The 2026 Executive Budget Document
Governor Youngkin's Proposed Budget for the 2026-2028 Biennial Budget
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Released on December 17, 2025 
 
Direct Aid to Public Education [197]
Secretarial Area: Education
Operating Budget Summary
This table shows the Governor's proposed budget for the next two years and the agency's official budget for the previous six years.
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Biennium Fiscal Year Source GF NGF Total
2020-2022 2021 Chapter 1, 2022 Acts of Assembly $6,857,617,198 $1,992,351,356 $8,849,968,554
2020-2022 2022 Chapter 1, 2022 Acts of Assembly $7,180,933,220 $2,004,726,703 $9,185,659,923
2022-2024 2023 Chapter1, 2024 Acts of Assembly $9,143,956,725 $1,960,365,888 $11,104,322,613
2022-2024 2024 Chapter1, 2024 Acts of Assembly $8,928,053,096 $2,070,513,379 $10,998,566,475
2024-2026 2025 Chapter 725, 2025 Acts of Assembly $9,867,668,153 $2,870,205,077 $12,737,873,230
2024-2026 2026 Chapter 725, 2025 Acts of Assembly $10,123,453,430 $2,798,366,366 $12,921,819,796
2026-2028 2027 Governor's Proposed Budget $10,363,860,334 $3,256,908,037 $13,620,768,371
    Base Budget $10,123,453,430 $2,798,366,366 $12,921,819,796
    Addenda (Changes to the Base) $240,406,904 $458,541,671 $698,948,575
2026-2028 2028 Governor's Proposed Budget $10,561,679,859 $2,919,248,147 $13,480,928,006
    Base Budget $10,123,453,430 $2,798,366,366 $12,921,819,796
    Addenda (Changes to the Base) $438,226,429 $120,881,781 $559,108,210
Positions Budget Summary
Biennium Fiscal Year Source GF NGF Total
2020-2022 2021 Chapter 1, 2022 Acts of Assembly 0.00 0.00 0.00
2020-2022 2022 Chapter 1, 2022 Acts of Assembly 0.00 0.00 0.00
2022-2024 2023 Chapter1, 2024 Acts of Assembly 0.00 0.00 0.00
2022-2024 2024 Chapter1, 2024 Acts of Assembly 0.00 0.00 0.00
2024-2026 2025 Chapter 725, 2025 Acts of Assembly 0.00 0.00 0.00
2024-2026 2026 Chapter 725, 2025 Acts of Assembly 0.00 0.00 0.00
2026-2028 2027 Proposed Positions 0.00 0.00 0.00
    Base Budget 0.00 0.00 0.00
    Addenda (Changes to the Base) 0.00 0.00 0.00
2012-2014 2028 Proposed Positions 0.00 0.00 0.00
    Base Budget 0.00 0.00 0.00
    Addenda (Changes to the Base) 0.00 0.00 0.00
Operating Budget Addenda (in order of greatest impact)
•
Rebenchmark the cost of Direct Aid to Public Education Decision Package
  Updates the state cost of Direct Aid to Public Education for the 2026-2028 biennium to reflect changes in enrollment, funded instructional salaries, school instructional and support expenditures, and other technical factors. These adjustments address the cost of continuing the current Direct Aid programs with the required data revisions and do not reflect changes in policy.
 
  FY 2027 FY 2028
General Fund $580,280,060 $571,242,743
•
Increase Literary Fund support for school employee retirement contributions Decision Package
  Supports a portion of public school employee retirement contributions with funds derived from the principal of the Literary Fund, in accordance with Article VIII, Section 8 of the Constitution of Virginia. Provides an additional $185 million one-time in the first year and an additional $100 million one-time in the second year. The amount of support each year is based on the latest Literary Fund forecast provided by the Department of Treasury.
 
  FY 2027 FY 2028
General Fund ($185,000,000) ($100,000,000)
Nongeneral Fund $185,000,000 $100,000,000
•
Provide a two percent compensation supplement for instructional and support positions each year Decision Package
  Provides funding for the state share of a two percent salary increase the first year, effective July 1, 2026, and an additional two percent salary increase the second year, effective July 1, 2027, for funded Standards of Quality, Academic Year Governor's School Program, and Regional Alternative Education Program instructional and support positions.
 
  FY 2027 FY 2028
General Fund $127,226,831 $255,625,532
•
Update Average Daily Membership projections Decision Package
  Updates Average Daily Membership projections based on actual Fall Membership data submitted by local school divisions in fall 2025, which is lower than the enrollment assumed for the 2026-2028 biennium rebenchmarking.
 
  FY 2027 FY 2028
General Fund ($159,978,758) ($205,497,000)
•
Increase state support for school construction Decision Package
  Updates the School Construction Fund appropriation supporting the School Construction Assistance Program grants to reflect an additional $127.0 million of actual revenue and interest earned to date and updated revenue projections through 2028. Additionally, appropriates $172.0 million from the Literary Fund for deposit to the School Construction Fund in support of school construction grants. In total, $299.0 million of additional state support is provided for grants to local school boards to support the construction, expansion, or modernization of public school buildings.
 
  FY 2027 FY 2028
Nongeneral Fund $274,000,000 $25,000,000
•
Adjust funding for retirement and other post-employment benefits Decision Package
  Adjusts funding to reflect a change in the employer contribution rates for teacher retirement to 13.37 percent, reflecting the defined benefit contribution rate certified by the Virginia Retirement System Board of Trustees and the estimated employer contributions for the hybrid retirement program's defined contribution component. Adjusts rates for group life insurance and retiree health insurance credit programs to the amounts certified by the Board of Trustees.
 
  FY 2027 FY 2028
General Fund ($106,850,730) ($106,999,841)
•
Support additional Early Childhood Care and Education slots by redirecting Virginia Preschool Initiative Nonparticipation Savings Decision Package
  Increases state support for the Child Care Subsidy Program to provide approximately 6,745 additional slots for eligible children ages birth-to-five in each 2027 and 2028, above the projected slots for 2026. A companion amendment redirects these funds from savings under the Virginia Preschool Initiative (VPI) Program. State savings under VPI are the result of projected nonparticipation based on actual historical participation plus assumed growth for 2027 and 2028.
 
  FY 2027 FY 2028
General Fund $70,987,116 $66,647,006
•
Support additional Early Childhood Care and Education slots by redirecting Virginia Preschool Initiative Nonparticipation Savings Decision Package
  Updates the Virginia Preschool Initiative nonparticipation rate estimates to 34 percent in 2027 and 32 percent in 2028 based on actual historical participation and assumed growth for 2027 and 2028. A companion amendment redirects these funds to increase state support for the Child Care Subsidy Program and provide approximately 6,745 additional slots for eligible children ages birth-to-five in each 2027 and 2028, above the projected slots for 2026.
 
  FY 2027 FY 2028
General Fund ($70,987,116) ($66,310,490)
•
Update Lottery proceeds for public education Decision Package
  Adjusts funding to reflect a reduction in the estimate of Lottery proceeds available to support K-12 Public Education in 2027 and 2028 compared to the base appropriation of $899.3 million in Chapter 725. In 2027, the Lottery proceeds appropriation of $885.7 million reflects $877.7 million from projected transfers to the Lottery Proceeds Fund and $8.0 million from cash balances of the fund. In 2028, the Lottery proceeds appropriation of $877.7 million reflects projected transfers to the Lottery Proceeds Fund.
 
  FY 2027 FY 2028
General Fund $13,610,174 $21,610,187
Nongeneral Fund ($13,610,177) ($21,610,177)
•
Update composite index of local ability-to-pay Decision Package
  Updates accounts in Direct Aid to Public Education based on a biennial recalculation of the composite index, a measure of local ability-to-pay used to distribute funding to local school divisions.
 
  FY 2027 FY 2028
General Fund ($34,825,282) ($34,118,944)
•
Update sales tax revenues for public education Decision Package
  Updates funding provided to local school divisions based on the November 2025 sales tax forecast.
 
  FY 2027 FY 2028
General Fund $16,529,268 $37,615,269
•
Update Career and Technical Education data Decision Package
  Updates funding for programs based on Fall 2025 data for enrollment in Career and Technical Education programs.
 
  FY 2027 FY 2028
General Fund $16,928,782 $16,959,375
•
Update English Language Learner data Decision Package
  Updates the cost of the English Learner Teacher Standards of Quality program to reflect updated data for verified English learners, including updated proficiency level data.
 
  FY 2027 FY 2028
General Fund ($19,641,839) ($12,253,464)
•
Increase federal appropriation Decision Package
  Increases federal fund appropriation for the Child Care Subsidy Program based on estimated revenues.
 
  FY 2027 FY 2028
Nongeneral Fund $13,151,848 $17,491,958
•
Update Fall Membership data in Direct Aid program formulas Decision Package
  Updates the Fall Membership data used in certain Direct Aid to Public Education program funding formulas based on actual data submitted by school divisions in fall 2025.
 
  FY 2027 FY 2028
General Fund ($7,429,986) ($9,039,102)
•
Update Lottery supported programs Decision Package
  Adjusts state support for Lottery-funded programs based on actual participation and updated projections.
 
  FY 2027 FY 2028
General Fund $6,076,902 $9,828,083
•
Update Remedial Summer School program participation Decision Package
  Updates the cost of the Remedial Summer School Standards of Quality program to reflect actual data reported by local school divisions.
 
  FY 2027 FY 2028
General Fund ($3,581,768) ($4,203,666)
•
Update Virginia Retirement System (VRS) rates for non-professional employees Decision Package
  Updates the non-professional retirement and health insurance credit for applicable local school division employees based on the VRS 2025 rates for political subdivisions.
 
  FY 2027 FY 2028
General Fund ($2,969,385) ($2,929,154)
•
Update Incentive programs Decision Package
  Adjusts funding for certain educational programs that exceed the foundation of the Standards of Quality. These programs are designed to address educational needs of specific targeted student populations. Funding for these programs is primarily formula-driven and subject to changes in membership, participation rates, and test scores.
 
  FY 2027 FY 2028
General Fund ($2,169,508) ($2,058,748)
•
Update supplemental general fund payment in lieu of food and hygiene tax Decision Package
  Updates the Supplemental General Fund Payment in Lieu of Sales Tax on Food and Personal Hygiene Products to $275.0 million in 2027 and $276.1 million in 2028. These amounts reflect the Department of Taxation's original estimates for the amount of revenue that would have been distributed in 2027 and 2028 from the state tax on food purchased for human consumption and essential personal hygiene products.
 
  FY 2027 FY 2028
General Fund $625,438 $1,116,853
•
Continue one-time support for Opportunity Scholars Decision Package
  Continues one-time support for Opportunity Scholars to expand access to high-quality training and work-based learning opportunities across the Commonwealth.
 
  FY 2027 FY 2028
General Fund $500,000 $0
•
Update distributions for school age population Decision Package
  Updates sales tax distributions to local school divisions based on the latest yearly estimate of school age population from the Weldon Cooper Center for Public Service.
 
  FY 2027 FY 2028
General Fund $233,129 $233,104
•
Update supplemental education programs Decision Package
  Updates state support for the National Board Certification Bonus program based on the projected number of staff eligible for this bonus in the 2026-2028 biennium.
 
  FY 2027 FY 2028
General Fund $230,000 $172,500
•
Provide state share of funding for the New River Valley Governor's School Decision Package
  Provides the state share of funding for the New River Valley Governor's School by adding the school to the formula calculation of Academic Year Governor's School payments based on estimated enrollment by division. The Board of Education approved the establishment of the New River Valley Governor’s School for the Arts and Humanities in July 2025.
 
  FY 2027 FY 2028
General Fund $127,406 $240,911
•
Update Categorical programs Decision Package
  Adjusts funding for certain educational programs that exceed the foundation of the Standards of Quality. State or federal statutes or regulations mandate most categorical programs. These adjustments update the cost of continuing the current programs with the required data revisions.
 
  FY 2027 FY 2028
General Fund $120,732 $179,827
•
Increase funding to address teacher shortages via the Early Childhood Provisional Licensure Program Decision Package
  Provides additional funding, for a total of $425,000 per year, for grants to school divisions for incentives to provisionally license early childhood educators who are working towards full licensure.
 
  FY 2027 FY 2028
General Fund $118,900 $118,900
•
Increase support for the American Civil War Museum Decision Package
  Provides additional one time support for the American Civil War Museum to support the advancement of experiential learning opportunities for K-12 students.
 
  FY 2027 FY 2028
General Fund $200,000 $0
•
Provide state share of funding for Fredericksburg City students attending Linwood Holton Governor’s School Decision Package
  Provides the state share of funding for Fredericksburg City students attending Linwood Holton Governor's School by adding Fredericksburg student enrollment to the Academic Year Governor's School payments calculation. Additionally, adds language that requires local school divisions to receive approval from the Board of Education if a division wishes to begin participation in an existing Governor's School program, and clarifies that any additional state funding supporting such participation is subject to approval and appropriation by the Governor and the General Assembly.
 
  FY 2027 FY 2028
General Fund $46,538 $46,548
•
Update language for the School Program Innovation Grants Decision Package
  Updates language for the School Program Innovation Grants to allow the Department of Education to award more grants within the existing appropriation and approve grants for newly submitted plans in order to increase utilization of the program.
•
Adjust appropriation to reflect planned expenditures Decision Package
  Adjusts appropriation within service areas to reflect actual planned expenditures.
•
Authorize withholding of certain funds for noncompliance with Annual School Report requirements Decision Package
  Adds language authorizing the Department of Education to withhold a portion of certain Lottery-funded payments, which are distributed beginning in January each year, to school divisions that do not comply with the Code of Virginia requirement to submit the Annual School Report to the department. Language delays the effective date to 2028 and requires the department to establish a policy, which it must communicate to local school divisions no later than September 30, 2026, and annually in its Annual School Report instructions.
•
Clarify public charter school eligibility for literacy resources Decision Package
  Adds language clarifying that local school boards that contract with a local public charter school should provide resources to ensure that public charters can meet the Code requirements related to kindergarten through eighth grade reading intervention and literacy instruction and professional development.
•
Update accreditation eligibility for Extended School Year Grants Decision Package
  Updates language for the Targeted Extended/Enriched School Year and Year-round School Grants to reflect eligibility based on the School Performance and Support Framework.
•
Provide public charter and regional school eligibility for School Construction Assistance Program grants Decision Package
  Adds language clarifying that public charter schools, regional public charter schools, and joint and regional schools are eligible to receive School Construction Assistance Program grants and provides that local school divisions shall not exclude these schools from consideration for these grants.


pdocagy2014 - Executive Budget Document Agency Details - 01-01-2026 15:49:37