illness, intellectual disability and substance abuse problems. 2. Expenditures from the Behavioral Health and Developmental Services Trust Fund shall be subject to appropriation through an appropriations bill passed by the General Assembly. 3. Any remaining appropriation at year end in the Behavioral Health and Developmental Services Trust Fund shall be carried forward to the subsequent fiscal year. 4. The Department of Behavioral Health and Developmental Services may use the Behavioral Health and Developmental Services Trust Fund appropriation for community-based housing for any population currently served by the department. D.1. Any funds appropriated in this act for the purpose of complying with the settlement agreement with the United States Department of Justice pursuant to civil action no: 3:12cv059-JAG that remain unspent at the end of each fiscal year shall be reported by the Department of Behavioral Health and Developmental Services to the Department of Planning and Budget and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by September 1 after the close of each fiscal year. The department shall include in its report each item and the amount of funding for such item that remains unspent, with an explanation for the remaining balance at year end. 2. The Department of Behavioral Health and Developmental Services shall report on the status of compliance with the provisions of the settlement agreement with the United States Department of Justice pursuant to civil action no: 3:12cv059-JAG and shall: (i) list each noncompliant provision; (ii) the status of meeting the provision; (iii) the department's planned actions to achieve compliance; and (iv) the date the department expects to achieve compliance with the provision. The department shall report such information to the Director, Department of Planning and Budget and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees quarterly, with each report due 30 days after the end of each quarter. E. The Department of Behavioral Health and Developmental Services shall, in its guidance, regulations and policies for Certified Prescreener Clinicians, related to educational and supervisory qualifications, ensure compliance with the process to allow experienced staff who do not meet the enhanced requirements to continue to practice as a Certified Prescreener Clinician as outlined in the 2016 memos and guidance from the department. The department shall not alter such requirements until July 1, 2023, or after a comprehensive review of Certified Prescreener Clinicians has been conducted. 295. Administrative and Support Services (49900) $160,942,418 $160,172,418 $168,852,377 General Management and Direction (49901) $20,837,859 $20,837,859 Information Technology Services (49902) $49,958,236 $49,958,236 $50,915,199

_ 433 Item Details($) Appropriations($) ITEM 295. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Architectural and Engineering Services (49904) $2,832,651 $2,832,651 Collection and Locator Services (49905) $3,779,938 $3,779,938 Human Resources Services (49914) $839,029 $839,029 Planning and Evaluation Services (49916) $3,626 $3,626 Program Development and Coordination (49933) $82,691,079 $81,921,079 $89,644,075 Fund Sources: General $108,291,390 $107,521,390 $112,617,801 Special $17,963,901 $17,963,901 Dedicated Special Revenue $4,478,113 $4,478,113 $6,439,394 Federal Trust $30,209,014 $30,209,014 $31,831,281 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. The Commissioner, Department of Behavioral Health and Developmental Services shall, at the beginning of each fiscal year, establish the current capacity for each facility within the system. When a facility becomes full, the commissioner or his designee shall give notice of the fact to all sheriffs. B. The Department of Behavioral Health and Developmental Services shall identify and create opportunities for public-private partnerships and develop the incentives necessary to establish and maintain an adequate supply of acute-care psychiatric beds for children and adolescents. C. The Department of Behavioral Health and Developmental Services, in cooperation with the Department of Juvenile Justice, where appropriate, shall identify and create opportunities for public-private partnerships and develop the incentives necessary to establish and maintain an adequate supply of residential beds for the treatment of juveniles with behavioral health treatment needs, including those who are developmentally disabled, aggressive, or sex offenders, and those juveniles who need short-term crisis stabilization but not psychiatric hospitalization. D. Out of this appropriation, $730,788 the first year and $730,788 the second year from the general fund shall be provided for placement and restoration services for juveniles found to be incompetent to stand trial pursuant to Title 16.1, Chapter 11, Article 18, Code of Virginia. E. Out of this appropriation, $50,000 the first year and $50,000 the second year from the general fund shall be used to pay for legal and medical examinations needed for individuals living in the community and in need of guardianship services. F. Out of this appropriation, $554,975 the first year and $554,975 the second year from the general fund shall be provided for clinical evaluations and court testimony for sexually violent predators who are being considered for release from state correctional facilities and who will be referred to the Clinical Review Committee for psycho-sexual evaluations prior to the state seeking civil commitment. G. Out of this appropriation, $4,659,066 the first year and $4,659,066 the second year from the general fund shall be provided for conditional release services, including treatment, and costs associated with contracting with Global Positioning System service to closely monitor the movements of individuals who are civilly committed to the sexually violent predator program but conditionally released as provided by the Department of Corrections, outlined in the Memorandum of Understanding between the two agencies and pursuant to §37.2-912 of the Code of Virginia. H. Out of this appropriation, $146,871 the first year and $146,871 the second year from the general fund shall be used to operate a real-time reporting system for public and private acute psychiatric beds in the Commonwealth. I. The Department of Behavioral Health and Developmental Services shall submit a report to the Governor and the Chairmen of the House Appropriations and Senate Finance and

_ 434 Item Details($) Appropriations($) ITEM 295. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Appropriations Committees no later than December 1 of each year for the preceding fiscal year that provides information on the operation of Virginia's publicly-funded behavioral health and developmental services system. The report shall include a brief narrative and data on the numbers of individuals receiving state facility services or Community Services Boards (CSB) services, including purchased inpatient psychiatric services, the types and amounts of services received by these individuals, and CSB and state facility service capacities, staffing, revenues, and expenditures. The annual report also shall describe major new initiatives implemented during the past year and shall provide information on the accomplishment of systemic outcome and performance measures during the year. J. Out of this appropriation, $500,000 the first year and $500,000 the second year from the general fund shall be used for a comprehensive statewide suicide prevention program. The Commissioner of the Department of Behavioral Health and Developmental Services, in collaboration with the Departments of Health, Education, Veterans Services, Aging and Rehabilitative Services, and other partners shall develop and implement a statewide program of public education, evidence-based training, health and behavioral health provider capacity- building, and related suicide prevention activity. K. The Department of Behavioral Health and Developmental Services in collaboration with the Department of Medical Assistance Services shall provide a detailed report for each fiscal year on the budget, expenditures and number of recipients for each specific intellectual disability (ID) and developmental disability (DD) service provided through the Medicaid program or other programs in the Department of Behavioral Health and Developmental Services. This report shall also include the overall budget and expenditures for the ID, DD and Day Support waivers separately. The Department of Medical Assistance Services shall provide the necessary information to the Department of Behavioral Health and Developmental Services within 90 days of the end of each fiscal year. This information shall be published on the Department of Behavioral Health and Developmental Services' website by December 1 of each year. 2. As part of the annual report, the Department of Behavioral Health and Developmental Services shall report the number of waiver slots, by waiver, that became available for reallocation during the previous fiscal year. In addition, the department shall report on the allocation of emergency waiver slots and reserve slots, which shall include how many slots were allocated in the year and for which waiver. The information on reserve slots shall indicate for which waiver the reserve slot was used and the waiver from which the individual moved that was granted the slot. Furthermore, the report shall show the allocations by each Community Services Board from new waiver slots, emergency slots and reserve slots for the previous fiscal year. 3. As part of the annual report, the Department of Behavioral Health and Developmental Services shall report the number of new slots for the previous fiscal year that were allocated by Community Services Boards and of those how many individuals are accessing waiver services. This information shall be published on the Department of Behavioral Health and Developmental Services' website by December 1 of each year. L. The Department of Behavioral Health and Developmental Services shall, in any fiscal year that new developmental disability waiver slots are authorized in this act, allocate such slots to the Community Services Boards and a Behavioral Health Authority by the first day of the fiscal year, such that the slots can be assigned to eligible individuals on the Priority One waiting list to access services as soon as possible. M. Effective July 1, 2015, the Department of Behavioral Health and Developmental Services shall not charge any fee to Community Services Boards or private providers for use of the knowledge center, an on-line training system. N. Out of this appropriation, $600,000 the first year and $600,000 the second year from the general fund shall be used to provide mental health first aid training and certification to recognize and respond to mental or emotional distress. Funding shall be used to cover the cost of personnel dedicated to this activity, training, manuals, and certification for all those receiving the training. O. Out of this appropriation, $752,170 the first year and $752,170 the second year from the general fund is provided to establish community support teams responsible for the

_ 435 Item Details($) Appropriations($) ITEM 295. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 development and oversight of a continuum of integrated community settings for individuals leaving state hospitals. P. The Department of Behavioral Health and Developmental Services and the Department of Medical Assistance Services shall recognize Certified Employment Support Professional (CESP) and Association of Community Rehabilitation Educators (ACRE) certifications in lieu of competency requirements for supported employment staff in the developmental disability Medicaid waiver programs to allow providers that are Department of Aging and Rehabilitative Services (DARS) vendors that hold a national three-year accreditation from the National Council on Accreditation of Rehabilitation Facilities (CARF) to be deemed qualified to meet employment competency requirements. Q. The Department of General Services, in cooperation with the Department of Behavioral Health and Developmental Services, shall work with James City County to identify a minimum of 10 acres on the Eastern State Hospital site for the location of a new facility for Colonial Behavioral Health, which may or may not include a joint facility with Olde Towne Medical Center. The subject acres shall be transferred to James City County upon such terms and conditions as may be agreed to by the parties. R.1. Out of this appropriation, $75,000 the first year and $75,000 the second year from the general fund is provided for compensation to individuals who were involuntarily sterilized pursuant to the Virginia Eugenical Sterilization Act and who were living as of February 1, 2015. Any funds that are appropriated but remain unspent at the end of the fiscal year shall be carried forward into the subsequent fiscal year in order to provide compensation to individuals who qualify for compensation. 2. A claim may be submitted on behalf of an individual by a person lawfully authorized to act on the individual's behalf. A claim may be submitted by the estate of or personal representative of an individual who died on or after February 1, 2015. 3. Reimbursement shall be contingent on the individual or their representative providing appropriate documentation and information to certify the claim under guidelines established by the department. 4. Reimbursement per verified claim shall be $25,000 and shall be contingent on funding being available, with disbursements being prioritized based on the date at which sufficient documentation is provided. 5. Should the funding provided in the paragraph be exhausted prior to the end of the fiscal year, the department may use available special fund revenue balances to provide compensation. The department shall report to the Governor and the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees on a quarterly basis on the number of additional individuals who have applied. S. The Department of Behavioral Health and Development Services and the Department of Medical Assistance Services shall not implement the proposed individualized supports budget process for the Medicaid Community Living, Family and Individual Support and Building Independence Waiver programs without the explicit authorization of the General Assembly through legislation or authorizing budget language. T. The Department of Behavioral Health and Developmental Services shall report on the allocation and funding for Programs of Assertive Community Treatment (PACT) in the Commonwealth. The report shall include information on the cost of each team, the cost per individual served and the cost effectiveness of each PACT in diverting individuals from state and local hospitalization and stabilizing individuals in the community. The department shall provide the report to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees by November 1, of each year. U. The Department of Behavioral Health and Developmental Services shall work with the Fairfax-Falls Church Community Services Board, and the provider, to ensure that future openings for the Miller House in Falls Church allow residents of Falls Church, that have been allocated a developmental disability waiver slot, be given first choice in the Miller House, if the group home is appropriate to meet their needs. In addition, the department shall work with the Community Services Board and the City of Falls Church to explore

_ 436 Item Details($) Appropriations($) ITEM 295. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 options for establishing a special allocation within the Community Services Board allocation of waiver slots for Falls Church residents who are on the Priority One waiting list and could live in the Miller House when future openings occur in the group home. V. The Department of Behavioral Health and Developmental Services shall cause the conveyance of 25 acres of land at Eastern State Hospital to Hope Family Village Corporation for one dollar for the development of a village of residence and common areas to create a culture of self-care and neighborly support for families and their loved ones impacted by serious mental illness. The department shall work with the Hope Family Village Corporation to identify a 25 acre plot of land that is suitable for the project. W. The Department of Behavioral Health and Developmental 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. X. Out of this appropriation, $150,000 the first year and $150,000 the second year from the general fund is provided to support substance use disorder treatment utilizing appropriate, long-acting, injectable prescription drug treatment regimens ("treatment") used in conjunction with specialty dockets. Such treatment may be utilized in approved specialty dockets. In allocating such funding, the department shall consider the rate of fatalities within the locality, whether a specialty docket is available and whether such program utilizes medication-assisted treatment. The specialty dockets utilizing this funding shall use these resources to support provider fees, counseling, monitoring services, medication management, and the cost of medication for participants for whom the costs of treatment services would not otherwise be covered. The Department of Behavioral Health and Developmental Services shall submit a report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than December 1 of each year for the preceding fiscal year that provides information on the number of participants, the number of specialty dockets that utilized the funding and the number of treatments administered. Any adult specialty docket that accesses this funding shall provide all necessary information to the Department of Behavioral Health and Developmental Services to prepare this report. Y. Out of this appropriation, $940,000 the first year and $940,000 the second year from the general fund shall be provided to Commonwealth Autism Services to assist in coordination of services for people with developmental disabilities in regards to autism assessments and services in Virginia. Z. The Department of Behavioral Health and Developmental Services shall preserve historic microfiche records at Central State Hospital and work with interested partners to digitize such records to be added to the Central State Hospital Digital Library and Archives Project in order to make such information publicly available to researchers or other interested parties. AA. Out of this appropriation, $575,000 the first year and $575,000$1,675,000 the second year from the general fund is provided for a contract with the Virginia Health Care Foundation for a pilot to remove barriers to the mental health workforce, including the payment of supervisory hours for those individuals seeking degrees in social work and counseling. BB. Out of this appropriation $900,000 the first year and $900,000 the second year from the general fund shall be provided for a contract with the Virginia Foundation for Healthy Youth to create a statewide marijuana and cannabis use prevention campaign to prevent underage use. CC. Out of this appropriation, $1,026,000 the first year and $1,026,000 the second year from the general fund is provided for geriatric behavioral specialists to provide training and consultative services and support. DD. Out of this appropriation, $2,171,214 the first year and $2,171,214 the second year from the Crisis Call Center Fund is appropriated for costs associated with the establishment and operation of the 988 Crisis Call Center.

_ 437 Item Details($) Appropriations($) ITEM 295. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 EE. Out of this appropriation, $101,970 the first year and $101,970 the second year shall be used to increase the number of tobacco retailer compliance inspections to be performed pursuant to a contract with the Virginia Alcoholic Beverage Control Authority. FF. Out of this appropriation, $15,000,000 the first year and $15,000,000 the second year from the general fund is provided for the Department of Behavioral Health and Developmental Services (DBHDS), in collaboration with the Department of Education, to (i) provide grants to contract with federally qualified health centers, or other healthcare organizations, to establish school-based health clinics, including mobile clinics, to serve students and their families, as well as school staff. These clinics shall provide mental health services, primary medical care, and other health services in schools.; or (ii) to allow school districts to contract with a mental telehealth provider. The departments shall ensure that contracted organizations have the capability to bill third party insurers or public programs for services provided. DBHDS shall report on grants awarded to the Chairs of House Appropriations and Senate Finance and Appropriations Committees by December 1, 20242025 and annually thereafter. GG. The Department of Behavioral Health and Developmental Services shall report annually, by September 1 of each year, on the revenue collections, expenditures and allocations of the Problem Gambling Treatment and Support Fund for the prior fiscal year to the Department of Planning and Budget and the Chairs of House Appropriations and Senate Finance and Appropriations Committees. HH. Effective July 1, 2023, the Department of Medical Assistance Services shall be responsible for all aspects of rate setting for Developmental Disability waiver services, which includes developing, analyzing, modifying, rebasing or implementing such rates. II. Out of this appropriation, $2,585,000 the first year and $2,585,000 the second year from the general fund is provided for the Department of Behavioral Health and Developmental Services to contract with the Virginia Crisis Intervention Team Coalition to facilitate expansion of de-escalation training and skilled knowledge of behavioral health laws and regulations. JJ. Out of this appropriation, $1,080,000 the first year and $210,000 the second year from the general fund is provided to support the costs of medically monitored high-intensity inpatient services (ASAM 3.7) for youth and adolescents with serious mental illness or substance use disorder who may otherwise require inpatient hospitalization. KK. Out of this appropriation, $400,000 the second year from the general fund is provided for clinical support to Chesterfield Recovery Academy. LL. Out of this appropriation, $200,000 the first year and $200,000 the second year from the Opioid Abatement Fund, established pursuant to § 2.2-2374, Code of Virginia, is provided for central office administrative functions for the Opioid Abatement Authority. The Department of Behavioral Health and Developmental Services shall enter into a memorandum of understanding with the Opioid Abatement Authority to outline the administrative and technical assistance to be provided. MM.1. Out of this appropriation, $7,500,000 the first year and $7,500,000 the second year from the general fund shall be provided to grow the Virginia Community Services Board (CSB) workforce. The Department of Behavioral Health and Developmental Services (DBHDS) shall allocate the funding based on the size of the CSB or behavioral health authority's workforce. The funding may be used to support paid internships and scholarship opportunities for students or staff earning behavioral health or other relevant certifications and degrees at two- and four-year colleges and universities and other educational career development settings, to cover clinical supervision hours, for reimbursement for the costs of obtaining licenses, certification, and exams necessary for employment in relevant careers, to provide loan repayment, and other initiatives that may assist in growing the the CSB workforce. 2. Each CSB or behavioral health authority shall submit a plan by August 1, 2024, detailing the strategies and associated costs on how they would use their allocated funds to support and grow their own workforce. DBHDS shall review and ensure that the plans are reasonable and consistent with the requirements of paragraph MM.1. and will assist in

_ 438 Item Details($) Appropriations($) ITEM 295. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 efforts to grow the CSB's workforce. The department shall distribute the funding by no later than October 1, 2024. Based on the submitted plans, the department is authorized to transfer an amount necessary to cover loan repayment proposals that would otherwise be provided through the state's Behavioral Health Loan Repayment Program, if such program has insufficient funds to cover the loan repayment costs submitted in the CSBs' plans. The Department of Planning and Budget is authorized to transfer appropriation from this Item if DBHDS has indicated such transfer would be necessary to ensure the loan repayment proposals are funded through the Behavioral Health Loan Repayment Program. NN. The Department of Behavioral Health and Developmental Services shall report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, the Joint Subcommittee for Health and Human Resource Oversight, and the Behavioral Health Commission by December 1, 2024, on the changes to STEP-VA performance measures and benchmarks that are anticipated to be included in Community Services Board performance contracts, which will become effective July 1, 2025. OO.1. The Department of Behavioral Health and Developmental Services (DBHDS) shall report annually on (i) Community Services Boards (CSB) performance in improving the functioning levels of its consumers based on composite and individual item scores from the DLA-20 assessment, or results from another comparable assessment, by CSB, (ii) changes in CSB performance in improving consumer functioning levels over time, by CSB, (iii) any substantial underperformance or non-compliance and associated enforcement actions, and (iv) the use of functional assessment data by the DBHDS to improve CSB performance to the State Board of Behavioral Health and Developmental Services, the Behavioral Health Commission, and each CSB governing board. 2. DBHDS shall (i) identify all current Department requirements related to documentation and reporting of CSB behavioral health services, (ii) identify which of these requirements currently apply to work by CSB direct care staff, (iii) identify any DBHDS requirements of direct care staff that are duplicative of or conflict with other DBHDS requirements, (iv) eliminate any requirements that are not essential to ensuring consumers receive effective and timely services, and (v) report to the State Board of Behavioral Health and Developmental Services and the Behavioral Health Commission on progress made toward eliminating administrative requirements that are not essential, duplicative, or are conflicting. 3. DBHDS shall complete a comprehensive review of the performance contracts with CSBs and revise all performance measures in the base performance contract and addendums to ensure that (i) performance measures are designed to measure outcomes for each service, (ii) performance measures include a relevant benchmark for each measurement, and (iii) DBHDS has given clear direction on how it will monitor performance and enforce compliance with performance requirements. The contracts shall also require that any funding appropriated by the General Assembly to CSBs for staff compensation shall only be used for staff compensation, and that CSBs report annually to DBHDS on any staff compensation actions taken during the prior fiscal year. DBHDS should complete the contract revisions and report on the improvements made to the Behavioral Health Commission by December 1, 2024, and implement changes before the finalization of the fiscal year 2026 performance contract. 4. The Department of Medical Assistance Services, in cooperation with DBHDS, shall (i) develop and implement a targeted review process to assess the extent to which CSBs are billing for Medicaid-eligible services they provide, (ii) determine if additional technical assistance and training, in coordination with Medicaid managed care organizations, is needed on appropriate Medicaid billing and claiming practices to relevant CSB staff, and (iii) evaluate the feasibility of a central billing entity, similar to the Federally Qualified Health Centers, that would handle all Medicaid claims for the entire system. The Department shall report the results of these targeted reviews, any technical assistance or training provided in response, and on the feasibility of central billing to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by December 1, 2024. 5. DBHDS shall report annually to the State Board of Behavioral Health and Developmental Services and the Behavioral Health Commission on average salaries, turnover, and vacancy rates by position type across CSBs. PP. Pursuant to the provisions of legislation passed in the 2024 General Assembly, the Department of Behavioral Health and Developmental Services shall cover an individual's

_ 439 Item Details($) Appropriations($) ITEM 295. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 expenses if the individual is placed in an assisted living facility, nursing home, group home, or similar placements as part of the pilot program and there is no other public or private assistance available to them. QQ. The Department of Behavioral Health and Developmental Services (DBHDS) shall: (i) conduct a needs assessment to determine the unmet need for each of the nine service components of STEP-VA; (ii) develop an estimate of the cost of satisfying the unmet need for each of the nine STEP-VA service components statewide; and (iii) report on their findings to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees and to the Behavioral Health Commission by December 1, 2024. RR. Out of this appropriation, $770,000 the second 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. SS. The Department of Behavioral Health and Developmental Services shall report annually, by September 1, on the expenditure of funding from the Problem Gambling Treatment Fund, including allocations to the Community Services Boards, and include a description of the purposes for which the funding is being used. The department shall evaluate best practices in treating program gambling that may include statewide initiatives to address the negative effects of problem gambling. The department shall report back any findings on best practices and potential statewide initiatives to the Chairs of the House Appropriations and the Senate Finance and Appropriations Committees by October 1, 2025. TT. The Department of Behavioral Health and Developmental Services and the Department of Planning and Budget may direct a portion of the funding up to $75,000 in the Crisis Call Center Fund to Mental Health Virginia Warmline, a peer support line that reduces the 988 crisis call center volume. UU. By no later than June 30, 2026, the Department of Behavioral Health and Developmental Services (DBHDS) shall align and monitor the Commonwealth of Virginia's recovery support services, including services offered by recovery residences and other similar providers, with the nationally recognized American Society of Addiction Medicine (ASAM) 4th Edition criteria to ensure quality and consistency in care. This criteria shall be made publicly available to all consumers and accessible on the DBHDS website. 296. Central Office Managed Community and Individual Health Services (44400) $178,884,498 $146,488,012 $157,904,251 Individual and Developmental Disability Services (44401) $7,169,347 $7,169,347 $10,320,331 Mental Health Services (44402) $169,415,151 $137,018,665 $145,283,920 Substance Abuse Services (44403) $2,300,000 $2,300,000 Fund Sources: General $177,900,843 $145,504,357 $156,538,191 Special $983,655 $983,655 Federal Trust $0 $382,405 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

_ 440 Item Details($) Appropriations($) ITEM 296. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 and $770,000 the second 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 $14,522,552 $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 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.

_ 441 Item Details($) Appropriations($) ITEM 296. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 members of the Virginia Association of Recovery Residences (VARR) recovery residences certified by the Department of Behavioral Health and Developmental Services for recovery support services. The association must ensure that members accredited by the Council on Accreditation of Peer Recovery Support Services (CAPRSS) receive a share of these funds. VARRGrantees of these funds will comply in a timely manner with all requirements of the agreement entered into between VARR and 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. VARRGrantees shall report monthly to the Department of Behavioral Health and Development Services providing financial and operational documentation for services provided, including documentation and services provided by Oxford Homes. 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 the Virginia Association of Recovery Residencescredentialed 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 $3,547,000$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. 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 $1,650,000$2,650,000 the second year from the general fund is provided for pilot programs for individuals with dementia or geriatric individuals who may otherwise be admitted to a state facility. I VETO ITEM 296.N. ON PAGE 441 /s/ Glenn Youngkin 5-2-25

_ 442 Item Details($) Appropriations($) ITEM 296. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 443 Item Details($) Appropriations($) ITEM 296. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. Total for Department of Behavioral Health and Developmental Services $352,223,748 $319,057,262 $339,817,218 General Fund Positions 521.50 521.50 562.50 Nongeneral Fund Positions 46.75 46.75 Position Level 568.25 568.25 609.25 Fund Sources: General $294,357,872 $261,191,386 $277,985,389

_ 444 Item Details($) Appropriations($) ITEM 296. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Special $22,415,168 $22,415,168 Dedicated Special Revenue $4,478,113 $4,478,113 $6,439,394 Federal Trust $30,972,595 $30,972,595 $32,977,267 Grants to Localities (790) 297. Financial Assistance for Health Services (44500) $783,058,749 $784,617,277 $801,392,721 Community Substance Abuse Services (44501) $135,555,413 $135,555,413 Community Mental Health Services (44506) $532,105,389 $533,663,917 $540,281,717 Community Developmental Disability Services (44507) $115,397,947 $115,397,947 $125,555,591 Fund Sources: General $682,907,931 $687,163,479 $703,938,923 Dedicated Special Revenue $10,150,818 $7,453,798 Federal Trust $90,000,000 $90,000,000 Authority: Title 37.2, Chapters 5 and 6; Title 2.2, Chapter 53, Code of Virginia. A. It is the intent of the General Assembly that community mental health, intellectual disability and substance abuse services are to be improved throughout the state. Funds provided in this Item shall not be used to supplant the funding effort provided by localities for services existing as of June 30, 1996. B. Further, it is the intent of the General Assembly that funds appropriated for this Item may be used by Community Services Boards to purchase, develop, lease, or otherwise obtain, in accordance with §§ 37.2-504 and 37.2-605, Code of Virginia, real property necessary to the provision of residential services funded by this Item. C. Out of the appropriation for this Item, funds are provided to Community Services Boards in an amount sufficient to reimburse the Virginia Housing Development Authority for principal and interest payments on residential projects for the mentally disabled financed by the Housing Authority. D. The Department of Behavioral Health and Developmental Services shall make all general fund payments to the Community Services Boards from this Item in twenty-four equal semimonthly installments, except for necessary budget revisions or the operational phase-in of new programs. E. Failure of a board to participate in Medicaid covered services and to meet all requirements for provider participation shall result in the termination of a like amount of state grant support. F. Community Services Boards may establish a line of credit loan for up to three months' operating expenses to assure adequate cash flow. G. Out of this appropriation $190,000 the first year and $190,000 the second year from the general fund shall be provided to Virginia Commonwealth University for the continued operation and expansion of the Virginia Autism Resource Center. H.1. Out of this appropriation, $29,152,884 the first year and $29,152,884$30,610,528 the second year from the general fund shall be provided for Virginia's Part C Early Intervention System for infants and toddlers with disabilities. 2. By November 15 of each year, the department shall report to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees on the (a) total revenues used to support Part C services, (b) total expenses for all Part C services, (c) total number of infants, toddlers and families served using all Part C revenues, and (d) services provided to those infants, toddlers, and families. I. Out of this appropriation $6,148,128 the first year and $6,148,128 the second year from the

_ 445 Item Details($) Appropriations($) ITEM 297. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 general fund shall be provided for mental health services for children and adolescents with serious emotional disturbances, at risk for serious emotional disturbance, and/or with co- occurring disorders with priority placed on those children who, absent services, are at-risk for removal from the home due to placement by a local department of social services, admission to a congregate care facility or acute care psychiatric hospital or crisis stabilization facility, commitment to the Department of Juvenile Justice, or parental custody relinquishment. These funds shall be used exclusively for children and adolescents, not mandated for services under the Children's Services Act. The Department of Behavioral Health and Developmental Services shall provide these funds to Community Services Boards through the annual Performance Contract. The Community Services Boards shall develop a Mental Health Initiative funding plan in collaboration with the local Family and Assessment Planning Teams and/or Community Policy and Management Team. The funding plan shall be approved by the Community Policy and Management Teams of the localities. The department shall provide these funds to the Community Services Boards based on a funding methodology. J. Out of this appropriation, $13,800,000 the first year and $13,800,000 the second year from the general fund shall be used to provide child psychiatry and children's crisis services for children with behavioral health needs. These funds, divided among the health planning regions based on the current availability of the services, may be used to hire or contract with child psychiatrists who can provide direct clinical services, including crisis services, as well as training and consultation with other children's health care providers in the health planning region. Funds may also be used to create new or enhance existing community-based crisis services in a health planning region. The Department of Behavioral Health and Developmental Services shall include details on the use of these funds in its annual report on the System Transformation, Excellence and Performance in Virginia (STEP-VA) process. K. Out of this appropriation, $2,780,645 the first year and $2,780,645 the second year from the general fund shall be used to provide outpatient clinician services to children with mental health needs. Each Community Services Board shall receive funding as determined by the commissioner to increase the availability of specialized mental health services for children. The department shall require that each Community Services Board receiving these funds agree to cooperate with Court Service Units in their catchment areas to provide services to mandated and nonmandated children, in their communities, who have been brought before Juvenile and Domestic Relations Courts and for whom treatment services are needed to reduce the risk these children pose to themselves and their communities or who have been referred for services through family assessment and planning teams through the Children's Services Act. L. Out of this appropriation, $2,750,000 the first year and $2,750,000 the second year from the general fund shall be for crisis services for children with intellectual or developmental disabilities. M. Out of this appropriation, $4,000,000 the first year and $4,000,000 the second year from the general fund shall be used for community-based mental health outpatient services for youth and young adults. N. The Commissioner, Department of Behavioral Health and Developmental Services shall allocate $1,000,000 the first year and $1,000,000 the second year from the federal Community Mental Health Services Block Grant for two specialized geriatric mental health services programs. One program shall be located in Health Planning Region II and one shall be located in Health Planning Region V. The programs shall serve elderly populations with mental illness who are transitioning from state mental health geriatric units to the community or who are at risk of admission to state mental health geriatric units. The commissioner is authorized to reduce the allocation in each year in an amount proportionate to any reduction in the federal Community Mental Health Services Block Grant funds awarded to the Commonwealth. O. The Commissioner, Department of Behavioral Health and Developmental Services shall allocate $750,000 the first year and $750,000 the second year from the federal Community Mental Health Services Block Grant for consumer-directed programs offering specialized mental health services that promote wellness, recovery and improved self-

_ 446 Item Details($) Appropriations($) ITEM 297. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 management. The commissioner is authorized to reduce the allocation in each year in an amount proportionate to any reduction in the federal Community Mental Health Services Block Grant funds awarded to the Commonwealth. P. Out of this appropriation, $17,701,997 the first year and $17,701,997 the second year from the general fund shall be used to provide emergency services, crisis stabilization services, case management, and inpatient and outpatient mental health services for individuals who are in need of emergency mental health services or who meet the criteria for mental health treatment set forth pursuant to §§ 19.2-169.6, 19.2-176, 19.2-177.1, 37.2-808, 37.2-809, 37.2-813, 37.2- 815, 37.2-816, 37.2-817 and 53.1-40.2 of the Code of Virginia. Funding provided in this item also shall be used to offset the fiscal impact of (i) establishing and providing mandatory outpatient treatment, pursuant to House Bill 499 and Senate Bill 246, 2008 Session of General Assembly; and (ii) attendance at involuntary commitment hearings by community services board staff who have completed the prescreening report, pursuant to §§ 19.2-169.6, 19.2-176, 19.2-177.1, 37.2-808, 37.2-809, 37.2-813, 37.2-815, 37.2-816, 37.2-817 and 53.1-40.2 of the Code of Virginia. Q. Out of this appropriation, $10,475,000 the first year and $10,475,000 the second year from the general fund shall be used to provide community crisis intervention services in each region for individuals with intellectual or developmental disabilities and co-occurring mental health or behavioral disorders. R. Out of this appropriation, $1,900,000 the first year and $1,900,000 the second year from the general fund shall be used for community-based services in Health Planning Region V. These funds shall be used for services intended to delay or deter placement, or to provide discharge assistance for patients in a state mental health facility. S. Out of this appropriation, $2,197,050 the first year and $2,197,050 the second year from the general fund shall be used for jail diversion and reentry services. Funds shall be distributed to community-based contractors based on need and community preparedness as determined by the commissioner. T.1. Out of this appropriation, $10,500,000 the first year and $10,500,000 the second year from the general fund shall be used for up to 32 drop-off centers to provide an alternative to incarceration for people with serious mental illness and individuals with acquired brain injury and co-occurring serious mental health illness. Priority for new funding shall be given to programs that have implemented Crisis Intervention Teams pursuant to § 9.1-102 and § 9.1- 187 et seq. of the Code of Virginia and have undergone planning to implement drop-off centers. 2. Out of this appropriation, $1,800,000 the first year and $1,800,000 the second year from the general fund is provided for Crisis Intervention assessment centers in six unserved rural communities. 3. Out of this appropriation, $657,648 the first year and $657,648 the second year from the general fund is provided to support CIT initiatives, including basic and advanced CIT training and law enforcement diversion, through one-time awards for advanced concepts in CIT Assessment Site programs. The department shall prioritize programs serving rural communities when determining the distribution of these funds. U. Out of this appropriation, $3,700,800 the first year and $3,700,800 the second year from the general fund is provided for discharge planning at jails for individuals with serious mental illness. Funding shall be used to create staff positions in Community Services Boards may also be used for emergency client assistance resources and will be implemented in at least five jails with a high percentage of inmates with serious mental illness. V. Out of this appropriation, $708,663 the first year and $708,663 the second year from the general fund is provided to establish an Intercept 2 diversion program in up to three rural communities. The funding shall be used for staffing and to provide access to treatment services W. Out of this appropriation, $35,500,411 the first year and $35,500,411 the second year from the general fund shall be used to provide community-based services or acute inpatient services in a private facility to individuals residing in state hospitals who have been determined

_ 447 Item Details($) Appropriations($) ITEM 297. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 clinically ready for discharge, and for continued services for those individuals currently being served under a discharge assistance plan. Of this appropriation, $1,305,000 the first year and $1,305,000 the second year shall be allocated for individuals currently or previously residing at Western State Hospital. X. Out of this appropriation, $500,000 the first year and $500,000 the second year from the general fund shall be used to increase mental health inpatient treatment purchased in community hospitals. Priority shall be given to regions that exhaust available resources before the end of the year in order to ensure treatment is provided in the community and does not result in more restrictive placements. Y.1. Out of this appropriation, $83,588,710 the first year and $83,588,710 the second year from the general fund is provided for programs for permanent supportive housing for individuals with serious mental illness. 2. The Department of Behavioral Health and Developmental Services shall report on the number of individuals who are discharged from state behavioral health hospitals who receive supportive housing services, the number of individuals who are on the hospitals' extraordinary barrier list who could receive supportive housing services, and the number of individuals in the community who receive supportive housing services and whether they are at risk of institutionalization. In addition, the department shall report on the average length of stay in permanent supportive housing for individuals receiving such services and report how the funding is reinvested when individuals discontinue receiving such services. The report shall be provided to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committee by November 1 of each year. 3. In addition to the amounts provided in Y.1., $2,500,000 the first year and $2,500,000 the second year from the general fund is provided for permanent supportive housing for individuals with serious mental illness residing in the Northern Virginia region. Z. Out of this appropriation, $17,185,533 the first year and $17,185,533 the second year from the general fund shall be used for a program of rental subsidies for individuals with intellectual or developmental disabilities. AA. Out of this appropriation, $3,433,727 the first year and $3,433,727 the second year from the general fund shall be used to provide permanent supportive housing to pregnant or parenting women with substance use disorders. BB. Out of this appropriation, $5,000,000 the first year and $5,000,000 the second year from the general fund is provided to increase access to medication assisted treatment for individuals with substance use disorders. In expending this amount, the department shall ensure that a portion of the funding received by the Community Services Board or Behavioral Health Authority is used for appropriate long-acting, injectable prescription drug treatment regimens for individuals who are in need of medication assisted treatment while (i) on probation, (ii) incarcerated, or (iii) upon their release to the community. The department shall ensure that a portion of the funding received by the Community Services Board or Behavioral Health Authority is used for non-narcotic, non-addictive prescription drug treatment regimens for individuals who are not able for clinical or other reasons to participate in buprenorphine or methadone-based drug treatment regimens. In expending the funding, Community Services Boards or a Behavioral Health Authority shall also prioritize the use of such funds for individuals who are not covered by insurance. CC. Out of this appropriation, $1,000,000 the first year and $1,000,000 the second year from the general fund is provided for community detoxification and sobriety services for individuals in crisis. DD. Out of this appropriation, $2,400,000 the first year and $2,400,000 the second year from the general fund shall be used for treatment and support services for substance use disorders, including individuals with acquired brain injury and co-occurring substance use disorders. Funded services shall focus on recovery models and the use of best practices. EE. Out of this appropriation, $880,000 the first year and $880,000 the second year from the general fund is provided for one regional, multi-disciplinary team for older adults. This team shall provide clinical, medical, nursing, and behavioral expertise and psychiatric

_ 448 Item Details($) Appropriations($) ITEM 297. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 services to nursing facilities and assisted living facilities. FF. Out of this appropriation, $2,250,447 the first year and $2,250,447 the second year from the general fund shall be used to divert admissions from state hospitals by purchasing acute inpatient or community-based psychiatric services at private facilities. GG. Out of this appropriation, $620,000 the first year and $620,000 the second year from the general fund shall be used for telepsychiatry and telemedicine services. HH. Out of this appropriation, $1,100,000 the second year from the general fund is provided to establish the Appalachian Telemental Health Initiative, a telemental health pilot program. Any funds that remain unspent at the end of each fiscal year shall be carried forward to the subsequent fiscal year for these purposes. II. Out of this appropriation, $200,000 the first year and $200,000 the second year from the general fund shall be provided to the Department of Behavioral Health and Developmental Services to contract with Best Buddies Virginia to expand inclusion services for people with intellectual and developmental disabilities to the Richmond and Virginia Beach areas of the state. JJ. Out of this appropriation, $200,000 the first year and $200,000 the second year from the general fund is provided to the Fairfax-Falls Church Community Services Board to fully fund its Program of Assertive Community Treatment (PACT) Team. KK.1. Out of this appropriation, $122,992,845 the first year and $125,689,865 the second year from the general fund and $10,150,818 the first year and $7,453,798 the second year from the Crisis Call Center Fund is provided for services by Community Services Boards and Behavioral Health Authorities pursuant to the System Transformation, Excellence and Performance in Virginia (STEP-VA) process and Chapters 607 and 683, 2017 Acts of Assembly. 2. Of the amounts in KK.1., $13,134,321 the first year and $13,134,321 the second year from the general fund is provided for same day access to mental health screening services. 3. Of the amounts in KK.1., $9,051,734 the first year and $9,051,734 the second year from the general fund is provided for primary care outpatient screening services. 4. Of the amounts in KK.1., $27,855,453 the first year and $27,855,453 the second year from the general fund is provided for outpatient mental health and substance use services. 5. Out of the amounts in KK.1., $2,000,000 the first year and $2,000,000 the second year from the general fund is provided for crisis detoxification services. 6. Out of the amounts in KK.1., $28,730,139 the first year and $28,730,139 the second year from the general fund is provided for crisis services for individuals with mental health or substance use disorders. 7. Out of the amounts in KK.1., $4,242,364 the first year and $4,242,364 the second year from the general fund is provided for military and veterans services. 8. Out of the amounts in KK.1., $5,814,558 the first year and $5,814,558 the second year from the general fund is provided for peer support and family services. 9. Out of the amounts in KK.1., $10,962,375 the first year and $10,962,375 the second year from the general fund is provided for the ancillary costs of expanding services at Community Services Boards and Behavioral Health Authorities. 10. Out of the amounts in KK.1., $2,697,020 the second year from the general fund and $10,150,818 the first year and $7,453,798 the second year from the Crisis Call Center Fund is provided for crisis call center dispatch staff. 11. Out of the amounts in KK.1., $3,970,250 the first year and $3,970,250 second year from the general fund is provided for psychiatric rehabilitation services. 12. Out of the amounts in KK.1., $6,844,427 the first year and $6,844,427 the second year from the general fund is provided for care coordination services.

_ 449 Item Details($) Appropriations($) ITEM 297. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 13. Out of the amounts in KK.1., $4,259,924 the first year and $4,259,924 the second year from the general fund is provided for STEP-VA-specific case management services. 14. Out of the amounts in KK.1., $937,300 the first year and $937,300 the second year from the general fund is provided for regional management of STEP-VA services. 15. Out of the amounts in KK.1. $5,190,000 the first year and $5,190,000 the second year from the general fund is provided for grants to Community Services Boards for the cost of transitioning data systems and clinical processes. LL. Out of this appropriation, $9,600,000 the first year and $10,200,000$16,200,000 the second year from the general fund shall be provided to establish mental health awareness response and community understanding services alert system programs and community care teams pursuant to legislation adopted in the 2020 Special Session I of the General Assembly. Each local or regional implementation area program shall receive $600,000 each year for this purpose. Notwithstanding the provisions of §§ 37.2-311.1, Code of Virginia, any requirement to establish community care teams may be met by the establishment of mobile crisis units. MM. The Department of Behavioral and Health and Developmental Services shall have the authority to promulgate emergency regulations for the Individual and Family Supports Program (IFSP) to ensure an annual public input process that shall include a survey of needs and satisfaction in order to establish plans for the disbursement of IFSP funding in consultation with the IFSP State Council. Based on the Council's recommendation and information gathered during the public input period, the department will draft program guidelines to establish annual funding priorities. The department will establish program criteria for each of the required program categories and publish them as part of the Annual Funding Program Guidelines. Additionally, program guidelines shall establish eligibility criteria, the award process, appeals processes, and any other protocols necessary for ensuring the effective use of state funds. All criteria will be published prior to opening the funding opportunity. NN. Out of this appropriation, $650,000 the first year and $650,000 the second year from the general fund shall be used to expand and provide additional support to existing mental health dockets. OO. Out of this appropriation, $5,000,000 the first year and $5,000,000 the second year from the general fund is provided for substance use disorder-specific training of the intellectual disability and developmental disability provider workforce, the development and implementation of substance use disorder treatment services specific to transition age youth up the age of 25, and additional critical substance use disorder services related to the COVID-19 pandemic. PP. Out of this appropriation, $2,000,000 the first year and $2,000,000 the second year from the general fund shall be used for crisis stabilization and related services statewide intended to delay or deter placement in a state mental health facility. QQ.1. Out of this appropriation, $9,000,000 the first year and $9,000,000 the second year from the general fund shall be provided for the costs of Crisis Intervention Team Assessment Centers or Crisis Stabilization Units that have expanded, or intend to expand, to 23 hour crisis receiving or observation centers. 2.Out of the amounts appropriated in paragraph QQ.1. of this item, an amount necessary to develop and implement a crisis receiving center serving adults ages 18 and older in the Region 2000 area (Amherst County, Appomattox County, Bedford County, Campbell County, and Lynchburg City) shall be allocated for this purpose by the Department of Behavioral Health and Developmental Services, which shall contract with Horizon Behavioral Health to implement the crisis receiving center. As part of the contract with Horizon Behavioral Health, the department shall require the establishment of an advisory board with law enforcement representatives from the Region 2000 localities to oversee, including financial oversight, and provide governance of the crisis receiving center. 3. The Department of Behavioral Health and Developmental Services shall ensure that health systems, hospitals, and other community providers are eligible to participate in

_ 450 Item Details($) Appropriations($) ITEM 297. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 developing and implementing 23-hour crisis receiving or observation centers. RR. Out of this appropriation, $36,000,000 the first year and $36,000,000 the second year from the general fund is provided for the costs of compensation increases given to Community Services Boards or a Behavioral Health Authority staff as of January 1, 2024. The Department of Behavioral Health and Developmental Services may fund up to 100 percent of the costs of the compensation increase. SS. Out of this appropriation, $3,433,525 the first year and $3,302,053 the second year from the general fund is provided for peer wellness stay programs. TT. Out of this appropriation, $2,500,000 the first year and $2,500,000 the second year from the general fund is provided for Community Services Boards to hire additional staff for crisis stabilization units whose bed capacity is not fully utilized due to lack of staff. UU. Out of this appropriation, $777,000 the second year from the general fund is provided to expand peer support services for youth. VV. Out of this appropriation, $8,700,000 the second year from the general fund is provided for Community Services Boards to hire additional support coordinators. WW. It is the intent of the General Assembly that for any additional state funding provided to Community Services Boards (CSBs) or Behavioral Health Authorities (BHAs) that existing contributions from local governments shall not be supplanted by such additional state funding. The Commissioner, Department of the Behavioral Health and Developmental Services (DBHDS), shall ensure, by monitoring local contributions to CSBs and BHAs, that if local contributions are reduced subsequent to new funding being awarded or provided, that such new funding shall thereafter be forfeited by the CSB or BHA by the amount of the reduced local contribution. The Commissioner may waive this requirement if the locality can prove extreme hardship. Notwithstanding § 37.2-509, Code of Virginia, DBHDS shall not grant a waiver for the operating expense requirement unless the locality can demonstrate hardship in terms of reduced employment, per capita income, or property values (excluding changes in land use taxation). Total for Grants to Localities $783,058,749 $784,617,277 $801,392,721 Fund Sources: General $682,907,931 $687,163,479 $703,938,923 Dedicated Special Revenue $10,150,818 $7,453,798 Federal Trust $90,000,000 $90,000,000 Mental Health Treatment Centers (792) 298. Instruction (19700) $176,397 $176,397 Facility-Based Education and Skills Training (19708) $176,397 $176,397 Fund Sources: General $34,569 $34,569 Special $5,328 $5,328 Federal Trust $136,500 $136,500 Authority: §§ 37.2-312 and 37.2-713, Code of Virginia; P.L. 102-73 and P.L. 102-119, Federal Code. 299. Secure Confinement (35700) $22,758,548 $22,758,548 Forensic and Behavioral Rehabilitation Security (35707) $22,758,548 $22,758,548 Fund Sources: General $22,269,242 $22,269,242 Special $489,306 $489,306 Authority: Title 37.2, Chapter 9, Code of Virginia. 300. Pharmacy Services (42100) $20,546,637 $20,546,637 $23,808,402

_ 451 Item Details($) Appropriations($) ITEM 300. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Inpatient Pharmacy Services (42102) $20,546,637 $20,546,637 $23,808,402 Fund Sources: General $10,594,581 $10,594,581 $13,856,346 Special $9,952,056 $9,952,056 Authority: Title 37.2, Chapter 8, Code of Virginia. 301. State Health Services (43000) $322,956,825 $322,926,825 $323,727,733 Geriatric Care Services (43006) $53,706,979 $53,706,979 Inpatient Medical Services (43007) $9,816,263 $9,816,263 State Mental Health Facility Services (43014) $259,433,583 $259,403,583 $260,204,491 Fund Sources: General $307,180,637 $307,150,637 $307,951,545 Special $15,776,188 $15,776,188 Authority: Title 37.2, Chapters 1 through 11, Code of Virginia. A. The Commissioner, Department of Behavioral Health and Developmental Services, shall ensure continued operation of at least 123 beds at Northern Virginia Mental Health Institute. B. The Department of Behavioral Health and Developmental Services shall report by November 1 of each year to the Secretary of Finance and the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees on the number of individuals served through discharge assistance plans and the types of services provided. C. Out of this appropriation, $137,000 the first year and $137,000 the second year from the general fund shall be used to provide transition services in alternate settings for children and adolescents who can be diverted or discharged from state facilities. D. Out of this appropriation, $5,062,489 the first year and $5,062,489 the second year from the general fund is provided for therapeutic intervention and discharge planning services seven days a week at Central State Hospital and Southern Virginia Mental Health Institute. The Department shall report annually by August 1 to the Governor and the Chairmen of House Appropriations and Senate Finance and Appropriations Committees on the impact on length of stay, number of discharges occurring during the expanded service time, and overall impact on discharge planning and the census of the affected facilities. E. Out of this appropriation, $10,383,859 the first year and $10,383,859 the second year from the general fund is provided for salary increases for clinical staff, including psychologists, social workers, counselors, therapists, medical lab technicians, and pharmacists, at state facilities. F. Out of this appropriation, $741,889 the first year and $711,989 the second year from the general fund is provided to establish and support formal partnerships between academic institutions and three state-operated facilities to serve as clinical training sites for medical residents, nurses, nurse practitioners, physician assistants, and other licensed mental health professionals. G. The Department of Behavioral Health and Developmental Services, in consultation with other relevant state and local agencies, shall identify existing and develop new, if necessary, alternative placements that are effective, safe, and therapeutic for children and youth who would otherwise be admitted to the Commonwealth Center for Children and Adolescents (CCCA) and report findings to the Governor and the Chairs of the House Appropriations and the Senate Finance and Appropriations Committees by November 1, 2024. The report shall include information on (i) the types and locations of alternative placements identified, (ii) the number and treatment needs of children and youth who could be admitted at each placement type identified, (iii) the cost and funding sources for each placement type, and (iv) steps that remain to be taken to identify a sufficient number of appropriate alternative placements for all children and youth who would otherwise be

_ 452 Item Details($) Appropriations($) ITEM 301. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 admitted to CCCA. H. The Department of Behavioral Health and Developmental Services (DBHDS) shall develop a plan for the closure of Hiram W. Davis Medical Center, including an analysis for the development of skilled nursing beds at Southeastern Virginia Training Center to care for the patients at Hiram W. Davis Medical Center or in other facilities operated by DBHDS in need of that level of care. DBHDS shall assess the potential number of skilled nursing beds needed based on an assessment of patient needs at its facilities and shall also develop an estimate of skilled nursing beds that may be necessary to address future needs. DBHDS shall solicit stakeholder input as part of its skilled nursing bed assessment. DBHDS shall report the plan and assessment to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by November 1, 2025. 302. Facility Administrative and Support Services (49800) $203,142,732 $200,004,248 $202,209,013 General Management and Direction (49801) $106,768,320 $106,053,019 Information Technology Services (49802) $14,405,517 $14,318,523 Food and Dietary Services (49807) $24,505,614 $24,505,614 Housekeeping Services (49808) $16,701,461 $16,701,461 Linen and Laundry Services (49809) $1,867,234 $1,867,234 Physical Plant Services (49815) $29,618,790 $27,282,601 $29,487,366 Power Plant Operation (49817) $5,995,899 $5,995,899 Training and Education Services (49825) $3,279,897 $3,279,897 Fund Sources: General $181,414,355 $178,275,871 $180,480,636 Special $21,664,877 $21,664,877 Federal Trust $63,500 $63,500 Authority: § 37.2-304, Code of Virginia. A. Out of this appropriation, $759,000 the first year and $759,000 the second year from the general fund shall be used to ensure proper billing and maximum reimbursement for prescription drugs purchased by mental health treatment centers through the Medicare Part D drug program. B. Notwithstanding § 37.2-319 of the Code of Virginia, the Commissioner shall prepare a plan to address the capital and programmatic needs of other state mental health facilities and state intellectual disability training center when considering expenditures from the trust fund. No less than 30 days prior to the expenditure of funds, the Commissioner shall present an expenditure plan to the Chairmen of the Senate Finance and Appropriations and House Appropriations Committees for their review and consideration. C. Out of this appropriation, $2,354,200 the first year and $2,354,200 the second year from the general fund is provided for 36 security positions at state-operated mental health treatment centers. D. Out of this appropriation, $1,798,410 the first year and $1,798,410 the second year from the general fund is provide for security positions at Eastern State Hospital and Northern Virginia Mental Health Institute. E. Out of this appropriation, $48,005,382 the first year and $48,005,382 the second year from the general fund is provided for the ongoing costs of salary increases for direct care staff at state facilities included in Chapter 1, 2023 Acts of Assembly, Special Session I. F. Out of this appropriation $7,905,714 the first year and $7,905,714 the second year from the general fund is provided for salary increases for food services and environmental services staff at state facilities. G. Out of this appropriation, $715,301 the first year from the general fund is provided for the educational and training costs of facility employees seeking to pursue additional licensing or certification. Any employee who is a beneficiary of these funds shall sign a written agreement

_ 453 Item Details($) Appropriations($) ITEM 302. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 outlining their commitment to continue their employment with the facility after their program has concluded. Any funds for this purpose that remain unexpended at year end shall be reappropriated in the succeeding year for the same purpose. H. Out of this appropriation, $2,336,189 the first year from the general fund is provided for the costs of temporary kitchen space at Eastern State Hospital. I. Out of this appropriation, $451,054 the first year and $364,060 the second year from the general fund is provided to procure scheduling software to assist state hospitals in scheduling nursing shifts. J. Out of this appropriation, $2,204,765 the second year from the general fund is provided for salary increases for trades staff at state facilities. K. The Department of Behavioral Health and Developmental Services shall: identify (i) a suitable building on the Central State Hospital (CSH) campus for storage of historical patient records for patients at CSH; (ii) the costs associated to renovate the identified building(s) to meet archival standards for humidity, light, heat, and air conditioning; and (iii) the costs for a repository for historical records from all mental health institutions in the Commonwealth. 303. The Commissioner, Department of Behavioral Health and Developmental Services, shall report by August 1 of each year to the Secretary of Finance, and the Chairmen of House Appropriations and Senate Finance and Appropriations Committees the general fund and non general fund allocations and authorized position levels for each state-operated behavioral health facility. The report shall be made available on the agency's public website. Total for Mental Health Treatment Centers $569,581,139 $566,412,655 $572,680,093 General Fund Positions 4,373.00 4,373.00 Nongeneral Fund Positions 613.00 613.00 Position Level 4,986.00 4,986.00 Fund Sources: General $521,493,384 $518,324,900 $524,592,338 Special $47,887,755 $47,887,755 Federal Trust $200,000 $200,000 Intellectual Disabilities Training Centers (793) 304. Instruction (19700) $3,424,949 $2,924,949 Facility-Based Education and Skills Training (19708) $3,424,949 $2,924,949 Fund Sources: General $3,062,724 $2,562,724 Special $162,225 $162,225 Federal Trust $200,000 $200,000 Authority: Title 37.2, Chapter 3, Code of Virginia. Out of this appropriation, $500,000 the first year from the general fund shall be provided to maintain the buildings and grounds at Central Virginia Training Center until such time as the property is sold by the Commonwealth. 305. Pharmacy Services (42100) $2,948,730 $2,948,730 Inpatient Pharmacy Services (42102) $2,948,730 $2,948,730 Fund Sources: General $279,606 $279,606 Special $2,669,124 $2,669,124 Authority: §§ 37.2-312 and 37.2-713, Code of Virginia; P.L. 102-119, Federal Code. 306. State Health Services (43000) $38,903,304 $38,903,304

_ 454 Item Details($) Appropriations($) ITEM 306. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Inpatient Medical Services (43007) $15,983,231 $15,983,231 State Intellectual Disabilities Training Center Services (43010) $22,920,073 $22,920,073 Fund Sources: General $7,170,875 $7,170,875 Special $31,732,429 $31,732,429 Authority: Title 37.2, Chapters 1 through 11, Code of Virginia. A. The Commissioner of Behavioral Health and Developmental Services shall comply with all relevant state and federal laws and Supreme Court decisions that govern the discharge of residents from state intellectual disability training centers and the granting of intellectual disability waiver slots. B. Out of this appropriation, $726,826 the first year and $726,826 the second year from the general fund is provided for salary increases for clinical staff, including psychologists, social workers, counselors, therapists, medical lab technicians, and pharmacists, at state facilities. 307. Facility Administrative and Support Services (49800) $23,290,243 $23,219,729 $23,366,377 General Management and Direction (49801) $9,284,318 $9,213,804 Information Technology Services (49802) $2,038,021 $2,038,021 Food and Dietary Services (49807) $2,890,778 $2,890,778 Housekeeping Services (49808) $2,928,717 $2,928,717 Linen and Laundry Services (49809) $746,376 $746,376 Physical Plant Services (49815) $3,785,352 $3,785,352 $3,932,000 Power Plant Operation (49817) $832,104 $832,104 Training and Education Services (49825) $784,577 $784,577 Fund Sources: General $4,261,138 $4,190,624 $4,337,272 Special $19,029,105 $19,029,105 Authority: Title 37.1, Chapters 1 and 2, Code of Virginia; P.L. 74-320, Federal Code. A. Out of this appropriation, $948,576 the first year and $948,576 the second year from the general fund and $7,784,608 the first year and $7,784,608 the second year from nongeneral funds is provided for the ongoing costs of salary increases for direct care staff included in Chapter 1, 2023 Acts of Assembly, Special Session I. B. Out of this appropriation, $567,627 the first year and $567,627 the second year from the general fund is provided for salary increases for food services and environmental services staff at state facilities. C. Out of this appropriation, $70,514 the first year from the general fund is provided for the educational and training costs of facility employees seeking to pursue additional licensing or certification. Any employee who is a beneficiary of these funds shall sign a written agreement outlining their commitment to continue their employment with the facility after their program has concluded. Any funds for this purposes that remain unexpended at year end shall be reappropriated in the succeeding year for the same purpose. D. Out of this appropriation, $146,648 the second year from the general fund is provided for salary increases for trades staff at state facilities. 308. The Commissioner, Department of Behavioral Health and Developmental Services, shall report by August 1 of each year to the Secretary of Finance, and the Chairmen of House Appropriations and Senate Finance and Appropriations Committees the general fund and non general fund allocations and authorized position levels for each state-operated training center. The report shall be made available on the agency's public website. Total for Intellectual Disabilities Training Centers $68,567,226 $67,996,712 $68,143,360

_ 455 Item Details($) Appropriations($) ITEM 308. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 General Fund Positions 107.00 107.00 Nongeneral Fund Positions 603.00 603.00 Position Level 710.00 710.00 Fund Sources: General $14,774,343 $14,203,829 $14,350,477 Special $53,592,883 $53,592,883 Federal Trust $200,000 $200,000 Virginia Center for Behavioral Rehabilitation (794) 309. Instruction (19700) $291,064 $291,064 Facility-Based Education and Skills Training (19708) $291,064 $291,064 Fund Sources: General $291,064 $291,064 Authority: Title 37.2, Chapter 1 and 9, Code of Virginia. 310. Secure Confinement (35700) $23,063,379 $23,063,379 Forensic and Behavioral Rehabilitation Security (35707) $23,063,379 $23,063,379 Fund Sources: General $23,063,379 $23,063,379 Authority: Title 37.2, Chapter 9, Code of Virginia. 311. Pharmacy Services (42100) $1,557,890 $1,557,890 Inpatient Pharmacy Services (42102) $1,557,890 $1,557,890 Fund Sources: General $1,557,890 $1,557,890 Authority: Title 37.2, Chapter 1 and 9, Code of Virginia. 312. State Health Services (43000) $20,508,931 $20,508,931 State Mental Health Facility Services (43014) $20,508,931 $20,508,931 Fund Sources: General $20,508,931 $20,508,931 Authority: Title 37.2, Chapters 1 and 9, Code of Virginia. A. Out of this appropriation, $5,639,346 the first year and $5,639,346 the second year from the general fund is provided for the ongoing costs of salary increases for direct care staff included in Chapter 1, 2023 Acts of Assembly, Special Session I. B. Out of this appropriation, $263,261 the first year and $263,261 the second year from the general fund is provided for salary increases for clinical staff, including psychologists, social workers, counselors, therapists, medical lab technicians, and pharmacists, at state facilities. 313. Facility Administrative and Support Services (49800) $17,743,011 $17,722,198 General Management and Direction (49801) $4,707,780 $4,686,967 Information Technology Services (49802) $1,171,654 $1,171,654 Food and Dietary Services (49807) $3,427,666 $3,427,666 Housekeeping Services (49808) $505,584 $505,584 Physical Plant Services (49815) $7,804,707 $7,804,707 Training and Education Services (49825) $125,620 $125,620 Fund Sources: General $17,717,765 $17,696,952 Special $25,246 $25,246 Authority: Title 37.2, Chapters 1 through 11, Code of Virginia. A. In the event that services are not available in Virginia to address the specific needs of an individual committed for treatment at the VCBR or conditionally released, or additional

_ 456 Item Details($) Appropriations($) ITEM 313. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 capacity cannot be met at the VCBR, the Commissioner is authorized to seek such services from another state. B. Out of this appropriation, $540,000 the first year and $540,000 the second year from the general fund is provided for the treatment costs of residents diagnosed with hepatitis. The facility shall make efforts to use certified federal 340B providers for the dispensing of any associated pharmaceuticals. C. Within 15 days of any appropriation transfer to the Virginia Center for Behavioral Rehabilitation from any other sub-agency within the Department of Behavioral Health and Developmental Services, the Department of Planning and Budget shall notify the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees. The notice shall include the amount, fund source and reason for the transfer with an explanation of why the funding being transferred has no impact on the sub-agency from which it is transferred. D. Out of this appropriation, $20,813 the first year from the general fund is provided for the educational and training costs of facility employees seeking to pursue additional licensing or certification. Any employee who is a beneficiary of these funds shall sign a written agreement outlining their commitment to continue their employment with the facility after their program has concluded. Any funds for this purpose that remain unexpended at year end shall be reappropriated in the succeeding year for the same purpose. E. Out of this appropriation, $33,045 the first year and $33,045 the second year from the general fund is provided for salary increases for food services and environmental services staff at state facilities Total for Virginia Center for Behavioral Rehabilitation $63,164,275 $63,143,462 General Fund Positions 886.50 886.50 Position Level 886.50 886.50 Fund Sources: General $63,139,029 $63,118,216 Special $25,246 $25,246 Grand Total for Department of Behavioral Health and Developmental Services $1,836,595,137 $1,801,227,368 $1,845,176,854 General Fund Positions 5,888.00 5,888.00 5,929.00 Nongeneral Fund Positions 1,262.75 1,262.75 Position Level 7,150.75 7,150.75 7,191.75 Fund Sources: General $1,576,672,559 $1,544,001,810 $1,583,985,343 Special $123,921,052 $123,921,052 Dedicated Special Revenue $14,628,931 $11,931,911 $13,893,192 Federal Trust $121,372,595 $121,372,595 $123,377,267 § 1-95. DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES (262) 314. Rehabilitation Assistance Services (45400) $110,245,959 $110,245,959 $118,410,793 Vocational Rehabilitation Services (45404) $85,956,102 $85,956,102 $92,470,936 Community Rehabilitation Programs (45406) $24,289,857 $24,289,857 $25,939,857 Fund Sources: General $40,678,785 $40,678,785 $42,328,785 Special $464,647 $464,647 Dedicated Special Revenue $1,626,616 $1,626,616

_ 457 Item Details($) Appropriations($) ITEM 314. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Federal Trust $67,475,911 $67,475,911 $73,990,745 Authority: Title 51.5, Chapter 14, Code of Virginia; P.L. 93-112, Federal Code. A.1. Out of this appropriation, $11,307,671 the first year and $11,307,671 the second year from the general fund shall be used as state matching dollars for the federal Vocational Rehabilitation State Grant provided under the Rehabilitation Act of 1973, as amended, hereafter referred to as the federal vocational rehabilitation grant. The Department for Aging and Rehabilitative Services (DARS) shall not transfer or expend these dollars for any purpose other than to support activities related to vocational rehabilitation. 2. The annual federal vocational rehabilitation grant award that will be received by DARS is estimated at $72,740,773 for federal fiscal year 2024; $72,740,773 for federal fiscal year 2025; and $72,740,773 for federal fiscal year 2026. In addition to the base annual award amount, DARS is authorized to request up to $4,000,000 of additional federal reallotment dollars in each of these years. Assuming these amounts, the annual 21.3 percent state matching requirement would equate to $20,769,739 for federal fiscal year 2024; $20,769,739 for federal fiscal year 2025; and $20,769,739 for federal fiscal year 2026. 3. Based on the projection of federal award funding in paragraph A.2., DARS shall not request federal vocational rehabilitation grant dollars in excess of $76,740,773 for federal fiscal year 2024; $76,740,773 for federal fiscal year 2025; and $76,740,773 for federal fiscal year 2026, without prior written concurrence from the Director, Department of Planning and Budget. Any approved increases in grant award requests shall be reported by DARS to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees within 30 days. Any federal reallotment dollars received by the agency shall not be used for any purpose that creates an on-going fiscal obligation to the Commonwealth. 4. By October 1 of each year, the department shall submit an annual report that details all vocational rehabilitation program revenues and spending from the prior fiscal year. The report shall also provide spending projections for the current and upcoming fiscal years. This report shall be provided to the Director, Department of Planning and Budget, and the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees. B. Out of this appropriation, $1,280,512 the first year and $1,280,512 the second year from the general fund shall be used to provide vocational rehabilitation services for persons recovering from mental health issues, alcohol and other substance abuse issues pursuant to an interagency agreement between the Department of Behavioral Health and Developmental Services and the Department for Aging and Rehabilitative Services. C. The Department for Aging and Rehabilitative Services shall use non-federal appropriation in this item to fulfill any necessary match requirement for the federal Supported Employment grant. D. Out of this appropriation, $2,658,1988,952,766 the first year and $2,658,1988,952,766 the second year from the general fund is provided for the Long Term Employment Support Services (LTESS) and Extended Employment Services (EES) programs. The funding allocated to employment services organizations shall be allocated consistent with the recommendations of the Employment Service Organizations Steering Committee. The appropriation for LTESS and EES shall be used for the program and shall not be used for any other purpose.programs and for recovery of administrative costs, which are limited to 1.20 percent the first year and 1.20 percent the second year. The appropriation shall not be used for any other purposes apart from those described in this Item. E. Out of this appropriation, $6,294,568 the first year and $6,294,568 the second year from the general fund is provided for the Long Term Employment Support Services (LTESS) program. F. Recovery of administrative costs for the Long Term Employment Support Services program shall be limited to 1.70 percent the first year and 1.70 percent the second year.

_ 458 Item Details($) Appropriations($) ITEM 314. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 G. In allocating funds for Extended Employment Services, Long Term Employment Support Services (LTESS) and Economic Development, the Department for Aging and Rehabilitative Services shall consider recommendations from the established Employment Service Organizations/LTESS Steering Committee. H. Of this appropriation, $200,000 the first year and $200,000 the second year from the general fund shall be used to contract with Didlake Inc., for the purpose of extended employment services and Long Term Employment Support Services for people with disabilities. I. An employment services organization that had a CARF accreditation may continue to receive funding for Long-Term Employment Support Services (LTESS) and Extended Employment Services (EES) for up to six months after their accreditation expires if the organization is actively pursuing CARF reaccreditation. J. The Employment Services Organization Steering Committee (ESOSC), as established in §51.5-169.2, Code of Virginia, shall report to and advise the Commissioner on policy, funding, and the allocation of funds to employment services organizations (ESOs) for Long Term Employment Support Services and Extended Employment Services pursuant to § 51.5- 169.1, Code of Virginia, as well as all other services of which ESOs are current or proposed vendors. K.1. A minimum of $7,680,5027,803,293 the first year and $7,680,502 $8,363,722 the second year from general fund dollars is allocated to support Centers for Independent Living. 2. The Department of Aging and Rehabilitative Services (DARS) shall collect data on the total operating budget of each Centers for Independent Living (CIL) funded in this Item, including total amount of state dollars provided to each. In addition, DARS shall have available an annual summary of how each CIL utilizes state dollars, including a position level breakdown of those classified positions funded with state dollars. DARS shall update this information by August 15 of each year with the previous year's data. L. The Department for Aging and Rehabilitative Services shall fulfill the administrative responsibilities pertaining to the Personal Attendant Services program, without interruption or discontinuation of personal attendant services currently provided. M. Out of this appropriation, it is estimated that $2,462,759 the first year and $2,462,759 the second year from the general fund shall be used for personal assistance services for individuals with disabilities. N.1. Out of this appropriation, $10,396,719 the first year and $10,396,719 $11,746,719 the second year from the general fund shall be provided for expanding the continuum of services used to assist persons with brain injuries in returning to work and community living. 2. Of this amount, $1,830,000 the first year and $1,830,000 the second year from the general fund shall be used to provide a continuum of brain injury services to individuals in unserved or underserved regions of the Commonwealth. Up to $150,000 each year shall be awarded to successful program applicants. Programs currently receiving more than $250,000 from the general fund each year are ineligible for additional assistance under this section. To be determined eligible for a grant under this section, program applicants shall submit plans to pursue non-state resources to complement the provision of general fund support. 3. Of this amount, $285,000 the first year and $285,000 the second year shall be provided from the general fund to support case management services for brain injured individuals and their families in Southwestern Virginia. 4. Of this amount, $720,000 the first year and $720,000 the second year from the general fund shall be used to support case management services for individuals with brain injuries in unserved or underserved regions of the Commonwealth. 5. Of this amount, $775,000 the first year and $775,000$1,375,000 the second year from the general fund shall be used for workforce retention for brain injury service providers. 6. Of this amount, $1,875,000 the first year and $1,875,000 the second year from the general fund shall be provided to: (i) strengthen and expand the existing state contracted safety net I VETO ITEM 314.N.1.-N.8. ON PAGES 458-459 /s/ Glenn Youngkin 5-2-25

_ 459 Item Details($) Appropriations($) ITEM 314. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 brain injury services system by increasing the numbers of case managers, clubhouse staff, clinical professional staff and/or program support staff and/or (ii) develop new safety net services in unserved areas of the state. 7. In allocating additional funds for brain injury services, the Department for Aging and Rehabilitative Services shall consider recommendations from the Virginia Brain Injury Council (VBIC). 8. The Department for Aging and Rehabilitative Services (DARS) shall submit an annual report, by September 1 of each year, to the Chairmen of the Senate Finance and Appropriations and House Appropriations Committees documenting the number of individuals served, services provided, and success in attracting non-state resources. O.1. For Commonwealth Neurotrauma Initiative Trust Fund grants awarded after July 1, 2004, the commissioner shall require applicants to submit a plan to achieve self- sufficiency by the end of the grant award cycle in order to receive funding consideration. 2. Notwithstanding any other law to the contrary, the commissioner may reallocate up to $500,000 from unexpended balances in the Commonwealth Neurotrauma Initiative Trust Fund to fund new grant awards for research on traumatic brain and spinal cord injuries. P. Out of this appropriation, $446,618 the first year and $446,618 the second year from the general fund shall be allocated to the Long-Term Rehabilitation Case Management Services Program. Q. Every county and city, either singly or in combination with another political subdivision, may establish a local disability services board to provide input to state agencies on service needs and priorities of persons with physical and sensory disabilities, to provide information and resource referral to local governments regarding the Americans with Disabilities Act, and to provide such other assistance and advice to local governments as may be requested. 315. Individual Care Services (45500) $40,439,449 $41,739,449 $40,439,449 $41,989,449 Financial Assistance for Local Services to the Elderly (45504) $32,782,787 $34,082,787 $32,782,787 $34,332,787 Rights and Protection for the Elderly (45506) $7,656,662 $7,656,662 Fund Sources: General $20,653,634 $21,953,634 $20,653,634 $22,203,634 Special $90,000 $90,000 Dedicated Special Revenue $200,000 $200,000 Federal Trust $19,495,815 $19,495,815 Authority: Title 51.5, Chapter 14, Code of Virginia. A. Out of this appropriation, $456,209 the first year and $456,209 the second year from the general fund shall be provided to continue a statewide Respite Care Initiative program for the elderly and persons suffering from Alzheimer's Disease. B.1. Out of this appropriation, $3,785,000 the first year and $3,785,000 the second year from the general fund shall be provided to support local and regional programs of the Virginia Public Guardian and Conservator Program. This funding is estimated to provide 757 client slots the first year and 757 client slots the second year for unrestricted guardianship services. 2. Out of this appropriation, $200,000 the first year and $200,000 the second year from the general fund shall be used to provide services through the Virginia Public Guardian and Conservator Program for individuals with mental illness or intellectual disability (ID). This funding is estimated to provide 40 client slots the first year and 40 client slots the second year for guardianship services for individuals with mental illness or intellectual disabilities. 3. Out of this appropriation, $2,270,000 the first year and $2,270,000 the second year from

_ 460 Item Details($) Appropriations($) ITEM 315. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 the general fund shall be used to provide services through the Virginia Public Guardian and Conservator Program for individuals with intellectual disabilities (ID) and developmental disabilities (DD). This funding shall be expended pursuant to an interagency agreement between the Department of Behavioral Health and Developmental Services (DBHDS) and the Department for Aging and Rehabilitative Services. This funding is estimated to provide 454 client slots the first year and 454 client slots the second year for guardianship services for individuals with ID/DD, as authorized by DBHDS. 4. Out of this appropriation, $686,000 the first year and $686,000 the second year from the general fund shall be used to provide services through the Virginia Public Guardian and Conservator Program for individuals with mental illness. This funding shall be expended pursuant to an interagency agreement between the Department of Behavioral Health and Developmental Services (DBHDS) and the Department for Aging and Rehabilitative Services. This funding is estimated to provide 98 client slots the first year and 98 client slots the second year for guardianship services for individuals with mental illness, as authorized by DBHDS. C.1. Area Agencies on Aging that are authorized to use funding for the Care Coordination for the Elderly Program, shall be authorized to use funding to conduct a program providing mobile, brief intervention and service linking as a form of care coordination. The Department for Aging and Rehabilitative Services, in collaboration with the Area Agencies on Aging, shall analyze the resulting impact in these agencies and determine if this model of service delivery is an appropriate and beneficial use of these funds. 2. The Department for Aging and Rehabilitative Services, in collaboration with Area Agencies on Aging (AAAs) that are authorized to use funding for the Care Coordination for Elderly Program, shall examine and analyze existing state and national care coordination models to determine best practice models. The department and designated AAAs shall determine which models of service delivery are appropriate and demonstrate beneficial use of these funds and develop the accompanying service standards. Each AAA receiving care coordination funding shall submit its plan for care coordination with the annual area plan. D. Area Agencies on Aging shall be designated as the lead agency in each respective area for No Wrong Door. E. The Department for Aging and Rehabilitative Services shall (i) recommend strategies to coordinate services and resources among agencies involved in the delivery of services to Virginians with dementia; (ii) monitor the implementation of the Dementia State Plan; (iii) recommend policies, legislation, and funding needed to implement the Plan; (iv) collect and monitor data related to the impact of dementia on Virginians; and (v) determine the services, resources, and policies that may be needed to address services for individuals with dementia. F. Out of this appropriation, $201,875 the first year and $201,875 the second year from the general fund shall be provided to support the distribution of comprehensive health and aging information to Virginia's senior population, their families and caregivers. G. Out of this appropriation, $250,000 the first year and $250,000 the second year from the general fund shall be provided for the Pharmacy Connect Program in Southwest Virginia, administered by Mountain Empire Older Citizens, Inc. H. Out of this appropriation, $200,000 the first year and $200,000 the second year from the general fund shall be used to contract with the Jewish Social Services Agency to provide assistance to low-income seniors who have experienced trauma. I. Out of this appropriation, $250,000 the first year and $250,000 the second year from the general fund shall be provided to contract with Birmingham Green to provide residential services to low-income, disabled individuals. J. Out of this appropriation, $262,500 the first year and $262,500 the second year from the general fund shall be provided for an interdisciplinary plan of care and dementia care management for 88 individuals diagnosed with dementia. This service shall be provided through a partnership between the Memory and Aging Care Clinic at the University of Virginia and the Alzheimer's Association. The Department for Aging and Rehabilitative Services shall report the status and provide an update on the results of the dementia case management program to the Chairs of the House Appropriations and Senate Finance and

_ 461 Item Details($) Appropriations($) ITEM 315. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Appropriations Committees by November 1 of each year. K. 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 Area Agencies on Aging utilizing the Virginia Insurance Counseling and Assistance Program (VICAP) to provide counseling to Medicare beneficiaries about health insurance options and plans. L. Out of this appropriation, $700,000 the first year and $700,000 the second year from the general fund shall be provided to hold harmless the Area Agencies on Aging due to the impact of 2020 census changes on the distribution formula for federal Older Americans Act funding. M. Out of this appropriation, $200,000 the first year and $200,000 the second year from the general shall be provided for an interdisciplinary plan of care and dementia case management for 100 individuals diagnosed with dementia. This service shall be provided through a partnership between the Martha W. Goodson Center of Riverside Health Services and the Peninsula Agency on Aging. The Department for Aging and Rehabilitative Services shall report the status and provide an update on the results of the dementia case management program to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by November 1 of each year. N. Out of this appropriation, $750,000 from the general fund the second year shall be provided to increase support to Area Agencies on Aging. O. Out of this appropriation, $1,300,000 the first year from the general fund is provided to the Eastern Shore Area Agency on Aging/Community Action Agency Inc. to replace the roof on Hare Valley School and make other critical building improvements. 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 in fiscal year 2026. P. Out of this appropriation, $400,000 the second year from the general fund shall be provided to the County of Fairfax to support the Washington Area Villages Exchange for the creation of a pilot program to reduce the public health risk of social isolation among older Virginians by expanding the availability of Villages to additional sites. Q. Out of this appropriation, $400,000 from the general fund the second year shall be provided to the Capitol Area Agency on Aging and Local Office on Aging, Inc. for an interdisciplinary plan of care and dementia case management for 200 individuals diagnosed with dementia. Funding shall be allocated evenly between the two Area Agencies on Aging. The Department for Aging and Rehabilitative Services shall report the status of the program and provide an update on the results of the dementia case management program to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by November 1 of each year. 316. Nutritional Services (45700) $22,144,603 $22,144,603 Meals Served in Group Settings (45701) $9,521,747 $9,521,747 Distribution of Food (45702) $549,342 $549,342 Delivery of Meals to Home-Bound Individuals (45703) $12,073,514 $12,073,514 Fund Sources: General $6,403,648 $6,403,648 Federal Trust $15,740,955 $15,740,955 Authority: Title 51.5, Chapter 14, Code of Virginia. Home delivered meals shall not require cost-sharing until such time as federal law permits cost-sharing with Older Americans Act funding. 317. A. Area Agencies on Aging are encouraged to continue seeking funds from a variety of sources which include cost-sharing in programs where not prohibited by funding sources; private sector voluntary contributions from older persons receiving services; families of individuals receiving services; and churches, service groups and other organizations. Such appropriations shall not be included in the appropriations used to match Older Americans

_ 462 Item Details($) Appropriations($) ITEM 317. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Act funding. Revenue generated as a result of these projects shall be retained by the participating area agencies for use in meeting critical care needs of older Virginians. These revenues shall supplement, not supplant, general fund resources. B. It is the intent of the General Assembly that all Area Agencies on Aging use any new general fund revenue, with the exception of funding provided for the Long-term Care Ombudsman program, to implement sliding fees for services. However, priority for services should be given to applicants in the greatest need, regardless of ability to pay. Revenue from fees shall be retained by the Area Agencies on Aging for use in meeting critical care needs of older Virginians. These revenues shall supplement, not supplant, general fund resources. C. It is the intent of the General Assembly that Older Americans Act funds and general fund moneys be targeted to services which can assist the elderly to function independently for as long as possible. Area Agencies on Aging may use general fund moneys for consumer- directed services. D. At the request of the Commissioner, Department for Aging and Rehabilitative Services, the Director, Department of Planning and Budget may transfer state general fund appropriations for services provided by Area Agencies on Aging between service categories. Each individual Area Agency on Aging may transfer up to the maximum amount of federal funds and matching state general fund amounts allowed by federal law between service categories. Further, each Area Agency on Aging may transfer undesignated state general fund amounts among service categories. Under no circumstances shall any funds be transferred from direct services to administration. State general fund appropriations shall be available to the area agencies on aging beginning July 1 of each year of the biennium, in compliance with the department's General Fund Cash Management Policy. 318. Continuing Income Assistance Services (46100) $58,079,356 $58,079,356 Social Security Disability Determination (46102) $58,079,356 $58,079,356 Fund Sources: General $511,783 $511,783 Special $152,258 $152,258 Federal Trust $57,415,315 $57,415,315 Authority: Title 51.5, Chapter 14, Code of Virginia; Titles II and XVI, P.L. 74-271, Federal Code. A. The Department for Aging and Rehabilitative Services, in cooperation with the Department of Social Services and local social services agencies, shall develop an expedited process for transitioning hospitalized persons to rehabilitation facilities when the patient may meet the criteria established by the Social Security Administration (SSA) and Medicaid for disability. As part of this expedited process, the Department for Aging and Rehabilitative Services (DARS) shall make Medicaid disability determinations within seven business days of the receipt of social service referrals, when the referrals include sufficient evidence that appropriately documents SSA's definition of disability. If the referrals do not contain sufficient documentation of disability, DARS shall continue to expedite processing of these priority referrals under Medicaid regulations. B. The general fund appropriation in this item shall only be used for the cost of Medicaid disability determinations and for no other purpose. 319. Adult Programs and Services (46800) $9,760,980 $9,693,761 Management and Quality Assurance of Aging Services (46811) $3,790,429 $3,790,429 Central Oversight and Quality Assurance for Adult Protective Services (46812) $2,937,788 $2,870,569 State Long-Term Care Ombudsman Services (46813) $1,796,447 $1,796,447 No Wrong Door Initiative (46814) $1,236,316 $1,236,316 Fund Sources: General $5,999,425 $5,932,206 Special $84,232 $84,232 Federal Trust $3,677,323 $3,677,323

_ 463 Item Details($) Appropriations($) ITEM 319. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: Title 51.5, Chapter 14, Code of Virginia; P.L. 93-112, Federal Code. A. 1. Out of this appropriation, $401,330 the first year and $401,330 the second year from the general fund shall be used to administer and oversee public guardianship programs and for no other purpose. 2. Of this amount, $95,263 the first year and $95,263 the second year shall be used to support the administrative costs associated with serving individuals pursuant to interagency agreements for the provision of public guardianship services between the Department of Behavioral Health and Developmental Services (DBHDS) and the Department for Aging and Rehabilitative Services. B. Out of this appropriation, up to $5,000 the first year and $5,000 the second year from the general fund shall be provided to support activities of the Virginia Public Guardianship and Conservator Program Advisory Board, including but not limited to, paying expenses for the members to attend four meetings per year. C. Out of this appropriation, $124,574 the first year and $124,574 the second year from the general fund is provided to support a position dedicated to monitoring and auditing the auxiliary grant (AG) program. The department shall develop an annual report on the AG program. This report shall include an overview of the program as well as a summary of oversight activities and findings. In addition, the report shall include for each month of the previous fiscal year, the number of Auxiliary Grant recipients living in a supportive housing setting as well as the number of individuals receiving an AG supportive housing slot that were discharged from a state behavioral health facility in the prior 12 months. DARS shall provide this report to the Director, Department of Planning and Budget and Chairmen of the House Appropriations and Senate Finance and Appropriations Committees by September 1 of each year. D. Out of this appropriation, $1,219,943 the first year and $1,219,943 the second year from the general fund is provided for 12 full-time and two part-time positions to support the Office of the State Long-term Care Ombudsman. E. Out of this appropriation, $545,000 the first year and $545,000 the second year from the general fund is provided to cover PeerPlace license costs for local workers as well as the on-going cost of system modifications. F. Out of this appropriation, $50,000 the first year and $50,000 the second year from the general fund is provided for demographic services to obtain reliable data for determining needs and service planning for aging services. G. Out of this appropriation, $100,000 the first year and $100,000 the second year from the general fund shall be used to support the Senior Legal Helpline. H. Out of this appropriation, $100,000 the first year and $100,000 the second year from the general fund shall be provided for the No Wrong Door (NWD) Dementia Capability Project to improve the identification of people living with dementia, particularly those living alone, to better connect them with supports and services that can help them remain as independent as possible for as long as possible. The Project shall add a cognitive screening question and relevant reports in the technology that underpins the system, the creation and delivery of a training module for NWD staff and users, and financial support for data collection and training. I. Out of this appropriation, $228,083 the first year and $160,864 the second year from the general fund is provided to the Department for Aging and Rehabilitative Services to develop and provide training for court-appointed guardians and to support one full-time position. 320. Administrative and Support Services (49900) $17,375,030 $17,375,030 $19,029,484 General Management and Direction (49901) $10,165,409 $10,165,409 $11,819,863 Information Technology Services (49902) $6,401,279 $6,401,279 Planning and Evaluation Services (49916) $808,342 $808,342

_ 464 Item Details($) Appropriations($) ITEM 320. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $1,086,397 $1,086,397 Special $13,137,681 $13,137,681 $14,792,135 Federal Trust $3,150,952 $3,150,952 Authority: Title 51.5, Chapter 14, Code of Virginia; P.L. 93-112, Federal Code. 321. Included in the Federal Trust appropriation are amounts estimated at $583,541 the first year and $583,541 the second year, to pay for statewide indirect cost recoveries of this agency. Actual recoveries of statewide indirect costs up to the level of these estimates shall be exempt from payment into the general fund, as provided by § 4-2.03 of this Act. Amounts recovered in excess of these estimates shall be deposited to the general fund. Total for Department for Aging and Rehabilitative Services $258,045,377 $259,345,377 $257,978,158 $269,347,446 General Fund Positions 97.76 97.76 Nongeneral Fund Positions 882.26 882.26 Position Level 980.02 980.02 Fund Sources: General $75,333,672 $76,633,672 $75,266,453 $78,466,453 Special $13,928,818 $13,928,818 $15,583,272 Dedicated Special Revenue $1,826,616 $1,826,616 Federal Trust $166,956,271 $166,956,271 $173,471,105 Wilson Workforce and Rehabilitation Center (203) 322. Rehabilitation Assistance Services (45400) $13,908,478 $13,908,478 Vocational Rehabilitation Services (45404) $8,589,717 $8,589,717 Medical Rehabilitative Services (45405) $5,318,761 $5,318,761 Fund Sources: General $3,686,338 $3,686,338 Federal Trust $10,222,140 $10,222,140 Authority: Title 51.5, Chapter 14, Code of Virginia; P.L. 89-313, P.L. 93-112, P.L. 94-482 and P.L. 95-602, Federal Code. 323. Facility Administrative and Support Services (49800) $11,345,651 $11,345,651 General Management and Direction (49801) $1,719,730 $1,719,730 Information Technology Services (49802) $682,533 $682,533 Security Services (49803) $666,908 $666,908 Residential Services (49804) $1,683,418 $1,683,418 Food and Dietary Services (49807) $809,738 $809,738 Physical Plant Services (49815) $5,783,324 $5,783,324 Fund Sources: General $2,811,020 $2,811,020 Special $95,000 $95,000 Federal Trust $8,439,631 $8,439,631 Authority: Title 51.5, Chapter 14, Code of Virginia; P.L. 93-112 and P.L. 95-602, Federal Code. Comprehensive services available on-site at Wilson Workforce and Rehabilitation Center shall include, but not be limited to, vocational services, including evaluation, prevocational, academic, and vocational training; independent living services; transition from school to work services; rehabilitative engineering and assistive technology; and medical rehabilitation services, including residential, outpatient, supported living, community reentry, and family support.

_ 465 Item Details($) Appropriations($) ITEM 323. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Total for Wilson Workforce and Rehabilitation Center $25,254,129 $25,254,129 General Fund Positions 58.80 58.80 Nongeneral Fund Positions 193.20 193.20 Position Level 252.00 252.00 Fund Sources: General $6,497,358 $6,497,358 Special $95,000 $95,000 Federal Trust $18,661,771 $18,661,771 Grand Total for Department for Aging and Rehabilitative Services $283,299,506 $284,599,506 $283,232,287 $294,601,575 General Fund Positions 156.56 156.56 Nongeneral Fund Positions 1,075.46 1,075.46 Position Level 1,232.02 1,232.02 Fund Sources: General $81,831,030 $83,131,030 $81,763,811 $84,963,811 Special $14,023,818 $14,023,818 $15,678,272 Dedicated Special Revenue $1,826,616 $1,826,616 Federal Trust $185,618,042 $185,618,042 $192,132,876 § 1-96. DEPARTMENT OF SOCIAL SERVICES (765) 324. Program Management Services (45100) $61,829,363 $61,033,980 $64,913,822 $64,798,852 Training and Assistance to Local Staff (45101) $6,833,133 $6,771,335 $9,293,914 $10,005,251 Central Administration and Quality Assurance for Benefit Programs (45102) $21,436,585 $21,701,937 $21,895,585 $22,243,215 Central Administration and Quality Assurance for Family Services (45103) $12,874,119 $13,366,874 $13,038,793 $13,356,548 Central Administration and Quality Assurance for Community Programs (45105) $15,380,509 $14,444,560 $15,380,509 $14,444,560 Central Administration and Quality Assurance for Child Care Activities (45107) $5,305,017 $4,749,274 $5,305,021 $4,749,278 Fund Sources: General $27,002,378 $27,116,445 $28,847,252 $29,559,454 Special $100,000 $100,000 Dedicated Special Revenue $267,722 $267,722 $350,000 Federal Trust $34,459,263 $33,549,813 $35,698,848 $34,789,398 Authority: Title 2.2, Chapter 54; Title 63.2, Chapters 2 and 21, 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. The Department of Social Services, in collaboration with the Office of Children's Services, shall provide training to local staff serving on Family Assessment and Planning Teams and Community Policy and Management Teams. Training shall include, but need not be limited to, the federal and state requirements pertaining to the provision of the foster care services funded under § 2.2-5211, Code of Virginia. The training shall also include written guidance concerning which services remain the financial responsibility of the local departments of social services. Training shall be provided on a regional basis at least once per year. Written guidance shall be updated and provided to local Office of

_ 466 Item Details($) Appropriations($) ITEM 324. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Children's Services teams whenever there is a change in allowable expenses under federal or state guidelines. In addition, the Department of Social Services shall provide ongoing local oversight of its federal and state requirements related to the provision of services funded under § 2.2-5211, Code of Virginia. B.1. By November 1 of each year, the Department of Planning and Budget, in cooperation with the Department of Social Services, shall prepare and submit a forecast of expenditures for cash assistance provided through the Temporary Assistance for Needy Families (TANF) program, mandatory child day care services under TANF, foster care maintenance and adoption subsidy payments, upon which the Governor's budget recommendations will be based, for the current and subsequent two years to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees. 2. The forecast of expenditures shall detail the incremental general fund and federal fund adjustments required by the forecast each year in the biennial budget. The Department of Planning and Budget shall convene a meeting on or before October 15 of each year with the appropriate staff from the Department of Social Services, and the House Appropriations and Senate Finance and Appropriations Committees to review current trends and assumptions used in the forecasts prior to their finalization. C. The Department of Social Services shall provide administrative support and technical assistance to the Family and Children's Trust Fund (FACT) Board of Trustees established in §§ 63.2-2100 through 63.2-2103, Code of Virginia. D. Out of this appropriation, $2,420,000 the first year and $2,420,000 the second year from the general fund and $2,420,000 the first year and $2,420,000 the second year from nongeneral funds shall be provided to fund the Supplemental Nutrition Assistance Program (SNAP) Electronic Benefit Transfer (EBT) contract cost. E.1. Out of this appropriation, 10 positions and the associated funding shall be dedicated to providing on-going financial oversight of foster care services. Each of the 10 positions, with two working out of each regional office, shall assess and review all foster care spending to ensure that state and federal standards are met. None of these positions shall be used for quality, information technology, or clerical functions. 2. By September 1 of each year, the department shall report to the Governor, the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees, and the Director, Department of Planning and Budget regarding the foster care program's statewide spending, error rates and compliance with state and federal reviews. F. The Department of Social Services shall provide an annual report on the activities of the Office of New Americans by December 1 of each year. G. The Department of Social Services shall not implementThe maximum allowable costs for state and local agencies to administer the Percentage of Income Payment Program (PIPP) shall notuntil such time as there is adequate fee revenue from the universal service fee, collected by utility providers, available to fund the administrative costs necessary to implement the program, not to exceed $5.5 million annually in totality. Maximum allowable administrative costs are in totality and This includes costs borne by the Department of Social Services, the Department of Housing and Community Development and local departments of social services for PIPP administration. H. Out of this appropriation, $54,309 the first year and $54,309 the second year from the general fund and $162,926 the first year and $162,926 the second year from nongeneral funds shall be provided to implement the Virginia Facilitated Enrollment Program. I.1. Out of this appropriation, $1,438,312 the first year and $1,338,312 the second year from the general fund shall be provided to meet the terms of the settlement agreement between the Department of Social Services and the federal Food and Nutrition Services for an overissuance of Supplemental Nutrition Assistance Program (SNAP) benefits. The amounts provided shall only be used to cover costs outlined in this settlement agreement that expires September 30, 2026. 2. Any unexpended balances from the amounts appropriated in I.1., at the close of business on June 30 of each fiscal year, shall not revert to the general fund, but shall be carried forward

_ 467 Item Details($) Appropriations($) ITEM 324. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 and reappropriated for this purpose. J. Out of this appropriation, $844,524 the first year and $2,225,540 the second year from the general fund and $663,554 the first year and $1,748,639 the second year from nongeneral funds is provided to establish and implement a centralized training academy model for local departments of social services. K. The Department of Social Services shall develop a strategic plan that includes: (i) a review of best practices for providing treatment and services to trafficking victims; (ii) analysis of data gaps and recommendations for addressing them; (iii) recommendations to improve and establish additional long-term support services for trafficking victims; and (iv) training policies for mandatory reporters of suspected trafficking cases. The Department shall provide the plan to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by November 1, 2025. 325. Financial Assistance for Self-Sufficiency Programs and Services (45200) $170,846,912 $150,040,168 $170,705,706 $249,720,830 Temporary Assistance for Needy Families (TANF) Cash Assistance (45201) $70,750,355 $67,831,905 $60,888,101 $57,186,832 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) $64,942,235 $45,060,443 $76,259,437 $51,981,727 At-Risk Child Care Subsidies (45215) $2,864,671 $2,864,671 Unemployed Parents Cash Assistance (45216) $13,038,621 $15,032,119 $11,442,467 $13,233,570 Summer Nutrition Benefit for Children (45221) $0 $105,203,000 Fund Sources: General $87,682,245 $89,675,743 $86,086,091 $87,877,194 Federal Trust $83,164,667 $60,364,425 $84,619,615 $161,843,636 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, 20232024 there existed with the federal government an unexpended balance of $60,830,134$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 actAct, the Commonwealth's accumulated balance for authorized federal TANF block grant funds is estimated at $24,552,371$25,302,548 on June 30, 20242025; $1,729,533$21,828,551 on June 30, 20252026; and $30,434$18,354,554 on June 30, 20262027. 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 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. §

_ 468 Item Details($) Appropriations($) ITEM 325. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 2. The MOA shall reflect the full cost of the VIEW mandated child care program. From this amount, $64,942,235$45,060,443 the first year and $76,259,437$51,981,727 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

_ 469 Item Details($) Appropriations($) ITEM 325. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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) $626,286,474 $639,331,145 $626,109,599 $662,264,872 Local Staff and Operations (46010) $626,286,474 $639,331,145 $626,109,599 $662,264,872 Fund Sources: General $173,042,015 $172,439,387 $172,969,800 $186,277,343 Dedicated Special Revenue $10,115,072 $10,315,556 $10,115,072 $13,033,278 Federal Trust $443,129,387 $456,576,202 $443,024,727 $462,954,251 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 $87,500,000$95,372,148 the first year and $87,500,000$95,372,148 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 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. 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

_ 470 Item Details($) Appropriations($) ITEM 326. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. Child Support Enforcement Services (46300) $805,337,239 $781,659,624 $785,703,563 $762,050,432 Support Enforcement and Collection Services (46301) $140,430,930 $141,753,315 $120,797,254 $122,144,123 Public Assistance Child Support Payments (46302) $11,000,000 $11,000,000 Non-Public Assistance Child Support Payments (46303) $653,906,309 $628,906,309 $653,906,309 $628,906,309 Fund Sources: General $14,202,181 $14,672,767 $14,202,181 $14,681,091 Special $705,277,067 $680,728,209 $698,732,508 $674,183,650 Federal Trust $85,857,991 $86,258,648 $72,768,874 $73,185,691 Authority: Title 20, Chapters 2 through 3.1 and 4.1 through 9; Title 63.2, Chapter 19, Code of Virginia; P.L. 104-193, as amended; P.L. 105-200, P.L. 106-113, Federal Code. A. Any net revenue from child support enforcement collections, after all disbursements are made in accordance with state and federal statutes and regulations, and after the state's share of the cost of administering the program is paid, shall be estimated and deposited into the general fund by June 30 of the fiscal year in which it is collected. Any additional moneys determined to be available upon final determination of a fiscal year's costs of administering the program shall be deposited to the general fund by September 1 of the subsequent fiscal year in which it is collected. B. In determining eligibility and amounts for cash assistance, pursuant to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 104-193, the department shall continue to disregard up to $100 per month in child support payments and return to recipients of cash assistance up to $100 per month in child support payments collected on their behalf. C. The state share of amounts disbursed to recipients of cash assistance pursuant to paragraph

_ 471 Item Details($) Appropriations($) ITEM 327. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 B of this Item shall be considered part of the Commonwealth's required Maintenance of Effort spending for the federal Temporary Assistance for Needy Families program established by the Social Security Act. D. The department shall expand collections of child support payments through contracts with private vendors. However, the Department of Social Services and the Office of the Attorney General shall not contract with any private collection agency, private attorney, or other private entity for any child support enforcement activity until the State Board of Social Services has made a written determination that the activity shall be performed under a proposed contract at a lower cost than if performed by employees of the Commonwealth. E. The Division of Child Support Enforcement, in cooperation with the Department of Medical Assistance Services, shall identify cases for which there is a medical support order requiring a noncustodial parent to contribute to the medical cost of caring for a child who is enrolled in the Medicaid or Family Access to Medical Insurance Security (FAMIS) Programs. Once identified, the division shall work with the Department of Medical Assistance Services to take appropriate enforcement actions to obtain medical support or repayments for the Medicaid program. The Department of Social Services shall submit a report on the number of identified cases and the enforcement actions taken to the Governor, the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, and Director, Department of Planning and Budget by September 1 each year. F. Out of this appropriation, $35,554,137 the first year and $15,920,461 the second year from nongeneral funds is appropriated to support the design, development, and implementation of a modernized child support technology system. 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, 20242025, 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 $2,079$2,103 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 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

_ 472 Item Details($) Appropriations($) ITEM 328. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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) $312,491,313 $288,867,026 $312,491,313 $293,334,091 Foster Care Payments (46901) $60,388,323 $39,235,246 $60,388,323 $42,515,744 Supplemental Child Welfare Activities (46902) $64,554,728 $65,037,928 $64,554,728 $64,737,928 Adoption Subsidy Payments (46903) $170,064,342 $167,109,932 $170,064,342 $168,596,499 Prevention Services (46905) $17,483,920 $17,483,920 Fund Sources: General $160,865,081 $147,004,071 $160,977,417 $149,703,135 Special $2,434,593 $2,434,593 Dedicated Special Revenue $585,265 $585,265 Federal Trust $148,606,374 $138,843,097 $148,494,038 $140,611,098 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.

_ 473 Item Details($) Appropriations($) ITEM 329. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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, $9,630,922$14,329,747 the first year and $9,630,922$14,329,747 the second year from the general fund and $7,000,000 the first year and $7,000,000 the second year from nongeneral funds shall be provided for special needs adoptions. H. Out of this appropriation $73,972,996$72,805,584 the first year and $74,063,667$72,894,825 the second year from the general fund and $77,146,505$75,929,011 the first year and $77,055,834$75,839,770 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. 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.

_ 474 Item Details($) Appropriations($) ITEM 329. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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

_ 475 Item Details($) Appropriations($) ITEM 329. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 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.

_ 476 Item Details($) Appropriations($) ITEM 329. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. 330. Financial Assistance for Supplemental Assistance Services (49100) $251,757,450 $263,374,823 $251,757,450 $260,874,823 General Relief (49101) $500,000 $500,000 Resettlement Assistance (49102) $55,522,000 $55,522,000 Emergency and Energy Assistance (49103) $73,735,450 $85,352,823 $73,735,450 $85,352,823 Percentage of Income Payment Program (49105) $122,000,000 $122,000,000 $119,500,000 Fund Sources: General $500,000 $500,000 Dedicated Special Revenue $122,000,000 $122,000,000 $119,500,000 Federal Trust $129,257,450 $140,874,823 $129,257,450 $140,874,823 Authority: Title 2.2, Chapter 54; Title 56, Chapter 23; Title 63.2, Code of Virginia; Title VI, Subtitle B, P.L. 97-35, as amended; P.L. 104-193, as amended, Federal Code. A. Out of this appropriation, $122,000,000$119,500,000 the first year and $122,000,000$119,500,000 the second year from nongeneral funds shall be used to fund the Percentage of Income Payment Program (PIPP). This program shall distribute payments to Dominion Energy and Appalachian Power Company on behalf of their qualifying low-income customers participating in PIPP. In addition to PIPP payments, this appropriation includes the full amount of administrative expenditures for Dominion Energy and Appalachian Power Company, as approved by the State Corporation Commission. The maximum cost of the program shall not exceed $125.0 million annually, including a maximum of $5.5 million for program administration for state agencies and local departments of social services. B. Out of this appropriation, $55,522,000 the first year and $55,522,000 the second year from nongeneral funds shall be used for the refugee assistance program. The department shall report annually on the number of refugees served and types of services provided, along with how much funding was provided for each type of service. The report shall be submitted to the Governor, Chairs of House Appropriations and Senate Finance and Appropriations, and Director, Department of Planning and Budget by December 1 each year. C. The State Board of Social Services (the Board) is authorized to promulgate regulations to allow applications for the Low-Income Home Energy Assistance Program to be submitted over an application period that provides adequate time for individuals to apply and is extended beyond the current application period in effect as of July 1, 2024, provided adequate funding is available to extend such application period. The Board's initial adoption of regulations necessary to implement the provisions of this act shall be exempt from the provisions of the Administrative Process Act, except that the Board shall provide an opportunity for public comment on the regulations prior to adoption. 331. Financial Assistance to Community Human Services Organizations (49200) $68,565,691 $72,865,691 $70,163,045 $74,588,045 Community Action Agencies (49201) $23,213,048 $24,338,048 $25,338,048 Volunteer Services (49202) $3,866,340 $3,866,340 Other Payments to Human Services Organizations (49203) $41,486,303 $45,786,303 $41,958,657 $45,383,657 Fund Sources: General $8,339,402 $12,639,402 $17,186,756 $18,036,756 Federal Trust $60,226,289 $52,976,289 $56,551,289

_ 477 Item Details($) Appropriations($) ITEM 331. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 $9,250,000$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 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.

_ 478 Item Details($) Appropriations($) ITEM 331. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 F.1. Out of this appropriation, $2,000,000 the first year and $2,000,000 $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 $2,136,500$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 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

_ 479 Item Details($) Appropriations($) ITEM 331. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $150,000 $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;

_ 480 Item Details($) Appropriations($) ITEM 331. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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 $750,000 $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

_ 481 Item Details($) Appropriations($) ITEM 331. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 to Prince William County to support the renovation of the Prince William Welcome Center and the Fairfax Welcome Center. Any unexpended balance in this paragraph at the close of business on June 30, 2025, shall not revert back to the general fund but shall be 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 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. Regulation of Public Facilities and Services (56100) $16,129,704 $16,007,808 $16,129,702 $16,007,806 Regulation of Adult and Child Welfare Facilities (56101) $12,466,061 $12,405,113 $12,466,059 $12,405,111 Background Investigation Services (56106) $3,663,643 $3,602,695 $3,663,643 $3,602,695 Fund Sources: General $8,526,867 $8,502,488 $8,526,865 $8,502,486 Special $3,566,367 $3,505,419 $3,566,367 $3,505,419 Federal Trust $4,036,470 $3,999,901 $4,036,470 $3,999,901 I VETO ITEM 331.DD. ON PAGE 481 /s/ Glenn Youngkin 3-24-2025

_ 482 Item Details($) Appropriations($) ITEM 332. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: Title 63.2, Chapters 17 and 18, Code of Virginia. A. The state nongeneral fund amounts collected and paid into the state treasury pursuant to the provisions of § 63.2-1700, Code of Virginia, shall be used for the development and delivery of training for operators and staff of assisted living facilities, adult day care centers, and child welfare agencies. B. As a condition of this appropriation, the Department of Social Services shall (i) promptly fill all position vacancies that occur in licensing offices so that positions shall not remain vacant for longer than 120 days and (ii) hire sufficient licensing specialists to ensure that all facilities receive, at a minimum, the number of visits per year mandated by § 63.2-1706, Code of Virginia, and that facilities with compliance problems receive additional inspection visits as necessary to ensure compliance with state laws and regulations. C. As a condition of this appropriation, the Department of Social Services shall utilize a risk assessment instrument for adult care enforcement. This instrument shall include criteria for determining when the following sanctions may be used: (i) the imposition of intermediate sanctions, (ii) the denial of licensure renewal or revocation of license of a licensed facility, (iii) injunctive relief against a provider, and (iv) additional inspections and intensive oversight of a facility by the Department of Social Services. D. Out of this appropriation, the Department of Social Services shall implement training for new assisted living facility owners and managers to focus on health and safety issues, and resident rights as they pertain to adult care residences. E. Out of this appropriation, $786,369 the first year and $786,369 the second year from the general fund shall be appropriated to fund the operations and maintenance and application software fees for the agency licensing system. 333. Emergency Preparedness (77500) $908,640 $908,640 Emergency Planning Preparedness Assistance (77503) $908,640 $908,640 Fund Sources: General $308,851 $308,851 Federal Trust $599,789 $599,789 Authority: Title 44, Chapter 3.2, Code of Virginia A. By October 1 of each year, the sheltering coordinator shall provide a status report on the Commonwealth's emergency shelter capabilities and readiness to the Governor, the Secretary of Health and Human Resources, the Secretary of Public Safety and Homeland Security, the Director of the Department of Planning and Budget, and the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees. B.1. Notwithstanding any other provision of law, the Department of Social Services, in consultation with the Virginia Department of Emergency Management, shall determine and document the specifications of all goods and services required in the event of state shelter activation and provide the specifications to the Department of General Services. In so doing, the Department shall work with each institution of higher education at which a state shelter may be located to identify site-specific goods and services needs to operate the shelter. The Department will identify the extent to which an institution of higher education may have existing contracts for goods and services that could be used to support state shelter operations. In addition, the Department will identify warehousing space that is or may be available at institutions of higher education for the storage of supplies. The department shall revise its specification and warehousing documentation as needed providing updates to the Department of General Services annually thereafter by November 1 each year. 2. All state agencies are directed to provide all information or assistance requested by the Department to complete or revise this documentation to support state shelters. Immediately following activation of one or more state shelters, the Department shall be responsible for submitting procurement orders as needed on behalf of affected institutions of higher education to the Virginia Department of Emergency Management and the Department of General Services for fulfillment in support of state shelter activation.

_ 483 Item Details($) Appropriations($) ITEM 334. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 334. Administrative and Support Services (49900) $155,516,608 $158,254,539 $148,191,606 $157,829,417 General Management and Direction (49901) $12,106,977 $12,906,791 $12,106,977 $16,906,791 Information Technology Services (49902) $107,110,114 $104,971,105 $99,785,114 $97,914,235 Accounting and Budgeting Services (49903) $10,597,094 $10,658,162 $10,597,092 $10,658,160 Human Resources Services (49914) $6,783,146 $6,967,605 $6,783,146 $6,967,605 Planning and Evaluation Services (49916) $6,272,201 $6,651,686 $6,272,201 $6,651,686 Procurement and Distribution Services (49918) $3,526,271 $4,912,719 $3,526,271 $5,534,469 Public Information Services (49919) $4,218,156 $4,196,529 $4,218,156 $4,596,529 Financial and Operational Audits (49929) $4,902,649 $6,989,942 $4,902,649 $8,599,942 Fund Sources: General $62,965,777 $63,474,170 $59,040,775 $63,033,173 Special $175,000 $975,000 $175,000 $975,000 Dedicated Special Revenue $2,000,000 $2,000,000 $2,100,000 Federal Trust $90,375,831 $91,805,369 $86,975,831 $91,721,244 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 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

_ 484 Item Details($) Appropriations($) ITEM 334. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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 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.

_ 485 Item Details($) Appropriations($) ITEM 334. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 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. A. In the operation of any program of public assistance, including benefit and service programs in any locality, for which program appropriations are made to the Department of Social Services, it is provided that if a payment or overpayment is made to an individual who is ineligible therefor under federal and/or state statutes and regulations, the amount of such payment or overpayment shall be returned to the Department of Social Services by the locality. B. However, no such repayments may be required of the locality if the department determines that such overpayment or payments to ineligibles resulted from the promulgation of vague or conflicting regulations by the department or from the failure of the department to make timely distribution to the localities of the statutes, rules, regulations, and policy decisions, causing the overpayment or payment to ineligible(s) to be made by the locality or from situations where a locality exercised due diligence, yet received incomplete or incorrect information from the client which caused the overpayment or payment to ineligibles. If a locality fails to effect the return, the Department of Social Services shall withhold an equal amount from the next disbursement made by the department to the locality for the same program. C. The Department of Social Services shall implement the guidance issued by the U.S. Department of Health and Human Services concerning the obligation of recipients of federal financial assistance to comply with Title VI of the Civil Rights Act of 1964 by ensuring that meaningful access to federally-funded programs, activities and services administered by the department is provided to limited English proficient (LEP) persons, 63 Fed. Reg. 47,311-47,323 (August 8, 2003). At a minimum, the department shall (i) identify the need for language assistance by analyzing the following factors: (1) the number or proportion of LEP persons in the eligible service population, (2) the frequency of contact with such persons, (3) the nature and importance of the program, activity or service, and (4) the costs of providing language assistance and resources available; (ii) translate vital documents into the language of each frequently encountered LEP group eligible to be served; (iii) provide accurate and timely oral interpreter services; and (iv) develop an effective implementation plan to address the identified needs of the LEP populations served. 336. A. The amount for the Supplemental Nutrition Assistance Program (SNAP) 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 Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 104-193, the Department of Social Services shall, in cooperation with local departments of social services, maintain a waiver of the work requirement for Supplemental Nutrition Assistance Program (SNAP) recipients residing in areas that do not have a sufficient number of jobs to provide employment for such individuals, including those areas designated as labor surplus areas by the U.S. Department of Labor. C. To the extent permitted by federal law, Supplemental Nutrition Assistance Program (SNAP) recipients subject to a work requirement pursuant to § 824 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 104-193, as amended, shall be permitted to satisfy such work requirement by providing volunteer services to a public or private, nonprofit agency for the number of hours per month determined by dividing the household's monthly SNAP allotment by the federal minimum wage. D. The Department of Social Services shall, to the extent permitted by federal law, disregard the value of at least one motor vehicle per household in determining eligibility for the Supplemental Nutrition Assistance Program (SNAP).

_ 486 Item Details($) Appropriations($) ITEM 336. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 E. The Department of Social Services shall develop a multi-lingual outreach campaign to inform qualified aliens and their children, who are United States citizens, of their eligibility for the federal Supplemental Nutrition Assistance Program (SNAP) and ensure that they have access to benefits under SNAP. To the extent permitted by federal law, the department shall administer SNAP in a way that minimizes the procedural burden on qualified aliens and addresses concerns about the impact of SNAP receipt on their immigration sponsors and status. Total for Department of Social Services $2,532,397,156 $2,495,071,206 $2,509,802,208 $2,605,105,570 General Fund Positions 676.50 676.50 683.50 Nongeneral Fund Positions 1,087.00 1,080.00 1,087.00 1,082.00 Position Level 1,763.50 1,756.50 1,763.50 1,765.50 Fund Sources: General $588,957,531 $581,856,058 $594,168,722 $604,002,217 Special $711,553,027 $687,743,221 $705,008,468 $681,198,662 Dedicated Special Revenue $134,968,059 $135,168,543 $134,968,059 $135,568,543 Federal Trust $1,096,918,539 $1,090,303,384 $1,075,656,959 $1,184,336,148 § 1-97. VIRGINIA BOARD FOR PEOPLE WITH DISABILITIES (606) 337. Social Services Research, Planning, and Coordination (45000) $1,855,554 $1,855,554 $1,887,147 Research, Planning, Outreach, Advocacy, and Systems Improvement (45002) $1,112,362 $1,112,362 Administrative Services (45006) $743,192 $743,192 $774,785 Fund Sources: General $248,796 $248,796 $280,389 Federal Trust $1,606,758 $1,606,758 Authority: Title 51.5, Chapter 7, Code of Virginia. Up to $44,474 the first year and up to $44,47476,067 the second year is available for the Virginia Board for People with Disabilities (VBPD) to contract with the Department for Aging and Rehabilitative Services (DARS) for the provision of shared administrative services. The scope of the services and specific costs shall be outlined in a memorandum of understanding (MOU) between VBPD and DARS subject to the approval of the respective agency heads. Any revision to the MOU shall be reported by DARS to the Director, Department of Planning and Budget within 30 days. 338. Financial Assistance for Individual and Family Services (49000) $401,475 $401,475 Financial Assistance to Localities for Individual and Family Services (49001) $401,475 $401,475 Fund Sources: Federal Trust $401,475 $401,475 Authority: Title 51.5, Chapter 7, Code of Virginia. Total for Virginia Board for People with Disabilities $2,257,029 $2,257,029 $2,288,622 General Fund Positions 1.60 1.60 Nongeneral Fund Positions 8.40 8.40 Position Level 10.00 10.00

_ 487 Item Details($) Appropriations($) ITEM 338. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Fund Sources: General $248,796 $248,796 $280,389 Federal Trust $2,008,233 $2,008,233 § 1-98. DEPARTMENT FOR THE BLIND AND VISION IMPAIRED (702) 339. Statewide Library Services (14200) $1,425,674 $1,445,674 $1,425,674 Library and Resource Center Services (14202) $1,425,674 $1,445,674 $1,425,674 Fund Sources: General $1,325,674 $1,345,674 $1,325,674 Federal Trust $100,000 $100,000 Authority: § 51.5-74, Code of Virginia; P.L. 89-522, and P.L. 101-254, Federal Code. A. Out of this appropriation, $266,363 the first year and $266,363 the second year from the general fund shall be used to contract for the provision of radio reading services for the blind and vision impaired. B. Out of this appropriation, $20,000 the first year from the general fund shall be provided for a one-time appropriation for Virginia Voice, a Richmond-based radio reading service, to support its expansion into the Southwest Virginia region. 340. State Education Services (19100) $2,074,435 $2,074,435 Braille and Instructional Materials (19101) $869,766 $869,766 Educational and Early Childhood Support Services (19102) $1,204,669 $1,204,669 Fund Sources: General $1,101,679 $1,101,679 Federal Trust $972,756 $972,756 Authority: §§ 22.1-214 and 22.1-217, Code of Virginia; P.L. 89-313, P.L. 97-35 and P.L. 102-119, Federal Code. 341. Rehabilitation Assistance Services (45400) $15,524,499 $15,524,499 $15,899,499 Low Vision Services (45401) $52,000 $52,000 Vocational Rehabilitation Services (45404) $9,694,010 $9,694,010 Community Based Independent Living Services (45407) $5,307,915 $5,307,915 $5,682,915 Vending Stands, Cafeterias, and Snack Bars (45410) $470,574 $470,574 Fund Sources: General $3,644,238 $3,644,238 $4,019,238 Special $570,218 $570,218 Federal Trust $11,310,043 $11,310,043 Authority: § 51.5-1 and Title 51.5, Chapter 1, Code of Virginia; P.L. 93-516 and P.L. 93- 112, Federal Code. A. It is the intent of the General Assembly that visually impaired persons who have completed vocational training as food service managers through programs operated by the Department be considered for food service management position openings within the Commonwealth as they arise. B. 1.The annual federal vocational rehabilitation grant award that will be received by the Department for the Blind and Vision Impaired (DBVI) is estimated at $11,869,311 for federal fiscal year 2024; $11,869,311 for federal fiscal year 2025; and $11,869,311 for federal fiscal year 2026. In addition to the base annual award amount, DBVI may request up to $2,000,000 of additional federal reallotment dollars in each of these years. Assuming these amounts, the annual 21.3 percent state matching requirement would equate to $3,753,702 for federal fiscal year 2024; $3,753,702 for federal fiscal year 2025; and

_ 488 Item Details($) Appropriations($) ITEM 341. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 $3,753,702 for federal fiscal year 2026. 2. Based on the projection of federal award funding in paragraph B.1., DBVI shall not request federal vocational rehabilitation grant dollars in excess of $13,869,311 for federal fiscal year 2024; $13,869,311 for federal fiscal year 2025; and $13,869,311 for federal fiscal year 2026, without prior written concurrence from the Director, Department of Planning and Budget. Any approved increases in grant award requests shall be reported by DARS to the Chairmen of the House Appropriations and Senate Finance and Appropriations Committees within 30 days. 342. Regional Office Support and Administration (49700) $3,098,229 $3,098,229 Regional Office and Field Support Services (49701) $3,098,229 $3,098,229 Fund Sources: General $1,567,029 $1,567,029 Federal Trust $1,531,200 $1,531,200 Authority: Title 2.2, Chapter 36; Title 51.5, Chapter 13, Code of Virginia; P.L. 93-112 and P.L. 97-35, Federal Code. 343. Rehabilitative Industries (81000) $58,000,000 $58,000,000 $63,000,000 Manufacturing, Retail, and Contract Operations (81003) $58,000,000 $58,000,000 $63,000,000 Fund Sources: Enterprise $58,000,000 $58,000,000 $63,000,000 Authority: § 51.5-72, Code of Virginia; P.L. 92-29 and P.L. 93-112, Federal Code. A. The Industry Production Workers with the Virginia Industries for the Blind shall not be counted in the classified employment levels of the Department for the Blind and Vision Impaired. B. The Department of Accounts shall provide a treasury loan to the Department for the Blind and Vision Impaired to finance up to $3,500,000 of its enterprise division's contract to supply Naval Station Norfolk Ship Stores with commercial products. This treasury loan shall be limited to financing the cost of procuring wholesale merchandise for retail sale on navy ships. This treasury loan shall be repaid with enterprise revenues, in accordance with the provisions of § 4-3.02 of this Act. 344. Administrative and Support Services (49900) $7,030,241 $7,030,241 $8,522,727 General Management and Direction (49901) $4,762,934 $4,762,934 $6,255,420 Physical Plant Services (49915) $2,267,307 $2,267,307 Fund Sources: General $2,186,755 $2,186,755 $3,186,721 Special $1,889,691 $1,889,691 Enterprise $1,968,966 $1,968,966 $2,461,486 Trust and Agency $400,109 $400,109 Federal Trust $584,720 $584,720 Authority: Title 63.2, Chapter 4, Code of Virginia; P.L. 89-313, P.L. 93-112, and P.L. 97-35, Federal Code. Up to $1,556,997 the first year and up to $1,556,9973,049,483 the second year is available for the Department for the Blind and Vision Impaired (DBVI) to contract with the Department for Aging and Rehabilitative Services (DARS) for the provision of shared administrative services. The scope of the services and specific costs shall be outlined in a memorandum of understanding (MOU) between DBVI and DARS subject to the approval of the respective agency heads. Any revision to the MOU shall be reported by DARS to the Director, Department of Planning and Budget within 30 days.

_ 489 Item Details($) Appropriations($) ITEM 344. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Total for Department for the Blind and Vision Impaired $87,153,078 $87,173,078 $87,153,078 $94,020,564 General Fund Positions 69.00 69.00 Nongeneral Fund Positions 91.00 91.00 95.00 Position Level 160.00 160.00 164.00 Fund Sources: General $9,825,375 $9,845,375 $9,825,375 $11,200,341 Special $2,459,909 $2,459,909 Enterprise $59,968,966 $59,968,966 $65,461,486 Trust and Agency $400,109 $400,109 Federal Trust $14,498,719 $14,498,719 Virginia Rehabilitation Center for the Blind and Vision Impaired (263) 345. Rehabilitation Assistance Services (45400) $1,705,313 $1,705,313 Social and Personal Adjustment to Blindness Training (45408) $1,705,313 $1,705,313 Fund Sources: General $172,500 $172,500 Special $6,000 $6,000 Enterprise $50,000 $50,000 Federal Trust $1,476,813 $1,476,813 Authority: § 51.5-1, Code of Virginia; P.L. 93-112, Federal Code. 346. Administrative and Support Services (49900) $1,624,799 $1,624,799 General Management and Direction (49901) $877,951 $877,951 Food and Dietary Services (49907) $274,000 $274,000 Physical Plant Services (49915) $472,848 $472,848 Fund Sources: General $210,061 $210,061 Special $38,145 $38,145 Federal Trust $1,376,593 $1,376,593 Authority: § 51.5-73, Code of Virginia; P.L. 93-112, Federal Code. Out of this appropriation, $172,250 the first year and $172,250 the second year from the general fund shall be used for training individuals whose cost cannot be covered by federal vocational rehabilitation revenue. It is estimated that this funding will support 21 blind, deafblind, and vision impaired individuals. 347. Omitted. Total for Virginia Rehabilitation Center for the Blind and Vision Impaired $3,330,112 $3,330,112 Nongeneral Fund Positions 22.00 22.00 Position Level 22.00 22.00 Fund Sources: General $382,561 $382,561 Special $44,145 $44,145 Enterprise $50,000 $50,000 Federal Trust $2,853,406 $2,853,406 Grand Total for Department for the Blind and Vision Impaired $90,483,190 $90,503,190 $90,483,190 $97,350,676 General Fund Positions 69.00 69.00

_ 490 Item Details($) Appropriations($) ITEM 347. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Nongeneral Fund Positions 113.00 113.00 117.00 Position Level 182.00 182.00 186.00 Fund Sources: General $10,207,936 $10,227,936 $10,207,936 $11,582,902 Special $2,504,054 $2,504,054 Enterprise $60,018,966 $60,018,966 $65,511,486 Trust and Agency $400,109 $400,109 Federal Trust $17,352,125 $17,352,125 TOTAL FOR OFFICE OF HEALTH AND HUMAN RESOURCES $30,954,831,439 $32,681,296,278 $32,535,517,807 $34,032,105,359 General Fund Positions 8,709.55 8,709.55 8,762.05 Nongeneral Fund Positions 6,419.22 6,412.22 6,419.22 6,420.72 Position Level 15,128.77 15,121.77 15,128.77 15,182.77 Fund Sources: General $9,821,364,765 $10,208,761,254 $10,181,733,503 $10,663,585,800 Special $1,049,533,957 $1,025,724,151 $1,042,989,398 $1,022,430,726 Enterprise $60,018,966 $60,018,966 $65,511,486 Trust and Agency $2,088,900 $2,088,900 Dedicated Special Revenue $2,419,921,008 $2,616,454,285 $2,540,356,243 $2,647,211,598 Federal Trust $17,601,903,843 $18,768,248,722 $18,708,330,797 $19,631,276,849

_ 491 Item Details($) Appropriations($) ITEM 348. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 OFFICE OF LABOR § 1-99. SECRETARY OF LABOR (195) 348. Administrative and Support Services (79900) $677,837 $677,837 General Management and Direction (79901) $677,837 $677,837 Fund Sources: General $677,837 $677,837 Authority: Title 2.2, Chapter 2, Article 6.1; § 2.2-214.2, Code of Virginia. Total for Secretary of Labor $677,837 $677,837 General Fund Positions 4.00 4.00 Position Level 4.00 4.00 Fund Sources: General $677,837 $677,837 § 1-100. DEPARTMENT OF LABOR AND INDUSTRY (181) 349. Regulation of Business Practices (55200) $2,253,355 $2,253,355 Labor Law Services (55206) $2,253,355 $2,253,355 Fund Sources: General $2,253,355 $2,253,355 Authority: Title 40.1, Chapters 1, 3, 4, and 5, Code of Virginia. A. Out of the amounts in this item, $843,442 the first year and $843,442 the second year from the general fund is provided to support additional positions within the Labor and Employment Law Division, including one attorney, one supervisor, one administrative staff, and five investigators. B.1. The Department shall report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, and the Director, Department of Planning and Budget, by November 1 of each year on the state's minimum wage program, including, but not limited to, the number of (i) customer contacts concerning minimum wage, (ii) minimum wage claims processed, (iii) cases with wages collected, (iv) cases with claims ruled invalid, (v) cases with final orders issued, and (vi) cases cleared within 90 days. 2. The Department shall report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, and the Director, Department of Planning and Budget, by November 1 of each year on the state's anti-discrimination in payment of wage program, including, but not limited to, the number of (i) customer contacts concerning discrimination involving payment of wage complaints or proceedings, (ii) payment of wage discrimination complaints processed, (iii) meritorious complaints with payment of wage discrimination resolved with either reinstatement or recovery of lost wages, (iv) non meritorious complaints, i.e. cases with no adverse action or no protected activity, and (v) cases taken to court. 3. The Department shall report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, and the Director, Department of Planning and Budget, by November 1 of each year on the state's anti-discrimination in worker misclassification program, including, but not limited to, the number of (i) customer contacts concerning discrimination involving worker misclassification, (ii) discrimination in worker misclassification claims processed, (iii) meritorious complaints with worker misclassification wage discrimination resolved with either reinstatement and/or recovery of lost wages, (iv) non meritorious complaints, i.e. cases with no adverse action or no protected activity, and (v) cases taken to court. 4. The Department shall report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, and the Director, Department of Planning and Budget, by November 1 of each year on the state's prevailing wage rate program, including, but not limited to, the number of (i) contacts from state agencies to determine the proper prevailing wage, (ii) prevailing wage determinations for the involved planning

_ 492 Item Details($) Appropriations($) ITEM 349. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 district calculated using Davis-Bacon rates for the cities and counties within the planning district, and (iii) contractor provided scale of pay and fringe benefits certified and received. C. Out of this appropriation, $100,000 the first year and $100,000 the second year from the general fund is provided for the department to hire an additional compliance officer for child labor law violation enforcement. 350. Regulation of Individual Safety (55500) $13,772,127 $13,772,127 Virginia Occupational Safety and Health Services (55501) $13,772,127 $13,772,127 Fund Sources: General $6,595,759 $6,595,759 Special $898,363 $898,363 Federal Trust $6,278,005 $6,278,005 Authority: Title 40.1, Chapters 1, 3, 3.2, and 3.3; Title 54.1, Chapter 5; Title 59.1, Chapter 30, Code of Virginia. A. Notwithstanding § 40.1-49.4 D., Code of Virginia, and § 4-2.02 of this act, the Department of Labor and Industry may retain up to $481,350 in civil penalties assessed pursuant to § 40.1-49.4, Code of Virginia, as the required federal grant match for voluntary protection and voluntary compliance programs. B. Of the amounts provided in this item, $650,000 the first year and $650,000 the second year from the general fund is provided to support three positions in the Virginia Occupational Safety and Health Voluntary Protection Program and three positions in the Office of Consultation Services. 351. Regulation of Structure Safety (56200) $670,781 $670,781 Boiler and Pressure Vessel Safety Services (56201) $670,781 $670,781 Fund Sources: General $670,781 $670,781 Authority: Title 40.1, Chapter 3.1, Code of Virginia. 352. Administrative and Support Services (59900) $4,981,995 $5,057,237 $4,981,995 $5,057,237 General Management and Direction (59901) $4,981,995 $5,057,237 $4,981,995 $5,057,237 Fund Sources: General $3,788,227 $3,840,597 $3,788,227 $3,840,597 Special $1,193,768 $1,193,768 Federal Trust $22,872 $22,872 Authority: Title 40.1, Chapters 1, 3, 3.1, 3.2, 3.3, 4, 5, and 6; Title 54.1, Chapter 5; Title 59.1, Chapter 30, Code of Virginia. Total for Department of Labor and Industry $21,678,258 $21,753,500 $21,678,258 $21,753,500 General Fund Positions 118.90 118.90 Nongeneral Fund Positions 61.10 61.10 Position Level 180.00 180.00 Fund Sources: General $13,308,122 $13,360,492 $13,308,122 $13,360,492 Special $2,092,131 $2,092,131 Federal Trust $6,278,005 $6,300,877 $6,278,005 $6,300,877 § 1-101. DEPARTMENT OF PROFESSIONAL AND OCCUPATIONAL REGULATION (222) 353. Regulation of Professions and Occupations (56000) $33,434,533 $29,792,427 $32,279,027 Licensure, Certification, and Registration of Professions and Occupations (56046) $8,615,744 $8,615,744

_ 493 Item Details($) Appropriations($) ITEM 353. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Enforcement of Licensing, Regulating and Certifying Professions and Occupations (56047) $9,420,530 $9,420,530 Administrative Services (56048) $15,398,259 $11,756,153 $14,242,753 Fund Sources: Special $1,328,410 $1,328,410 Dedicated Special Revenue $31,556,123 $27,914,017 $30,400,617 Federal Trust $550,000 $550,000 Authority: Title 54.1, Chapters 1, 2, 3, 4, 5, 6, 7, 8.1, 9, 11, 15, 18, 20.1, 20.2, 21, 22, 22.1, 23, 23.1, 23.2, 23.3, and 23.4; Title 55, Chapters 4.1, 4.2, 19, 21, 24, 26, 27, 28, and 29; and Title 36, Chapter 5.1, Code of Virginia. A. Costs for professional and occupational regulation may be met by fees paid by the respective professions and occupations. B. Any fund balances currently held in the Dedicated Special Revenue Fund (0900), the Common Interest Community Management Information Fund (0259) and the Special Revenue Fund (0200) shall be held in reserve and may not be disbursed by the Department of Professional and Occupational Regulation, but shall be applied to offset the anticipated, future costs of restructuring its organization, including additional staffing needs and the replacement or upgrade of the Department's information technology systems requirements that may be implemented pursuant to recommendations identified in assessments required in Item 119, paragraphs B. and C., Chapter 854, 2019 Acts of Assembly. Such reserve funds shall be disbursed only to cover expenses of the Department or its regulatory boards as provided in § 54.1-308. C. The Department is authorized to provide electronic credentials to persons regulated by the Department or its regulatory boards. An "electronic credential" means an electronic method by which a person may display or transmit to another person information that verifies information about a person such as their certification, licensure, registration, or permit. Any statutory or regulatory requirement to display, post, or produce a credential issued by a Department regulatory board or the Department may be satisfied by the proffer of an electronic credential. The Department may use a third-party electronic credential system that is not maintained by the agency. Such electronic credential system shall include a verification system that is operated by the agency or its agent on its behalf for the purpose of verifying the authenticity and validity of electronic credentials issued by the Department. No funds are appropriated for this purpose. Total for Department of Professional and Occupational Regulation $33,434,533 $29,792,427 $32,279,027 Nongeneral Fund Positions 204.00 204.00 Position Level 204.00 204.00 Fund Sources: Special $1,328,410 $1,328,410 Dedicated Special Revenue $31,556,123 $27,914,017 $30,400,617 Federal Trust $550,000 $550,000 § 1-102. DEPARTMENT OF WORKFORCE DEVELOPMENT AND ADVANCEMENT (327) 354. Workforce Systems Services (47000) $74,356,263 $72,855,263 $42,915,600 Job Placement Services (47001) $70,855,263 $70,855,263 $33,866,551 Unemployment Insurance Services (47002) $0 $3,379,454 Workforce Development Services (47003) $3,501,000 $2,000,000 $5,669,595 Fund Sources: General $3,501,000 $2,000,000 $2,876,935 Trust and Agency $70,855,263 $70,855,263 $40,038,665

_ 494 Item Details($) Appropriations($) ITEM 354. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Authority: Title 2.2, Chapter 20.2, Code of Virginia. A. Out of the amounts in this Item, $1,501,000 the first year from the general fund is provided to support the establishment of the Department. B.1. Out of the amounts in this Item, $2,000,000 the first year and $2,000,000 the second year from the general fund is designated for economic development programming under the Hampton Roads Skilled Trades Rapid On-ramp Network for Growth (STRONG) initiative. The Department shall collaborate with the Hampton Roads Workforce Council to support career access and training opportunities in the naval shipbuilding, offshore wind, and road and tunnel construction industries. 2. The Virginia Board of Workforce Development in collaboration with the Virginia Department of Workforce Development and Advancement and the Virginia Community College System shall review instructor salaries for noncredit workforce training programs offered as a part of the Hampton Roads Skilled Trades Rapid On-ramp Network for Growth (STRONG) initiative funded in this paragraph. This review shall include examining current instructor salaries for noncredit workforce training compared to current market rates for aligned professor positions; current approaches to funding instructor positions for noncredit and for credit courses offered as a part of the STRONG initiative; and options for increasing instructor salaries in noncredit course offerings, including appropriate funding model reforms. The Virginia Board of Workforce Development shall submit its preliminary review and recommendations to the Chairs of the House Committees on Appropriations and Education and the Senate Committees on Finance and Appropriations and Education and Health on or before November 1, 2024, and a final report of its review and recommendations on or before by June 30, 2025. C. Included in this appropriation is $376,935 the second year from the general fund for five positions to continue a re-entry job placement collaboration between the Department of Workforce Development and Advancement and the Department of Corrections. D. Out of this appropriation, $500,000 the second year from the general fund is provided for workforce development programming under the Hampton Roads Partnership for Health Sciences initiative to support talent development for the Hampton Roads healthcare industry. The Hampton Roads Workforce Council will utilize the funding to launch the Regional Healthcare Talent Pipeline focused on identifying and addressing regional talent shortages. The program will work to mitigate ongoing chronic healthcare labor challenges, including the attraction and retention of skilled workers, that are continuously impacting the healthcare industry by increasing the flow of trained healthcare professionals who enter the field. Any funding remaining at the end of the fiscal year shall be carried forward into the next fiscal year and reappropriated for the purposes described in this paragraph. 355. Economic Development Services (53400) $59,490,208 $59,490,208 $80,306,806 Economic Information Services (53402) $57,474,150 $57,474,150 $3,552,997 Apprenticeship Program (53409) $2,016,058 $2,016,058 $9,954,082 Management of Workforce Development Program Services (53427) $0 $66,799,727 Fund Sources: General $2,016,058 $2,016,058 Special $0 $537,638 Trust and Agency $57,474,150 $57,474,150 $77,753,110 Title 2.2, Chapter 20.2, Code of Virginia. A. The Office of Registered Apprenticeship within the Department of Workforce Development and Advancement shall provide detailed registered apprenticeship data to the Office of Education and Labor Market Alignment in the Virginia Economic Development Partnership Authority quarterly. To the extent possible, all data fields requested by the Office of Education and Labor Market Alignment shall be furnished by the Division of Registered Apprenticeship. Data fields shall include the start date of the apprenticeship, the end date of

_ 495 Item Details($) Appropriations($) ITEM 355. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 the apprenticeship, occupation, journeyman certifications issued, and other such elements deemed appropriate by the Office of Education and Labor Market Alignment. B.1. Out of this appropriation, $53,850,629 and 38 positions the first year, and $53,850,629 and 38 positions the second year from nongeneral funds is provided for the administration and implementation of workforce development programs as part of the federal Workforce Innovation and Opportunity Act of 2014 (WIOA). 2. Out of this appropriation, and consistent with Sections 128 and 133 of WIOA, 15 percent of the nongeneral funds received for the administration of Title I of WIOA shall be reserved by the Governor in a fund to support administration of the Title 1 programs and to support statewide strategic workforce initiatives. At the end of the federal allotment cycle, unobligated Rapid Response funds shall also be transferred to the Governor's fund, consistent with Section 134 of WIOA. The investment strategy and budget for the fund shall be determined by the Governor, in consultation with the Secretary of Labor and the Director of the Department no later than the first day of the federal program year for WIOA Title I. The investment strategy shall be consistent with required and allowable activities under Section 134 of WIOA. By December 15 of each year, the Secretary of Labor shall report on the use of funds and generated outcomes to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees. Total for Department of Workforce Development and Advancement $133,846,471 $132,345,471 $123,222,406 General Fund Positions 21.00 21.00 26.00 Nongeneral Fund Positions 438.00 438.00 Position Level 459.00 459.00 464.00 Fund Sources: General $5,517,058 $4,016,058 $4,892,993 Special $0 $537,638 Trust and Agency $128,329,413 $128,329,413 $117,791,775 § 1-103. VIRGINIA EMPLOYMENT COMMISSION (182) 356. Workforce Systems Services (47000) $587,411,507 $587,136,507 $610,136,064 Unemployment Insurance Services (47002) $587,411,507 $587,136,507 $610,136,064 Fund Sources: General $632,167 $357,167 Special $10,500,443 $10,500,443 $23,500,000 Trust and Agency $576,278,897 $576,278,897 $586,278,897 Authority: Title 60.2, Chapters 1 through 6, Code of Virginia. A. Revenues deposited into the Special Unemployment Compensation Administration Fund shall be used for the purposes set out in the following order of priority: 1) to make payment of any interest owed on loans from the U.S. Treasury for payment of unemployment compensation benefits; 2) to support essential services of the Commission, particularly in the event of reductions in federal funding; 3) to finance the cost of capital projects; and 4) to fund the discretionary fund established in § 60.2-315, Code of Virginia. Funding may be transferred from the capital budget to the operating budget consistent with this language. B.1. Reed Act funds distributed by the Employment Security Financing Act of 1954 with respect to the federal fiscal years 1956, 1957, and 1958 and credited to the agency from the proceeds related to the sale of agency property with federal equity are hereby appropriated (up to $600,000) to maintain service levels in the agency's local offices.

_ 496 Item Details($) Appropriations($) ITEM 356. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 2. Reed Act funds distributed by the Balanced Budget Act of 1997 and credited to the unemployment trust fund with respect to federal fiscal years 2000, 2001, and 2002, under § 1103 of the Social Security Act (42 U.S.C.), as amended, shall be used only for the administration of the unemployment compensation program, under the direction of the Virginia Employment Commission, and shall not be subject to the requirements of § 60.2- 305, Code of Virginia. Reed Act funds from the Balanced Budget Act are hereby appropriated (up to $2.2 million, not to exceed the balance of said Reed Act funds) to pay for upgrading the information technology systems at the Virginia Employment Commission. C. There is hereby appropriated out of the funds made available to this state under § 1103 of the Social Security Act (42 U.S.C.) as amended, the balance of the $51,067,866 of Reed Act funds, if any, provided in Item 120 E. of Chapter 847, 2007 Acts of Assembly, for upgrading obsolete information technology systems, to include staff costs. This appropriation is subject to the provisions of § 60.2-305, Code of Virginia. Savings as a result of the new systems shall be retained by the commission. D. Notwithstanding any other provision of law, all fees incurred by the Virginia Employment Commission with respect to the collection of debts authorized to be collected under § 2.2- 4806 of the Code of Virginia, using the Treasury Offset Program of the United States, shall become part of the debt owed the Commission and may be recovered accordingly. E. Workforce development programs shall give priority to assisting Medicaid enrollees who are required to participate in the Training, Education, Employment and Opportunity Program to the extent allowed by federal law. F. The Governor shall have the authority to alter the administration of the provisions of the Virginia Unemployment Compensation Act, Title 60.2 of the Code of Virginia, to meet the exigencies of a health emergency crisis. G. The Virginia Employment Commission shall establish and maintain one dedicated full- time customer service position responsible for investigating and responding to legislative inquiries. H. Notwithstanding any other provision of law, the Virginia Employment Commission shall compute tax rates by excluding pandemic related claim activity. For purposes of this calculation, pandemic related claim activity is defined as all regular Unemployment Insurance claims activity from April 1, 2020, through June 30, 2021. The pool charge shall be computed using this same methodology excluding pandemic related clause for unemployment insurance tax rates and ensure the Commonwealth maintains conformity with federal law. I. The Virginia Employment Commission (VEC) shall maintain, at a minimum, two dedicated full-time employees to serve in the Office of the Unemployment Compensation Ombudsman. The Commission shall submit a status update on the activities of this office to the House Commerce and Energy Committee, the Senate Commerce and Labor Committee, the Commission on Unemployment Compensation, and the Governor quarterly. The VEC shall publish subsequent updates on its website. J. VEC shall regularly collect feedback on the usability of the new Unemployment Insurance benefits information technology system from claimants and employers and make regular improvements to the system that address such feedback. The VEC shall publish this information and subsequent updates on its website. K.1. Notwithstanding any other provision of law, as of January 1, 2025, tax rates established pursuant to §§ 60.2-531, 60.2-515, 60.2-526, 60.2-527, and 60.2-538, Code of Virginia, are hereby reduced by .05 percent. In addition to these rates, a separate administrative fee equal to .05 percent of taxable wages shall be assessed and paid quarterly. The administrative fee is necessary for the proper and efficient administration of the Virginia Unemployment Compensation Act, § 60.2., Code of Virginia. The administrative fees shall: (i) be deposited to the Special Unemployment Compensation Administration Fund pursuant to § 60.2-314 and will be used solely by the Commission for critical technology and staffing requirements; (ii) be due and payable to the Commission by each employer in accordance with such regulation as the Commission may prescribe; (iii) be collected through the same means available for collecting taxes, penalties, and interest. Interest applicable to unpaid taxes will also apply to the administrative fee; (iv) not be used to calculate the employer's amount of state

_ 497 Item Details($) Appropriations($) ITEM 356. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 unemployment taxes paid for Federal Unemployment Tax Act (FUTA) tax liability purposes; and, (v) not be deducted, in whole or in part, from employees' wages. 2. Until such time as the revenues collected through the administrative fee authorized in paragraph K.1. are sufficient to support necessary administrative functions, and upon approval of the Secretary of Finance, the Commission is authorized to receive a treasury loan to cover existing necessary administrative functions and processes that cannot be covered due to declining federal funding. The treasury loan shall be repaid within three years from the revenues of the administrative fee. L. Out of this appropriation, $357,167 the first year and $357,167 the second year from the general fund is provided to effectuate the provisions of House Bill 1261 and Senate Bill 536 of the 2024 General Assembly. M. Out of this appropriation, $275,000 the first year from the general fund is provided to effectuate the provisions of House Bill 14 of the 2024 General Assembly. N. The Virginia Employment Commission is hereby authorized to request and receive a treasury loan to fund the necessary start-up costs associated with the implementation of a Paid Family and Medical Leave Program for the Commonwealth of Virginia contingent upon the enactment of Senate Bill 373 introduced in the 2024 Session of the General Assembly. The treasury loan shall be repaid for these costs from revenues received from premiums assessed to employers and employees beginning in 2026. O. The commission shall complete the Unemployment Insurance Wage Data Enhancement project by regularly collecting additional data from employers to share with the Virginia Longitudinal Data System, which will then make it available to the Office of Education and Labor Market Alignment. Additional employee data shall include job title, pay rate, and work location. The commission shall use existing federal and state grant funds and complete the Unemployment Insurance Wage Data Enhancement project by December 31, 2025. 357. For payment to the Secretary of the Treasury of the United States to the credit of the federal unemployment trust fund established by the Social Security Act, to be held for the state upon the terms and conditions provided in the said Social Security Act, there is hereby appropriated the amount remaining in the clearing account of the Unemployment Compensation Fund created by § 60.2-301, Code of Virginia, after deducting the refunds payable therefrom pursuant to § 60.2-301, Code of Virginia, a sum sufficient. Total for Virginia Employment Commission $587,411,507 $587,136,507 $610,136,064 General Fund Positions 3.00 3.00 Nongeneral Fund Positions 470.00 470.00 Position Level 473.00 473.00 Fund Sources: General $632,167 $357,167 Special $10,500,443 $10,500,443 $23,500,000 Trust and Agency $576,278,897 $576,278,897 $586,278,897 TOTAL FOR OFFICE OF LABOR $777,048,606 $777,123,848 $771,630,500 $788,068,834 General Fund Positions 146.90 146.90 151.90 Nongeneral Fund Positions 1,173.10 1,173.10 Position Level 1,320.00 1,320.00 1,325.00 Fund Sources: General $20,135,184 $20,187,554 $18,359,184 $19,288,489 Special $13,920,984 $13,920,984 $27,458,179

_ 498 Item Details($) Appropriations($) ITEM 357. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Trust and Agency $704,608,310 $704,608,310 $704,070,672 Dedicated Special Revenue $31,556,123 $27,914,017 $30,400,617 Federal Trust $6,828,005 $6,850,877 $6,828,005 $6,850,877

_ 499 Item Details($) Appropriations($) ITEM 358. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 OFFICE OF NATURAL AND HISTORIC RESOURCES § 1-104. SECRETARY OF NATURAL AND HISTORIC RESOURCES (183) 358. Administrative and Support Services (79900) $1,359,627 $1,359,627 General Management and Direction (79901) $1,359,627 $1,359,627 Fund Sources: General $1,235,149 $1,235,149 Federal Trust $124,478 $124,478 Authority: Title 2.2, Chapter 2, Article 7; and § 2.2-201, Code of Virginia. A. The Secretary of Natural and Historic Resources shall report to the Chairs of the Senate Committees on Finance and Appropriations, and Agriculture, Conservation, and Natural Resources, and the House Committees on Appropriations and Conservation and Natural Resources, by November 4 of each year on implementation of the Chesapeake Bay nutrient reduction strategies. The report shall include and address the progress and costs of point source and nonpoint source pollution strategies. The report shall include, but not be limited to, information on levels of dissolved oxygen, acres of submerged aquatic vegetation, computer modeling, variety and numbers of living resources, and other relevant measures for the General Assembly to evaluate the progress and effectiveness of the tributary strategies. In addition, the Secretary shall include information on the status of all of Virginia's commitments to the Chesapeake Bay Agreements. B. It is the intent of the General Assembly that a reserve be created within the Virginia Water Quality Improvement Fund to support the purposes delineated within the Virginia Water Quality Improvement Act of 1997 (WQIA 1997) when year-end general fund surpluses are unavailable. Consequently, 15 percent of any amounts appropriated to the Virginia Water Quality Improvement Fund due to annual general fund revenue collections in excess of the official estimates contained in the general appropriation act shall be withheld from appropriation, unless otherwise specified. When annual general fund revenue collections do not exceed the official revenue estimates contained in the general appropriation act, the reserve fund may be used for WQIA 1997 purposes as directed by the General Assembly within the general appropriation act. C. The Secretary of Natural and Historic Resources, with the assistance of the Directors of the Department of Conservation and Recreation, the Department of Environmental Quality, the Department of Wildlife Resources, and the Department of Historic Resources, shall provide an annual report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees of all projects undertaken pursuant to a settlement or mitigation agreement upon which the Secretary of Natural and Historic Resources is an authorized signatory on behalf of the Governor by November 15 each year until all terms of the settlement or mitigation agreement are satisfied. In addition, whenever a settlement or mitigation agreement is finalized, the Secretary shall provide a copy of, and explanation of, the terms of such settlement to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees within 15 days. D. Out of the amounts provided for this item, $500,000 the first year and $500,000 the second year from the general fund and three positions are provided to establish the Office of Commonwealth Resilience. E.1. The Secretary of Natural and Historic Resources shall convene a workgroup to study the requirements for and historical implementation of the Water Quality Improvement Fund pursuant to § 10.1-2128, Code of Virginia. 2. The workgroup shall review and make recommendations on the Water Quality Improvement Fund including the organizational structure in the Code of Virginia and budget, disposition of funding, feasibility of the incorporation of the Stormwater Local Assistance Fund, grant approval guidelines including cost-effectiveness and co-benefits of practices funded, grant agreement terms, annual reporting requirements, potential improvements to the current funding needs assessments, and outdated or unnecessary requirements.

_ 500 Item Details($) Appropriations($) ITEM 358. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 3. The recommendations on the organizational structure in the Code of Virginia and budget shall include streamlining the funding and sub-fund structure, updating terminology and structure to enhance transparency, ensuring consistency with the Commonwealth's commitments to and mandates for water quality, and coordinating Code and budget language. Recommendations shall be made for items appropriate to include in the Code of Virginia and items appropriate to include in the budget. 4. The review of the allocation of funding shall include mandatory deposits between sectors, discretionary deposits between sectors, the reserve fund and how to best leverage its usage to meet nutrient reduction goals, the use of interest including for administrative costs, and the Natural Resources Commitment Fund including technical assistance funding, the allotment of funding between the Chesapeake Bay and Southern Rivers watersheds, and the redistribution of unobligated funds between watersheds. 5. The workgroup shall include, but not be limited to, representatives from the Department of Conservation and Recreation, the Department of Environmental Quality, the Virginia Association of Soil and Water Conservation Districts, the Virginia Farm Bureau Federation, Virginia Cattlemen's Association, the Virginia Association of Municipal Wastewater Agencies, the Virginia Municipal Stormwater Association, the Chesapeake Bay Commission, the Chesapeake Bay Foundation, the James River Association, the Virginia Association of Counties, the Virginia Municipal League, and staff of the House Appropriations and Senate Appropriations and Finance Committees. 6. The workgroup's findings and recommendations shall be reported to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees, the Chairs of the House Agriculture, Chesapeake, and Natural Resources and the Senate Agriculture, Conservation, and Natural Resources Committees, and the Chair of the State Water Commission no later than November 1, 2026. Total for Secretary of Natural and Historic Resources $1,359,627 $1,359,627 General Fund Positions 8.00 8.00 Position Level 8.00 8.00 Fund Sources: General $1,235,149 $1,235,149 Federal Trust $124,478 $124,478 § 1-105. DEPARTMENT OF CONSERVATION AND RECREATION (199) 359. Land and Resource Management (50300) $474,674,264 $552,720,664 $142,858,236 $144,176,170 Soil and Water Conservation (50301) $215,897,563 $242,443,963 $14,821,535 $16,139,469 Dam Inventory, Evaluation and Classification and Flood Plain Management (50314) $221,005,274 $272,505,274 $90,265,274 Natural Heritage Preservation and Management (50317) $6,781,336 $6,781,336 Financial Assistance to Soil and Water Conservation Districts (50320) $15,494,091 $15,494,091 Technical Assistance to Soil and Water Conservation Districts (50322) $6,796,000 $6,796,000 Agricultural Best Management Practices Cost Share Assistance (50323) $8,700,000 $8,700,000 Fund Sources: General $305,299,947 $383,346,347 $36,603,919 $37,103,919 Special $1,040,887 $1,040,887 Trust and Agency $63,000,000 $0 Dedicated Special Revenue $97,251,202 $97,251,202 $98,069,136 Federal Trust $8,082,228 $7,962,228 Authority: Title 10.1, Chapters 1, 2, 5, 6, 7, and 21.1; Title 62.1, Chapter 3.1, Code of

_ 501 Item Details($) Appropriations($) ITEM 359. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 Virginia. A.1. Out of the amounts appropriated for Financial Assistance to Virginia Soil and Water Conservation Districts, $15,044,091 the first year and $15,044,091 the second year from the general fund shall be provided to soil and water conservation districts for administrative and operational support. These funds shall be distributed upon approval by the Virginia Soil and Water Conservation Board to the districts in accordance with the Board's established financial allocation policy. Of this amount, $12,809,091 the first year and $12,809,091 the second year from the general fund shall be distributed to the districts for core administrative and operational expenses (personnel, training, travel, rent, utilities, office support, and equipment) based on identified budget projections and in accordance with the Board's financial allocation policy; $468,000 the first year and $468,000 the second year from the general fund shall be distributed at a rate of $4,500 per dam for maintenance; $1,500,000 the first year and $1,500,000 the second year from the general fund for small dam repairs of known or suspected deficiencies; and $267,000 the first year and $267,000 the second year to the department to provide district support in accordance with Board policy, including, but not limited to, services related to auditing, bonding, contracts, and training. The amount appropriated for small dam repairs of known or suspected deficiencies and the purchase and installation of remote monitoring equipment is authorized for transfer to the Soil and Water Conservation District Dam Maintenance, Repair, and Rehabilitation Fund. Notwithstanding the provisions of § 10.1-611.1, Code of Virginia, the department is authorized to use interest earnings from the Soil and Water Conservation District Dam Maintenance, Repair, and Rehabilitation Fund to support two positions to oversee maintenance, repair, and rehabilitation projects necessary for District-owned dams to be in compliance with the Dam Safety Act (§ 10.1-604 et seq.) and attendant regulations. 2. Out of the appropriation in this Item, $4,550,000 the first year and $4,550,000 the second year shall be provided for base technical assistance support for the Virginia Soil and Water Conservation Districts. These funds shall be distributed upon approval by the Virginia Soil and Water Conservation Board to the districts in accordance with the Board's established financial allocation policy. These amounts shall be in addition to any other funding provided to the districts for technical assistance for appropriations in excess of $35,000,000. The Virginia Soil and Water Conservation Board is authorized to utilize previous years' unobligated cost-share funds to provide technical assistance funding to Virginia Soil and Water Conservation Districts at a rate no higher than the technical assistance rate percentage funded in the current Appropriation Act. 3. The department shall provide a semi-annual report on or before February 15 and August 15 of each year to the Chairmen of the House Appropriations and Senate and Appropriations Finance Committees on each Virginia soil and water conservation district's budget, revised budget, previous year's balance budget, and expenditure for the following: (i) the federal Conservation Reserve Enhancement Program, (ii) the use of Agricultural Best Management Cost-Share Program funds within the Chesapeake Bay watershed, (iii) the use of Agricultural Best Management Cost-Share Program funds within the Southern Rivers area, and (iv) the amount of Technical Assistance funding. The August 15 report shall reflect cumulative amounts. 4. As part of the semi-annual report, the department shall assess the impact of settlement agreements with the Commonwealth entered into between July 1, 2017, and June 30, 2022, on achieving an effective level of Soil and Water Conservation District technical assistance funding and the implementation of agricultural best management practices pursuant to § 10.1-546.1., Code of Virginia. The department shall include in its report any amounts from the settlements including: 1) estimation of the timeline and amount for each fiscal year to implement agricultural best management practices; and 2) estimation of the timeline and amount for each fiscal year of additional technical assistance provided as a result of the additional funding from the settlements. C. It is the intent of the General Assembly, that notwithstanding the provisions of § 10.1- 2132, Code of Virginia, the department is authorized to make Water Quality Improvement Grants to state agencies. D.1 Out of the appropriation in this Item, $10,000,000 the first year and $10,000,000 the

_ 502 Item Details($) Appropriations($) ITEM 359. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 second year from the Virginia Natural Resources Commitment Fund, a subfund of the Virginia Water Quality Improvement Fund, is hereby appropriated. The funds shall be dispersed by the department pursuant to § 10.1-2128.1, Code of Virginia. 2. The source of an amount estimated at $10,000,000 the first year and $10,000,000 the second year to support the nongeneral fund appropriation to the Virginia Natural Resources Commitment Fund shall be the recordation tax fee established in Part 3 of this act. 3. Out of this amount, a total of thirteen percent, or $1,300,000, whichever is greater, shall be appropriated to Virginia Soil and Water Conservation Districts for technical assistance to farmers implementing agricultural best management practices, and $8,700,000 for Agricultural Best Management Practices Cost-Share Assistance. Of the amount deposited for Cost-Share Assistance, seventy percent shall be used for matching grants for agricultural best management practices on lands in the Commonwealth exclusively or partly within the Chesapeake Bay watershed, and thirty percent shall be used for matching grants for agricultural best management practices on lands in the Commonwealth exclusively outside of the Chesapeake Bay watershed. E.1. Out of the appropriation in this Item, $2,583,531 in the first year and $2,583,531 in the second year from the funds designated in Item 3-1.01.C. of this act are hereby appropriated to the Virginia Water Quality Improvement Fund and designated for deposit to the reserve fund established pursuant to paragraph B of Item 358. It is the intent of the General Assembly that all interest earnings of the Water Quality Improvement Fund shall be spent only upon appropriation by the General Assembly, after the recommendation of the Secretary of Natural and Historic Resources, pursuant to § 10.1-2129, Code of Virginia. 2. Notwithstanding the provisions of §§ 10.1-2128, 10.1-2129 and 10.1-2128.1, Code of Virginia, it is the intent of the General Assembly that the department use interest earnings from the Water Quality Improvement Fund and the Virginia Natural Resources Commitment Fund to support two five positions to administer the Virginia Agricultural Best Management Practices Cost-Share Program and provide support to Soil and Water Conservation Districts. grants from the fund. F. Out of the appropriation in this Item, $15,000 the first year and $15,000 the second year from the general fund is provided to support the Rappahannock River Basin Commission. The funds shall be matched by the participating localities and planning district commissions. G. Notwithstanding § 10.1-552, Code of Virginia, Soil and Water Conservation Districts are hereby authorized to recover a portion of the direct costs of services rendered to landowners within the district and to recover a portion of the cost for use of district-owned conservation equipment. Such recoveries shall not exceed the amounts expended by a district on these services and equipment. H. Unless specified otherwise in this Item, it is the intent of the General Assembly that balances in Soil and Water Conservation be used first, and then balances from Agricultural Best Management Practices Cost Share Assistance be used for the Commonwealth's statewide match for participation in the federal Conservation Reserve Enhancement Program (CREP). I. The Water Quality Agreement Program shall be continued in order to protect the waters of the Commonwealth through voluntary cooperation with lawn care operators across the state. The department shall encourage lawn care operators to voluntarily establish nutrient management plans and annual reporting of fertilizer application. If appropriate, then the program may be transferred to another state agency. J.1. Out of the appropriation in this Item, $250,000 the first year and $250,000$750,000 the second year from the general fund is provided to the department to make available competitive grants to provide Chesapeake Bay meaningful watershed educational experiences. The department may enter into two-year contracts contingent on funding being available in the second year of the biennium. 2. Out of the appropriation in this item, $350,000 the first year and $350,000 the second year from the general fund is provided to the Department to support two positions in the Office of Environmental Education to provide increased opportunities for education programs on environmental issues across the Commonwealth, pursuant to § 10.1-104, Code of Virginia. I VETO ITEM 359.J.1.-2. ON PAGES 502-503 /s/ Glenn Youngkin 5-2-25

_ 503 Item Details($) Appropriations($) ITEM 359. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 The Office of Environmental Education shall develop and implement environmental education programs and the Virginia Strategic Plan for environmental literacy in collaboration with the Department of Education, the Science Museum of Virginia STEM program, and other relevant stakeholders. K. Out of the appropriation in this Item, $200,000 the first year and $200,000 the second year from the general fund is provided to the department for technical assistance to support Shoreline Erosion Advisory Services as established in § 10.1-702, Code of Virginia. L. Out of the appropriation in this Item, $1,093,352 the first year and $1,093,352 the second year from the general fund shall be provided to the Natural Heritage Program in support of active preserve management activities across Virginia's 66 Natural Area Preserves as identified by the Board of Conservation and Recreation. M. Notwithstanding § 54.1, Chapter 4, the U.S. Department of Agriculture's Natural Resources Conservation Service and Department of Conservation and Recreation Central Office staff may provide engineering services to the Department of Conservation and Recreation and the local Soil and Water Conservation Districts for design and construction of agriculture best management practices. N.1. Out of the amounts appropriated for Dam Inventory, Evaluation, and Classification and Flood Plain Management, $5,732,147 the first year and $732,147 the second year from the general fund shall be deposited to the Dam Safety, Flood Prevention and Protection Assistance Fund, established pursuant § 10.1-603.17, Code of Virginia. 2. Unobligated balances in the Dam Safety, Flood Prevention and Protection Assistance Fund may be utilized in an amount not to exceed $60,000 to perform activities necessary to update the flood protection plan for the Commonwealth and to make the plan accessible online. Once these activities are complete, the department will maintain and update the plan as needed within existing resources. O. Out of the appropriation in this Item, $400,000 the first year and $400,000 the second year from the general fund is provided to support lyngbya remediation efforts at Lake Gaston. P.1. Notwithstanding § 10.1-2129 A., Code of Virginia, $138,076,028 the first year from the general fund shall be deposited to the Virginia Water Quality Improvement Fund established under the Water Quality Improvement Act of 1997. Of this amount in the first year, $19,200,000 shall be appropriated to the Department for the following specified statewide uses: $700,000 for maintenance of the Conservation Application Suite; $2,000,000 for the Commonwealth's match for participation in the Federal Conservation Reserve Enhancement Program (CREP); $1,000,000 for increased verification efforts of agricultural best management practices; $6,000,000 for nonpoint source projects including direct pay initiatives for nutrient management and resource management plans as well as poultry litter transport; $4,000,000 for the Virginia Conservation Assistance Program administered by the Association of Soil and Water Conservation Districts; $500,000 for voluntary agricultural best management practices data collection by the Virginia Cooperative Extension; $4,000,000 to the Department of Forestry for the Virginia Trees for Clean Water program; and $1,000,000 to the Department of Forestry for water quality grants. 2. Of the remaining amount in the first year, $118,876,028 is authorized for transfer to the Virginia Natural Resources Commitment Fund, a sub fund of the Water Quality Improvement Fund. Notwithstanding any other provision of law, the funds transferred to the Virginia Natural Resources Commitment Fund shall be distributed by the Department upon approval of the Virginia Soil and Water Conservation Board in accordance with the board's developed policies, as follows: $75,979,754 shall be used for matching grants for Agricultural Best Management Practices on lands in the Commonwealth exclusively or partly within the Chesapeake Bay watershed, $32,562,751 shall be used for matching grants for Agricultural Best Management Practices on lands in the Commonwealth exclusively outside the Chesapeake Bay watershed, and an additional $10,333,523 in addition to the base funding provided in A.1. shall be appropriated for Technical Assistance for Virginia Soil and Water Conservation Districts.