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Virginia Telecommunication Initiative and Broadband Equity, Access, and Deployment Program: 2025 Report

Summary

Annual Report for Virginia Telecommunication Initiative and Broadband Equity, Access, and Deployment Program Funded Projects, required by Chapter 822 of the 2024 Acts of Assembly and submitted by the Department of Housing and Community Development in November 2025. It states that DHCD anticipates approval of the state's BEAD Final Proposal in Winter 2025, with projects beginning in Fall 2026 for the 133,000 approved passings. VATI FY22, FY23, and FY24 projects will provide access to 320,402 passings, and projects have provided broadband access to 155,907 locations to date. Of the 55 active VATI projects, 34 have requested and received timeline extensions, and DHCD identifies 11 FY22 projects as "High Risk".

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Full text

Annual Report for Virginia
Telecommunication Initiative and Broadband
Equity, Access, and Deployment Program
Funded Projects
Required by Chapter 822 of the 2024 Acts of
Assembly (HB800)
2025 Report




Submitted by:
The Department of Housing and Community Development
November 2025
                                           Executive Summary
        Virginia funds broadband deployment within the Commonwealth through several programs.
The largest and main program is the Virginia Telecommunication Initiative (VATI). The upcoming
Broadband Equity, Access, and Deployment Program (BEAD) will finish the job of attaining universal
connectivity in the Commonwealth. The Virginia Department of Housing and Community
Development (DHCD) anticipates approval of the state’s BEAD Final Proposal in Winter 2025, with
projects beginning in Fall 2026 for the 133,000 approved passings.

        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 Megabits (Mbps) upload (“100/20”). BEAD has a similar eligibility structure, with locations
lacking 100/20 eligible for funding under the program.

         This report is required by statute and has been prepared by the Office of Broadband located
within DHCD. This report tracks the technical performance of the VATI internet service 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 in these tables; however,
their total figures are listed in the summary bullets below.

              ● Total passings: VATI FY22, FY23, and FY24 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, FY22, FY23, and FY24 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 FY22, FY23, and FY24
                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 (ARPA) and General Funds from FY22, FY23, and FY24 are scheduled to be completed on
    time as of this report’s submission. DHCD identifies 11 FY22 projects as “High Risk”. Justification
    for these delays include the make-ready effort, which includes preparing existing electric poles for
    aerial broadband network construction, as well as 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. Looking forward, DHCD will

1
 In the FY22 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 FY23 VATI process.
continue its ongoing work to monitor these projects, assisting where appropriate in mitigating these
broadband deployment challenges.

                                           Formal Report

       Pursuant to Chapter 822 of the Virginia Acts of Assembly of Session 2024, enclosed is
  the Annual Report of the Virginia Telecommunication Initiative (VATI) and the federal
  Broadband Equity, Access, and Deployment (BEAD) Program in the Commonwealth.

         Chapter 822 of the 2024 Acts of Assembly Session requires that DHCD deliver an annual
  report on funds awarded through the Virginia Telecommunication Initiative (VATI) and the
  federal Broadband Equity, Access, and Deployment (BEAD) Program in the Commonwealth.

        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 BEAD Final Proposal is currently under review. DHCD expects projects to
  begin in mid-2026.

         The directive to form this quarterly performance report establishes that:
         2. That in administrating the Virginia Telecommunication Initiative (VATI) and the
         federal Broadband Equity, Access, and Deployment (BEAD) Program in the
         Commonwealth, the Department of Housing and Community Development is directed
         to submit annually on or before December 1 of 2024 through 2028 a report to the
         Governor, the General Assembly, and the State Corporation Commission on the
         progress of broadband expansion projects across the Commonwealth funded through
         VATI and BEAD. Such report shall assess (i) the fiber mileage constructed, (ii) the
         locations passed, (iii) the timelines for remaining contracted projects, (iv) the amount
         of grant funding expended, and (v) the number of projects extended and the rationale
         for such extensions.
         Project information displayed in this report reflects monthly project report data from as
  of the end of August 2025.
         Regarding extended projects, out of the 55 active VATI projects funded in FY22, FY23,
  and FY24, 34 have requested and received timeline extensions from their original project
  timeline. DHCD staff continue to closely monitor the impact of challenges impacting project
  timelines. Deployment challenges which are being monitored by DHCD 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 access federally owned
  lands. DHCD and its local and regional government and internet service provider partners are
  continuing to develop innovative solutions to address these challenges and deliver high-speed
  broadband access as quickly as possible for residents in the impacted project areas.
     The project summaries included in this report are updated quarterly on the VATI Project
Dashboard, accessible through dhcd.virginia.gov/vati.
                                                     Annual Report for Virginia Telecommunication Initiative and Broadband Equity, Access, and Deployment Program Funded Projects – FY2022 Projects




                                                                                                                                                                   Award Funding
                                                                                                                                                                   Source - (GF,
                                                                                                                                                                   General Fund
                                                                                                                                                                   )(SLFRF,
                                                                                                                                                                   Coronavirus State                                                Reason for a
                                                                                                                                                                   and Local Fiscal                                                 Project’s
                                                       Total Passings   Percent Complete                                                                           Recovery Fund                       Percent                      Delay (MR,
                                                       Provided         Passings Provided Miles of Fiber                                                           )(CPF, Coronavirus                  Expended, Out of             SCL, UL, RR,
                   Internet Service   Passings in      Broadband Access Broadband Access Complete to Date Agreement Start     Agreement End                        Capital Projects Awarded Funding    Total Awarded                ROW, FED,
Grantee            Provider Partner   Project Area     to Date          to Date                           Date                Date              Award Amount       Fund)              Expended         Funding          Risk        OTH, None)
                                                                                          539.12
Bedford            ZiTEL                               5,593            99%                               06/15/2022          7/1/2025          $11,480,664.98     GF & SLFRF         $11,084,989.42   96.55%           Low Risk    MR
                                      5,644
                                                                                           320.37                                                                                                                                   MR, UL, RR,
Bedford            Shentel                             3,232             101%                               09/09/2022        9/21/2025         $6,191,796.33      GF & SLFRF         $4,497,826.14    72.64%           Low Risk
                                      3,204                                                                                                                                                                                         ROW, FED
                                                                                           269.73
Botetourt          Lumos Networks                      1,901             100%                               11/01/2022        9/30/2025         $3,084,796         CPF                $2,685,883.90    87.068%          Low Risk    MR
                                      1,901
                                                                                           334.84
Campbell           Shentel                             3,132             89%                                09/21/2022        9/21/2025         $6,443,000         GF & SLFRF         $3,593,421.79    55.77%           Low Risk    MR, UL
                                      3,509
Central Shenandoah                                                                         74.53
                                                                                                                                                                                                                                    MR, ROW, FED,
Planning District  MGW/ Rob Huff                       1,118             45%                                6/1/2022          12/1/2025         $7,876,800         SLFRF              $4,357,020.63    55.31%           Low Risk
                                      2,470                                                                                                                                                                                         OTH
Commission
                                                                                           735.9
Commonwealth RC Kinex                                  7,359             65%                                06/14/2022        6/14/2026         $15,000,000        GF                 $11,373,545.98   76%              High Risk   UL, SCL
                                      11,397
Cumberland                                                                                 350.93
                   Point Broadband                     5,113             90%                                09/06/2022        9/6/2025          $23,478,429        CPF                $14,135,023.55   60%              Low Risk    MR
Plateau PDC                           5,659
Eastern Shore of                                                                           317.01
                                                                                                                                                                                                                                    OTH- customer
Virginia Broadband ESVBA                               9,381             85%                                6/1/2022          11/30/2024        $12,310,777.25     SLFRF              $8,236,666.46    67%              Low Risk
                                      11,091                                                                                                                                                                                        installs
Authority
                                                                                           453.83
Franklin           Shentel                             3,505             100%                               10/17/2022        10/17/2025        $11,832,456        GF & SLFRF         $4,448,444.13    37.6%            Low Risk    MR, UL, RR
                                      3,508
Hampton Roads      Charter                                                                 319.22
                                                       9,781             88%                                07/08/2022        6/30/2026         $21,120,053.50     SLFRF              $9,113,309.34    43.15%           High Risk   ROW
PDC                Communications     11,114
                   All Points                                                              308.19
Hanover                                                1,363             22%                                8/1/2022          12/31/2025        $13,970,000        SLFRF              $3,631,562.45    26%              Low Risk    MR
                   Broadband          6,198
                   All Points                                                              182.5
King William                                           2,236             100%                               8/3/2022          3/31/2025         $5,400,000         SLFRF              $4,859,999.93    42%              Low Risk    MR
                   Broadband          2,236
                   Scott County                                                            501
LENOWISCO PDC      Telephone                           6,671             61%                                06/13/2022        12/13/2025        $22,190,500        SLFRF & CPF        $13,103,095.52   59.05%           Low Risk    MR, RR
                                      10,982
                   Cooperative
                   All Points                                                              213
Loudoun County                                         249               3%                                 7/1/2022          10/31/2025        $17,524,000        SLFRF              $4,003,000.96    22.84%           Low Risk    MR
                   Broadband          8,629
                   All Points                                                              107
Middlesex County                                       970               100%                               7/22/2022         7/31/2025         $2,050,000         SLFRF              $1,845,000       90%              Low Risk    MR
                   Broadband          970
                                                                                           1652.5
Mount Rogers PDC Point Broadband                       26,390            96%                                06/01/2022        11/30/2025        $66,203,228        CPF                $53,562,446.46   81%              Low Risk    MR
                                      27,551
New River Valley                                                                           656.17
Regional           Gigabeam                            745               6%                                 03/13/2023        3/13/2026         $39,233,355        CPF                $15,316,750.29   39.04%           High Risk   RR
                                      12,094
Commission
New River Valley                                                                             -
                  All Points
Regional                                                0                  0%                                  12/06/2022         12/31/2025         $29,122,000        CPF                $5,913,400.39      20.31%             Low Risk       MR
                  Broadband            7,872
Commission
Northern Neck                                                                                273
                  All Points
Planning District                                       3,411              100%                                9/22/2022          3/31/2025          $3,190,500         SLFRF              $2,871,450         90%                Low Risk       MR
                  Broadband            3,411
Commission
Northern                                                                                     455
Shenandoah Valley All Points
                                                        193                1%                                  7/22/2022          6/30/2026          $96,873,500        SLFRF              $23,899,464.28     25%                High Risk      MR
Regional          Broadband            32,238
Commission
                                                                                             -                                                                                                                                                  SCL, OTH-land
Roanoke            B2X                                  45                 9%                                  09/22/2022         10/25/2025         $170,609           GF                 $35,295.43         20.69%             Low Risk
                                       520                                                                                                                                                                                                      use agreement
                                                                                             31.09
Roanoke            Cox                                  250                63%                                 9/1/2022           10/15/2025         $1,535,264         SLFRF              $0                 0%                 Low Risk       FED
                                       396
                                                                                             -
Roanoke            Comcast                              0                  0%                                  6/13/2025          3/31/2026          $490,000           SLFRF              $141,360           28.85%             High Risk      OTH-rescoped
                                       48
Shenandoah County                                                                            471.74
                  Shentel                               4,102              99%                                 8/1/2022           12/31/2025         $12,176,662        SLFRF              $9,037,715.98      74.22%             Low Risk       MR, UL
Public Schools                         4,139
                                                                                             1116.48                                                                                                                                            OTH: Dominion
                   EMPOWER                                                                                                                                                                                                                      mainline
Southside PDC                                           9,084              62%                                 07/22/2022         6/22/2026          $69,431,635        SLFRF              $44,666,488.15     64.33%             High Risk
                   Broadband           14,634                                                                                                                                                                                                   behind
                                                                                                                                                                                                                                                schedule.
                                                                                             179.89
Sussex             RuralBand                            2,267              100%                                06/13/2022         12/13/2025         $4,896,892         SLFRF              $4,097,081.35      84%                Low Risk       None
                                       2,267
Thomas Jefferson                                                                             2668.00
                  Firefly Broadband                     24,162             67%                                 08/15/2022         6/30/2026          $79,027,930        SLFRF              $61,225,456.03     77.47%             High Risk      MR, RR, ROW
PDC                                    36,225
West Piedmont PDC                                                                            56.75
                  RuralBand                             275                66%                                 07/03/2022         12/31/2026         $638,718           SLFRF              $479,418.08        75.06%             High Risk      None
- Dinwiddie                            417
West Piedmont PDC RiverStreet                                                                53.14
                                                        0                  0%                                  06/20/2022         6/30/2026          $6,893,337         SLFRF              $632,727.12        9.18%              High Risk      RR, ROW
- Dinwiddie       Networks             5,009
West Piedmont PDC RiverStreet                                                                1042.11
                                                        8,167              33%                                 08/03/2022         6/30/2026          $87,003,888        SLFRF              $35,361,713.48     40.64%             High Risk      RR, ROW
(East)            Networks             24,641
West Piedmont PDC RiverStreet                                                                159.5
                                                        31                 0%                                  09/30/2022         2/24/2026          $33,571,073        CPF                $1,646,415.95      5%                 High Risk      FED, MR, RR
(West)            Networks             10,056
West Piedmont      Charter                                                                   125.85
                                                        677                98%                                 08/01/2022         8/1/2025           $1,557,385         CPF                $1,070,564.58      68.74%             Not at Risk    None
PDC                Communications      690
                                                                        *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)
             Annual Report for Virginia Telecommunication Initiative and Broadband Equity, Access, and Deployment Program Funded Projects – FY2023 Projects
                                                                                                                                                                         Award
                                                                                                                                                                         Funding
                                                                                                                                                                         Source -
                                                                                                                                                                         (GF, General
                                                                                                                                                                         Fund
                                                                                                                                                                         )(SLFRF,
                                                                                                                                                                         Coronavirus
                                                                                                                                                                         State and
                                               Percent                                                                                                                   Local Fiscal
                                     Total     Complete                                                                                                                  Recovery                                       Reason for a
                                     Passings  Passings                                                                                                                  Fund )(CPF,             Percent                Project’s
           Internet                  Provided Provided Miles of                                                                                                          Coronavirus             Expended,              Delay (MR,
           Service                   Broadband Broadband Fiber                                                                                                           Capital      Awarded    Out of Total           SCL, UL, RR,
           Provider     Passings in Access to Access to Complete to Agreement                                                                                 Award      Projects     Funding    Awarded                ROW, FED,
Grantee    Partner      Project Area Date      Date      Date       Start Date Agreement End Date                                                             Amount     Fund)        Expended   Funding      Risk      OTH, None)
                                                         78.06                                                                                                $1,373,161.
Bedford    Shentel                   559       99%                  4/1/2024 9/1/2025                                                                                     GF        $416,862.28 30.36%       Not at Risk None
                        565                                                                                                                                   74
Caroline                                                 89.86                                                                                                                      $1,606,282.
             Breezeline              300       8%                   10/23/2024 10/23/2026                                                                     $6,446,000 GF                     25%          Not at Risk MR
County                  3,910                                                                                                                                                       28
Caroline                                                 61.88                                                                                                                      $1,743,577.
             Verizon                 815       95%                  10/23/2024 5/23/2025                                                                      $2,032,334 GF                     86%          Not at Risk None
County                  854                                                                                                                                                         73
Chesterfiel All Points                                   -                                                                                                                          $1,063,548.
                                     0         0%                   12/1/2023 11/30/2026                                                                      $8,753,009 GF                     12%          Not at Risk None
d County Broadband      494                                                                                                                                                         93
Essex                                                    102.30                                                                                                                     $1,063,548.
             Breezeline              700       20%                  09/06/2023 9/6/2026                                                                       $8,753,009 GF                     12%          Not at Risk MR
County                  3,526                                                                                                                                                       93
Floyd                                                    77.28                                                                                                                      $1,205,448.                         OTH -
             Citizens                666       100%                 05/30/2023 8/18/2025                                                                      $1,339,387 GF                     90%          Low Risk
County                  666                                                                                                                                                         30                                  rescoped
Henrico      All Points                                  -
                                     0         0%                   12/1/2023 11/30/2025                                                                      $501,620   GF         $0           0%          Not at Risk None
County       Broadband  412
Orange                                                   65.55                                                                                                                      $2,155,031.
             FiberLync               467       81%                  10/31/2023 6/5/2025                                                                       $2,181,000 GF                     99%          Low Risk   ROW
County                  576                                                                                                                                                         68
Shenandoa                                                117.56
h County                                                                                                                                                                            $2,441,509.
             Shentel               2,115       87%                     9/26/2023 12/31/2025                                                                   $4,936,968 GF                     49.45%       Low Risk   MR
Public                   2,440                                                                                                                                                      83
Schools
Southside EMPOWER                                          155.88                                                                                             $8,556,028.
                                   1,512       31%                     9/26/2023 9/26/2026                                                                                GF        $500,548.12 5.85%        Not at Risk None
PDC          Broadband 4,804                                                                                                                                  84
West                                                       141.6
             RiverStreet                                                                                                                                                            $4,932,239.
Piedmont                           1,082       32%                     11/6/2023 11/6/2026                                                                    $8,155,864 GF                     60.47%       Not at Risk None
             Networks 3,356                                                                                                                                                         51
PDC (East)
West                                                       78.8
Piedmont
             RiverStreet                                                                                                                                                            $2,690,376.
PDC                                824         39%                     10/5/2023 10/5/2026                                                                    $3,548,250 GF                     75.82%       Not at Risk None
             Networks 2,102                                                                                                                                                         43
(Pittsylvani
a)
West         RiverStreet                                   0.1
                                   7           0%                      2/28/2024 2/28/2026                                                                    $8,013,600 GF         $53,970.90 0.67%         Not at Risk None
Piedmont Networks 4,526
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)
                                           Annual Report for Virginia Telecommunication Initiative and Broadband Equity, Access, and Deployment Program Funded Projects – FY2024 Projects

                                                                                                                                                 Award Funding
                                                                                                                                                 Source - (GF,
                                                                                                                                                 General Fund
                                                                                                                                                 )(SLFRF,
                                                                                                                                                 Coronavirus
                                                                   Percent                                                                       State and Local                                                             Reason for a
                                                                   Complete                                                                      Fiscal Recovery                  Percent                                    Project’s
                                                  Total Passings   Passings                                                                      Fund )(CPF,                      Expended, Out                              Delay (MR,
                                                  Provided         Provided          Miles of Fiber                                              Coronavirus                      of Total                                   SCL, UL, RR,
                 Internet Service Passings in     Broadband        Broadband         Complete to      Agreement Start Agreement End              Capital Projects Awarded Funding Awarded                                    ROW, FED,
Grantee          Provider Partner Project Area    Access to Date   Access to Date    Date             Date            Date          Award Amount Fund)            Expended        Funding       Risk                         OTH, None)
Thomas                                                                               5.11
                 Firefly                          126              2%                                 11/1/2024        12/31/2026       $12,208,500       GF                $57,130           0.47%            Not at Risk   None
Jefferson PDC                    5,825
                                                                                     97.04
Southside PDC    Empower                          1,568            42%                                11/13/2024       6/30/2027        $3,353,579        GF                $43,000           1.28%            Not at Risk   None
                                 3,757
                                                                                     -
Giles County     PemTel                           0                0%                                 1/21/2025        1/21/2027        $4,199,596        GF                $106,773.51       2.54%            Not at Risk   None
                                 629
                                                                                     17.94
Franklin County ZiTEL                             0                0%                                 1/21/2025        1/21/2026        $4,538,288        GF                $1,774,149.90     39%              Not at Risk   None
                                 2,543
                                                                                     -
Carroll County   ZiTEL                            0                0%                                 7/10/2025        7/10/2027        $10,347,072       GF                $0                0%               Not at Risk   None
                                 2,214
                                                                                     -
Rockbridge BARC BARC                              0                0%                                 11/4/2024        11/4/2026        $1,197,320        GF                $0                0%               Not at Risk   None
                                 293
                                                                                     5
Rockbridge       Brightspeed                      21               1%                                 4/10/2025        5/7/2027         $975,865          GF                $0                0%               Not at Risk   None
                                 1,734
Alleghany                                                                            -
                 CBEC                             0                0%                                 11/21/2024       6/13/2026        $2,332,353        GF                $393,638.83       16.88%           Not at Risk   None
County                           370
                                                                                     12.04
Orange County    FiberLync                        144              26%                                8/8/2024         8/8/2026         $2,138,416        GF                $0                0%               Not at Risk   None
                                 546
                                                                                     -
Botetourt        Comcast                          0                0%                                 12/12/2024       12/12/2026       $395,411          GF                $0                0%               Not at Risk   None
                                 62
                                                            *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)


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