The proposed legislation, General Assembly Bill No. 8003, aims to make temporary adjustments to the Budget Reserve Fund and allocate funds to address reductions in federal funding for various assistance programs. Specifically, the bill stipulates that once the Budget Reserve Fund reaches eighteen percent of the net General Fund appropriations for the fiscal year ending June 30, 2026, the Treasurer is required to transfer five hundred million dollars from unexpended appropriated funds to the Budget Reserve Fund. This transfer will prevent further contributions to the fund until it falls below the eighteen percent threshold. Additionally, any excess funds in the Budget Reserve Fund on June 30, 2026, will be appropriated for addressing unfunded past service liabilities of state employee and teacher retirement systems.

Furthermore, the bill appropriates five hundred million dollars from the Budget Reserve Fund to the Office of Policy and Management for the fiscal year ending June 30, 2026, to mitigate the impact of federal funding reductions on programs such as the Special Supplemental Nutrition Program for Women, Infants and Children, and housing assistance. Any unspent funds from this appropriation must be returned to the Budget Reserve Fund by February 4, 2026. The Secretary of the Office of Policy and Management is also granted the authority to transfer these funds to various agencies as needed, with a requirement to notify legislative leaders of any expenditures or transfers, which can be disapproved by a majority vote within twenty-four hours. The bill introduces new sections to current law, establishing these provisions.