The proposed legislation, General Assembly Bill No. 83, establishes the "Federal Cuts Response Fund," which will be a separate fund managed by the Treasurer. This fund is designed to hold moneys specifically allocated for responding to federal funding cuts and will only be expended through appropriations made by the General Assembly. Any unspent balance at the end of a fiscal year will be carried forward, but after the fiscal year ending June 30, 2027, any remaining funds will be transferred to the Budget Reserve Fund, effectively terminating the Federal Cuts Response Fund once all balances are transferred or deemed unavailable.

Additionally, the bill appropriates $330,811,954 from the Federal Cuts Response Fund to the Office of Policy and Management for the fiscal year ending June 30, 2026, to address the impacts of federal funding reductions. Unexpended funds from this appropriation will not lapse at the end of the fiscal year and will remain available for use in the following year. The Secretary of the Office of Policy and Management is required to notify key legislative leaders before any expenditures or transfers from the fund, allowing for a disapproval process within a specified timeframe. The bill introduces new sections to the law without deleting any existing provisions.