The Office of the Adjutant General told the Senate Committee on Budget, Appropriations and Finance on June 30 that it is seeking $3,243,939 in general‑fund support for fiscal year 2026 to cover territory cost shares while the National Guard Bureau will provide about $46,956,770 in federal funding.

The request, Maj. Gen. Kojo Knox Limbacher said, pays for the territory’s required matches in the Master Cooperative Agreement (MCA) and for programs that sustain readiness, facility maintenance and youth outreach. “The bottom line up front, our proposed budget for fiscal year 2026 is $3,243,939 to sustain a ready and relevant, responsive, and lethal Army and Air Guard joint force,” Limbacher told senators.

Why it matters: federal training, deployments and infrastructure funding depend on the territory’s ability to commit the local percentage for mixed‑fund programs. Major elements Limbacher cited include the $46.96 million in federal appropriations that will be administered through the U.S. Property and Fiscal Officer and a local $396,000 match required to fully execute the MCA operating and maintenance programs.

The hearing also focused on operational impacts inside the territory. Limbacher and Colonel Deborah Lobban Meyer (the U.S. Property and Fiscal Officer for the Virgin Islands National Guard) described missions that included recent overseas deployments, counter‑drug support and domestic assistance to VITEMA and VIPD. They noted a staff increase in full‑time support to sustain an elevated operational tempo and to run youth programs such as Youth About Face and Forward March.

The adjutant general warned the committee that territory active‑duty pay (TAD) delays are eroding willingness to respond to non‑emergency requests. Limbacher told senators: “If we cannot pay TAD on time, we should not call them to duty.” He recommended a restricted internal service fund to pay TAD while agencies await reimbursement — typically two to eight months, he said — so service members are paid promptly when deployed to support other agencies.

Budget details and cost shares: the territory’s $3.24 million ask will fund local matches and pension payments (the submission includes $150,000 proposed for a National Guard pension appropriation), with federal reimbursement flows broken down across nine MCA appendices. Examples cited during testimony: a 25% territory share / 75% federal split for some Saint Croix maintenance projects, a 15% territory / 50% federal split for some Saint Thomas projects, and differing shares for the joint forces headquarters and air guard facilities.

Other operational issues raised: Limbacher said the Guard lost its aviation detachment and Lakota helicopters; the unit’s hangar lease at Henry E. Ralston Airport will terminate in 2027 for a planned public‑private airport expansion and the National Guard Bureau will not continue that lease. He described an earlier $24 million congressional authorization that was ultimately reprogrammed to other construction projects, and said reestablishing aviation capability would require a new multiyear federal allocation.

The office also said it is owed a $185,000 local reimbursement tied to a FY2024 cost share it executed in advance of territory payment; officials described other routine vendor and operational delays tied to allotment timing. The adjutant general requested the Legislature’s favorable action on the FY2026 submission to avoid interruptions in readiness and civil‑support missions.

What’s next: senators and the adjutant general discussed possible legislation to create a TAD internal service fund and other budget mechanics to stabilize payments to service members and vendors. Limbacher said the Guard will provide detailed allotment and vendor‑payment actuals to the committee on request.