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HB1245 • 2026

Virginia Health Care Fund; additional funding and uses.

<p class=ldtitle>A BILL to amend and reenact §§ 32.1-366 and 32.1-367 of the Code of Virginia, relating to Virginia Health Care Fund; additional funding sources and uses; emergency.</p>

Budget
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Henson
Last action
2026-02-13
Official status
Failed
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on additional activities that may be funded beyond those mentioned in the bill summary.

Virginia Health Care Fund; Additional Funding and Uses

This bill expands the funding sources for the Virginia Health Care Fund to include state general funds, public and private donations, and allows the fund to support health care services for populations protected by the Virginia Human Rights Act.

What This Bill Does

  • Adds more money from the state's budget into the Virginia Health Care Fund.
  • Allows the fund to receive money from public or private sources like gifts and grants.
  • Uses the fund’s money to help organizations that provide health care services for people protected by the Virginia Human Rights Act.

Who It Names or Affects

  • People who receive health care services from organizations supported by the Virginia Health Care Fund.
  • Health care providers and organizations that get funding from the fund to support their work.
  • The state government through its budget allocations.

Terms To Know

Virginia Human Rights Act
A law in Virginia that protects people from discrimination based on certain characteristics like race, gender, and sexual orientation.
Conversion Therapy
A controversial practice aimed at changing a person's sexual orientation or gender identity, which is not allowed to be funded by the Health Care Fund.

Limits and Unknowns

  • The bill does not specify how much money will go into the fund from state general funds.
  • It’s unclear exactly what new activities beyond training and academic programs will be supported with the expanded funding.

Bill History

  1. 2026-02-13 Appropriations

    Stricken from docket by Appropriations (22-Y 0-N)

  2. 2026-02-06 Health & Human Resources

    Subcommittee recommends striking from the docket (7-Y 0-N)

  3. 2026-01-29 House

    Fiscal Impact Statement from Department of Planning and Budget (HB1245)

  4. 2026-01-23 Health & Human Resources

    Assigned HAPP sub: Health & Human Resources

  5. 2026-01-14 House

    Prefiled and ordered printed with emergency clause; Offered 01-14-2026 26104826D

  6. 2026-01-14 Appropriations

    Referred to Committee on Appropriations

Official Summary Text

Virginia Health Care Fund; additional funding and uses; emergency.
Expands allowable funding sources of the Virginia Health Care Fund to include appropriated state general fund moneys and moneys from public and private sources. The bill allows moneys from the Fund to be used for financial assistance to organizations and service providers that provide health care services, or expand the provision of health care services, to populations protected by the Virginia Human Rights Act. The bill contains an emergency clause.

Current Bill Text

Read the full stored bill text
A BILL to amend and reenact §§
32.1-366
and
32.1-367
of the Code of Virginia, relating to Virginia Health Care Fund; additional funding sources and uses; emergency.

Be it enacted by the General Assembly of Virginia:

1. That §§
32.1-366
and
32.1-367
of the Code of Virginia are amended and reenacted as follows:

§
32.1-366
. Virginia Health Care Fund established.

A. There is hereby created in the state treasury a special nonreverting fund to be known as the Virginia Health Care Fund, hereafter referred to as the "Fund." The Fund shall be established on the books of the Comptroller and any moneys remaining in the Fund at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. For purposes of the Comptroller's preliminary and final annual reports required by §
2.2-813
, however, all deposits to and disbursements from the Fund shall be accounted for as part of the general fund of the state treasury.

B. All revenue received by the Commonwealth pursuant to the provisions of (i) §§
58.1-1001
and
58.1-1018
, (ii) Article 2.1 (§
58.1-1021.01
et seq.) of Chapter 10 of Title 58.1, and (iii) §
3.2-4203
shall be paid into the state treasury and deposited to the Fund. The Comptroller shall also deposit 40 percent of the Commonwealth's allocation pursuant to the Master Settlement Agreement with tobacco product manufacturers, as defined in §
3.2-3100
, to the Fund. The Fund shall also consist of all recoveries received during a fiscal year resulting from expenditures incurred in the Medicaid program during a prior fiscal year or years to the extent that such amounts represent recoveries of state funds that would otherwise be deposited to the general fund of the state treasury.

C.
Additional moneys in the Fund may include (i) moneys as appropriated in the general appropriation act for health care services to
populations protected by
the Virginia Human Rights Act (§
2.2-3900
et seq.)
; (ii) any funds from public or private sources for health care services to p
opulations protected by
the Virginia Human Rights Act
,
including gifts, grants, or donations; and (iii) interest earned on these sources.

§
32.1-367
. Uses of Virginia Health Care Fund.

A.

Moneys deposited to the Fund
shall
may
be used
solely for the provision of health care services. Such moneys shall be appropriated as provided in the general appropriation act. Health
care servi
ces include, but are not limited to,
for the following purposes
:

1.
Providing
health care services, including
Medicaid payments, disease diagnosis, prevention and control, and community health services
;

2.
Awarding
grants to
health care entities
that
(
i
) provide health care services to populations
protected by
the Virginia Human Rights Act (§
2.2-3900
et seq.)
, including access to health care services
,
or (
ii
) have
a demonstrated history of contracting with, or receiving support from, state or local governmental agencies or public funding sources that have been discontinued, decreased, or
limited
by local, state, or federal action;

3. Expanding health care services for populatio
ns protected by the Virginia Human Rights Act
(§
2.2-3900
et seq.)

through
(
i
) funding the development, evaluation, and implementation of model curricula, demonstration pr
ojects, and training projects to improve the provision of health care services
;
(
ii
)
t
raining for medical residents and fellows to practice health care;
(
iii
) training for nurse practitioners, physician assistants, health service psychologists, clinical psychologists, counselors, nurses
,
and social workers, including for individuals
completing clinical training requirements for licensure
; (iv) establishing, maintaining, or imp
roving academic programs (a) providing training for students or faculty, including through clinical
experiences, to improve their ability to provide culturally competent care
and (b) conducting evidence-based practices regarding care for protected populations, including curriculum content standards for programs that provide training for students or faculty as described
in
c
lause
(a)
; (v) promoting the
capacity of community health centers to provide care to protected populations; (vi) establish
ing
collaborative networks to improve the quality of care for rural providers of protected populations; and (vii) establish
ing
private, mobile, and innovative clinics t
o meet population needs
;
or

4.
For other purposes
to be detailed in procurement issued by the Department
.

B. No grants shall be made available for conversion therapy
,
as d
efined in §
54.1-2409.5
,
or a similar purpose. All grantees shall follow nondiscriminatory practices and current
evidence-based
medical standards.

C. Grants shall be made through a board selected by the Commissioner that is representative of p
opulations protected by the Virginia Human Rights Act
(§
2.2-3900
et seq.)
.

2. That an emergency exists and this act is in force from its passage.