Quarterly Performance Report of the Virginia Telecommunication Initiative, Q1 FY2026 (October 2025)
Summary
Quarterly Performance Report of the Virginia Telecommunication Initiative (VATI) for Q1 FY2026, submitted by the Department of Housing and Community Development in October 2025. It states that VATI FY2022, FY2023, and FY2024 projects will provide access to broadband infrastructure to 320,402 passings and that projects have provided broadband access to 155,907 locations. In addition to $822.8 million in state and federal funding awarded, the projects leverage a total of $1.198 billion in private and local-match funding. The report states that 21 out of the 55 open projects are scheduled to be completed on time and that DHCD identifies 34 projects at risk, citing make-ready work, supply chain and labor markets, utility locates, railroad crossings and permitting.
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“Quarterly Performance Report of the Virginia Telecommunication Initiative, Q1 FY2026 (October 2025).”
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Quarterly Performance Report of the
Virginia Telecommunication Initiative
Q1 FY2026 Report
Submitted by:
The Department of Housing and Community Development
October 2025
Executive Summary
Virginia funds broadband deployment within the Commonwealth through several programs. The
largest and main program is the Virginia Telecommunication Initiative (VATI).
VATI provides grants to localities partnered with internet service providers to finance the
deployment of high-speed broadband to locations (called a “passing”) within the Commonwealth
that are determined to be “unserved.” Passings are places where the internet can be accessed – thus
it could be a business, community anchor, a home, or an apartment complex. A passing is
unserved1 if it lacks access to internet speeds of 100 megabits per second (Mbps) download and 20
Mbps upload (“100/20”).
This quarterly report is required by statute and has been prepared by the Office of Broadband
located within the Virginia Department of Housing and Community Development (DHCD). This
report tracks the technical performance of the VATI provider partners in their work to deploy
broadband. This report adheres to the factors that the General Assembly directed to be tracked and
presents them in the manner directed by the General Assembly.
Below are the key takeaways from the report. Only open projects are listed in the summary
tables provided at the end of this report. Completed projects are not listed; however, their total
figures are listed in the summary bullets below.
● Total passings: VATI FY2022, FY2023, and FY2024 projects will provide access to
broadband infrastructure to 320,402 passings across Virginia.
● Leveraged local and private funding: In addition to $822.8 million in state and federal
funding awarded, FY2022, FY2023, and FY2024 projects leverage a total of $1.198
billion in private and local-match funding. To date, $393.8 million of these awarded
funds and $599.6 million of these matching funds have been expended.
● Locations Built-To: To date, projects have provided broadband access to 155,907
locations.
● Maximum Speeds Available: Over 93.4% of projects funded in FY2022, FY2023, and
FY2024 offer functionally gigabit (1,000 Mbps) download speeds, and over 73.7%
offer functionally gigabit upload speeds.
In conclusion, 21 out of the 55 open projects funded from the American Rescue Plan Act of
2021 and General Funds from FY2022, FY2023, and FY2024 are scheduled to be completed on
time as of this report’s submission. DHCD identifies 34 projects at risk for incompletion or
underperformance. Justification for these delays include the make-ready effort, which includes
preparing existing electric poles for aerial broadband network construction. Other delays involve
supply chain and labor markets, streamlining utility locate efforts, railroad crossings, the permitting
process to lay fiber in state-owned rights of way along roads, and permitting to cross federally
owned lands. DHCD will continue its ongoing work to monitor these projects, assisting in
mitigating these broadband deployment challenges where appropriate.
1
In the FY2022 VATI process, the definition of unserved was set at 25/3. This definition of unserved has been upgraded to those
passings lacking access to broadband at speeds of 100/20 for the FY2023 VATI process
Formal Report
Pursuant to Chapter 1 of the Virginia Acts of Assembly of Special Session II of 2021
and continued forward in the 2024 Special Session 1 under Chapter 2 of the Virginia Acts of
Assembly, enclosed is the Quarterly Performance Report of the Virginia Telecommunication
Initiative (VATI) for Q1 FY2026.
Item 103 L.6. of the 2024 Acts of Assembly Special Session I requires that DHCD deliver
a quarterly performance report on funds awarded through the 2021 Acts of Assembly Special
Session I (also known as the budget bill) of allocated ARPA funds, as well as state general funds
awarded through the Virginia Telecommunication Initiative since the aforementioned FY2022
budget cycle.
Administered by the Virginia Department of Housing and Community Development
(DHCD), VATI enhances the sustainability and growth of communities throughout the
Commonwealth by preparing those communities to build, utilize, and capitalize on broadband
infrastructure. The primary objective of VATI is to provide 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. This program requires a public-private
partnership.
The directive to form this quarterly performance report establishes that:
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.
In accordance with this structure, DHCD has included information in this report of the
projects that were awarded funds since December 2021 and includes the projects announced
in the FY2022, FY2023, and FY2024 cycles, including those projects funded under the
Coronavirus State and Local Fiscal Recovery Fund and Coronavirus Capital Projects Funds
allocations under the American Rescue Plan Act of 2021. Project information displayed in this
report reflects project data as of the end of May 2025.
Of the 56 open projects funded in FY2022, FY2023, and FY2024, 34 have requested and received
timeline extensions and, per DHCD’s analysis, 23 are considered to be at low risk and 11 are
considered to be at high risk. DHCD has established risk definitions specific to funding year. A
summary of these definitions provided in the table below. The definition of risk category varies
for the FY2022 funding year, as this funding year contained American Rescue Plan Act funding,
which has a statutory expenditure deadline of December 31, 2026.
Year Risk Level Risk Level Definition
• The grantee has not requested a timeline extension beyond
FY2022 No Risk the originally approved contract end date; and,
• Based on the sole determination of the Office of Broadband,
the grantee is not significantly behind the current approved
milestone timeline; and,
• The timeline for that project does not have an end date in
2026.
• The grantee has requested a timeline extension beyond the
FY2022 Low Risk originally approved contract end date; or,
• Based on the sole determination of the Office of Broadband,
the grantee is significantly behind the current approved
milestone timeline and has not yet requested a timeline
extension from the original completion date.
• The grantee’s contractual end date is in 2026, regardless of
FY2022 High Risk if that end date reflects the original contractually established
end date or is a result of an extension.
FY2023, No Risk • The grantee has not requested a timeline extension beyond
FY2024 the originally approved contract end date; and,
Based on the sole determination of the Office of Broadband,
the grantee is not significantly behind the current approved
milestone timeline.
FY2023, Low Risk • The grantee has requested a timeline extension beyond the
FY2024 originally approved contract end date; or,
• Based on the sole determination of the Office of Broadband,
the grantee is significantly behind the current approved
milestone timeline and has not yet requested a timeline
extension from the original completion date.
FY2023, High Risk • The grantee has requested more than one timeline
FY2024 extension beyond the originally approved contract end
date.
DHCD staff continue to closely monitor the continued impact of challenges surrounding
make-ready, which includes preparing existing electric poles for aerial broadband network
construction. DHCD has recently funded the first projects under the Virginia Make Ready
Initiative, which is designed to mitigate the impacts of elevated make-ready costs. DHCD is
closely monitoring the impact of this program on accelerating delivery of affected VATI
projects.
Other deployment challenges DHCD is monitoring include supply chain and labor
markets, streamlining utility locate efforts, railroad crossings, the permitting process to lay
fiber in state-owned rights of way along roads, and permitting to cross federally owned lands.
DHCD and its local government and internet service provider partners are continuing to
develop innovative solutions to meet these challenges and deliver high-speed broadband
access as quickly as possible for residents in these project areas.
The project summaries included in this report are updated quarterly on the VATI Project
Dashboard, accessible through dhcd.virginia.gov/vati.
Q1 FY2026 Quarterly Performance Report for the Virginia Telecommunication Initiative – FY2022 Projects
Maximum
Percent Advertised
Total Complete Percent Project
Passings Passings Expended, Percent Speeds
Passings Provided Provided Out of Expended, Available
in Broadband Broadband Reason for Award Awarded Total Out of Total (Download/
Internet Service Project Access to Access to Agreement Agreement a Project’s Funding Funding Awarded Total Match Match Funding Match Upload
Grantee Provider Partner Area Date Date Start Date End Date Risk Delay Award Amount Source Expended Funding Funding Expended Funding Mbps)
Low
Bedford ZiTEL 5,593 99% 06/15/2022 7/1/2025 MR $11,480,664.98 GF & SLFRF $11,084,989.42 96.55% $14,518,564.42 $13,613,713.14 93.77% 1000/1000
5,644 Risk
MR, UL,
Low
Bedford Shentel 3,232 101% 09/09/2022 9/21/2025 RR, ROW, $6,191,796.33 GF & SLFRF $4,497,826.14 72.64% $13,911,783.67 $9,844,830.10 70.77% 1000/1000
3,204 Risk
FED
Low
Botetourt Lumos Networks 1,901 100% 11/01/2022 9/30/2025 MR $3,084,796 CPF $2,685,883.90 87.068% $4,824,937 $5,213,045.98 108.04% 1000/1000
1,901 Risk
Low
Campbell Shentel 3,132 89% 09/21/2022 9/21/2025 MR, UL $6,443,000 GF & SLFRF $3,593,421.79 55.77% $12,978,455 $7,239,926.99 55.78% 1000/1000
3,509 Risk
Central
Shenandoah Low MR, ROW,
MGW/ Rob Huff 1,118 45% 6/1/2022 12/1/2025 $7,876,800 SLFRF $4,357,020.63 55.31% $3,118,706 $1,880,082.28 60.28% 1000/50
Planning District 2,470 Risk FED, OTH
Commission
Commonwealth High
Kinex 7,359 65% 06/14/2022 6/14/2026 UL, SCL $15,000,000 GF $11,373,545.98 76% $13,426,482 $10,327,984.80 76.92% 200/10
RC 11,397 Risk
Cumberland Low
Point Broadband 5,113 90% 09/06/2022 9/6/2025 MR $23,478,429 CPF $14,135,023.55 60% $6,459,000 $3,888,595.87 60.2% 1000/500
Plateau PDC 5,659 Risk
Eastern Shore
OTH-
of Virginia Low
ESVBA 9,381 85% 6/1/2022 11/30/2024 customer $12,310,777.25 SLFRF $8,236,666.46 67% $3,314,865.50 $1,827,132.11 55.12% 1000/1000
Broadband 11,091 Risk
installs
Authority
Low
Franklin Shentel 3,505 100% 10/17/2022 10/17/2025 MR, UL, RR $11,832,456 GF & SLFRF $4,448,444.13 37.6% $18,646,520 $13,985,190.37 75% 1000/1000
3,508 Risk
Hampton Roads Charter High
9,781 88% 07/08/2022 6/30/2026 ROW $21,120,053.50 SLFRF $9,113,309.34 43.15% $13,839,523 $6,629,185.94 47.90% 1000/500
PDC Communications 11,114 Risk
All Points Low
Hanover 1,363 22% 8/1/2022 12/31/2025 MR $13,970,000 SLFRF $3,631,562.45 26% $41,469,332 $6,362,226.54 15.34% 1000/1000
Broadband 6,198 Risk
All Points Low
King William 2,236 100% 8/3/2022 3/31/2025 MR $5,400,000 SLFRF $4,859,999.93 42% $12,330,632 $14,828,144.58 120% 1000/1000
Broadband 2,236 Risk
Scott County
LENOWISCO Low SLFRF &
Telephone 6,671 61% 06/13/2022 12/13/2025 MR, RR $22,190,500 $13,103,095.52 59.05% $6,354,500 $4,120,473.27 64.84% 1000/1000
PDC 10,982 Risk CPF
Cooperative
Loudoun All Points Low
249 3% 7/1/2022 10/31/2025 MR $17,524,000 SLFRF $4,003,000.96 22.84% $42,376,126 $5,448,166.80 12.86% 1000/1000
County Broadband 8,629 Risk
Middlesex All Points Low
970 100% 7/22/2022 7/31/2025 MR $2,050,000 SLFRF $1,845,000 90% $8,453,887 $10,184,558.02 120% 1000/1000
County Broadband 970 Risk
Mount Rogers Low
Point Broadband 26,390 96% 06/01/2022 11/30/2025 MR $66,203,228 CPF $53,562,446.46 81% $33,162,600 $29,870,642.96 90.07% 1000/500
PDC 27,551 Risk
New River
High
Valley Regional Gigabeam 745 6% 03/13/2023 3/13/2026 RR $39,233,355 CPF $15,316,750.29 39.04% $38,247,340 $15,555,408.06 40.67% 1000/1000
12,094 Risk
Commission
New River
All Points Low
Valley Regional 0 0% 12/06/2022 12/31/2025 MR $29,122,000 CPF $5,913,400.39 20.31% $26,103,057.19 $4,594,339.19 17.6% 1000/1000
Broadband 7,872 Risk
Commission
Northern Neck
All Points Low
Planning District 3,411 100% 9/22/2022 3/31/2025 MR $3,190,500 SLFRF $2,871,450 90% $20,477,692 $20,477,677.64 99.99% 1000/1000
Broadband 3,411 Risk
Commission
Northern
Shenandoah All Points High
193 1% 7/22/2022 6/30/2026 MR $96,873,500 SLFRF $23,899,464.28 25% $206,243,317 $95,212,655.74 46.17% 1000/1000
Valley Regional Broadband 32,238 Risk
Commission
SCL, OTH-
Low
Roanoke B2X 45 9% 09/22/2022 10/25/2025 land use $170,609 GF $35,295.43 20.69% $177,572 $40,817.85 22.99% 25/4
520 Risk
agreement
Low
Roanoke Cox 250 63% 9/1/2022 10/15/2025 FED $1,535,264 SLFRF $0 0% $1,597,927 $0 0% 940/35
396 Risk
High OTH-
Roanoke Comcast 0 0% 6/13/2025 3/31/2026 $490,000 SLFRF $141,360 28.85% $510,000 $215,049.73 42.17% 1000/1000
48 Risk rescoped
Shenandoah
Low
County Public Shentel 4,102 99% 8/1/2022 12/31/2025 MR, UL $12,176,662 SLFRF $9,037,715.98 74.22% $20,733,235 $15,388,543.43 74.22% 1000/1000
4,139 Risk
Schools
OTH:
Dominion
EMPOWER High
Southside PDC 9,084 62% 07/22/2022 6/22/2026 mainline $69,431,635 SLFRF $44,666,488.15 64.33% $84,677,555 $54,312,663.06 64.14% 1000/1000
Broadband 14,634 Risk
behind
schedule.
Low
Sussex RuralBand 2,267 2,267 100% 06/13/2022 12/13/2025 None $4,896,892 SLFRF $4,097,081.35 84% $1,678,571 $1,404,572.14 83.68% 1000/1000
Risk
Thomas Firefly High MR, RR,
36,225 24,162 67% 08/15/2022 6/30/2026 $79,027,930 SLFRF $61,225,456.03 77.47% $208,969,670 $158,218,512.99 75.71% 1000/1000
Jefferson PDC Broadband Risk ROW
West Piedmont
High
PDC - RuralBand 417 275 66% 07/03/2022 12/31/2026 None $638,718 SLFRF $479,418.08 75.06% $50,570 $50,570.01 100% 1000/1000
Risk
Dinwiddie
West Piedmont
RiverStreet High
PDC - 5,009 0 0% 06/20/2022 6/30/2026 RR, ROW $6,893,337 SLFRF $632,727.12 9.18% $18,974,275 $1,748,970.07 9.22% 1000/1000
Networks Risk
Dinwiddie
West Piedmont RiverStreet High
24,641 8,167 33% 08/03/2022 6/30/2026 RR, ROW $87,003,888 SLFRF $35,361,713.48 40.64% $65,421,341 $33,478,895.69 51.17% 1000/1000
PDC (East) Networks Risk
West Piedmont RiverStreet High FED, MR,
10,056 31 0% 09/30/2022 2/24/2026 $33,571,073 CPF $1,646,415.95 5% $59,425,085 $3,054,768.78 5% 1000/1000
PDC (West) Networks Risk RR
Not
West Piedmont Charter
690 677 98% 08/01/2022 8/1/2025 at None $1,557,385 CPF $1,070,564.58 68.74% $1,450,145 $972,831.36 67.09% 1000/500
PDC Communications
Risk
*Data as of September 2025 Monthly Project Reports, which reflect project statistics through the end of August.
*Abbreviations for Reasons for Project’s Delay: MR – Make Ready, SCL – Supply Chain and Labor, UL – Utility Locates, RR – Railroad, ROW – Right of Way Permitting along State Roads, FED – Federal Land Permitting Challenges, OTH – Other (Described)
Abbreviations for Award Funding Source: GF – General Fund, SLFRF – Coronavirus State and Local Fiscal Recovery Fund, CPF – Coronavirus Capital Projects Fund
Q1 FY2026 Quarterly Performance Report for the Virginia Telecommunication Initiative – FY2023 Projects
Percent Maximum
Advertised
Total Complete
Percent Percent Project
Passings Passings Expended Expended, Speeds
Internet Passings Provided Provided , Out of Out of Available
Service in Broadband Broadband Current Reason for Award Awarded Total Total (Download/
Provider Project Access to Access to Agreement Contract a Project’s Funding Funding Awarded Total Match Match Funding Match Upload
Grantee Partner Area Date Date Start Date End Date Risk Delay# Award Amount Source# Expended Funding Funding Expended Funding Mbps)
Not at
Bedford Shentel 565 559 99% 4/1/2024 9/1/2025 None $1,373,161.74 GF $416,862.28 30.36% $3,204,044.05 $972,678.68 30.36% 1000/1000
Risk
Caroline Not at
Breezeline 3,910 300 8% 10/23/2024 10/23/2026 MR $6,446,000 GF $1,606,282.28 25% $15,247,000 $4,221,564.77 27.69% 1000/600
County Risk
Caroline Not at
Verizon 854 815 95% 10/23/2024 5/23/2025 None $2,032,334 GF $1,743,577.73 86% $5,610,501 $5,345,806.41 95.28% 940/880
County Risk
Chesterfield All Points Not at
494 0 0% 12/1/2023 11/30/2026 None $8,753,009 GF $1,063,548.93 12% $19,113,941 $2,580,523.59 13.5% 1000/1000
County Broadband Risk
Essex Not at
Breezeline 3,526 700 20% 09/06/2023 9/6/2026 MR $8,753,009 GF $1,063,548.93 12% $19,113,941 $2,580,523.59 13.5% 1000/600
County Risk
Floyd OTH -
Citizens 666 666 100% 05/30/2023 8/18/2025 Low Risk $1,339,387 GF $1,205,448.30 90% $827,173 $853,395.03 103.17% 1000/500
County rescoped
Henrico All Points Not at
412 0 0% 12/1/2023 11/30/2025 None $501,620 GF $0 0% $6,027,280.42 $0 0% 1000/1000
County Broadband Risk
Orange
FiberLync 576 467 81% 10/31/2023 6/5/2025 Low Risk ROW $2,181,000 GF $2,155,031.68 99% $8,391,058 $8,242,087.06 98.22% 1000/1000
County
Shenandoah
County
Shentel 2,440 2,115 87% 9/26/2023 12/31/2025 Low Risk MR $4,936,968 GF $2,441,509.83 49.45% $9,168,655 $4,534,232.39 49.45% 1000/1000
Public
Schools
Southside EMPOWER Not at
4,804 1,512 31% 9/26/2023 9/26/2026 None $8,556,028.84 GF $500,548.12 5.85% $21,677,288.16 $2,590,424.68 11.95% 1000/1000
PDC Broadband Risk
West
RiverStreet Not at
Piedmont 3,356 1,082 32% 11/6/2023 11/6/2026 None $8,155,864 GF $4,932,239.51 60.47% $5,205,136 $3,177,203.07 61.04% 1000/1000
Networks Risk
PDC (East)
West
Piedmont RiverStreet Not at
2,102 824 39% 10/5/2023 10/5/2026 None $3,548,250 GF $2,690,376.43 75.82% $1,856,750 $1,419,978.79 76.48% 1000/1000
PDC Networks Risk
(Pittsylvania)
West
RiverStreet Not at
Piedmont 4,526 7 0% 2/28/2024 2/28/2026 None $8,013,600 GF $53,970.90 0.67% $5,386,400 $17,149.89 0.32% 1000/1000
Networks Risk
PDC (West)
*Data as of September 2025 Monthly Project Reports, which reflect project statistics through the end of August.
#
Abbreviations for Reasons for Project’s Delay: MR – Make Ready, SCL – Supply Chain and Labor, UL – Utility Locates, RR – Railroad, ROW – Right of Way Permitting along State Roads, FED – Federal Land Permitting Challenges, OTH – Other (Described)
Abbreviations for Award Funding Source: GF – General Fund, SLFRF – Coronavirus State and Local Fiscal Recovery Fund, CPF – Coronavirus Capital Projects Fund
Q1 FY2026 Quarterly Performance Report for the Virginia Telecommunication Initiative – FY2024 Projects
Percent Maximum
Advertised
Total Complete
Percent Percent Project
Passings Passings Expended, Expended, Speeds
Internet Passings Provided Provided Out of Out of Available
Service in Broadband Broadband Current Reason for Award Awarded Total Total (Download/
Provider Project Access to Access to Agreement Contract a Project’s Funding Funding Awarded Total Match Match Funding Match Upload
Grantee Partner Area Date Date Start Date End DateRisk Delay#Award Amount Source# Expended Funding Funding Expended Funding Mbps)
Thomas Not
Jefferson Firefly 5,825 126 2% 11/1/2024 12/31/2026 at None $12,208,500 GF $57,130 0.47% $36,427,182 $0 0% 1000/1000
PDC Risk
Not
Southside
Empower 3,757 1,568 42% 11/13/2024 6/30/2027 at None $3,353,579 GF $43,000 1.28% $3,153,579 $0 0% 1000/1000
PDC
Risk
Not
Giles $30,135.54
PemTel 629 0 0% 1/21/2025 1/21/2027 at None $4,199,596 GF $106,773.51 2.54% $1,343,604 2.24% 1000/1000
County
Risk
Not
Franklin
ZiTEL 2,543 0 0% 1/21/2025 1/21/2026 at None $4,538,288 GF $1,774,149.90 39% $7,737,355 $3,356,499.79 43.38% 1000/1000
County
Risk
Not
Carroll
ZiTEL 2,214 0 0% 7/10/2025 7/10/2027 at None $10,347,072 GF $0 0% $7,694,453 $0 0% 1000/1000
County
Risk
Not
Rockbridge
BARC 293 0 0% 11/4/2024 11/4/2026 at None $1,197,320 GF $0 0% $1,653,443 $0 0% 1000/1000
BARC
Risk
Not
Rockbridge Brightspeed 1,734 21 1% 4/10/2025 5/7/2027 at None $975,865 GF $0 0% $3,901,517 $0 0% 1000/1000
Risk
Not
Alleghany 1000 /
CBEC 370 0 0% 11/21/2024 6/13/2026 at None $2,332,353 GF $393,638.83 16.88% $1,019,580 $168,702.36 16.55%
County 1000
Risk
Not
Orange
FiberLync 546 144 26% 8/8/2024 8/8/2026 at None $2,138,416 GF $0 0% $3,155,780 $0 0% 1000/1000
County
Risk
Not
1000 /
Botetourt Comcast 62 0 0% 12/12/2024 12/12/2026 at None $395,411 GF $0 0% $232,225 $0 0%
1000
Risk
*Data as of September 2025 Monthly Project Reports, which reflect project statistics through the end of August.
#
Abbreviations for Reasons for Project’s Delay: MR – Make Ready, SCL – Supply Chain and Labor, UL – Utility Locates, RR – Railroad, ROW – Right of Way Permitting along State Roads, FED – Federal Land Permitting Challenges, OTH – Other (Described)
Abbreviations for Award Funding Source: GF – General Fund, SLFRF – Coronavirus State and Local Fiscal Recovery Fund, CPF – Coronavirus Capital Projects Fund
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