1. Agencies must ensure compliance with all use, documentation, and reporting requirements established in state and federal guidelines and laws for the use of revenues from the State and Local Fiscal Recovery Fund (SLFRF) pursuant to the American Rescue Plan Act of 2021 (ARPA).

2.a. Any previously authorized ARPA SLFRF capital project which has dollars remaining unobligated on December 1, 2024, as reported by the Department of Accounts, and which has been assigned a capital project code in the Cardinal Financial System as of March 1, 2024, shall return such unobligated funds to the State and Local Fiscal Recovery Fund (12110). For any previously authorized ARPA SLFRF project which does not have a capital project code in the Cardinal Financial System, any dollars remaining unobligated in such projects as of October 31, 2024, as reported by the Department of Accounts, shall be returned to the State and Local Fiscal Recovery Fund (12110).

b. From the amounts returned to the State and Local Fiscal Recovery Fund, up to $3,000,000 from such amounts shall first be directed to the Virginia Tourism Authority (320) to support accelerating inbound visitor demand through a paid media advertising campaign. The Virginia Tourism Authority shall use $400,000 of these funds for a targeted advertising campaign to promote Virginia wineries and state parks. For any amounts returned after the initial $3,000,000, up to $169,898,356 shall be directed to Direct Aid for Public Education (197) to be used to supplement funding for the Child Care Subsidy Program included in Item 125.10.

3. Any amounts that exceed the thresholds established in the previous paragraph shall be directed to the Department of Environmental Quality (440) to be used to support the Enhanced Nutrient Removal Certainty program. If the Department of Environmental Quality, in consultation with the Department of Planning and Budget, determines that all or a portion of such amounts cannot be obligated by the obligation deadline established by the United States Department of the Treasury, the excess amount shall be directed to Direct Aid for Public Education (197) to supplement funding for the Child Care Subsidy Program.

4. For any ARPA-SLRF-funded ventilation improvement grants issued pursuant to Chapter 1, Item 479.20 B.2.h.1, 2021 Special Session II, school boards shall obligate such funds no later than July 1, 2024.