Department of Health seeks $60.1 million for FY2026; federal grants, lab relocation and off‑island care top agenda

St. Thomas — Assistant Commissioner Nicole Craigwell Sims presented the Virgin Islands Department of Health’s FY2026 request Thursday, asking the Senate Committee on Budget, Appropriations and Finance to support a portfolio of local and federal funding that the department said is necessary to sustain public health services, complete infrastructure projects and stabilize a complex federal grant portfolio.

Craigwell Sims told senators the department’s total proposed FY2026 budget is $60,067,009.86: roughly $29.0 million in general fund support, $27.0 million in federal funding, $1.5 million in the health revolving fund and $1.6 million in non‑appropriated funds. The department said it oversees 30 operational programs, manages 93 single‑account federal grants and currently employs about 332 full‑time equivalents (176 general‑fund and 156 federally funded).

Major items and committee takeaways: - Federal grants portfolio and ARPA deobligations: the department reported a total federal grants award portfolio of about $97.9 million with approximately $55.0 million expended to date. It said several ARPA grants that previously supported behavioral‑health expansion and immunization outreach were deobligated (about $3.19 million), creating service and hiring disruptions. The department is pursuing replacement grants and carryover authority to complete program objectives. - Off‑island residential care costs: the department said annual off‑island residential behavioral health costs now approach $9.4 million and that outstanding invoices totaled millions. The department listed a projected shortfall for FY2026 off‑island care around $2.59 million. Senators repeatedly pressed for a strategy on reducing off‑island placements and paying outstanding vendor bills. - Public Health Laboratory and capital projects: the laboratory has temporarily relocated and the department expects a new lab site this year with increased square footage and expanded testing (environmental, forensic and cannabis testing oversight). Project management and capital projects include the Charles Harwood Medical Center demolition and other FEMA‑supported rebuilds. The department is seeking $4.75 million in CDBG funds to finish a territorial data warehouse project started with $2.0 million in ARPA funds; officials said the data warehouse would integrate reporting, surveillance and grant reporting across agencies. - Community and clinical services: the department described community health clinics, maternal and child health programs, a school‑based substance misuse prevention initiative that reached thousands of students, and a Child Psychiatry Access Program that provides provider‑to‑provider consultations. The department also reported Vital Records automation progress and a recent CMS laboratory inspection with no deficiencies. - Finance and operations: the department told the committee it had all current allotments for FY2025 but reported an outstanding vendor payables balance of roughly $8.36 million that goes back to earlier fiscal years; DOH officials said that approximately $5.59 million of that total reflects off‑island residential care invoices. The department reported year‑to‑date revenue of $1,505,711 for FY2025, down about 27% from FY2024 collections.

Committee members questioned the department on vendor aging and payment workflows, staff vacancies, rent and lease costs for DOH spaces, and how the department will use its near‑term allotment and proposed request to manage large obligations. Acting Commissioner Craigwell Sims said DOH is coordinating with the Office of Management and Budget to request supplemental funding for outstanding obligations and is preparing follow‑up materials for the committee, including detailed vendor‑aging and grant‑status reports.

The department closed by urging continued partnership among the governor’s office, the legislature and interagency partners to complete the public‑health infrastructure, sustain services and pursue federal grant opportunities.

What’s next: senators asked DOH to provide updated vendor aging and an itemized plan showing how FY2026 general‑fund support would address the off‑island care obligations, critical vendor contracts, and ongoing lab relocation costs.