VirginiaSB1972026 Regular SessionSenateWALLET

Virginia Community Flood Preparedness Fund; loan and grant program, deferment of interest accrual.

Sponsored By: Angelia Williams Graves (Democratic)

Became Law

Summary

Virginia Community Flood Preparedness Fund; loan and grant program; deferment of interest accrual and repayment obligations. Provides that for funds disbursed to localities, federally recognized tribes, and Virginia recognized tribes primarily for the purpose of implementing flood prevention and protection projects and studies in areas that are subject to recurrent flooding, interest on loans shall not accrue and repayment obligations shall not come into effect for loans or grants until completion of the project or study for which such funds are disbursed. This bill is a recommendation of the Joint Subcommittee on Recurrent Flooding.

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

Funds focus on repeat-flood and nature projects

Fund money mainly supports projects and studies in areas with repeated flooding, certified by a local floodplain manager. Both inland and coastal communities with recurrent flooding can get help. Projects that use nature-based solutions, like wetlands or living shorelines, get priority.

More help for low-income flood areas

At least 25% of money given out each year must fund projects in low-income areas. Localities and tribes may forgive loan principal for projects in low-income areas. All forgiven principal statewide is capped at 30% of that year’s fund appropriation. Local forgiveness does not cancel what the locality or tribe owes the Commonwealth.

Permanent state fund for flood projects

The law creates a permanent Virginia Community Flood Preparedness Fund. It gets money from emissions allowance sales, state appropriations, loan repayments, investment income, federal funds, and other sources. Interest stays in the fund and the money does not revert each year. Money only pays for flood prevention, protection, and coastal resilience projects. The Authority may cover its management costs from the fund, use fund assets to secure bonds, and sell loans to raise cash. After costs, sale proceeds go back into the fund.

Public input and oversight for flood funds

The Authority sets loan interest rates and repayment terms under an agreement with the Department. The Department runs the fund and writes rules for how awards are prioritized. Before each new round, the public gets 30 days to comment on proposed manual changes. Records of every application and decision must be posted online and at the Department office. An advisory committee with agencies, industry, and a nonprofit helps review and recommend awards.

Property liens and delayed loan interest

A locality or tribe can place a lien, up to the loan amount, on property that benefits from a fund loan. The lien is behind earlier liens unless prior lenders sign a recorded subordination agreement. For certain project or study loans, interest and payments do not start until the work is finished or cancelled.

Sponsors & Cosponsors

Sponsor

  • Angelia Williams Graves

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 460 • No: 1

House vote 4/22/2026

House concurred in Governor's recommendation

Yes: 94 • No: 1

Senate vote 4/22/2026

Senate concurred in Governor's recommendation

Yes: 39 • No: 0

House vote 3/2/2026

Passed House Block Vote

Yes: 98 • No: 0

House vote 3/2/2026

Passed House Block Vote

Yes: 99 • No: 0

House vote 2/25/2026

Reported from Appropriations

Yes: 22 • No: 0

Senate vote 2/13/2026

Read third time and passed Senate Block Vote

Yes: 39 • No: 0

Senate vote 2/12/2026

Engrossed by Senate Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/11/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/11/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/10/2026

Reported from Finance and Appropriations

Yes: 15 • No: 0

Senate vote 2/3/2026

Reported from Agriculture, Conservation and Natural Resources and rereferred to Finance and Appropriations

Yes: 14 • No: 0

Actions Timeline

  1. House concurred in Governor's recommendation (94-Y 1-N 0-A)

    4/22/2026House
  2. Senate concurred in Governor's recommendation (39-Y 0-N 0-A)

    4/22/2026Senate
  3. Acts of Assembly Chapter text (CHAP0995)

    4/22/2026Governor
  4. Reenrolled bill text (SB197ER2)

    4/22/2026Senate
  5. Reenrolled

    4/22/2026Senate
  6. Approved by Governor-Chapter 995 (effective 7/1/2026)

    4/22/2026Governor
  7. Signed by President

    4/22/2026Senate
  8. Signed by Speaker

    4/22/2026House
  9. Governor's recommendation adopted

    4/22/2026Governor
  10. Governor's recommendation received by Senate

    4/12/2026Governor
  11. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  12. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026Senate
  13. Fiscal Impact Statement from Department of Planning and Budget (SB197)

    3/5/2026Senate
  14. Bill text as passed Senate and House (SB197ER)

    3/5/2026Senate
  15. Enrolled

    3/5/2026Senate
  16. Signed by President

    3/5/2026Senate
  17. Signed by Speaker

    3/5/2026House
  18. Passed House Block Vote (99-Y 0-N 0-A)

    3/2/2026House
  19. Reconsideration of passage agreed to by House

    3/2/2026House
  20. Passed House Block Vote (98-Y 0-N 0-A)

    3/2/2026House
  21. Read third time

    3/2/2026House
  22. Read second time

    2/27/2026House
  23. Reported from Appropriations (22-Y 0-N)

    2/25/2026House
  24. Assigned HAPP sub: Commerce Agriculture & Natural Resources

    2/18/2026House
  25. Referred to Committee on Appropriations

    2/18/2026House

Bill Text

Related Bills

Back to State Legislation