A BILL to amend and reenact § 38.2-401, as it is currently effective and as it shall become effective, of the Code of Virginia, relating to insurance; Fire Programs Fund; purposes; Virginia At Risk Fire Grant Program established.
HB986 amends Virginia’s Fire Programs Fund statute to expand and clarify how money in the fund may be used, while also creating a new Virginia At Risk Fire Grant Program. The bill keeps the existing insurance-company assessment that finances the fund and continues the fund’s nonreverting structure, but it revises the allocation rules so that, after set-asides for grant programs, 75 percent of remaining funds go to counties, cities, and towns for fire service operations and related improvements. The bill also adds new eligible uses for local distributions, including firefighter cancer-reduction equipment and products, mental health resources, recruitment and retention efforts, and hiring additional fire personnel.
The bill establishes the Virginia At Risk Fire Grant Program beginning January 1, 2026, funded by 0.25 percent of the assessments collected under the Fire Programs Fund. That program is intended to assist local fire departments that are most at risk of being unable to provide fire suppression or rescue services or maintain compliance with applicable laws and regulations. The bill also preserves the existing Fire Services Grant Program and Dry Fire Hydrant Grant Program, and it requires the Department of Fire Programs and the Virginia Fire Services Board to administer grants and set policies governing fund use.
HB986 would affect § 38.2-401 of the Code of Virginia, which governs the Fire Programs Fund and the insurance assessment that supports it. It would also impose additional reporting requirements on localities receiving funds, including annual reporting on fund use and, under the revised language, reporting emergency incidents through the National Emergency Response Information System (NERIS) and sharing that data with the Department of Fire Programs. Localities that fail to comply with reporting and agreement requirements could lose future allocations. The bill therefore has a direct impact on insurers that pay the assessment, on local governments that receive fire-service funding, and on the Department of Fire Programs and Virginia Fire Services Board that administer the program.
The general sentiment reflected in the bill text is supportive of fire-service funding and modernization, with an emphasis on helping local departments, especially those under strain. The added grant program and expanded eligible uses suggest a policy focus on strengthening volunteer and career fire services, improving firefighter health and safety, and supporting departments facing operational risk. However, the bill was left in the House Labor and Commerce Committee, and there are no recorded votes or committee transcripts in the provided materials, so there is no direct evidence of floor-level support or opposition.
Notable points of potential contention include the continued insurance-industry assessment that finances the fund, the allocation of a portion of those revenues to a new grant program, and the new reporting obligations tied to NERIS data sharing. Localities may also scrutinize the restrictions on how funds can be spent, since the bill prohibits using the money for general operating expenses, debt repayment, taxes, or fees. Another possible issue is the requirement that fire-related training at funded facilities be delivered by certified or approved instructors under board policy, which could affect local control over training programs.
HB986 would amend Virginia Code § 38.2-401 to broaden the authorized uses of the Fire Programs Fund, create a dedicated Virginia At Risk Fire Grant Program funded from a portion of insurance-assessment revenues, and add new compliance and reporting conditions for localities receiving distributions. It would continue the existing assessment on licensed insurers and maintain the fund’s nonreverting status, while directing money to local fire-service operations, statewide grant programs, and Department of Fire Programs administration under Virginia Fire Services Board policies.
The bill appears generally favorable toward fire-service funding, with a clear emphasis on supporting local departments, firefighter safety, and departments at risk of failing to meet service or compliance obligations. Because there are no committee transcripts or votes provided, the available record does not show formal opposition or support from legislators, but the measure’s structure suggests a policy consensus around strengthening fire services through dedicated funding.
The main areas of possible contention are the insurance assessment that finances the fund, the diversion of a portion of those revenues to a new grant program, and the added reporting requirements for localities, including NERIS incident reporting and annual fund-use documentation. Some local governments may object to the spending restrictions or the oversight conditions attached to the money, while insurers may be sensitive to the continued assessment level. The bill’s limits on using funds for general operating costs and its requirement for board-approved training standards could also be debated as constraints on local flexibility.