Quarterly Performance Report of the Virginia Telecommunication Initiative, Q3 FY2026 (April 2026)
Summary
Quarterly Performance Report of the Virginia Telecommunication Initiative (VATI) for Q3 FY2026, submitted by the Department of Housing and Community Development in April 2026. It states that VATI FY22, FY23, and FY24 projects will provide access to broadband infrastructure to 320,402 passings, and that projects have provided broadband access to 216,478 locations to date. Of the $822.8 million in state and federal funding awarded, $498.3 million has been expended, along with $650.4 million of the $1.198 billion in matching funds. DHCD identifies 34 projects at risk for incompletion or underperformance and defines risk levels by funding year. The report states that the American Rescue Plan Act funding has a statutory expenditure deadline of December 31, 2026.
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“Quarterly Performance Report of the Virginia Telecommunication Initiative, Q3 FY2026 (April 2026).”
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Quarterly Performance Report of the
Virginia Telecommunication Initiative
Q3 FY2026 Report
Submitted by:
The Department of Housing and Community Development
April 2026
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 Megabits (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 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, $498.3 million of these awarded funds and
$650.4 million of these matching funds have been expended. Note: Projects that have
been completed and closed out are not listed in the tables below. Therefore,
expenditure totals listed in this narrative may exceed the total of project expenditures
in the table below.
● Locations Built-To: To date, projects have provided broadband access to 216,478
locations. Note: Projects that have been completed and closed out are not listed in the
tables below. Therefore, the locations listed in this narrative may exceed the total of
locations provided broadband access to date in the table below.
● 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, 17 out of the 51 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 34 projects are 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, as well as supply chain
and labor markets, streamlining utility locate efforts, railroad crossings, the permitting process to
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
lay fiber in state-owned rights of way along roads, and permitting to cross federally owned lands.
Looking forward, DHCD will continue its ongoing work to monitor these projects, assisting where
appropriate in mitigating these broadband deployment challenges.
Formal Report
Pursuant to Chapter 1 of the Virginia Appropriation Act of Assembly of the 2021 Special
Session II and continued forward in Chapter 725 of the Virginia Appropriation Act of Assembly
of the 2025 Regular Session, enclosed is the Quarterly Performance Report of the Virginia
Telecommunication Initiative (VATI) for Q3 FY2026.
Item 103 L.6. of the Virginia Appropriation Act of Assembly of the 2025 Regular Session
requires that the Department of Housing and Community Development (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 VATI since the aforementioned FY2022 budget cycle.
Administered by 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 monthly report data from February 2026, which reflects project data as of the
end of January 2026.
Out of the 52 open projects funded in FY22, FY23, and FY24, 33 have requested and
received timeline extensions, and, per DHCD’s analysis, 13 are considered to be at low risk
and 21 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
FY22 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
FY22 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
FY22 High Risk if that end date reflects the original contractually established
end date or is a result of an extension.
FY23, FY24 No Risk • The grantee has not requested a timeline extension beyond
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.
FY23, FY24 Low Risk • The grantee has requested a timeline extension beyond the
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.
FY23, FY24 High Risk • The grantee has requested more than one timeline
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. Other 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 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.
Q3 FY2026 Quarterly Performance Report for the Virginia Telecommunication Initiative – FY2022 Projects
Award
Funding
Source -
(GF,
General
Fund
)(SLFRF, Maximum
Coronavirus
Percent Reason for Advertised
State and
Total Complete a Project’s Local Fiscal Percent Percent Project
Passings Passings Delay (MR, Recovery Expended, Expended, Speeds
Provided Provided SCL, UL, Fund )(CPF, Out of Out of Available
Coronavirus
Passings in Broadband Broadband RR, ROW, Awarded Total Total (Download/
Capital
Internet Service Project Access to Access to Agreement Agreement FED, OTH, Award Projects Funding Awarded Total Match Match Funding Match Upload
Grantee Provider Partner Area Date Date Start Date End Date Risk None) Amount Fund) Expended Funding Funding Expended Funding Mbps)
Low GF &
Bedford ZiTEL 5,644 100% 06/15/2022 7/1/2025 MR $11,480,664.98 $11,084,989.42 96.55% $14,518,564.42 $15,073,730.37 103.82% 1000/1000
5,644 Risk SLFRF
Low MR, UL, RR, GF &
Bedford Shentel 3,386 106% 09/09/2022 12/31/2025 $6,191,796.33 $4,764,260.55 76.94% $13,911,783.67 $10,427,896.82 74.96% 1000/1000
3,204 Risk ROW, FED SLFRF
Low
Botetourt Lumos Networks 1,901 100% 11/01/2022 9/30/2025 MR $3,084,796 CPF $2,776,316.40 90% $4,824,937 $7,034,801.08 146.8% 1000/1000
1,901 Risk
Low GF &
Campbell Shentel 3,492 100% 09/21/2022 12/31/2025 MR, UL $6,443,000 $6,393,000 99.22% $12,978,455 $14,395,839.17 110.92% 1000/1000
3,509 Risk SLFRF
Central
Shenandoah
High MR, ROW,
Planning MGW/ Rob Huff 1,188 48% 6/1/2022 6/1/2026 $7,876,800 SLFRF $4,749,064.90 60.29% $3,118,706 $2,473,157.85 79.3% 1000/50
2,470 Risk FED, OTH
District
Commission
Commonwealth High
Planet Networks 7,359 65% 06/14/2022 6/14/2026 None $15,000,000 GF $11,957,513.67 79.72% $14,456,495.55 $10,911,952.49 75.48% 200/10
RC 11,397 Risk
Cumberland High
Point Broadband 5,183 74% 09/06/2022 6/30/2026 MR $23,478,429 CPF $15,585,833.86 66.38% $6,459,000 $4,287,719.01 66.38% 1000/500
Plateau PDC 6,982 Risk
Eastern Shore
OTH-
of Virginia Low
ESVBA 9,381 85% 6/1/2022 11/30/2024 customer $9,382,099.09 SLFRF $8,236,666.45 87.79% $3,314,865.50 $1,933,415.49 58.33% 1000/1000
Broadband 11,091 Risk
installs
Authority
High UL, RR, GF &
Franklin Shentel 490 80% 12/21/2022 12/31/2025 $11,970,757 $10,489,026.56 87.62% $18,646,520 $18,250,382.29 97.88% 1000/1000
612 Risk ROW SLFRF
Hampton Charter High
9,793 88% 07/08/2022 6/30/2026 ROW $21,120,053.50 SLFRF $9,294,922.93 44.01% $13,839,523 $6,764,424.39 48.88% 1000/500
Roads PDC Communications 11,114 Risk
All Points High
Hanover 5,871 95% 8/1/2022 6/30/2026 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 High SLFRF &
Telephone 6,533 59% 06/13/2022 6/30/2026 MR, RR $22,190,500 $15,990,068.14 72.06% $6,354,500 $4,740,022.66 74.59% 1000/1000
PDC 10,982 Risk CPF
Cooperative
Loudoun All Points High
8,629 774 9% 7/1/2022 6/30/2026 MR $17,524,000 SLFRF $4,003,000.96 22.84% $42,376,126 $5,448,166.80 12.86% 1000/1000
County Broadband Risk
Middlesex All Points Low
999 103% 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 Citizens 4,914 3,786 77% 9/12/2025 6/30/2026 High OTH - $7,530,000 CPF $428,732.02 5.69% $353,968 $24,194.85 6.84% 1000/1000
PDC Risk rescope
Mount Rogers Low
Point Broadband 21,903 97% 06/01/2022 11/30/2025 MR $58,703,228 CPF $53,562,446.46 81% $29,405,277.42 $29,870,642.96 101.58% 1000/500
PDC 22,580 Risk
New River
High
Valley Regional Gigabeam 1,990 16% 03/13/2023 3/13/2026 RR $39,233,355 CPF $27,955,896.38 71.26% $38,247,340 $29,243,641.43 76.46% 1000/1000
12,094 Risk
Commission
New River
All Points High
Valley Regional 2185 28% 12/06/2022 6/30/2026 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
Planning All Points Low
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
District Broadband 3,411 Risk
Commission
Northern
Shenandoah All Points High
1,588 5% 7/22/2022 6/30/2026 MR $96,873,500 SLFRF $23,932,464.28 25% $206,243,317 $35,823,220.74 17.37% 1000/1000
Valley Regional Broadband 32,238 Risk
Commission
SCL, OTH-
High
Roanoke B2X 45 9% 09/22/2022 4/30/2026 land use $170,609 GF $35,295.43 20.69% $177,572 $40,817.85 22.99% 25/4
520 Risk
agreement
High
Roanoke Cox 250 63% 9/1/2022 4/15/2026 FED $1,535,264 SLFRF $0 0% $1,597,927 $0 0% 940/35
396 Risk
High
Roanoke Comcast 0 0% 6/13/2025 3/31/2026 None $348,640 SLFRF $0 0% $462,880 $0 0% 1000/1000
48 Risk
Shenandoah
Low
County Public Shentel 4,090 99% 8/1/2022 12/31/2025 MR, UL $12,176,662 SLFRF $10,958,995.80 90% $20,733,235 $20,733,234.97 100% 1000/1000
4,139 Risk
Schools
OTH:
Dominion
EMPOWER High
Southside PDC 10,386 71% 07/22/2022 6/22/2026 mainline $69,431,635 SLFRF $60,830,873.40 87.61% $84,677,555 $75,198,167.54 88.81% 1000/1000
Broadband 14,634 Risk
behind
schedule.
Thomas Firefly High SLFRF &
30,463 79% 08/15/2022 6/30/2026 RR, FED $84,810,054 $69,828,003.02 82.33% $218,753,880 $179,845,760.65 83.36% 1000/1000
Jefferson PDC Broadband 38,785 Risk CPF
West Piedmont
High
PDC - RuralBand 417 100% 07/03/2022 12/31/2026 None $638,718 SLFRF $574,261.45 89.91% $50,570 $423,531.54 837.52% 1000/1000
417 Risk
Dinwiddie
West Piedmont
RiverStreet High
PDC - 0 0% 06/20/2022 6/30/2026 RR, ROW $6,893,337 SLFRF $1,267,198.49 18.38% $18,974,275 $1,768,161.12 9.32% 1000/107300
Networks 5,009 Risk
Dinwiddie
West Piedmont RiverStreet High
8,386 34% 08/03/2022 6/30/2026 RR, ROW $87,003,888 SLFRF $63,858,417.70 73.4% $65,421,341 $42,344,360.23 64.73% 1000/1000
PDC (East) Networks 24,641 Risk
West Piedmont RiverStreet High
33 0% 09/30/2022 6/30/2026 FED, ROW $33,571,073 CPF $10,438,793.06 31.09% $59,425,085 $3,124,052.93 5.26% 1000/1000
PDC (West) Networks 10,056 Risk
*Data as of February 2026 Monthly Project Reports, which reflect project statistics through the end of January 2026.
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)
Q3 FY2026 Quarterly Performance Report for the Virginia Telecommunication Initiative – FY2023 Projects
Percent Reason for Maximum
Advertised
Total Complete a Project’s Award
Percent Percent Project
Passings Passings Delay (MR, Funding Expended Expended, Speeds
Internet Passings Provided Provided SCL, UL, Source - , Out of Out of Available
Service in Broadband Broadband Current RR, ROW, (GF, Awarded Total Total (Download/
Provider Project Access to Access to Agreement Contract FED, OTH, General Funding Awarded Total Match Match Funding Match Upload
Grantee Partner Area Date Date Start Date End Date Risk None) Award Amount Fund) Expended Funding Funding Expended Funding Mbps)
Bedford Shentel 562 99% 4/1/2024 12/31/2025 Low Risk MR, UL, RR $1,373,161.74 GF $1,235,845.57 90% $3,204,044.05 $2,990,996.63 93.35% 1000/1000
565
Caroline Not at
Breezeline 1,409 36% 10/23/2024 10/23/2026 MR $6,446,000 GF $2,785,774.14 43.22% $15,247,000 $7,321,456.60 48.02% 1000/600
County 3,910 Risk
Chesterfield All Points Not at
0 0% 12/1/2023 11/30/2026 None $755,523 GF $0 0% $12,494,553.22 $0 0% 1000/1000
County Broadband 494 Risk
Essex Not at
Breezeline 1,287 37% 09/06/2023 9/6/2026 MR $8,753,009 GF $2,209,879.94 25.25% $19,113,941 $5,361,904.06 28.05% 1000/600
County 3,526 Risk
Henrico All Points Not at
0 0% 12/1/2023 6/30/2026 None $501,620 GF $0 0% $6,027,280.42 $0 0% 1000/1000
County Broadband 412 Risk
Shenandoah
County
Shentel 2,371 97% 9/26/2023 12/31/2025 Low Risk MR $4,936,968 GF $4,443,271.20 90% $9,168,655 $9,168,657.34 100% 1000/1000
Public 2,440
Schools
Southside EMPOWER Not at
2,181 45% 9/26/2023 9/26/2026 None $8,556,028.84 GF $2,663,704.07 31.13% $21,677,288.16 $6,706,990.40 30.94% 1000/1000
PDC Broadband 4,804 Risk
West
RiverStreet Not at
Piedmont 1,219 36% 11/6/2023 11/6/2026 None $8,155,864 GF $6,765,584.28 82.95% $5,205,136 $4,364,706 83.85% 1000/1000
Networks 3,356 Risk
PDC (East)
West
Piedmont RiverStreet Not at
855 41% 10/5/2023 10/5/2026 None $3,548,250 GF $3,163,932.50 89.17% $1,856,750 $1,612,636.68 86.85% 1000/1000
PDC Networks 2,102 Risk
(Pittsylvania)
West
RiverStreet
Piedmont 7 0% 2/28/2024 12/31/2026 Low Risk None $8,013,600 GF $680,314.90 8.49% $5,386,400 $17,149.89 0.32% 1000/1000
Networks 4,526
PDC (West)
*Data as of February 2026 Monthly Project Reports, which reflect project statistics through the end of January 2026.
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)
Q3 FY2026 Quarterly Performance Report for the Virginia Telecommunication Initiative – FY2024 Projects
Percent Reason for Maximum
Advertised
Total Complete a Project’s Award
Percent Percent Project
Passings Passings Delay (MR, Funding Expended, Expended, Speeds
Internet Passings Provided Provided SCL, UL, Source - Out of Out of Available
Service in Broadband Broadband Current RR, ROW, (GF, Awarded Total Total (Download/
Provider Project Access to Access to Agreement Contract FED, OTH, General Funding Awarded Total Match Match Funding Match Upload
Grantee Partner Area Date Date Start Date End Date Risk None) Award Amount Fund ) Expended Funding Funding Expended Funding Mbps)
Thomas Not
Jefferson Firefly 5,825 150 3% 11/1/2024 12/31/2026 at None $12,208,500 GF $2,849,760 23.34% $36,427,182 $8,231,962.77 12.39% 1000/1000
PDC Risk
Not
Southside
Empower 3,757 2962 79% 11/13/2024 6/30/2027 at None $3,353,579 GF $64,000 1.91% $3,153,579 $0 0% 1000/1000
PDC
Risk
Not
Giles $448,184.99
PemTel 629 0 0% 1/21/2025 1/21/2027 at None $4,199,596 GF $459,907,38 10.95% $1,343,604 33.36% 1000/1000
County
Risk
Not
Franklin
ZiTEL 2,543 526 21% 1/21/2025 7/21/2026 at None $4,538,288 GF $2,078,897.96 45.81% $7,737,355 $3,932,153.40 50.82% 1000/1000
County
Risk
Not
Carroll
ZiTEL 2,214 0 0% 7/10/2025 7/10/2027 at None $10,199,624 GF $3,121,627.62 30.61% $7,694,453 $2,646,568.98 34.4% 1000/1000
County
Risk
Not
Rockbridge
BARC 293 11 4% 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 976 40 4% 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 $1,252,955.60 53.72% $1,019,580 $537,242.20 52.69%
County 1000
Risk
Not
Orange
FiberLync 546 234 42% 8/8/2024 8/8/2026 at None $2,138,416 GF $1,051,042.92 49.15% $3,155,780 $2,922,751.91 92.62% 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 February 2026 Monthly Project Reports, which reflect project statistics through the end of January 2026.
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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