The Water Quality Improvement Fund (WQIF) Workgroup met twice in 2025. The main goal of these two meetings was to establish a baseline understanding of how WQIF is funded, implemented, and managed by the Department of Environmental Quality (DEQ) and the Department of Conservation and Recreation (DCR). By ensuring that each stakeholder has a deeper understanding of how WQIF operates for point and nonpoint source reduction projects, the workgroup aims to craft recommendations in 2026 that will allow WQIF to operate more effectively and prioritize cost-efficiency.

The workgroup accomplished the following tasks as charged by the budget language:

• Review the organizational structure in the Code of Virginia and budget

• Review the disposition of funding

• Review grant approval guidelines, including cost-effectiveness and co-benefits of practices funded

• Review grant agreement terms

• Review annual reporting requirements

• Review potential improvements to the current funding needs assessment

• Review outdated or unnecessary requirements

• Review the feasibility of the incorporation of the Stormwater Local Assistance Fund

• Review the coordination of Code of Virginia and budget language

This preliminary report is comprised of summaries from the workgroup’s discussions, presentation materials from DEQ and DCR, an analysis of the general fund support of WQIF from the Department of Planning and Budget, a potential framework of how to address challenges with the program, key takeaways, and recommendations of potential topics for the workgroup to further explore in 2026.