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Budget Evolving to Serve: "Meeting Needs, Inspiring Change, Sustaining Hope” Testimony By : Presented To : COMMISSIONER AVERIL E. GEORGE FY2026 Presentation DEPARTMENT OF HUMAN SERVICES 36TH LEGISLATURE COMMITTEE ON BUDGET, APPROPRIATIONS AND FINANCE UNITED
STATES
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ISLANDS CONTENTS TABLE OF Introduction FY26 Budget Overview H.R. 1-OBBB Employee and WorkForce Labor Relations Employee recognition OCCRS Head Start Intake/DCFS DIPS ORICA DFA Medicaid Senior Citizens Affairs Legal/MIS Operations ESF-6 Conclusion 1. 2. 5. 6. 7. 8. 9. 10. 11 12. 13. 14 15. 17. 19. 20. 21. 22. Good Morning Honorable Chairman - Senator Novelle E. Francis, Jr., Vice Chair, members of the Committee on Budget, Appropriations, and Finance, other distinguished Senators present, my Department of Human Services leadership team, staff, and support volunteers, and the listening and viewing public. I am Averil George, Commissioner of the Virgin Islands Department of Human Services. In the well with me today are Assistant Commissioner Carla Benjamin and Assistant Commissioner Taetia Phillips Dorsett, Chief Financial Officer Lydia Magras Purcell, Chief Legal Counsel Frederick Norford, Deputy Commissioner of Operations for St. Thomas and St. John Sean Georges, and Deputy Commissioner of Operations for St. Croix Hugh Nicholas. Also accompanying us are Akilah O’Brien, DHS Disaster Recovery Specialist; Ericson Browne, Assistant Director of Human Resources; along with other members of our dedicated team. Thank you for the opportunity to appear before you today to present the FY2026 budget for the U. S. Virgin Islands Department of Human Services. INTRODUCTION OUR MISSION & WHO WE SERVE Established under Title 3 of the Virgin Islands Code, DHS serves as the designated State Agency for all publicly funded social services outside of health and housing, with a mandate to protect and support the vulnerable. For nearly a decade or more, we have often said that the department serves about one-third of the Territory’s population. That was true at one time. But times have changed. Needs have grown, our programs have expanded, and today, the math tells a more powerful story. With our population hovering now at approximately 87,000 people, according to the U.S. 2020 Census, and DHS reaching around 40,000 individuals annually across all our programs and services, we’re in fact serving closer to 46% of all Virgin Islanders. That’s nearly half of our entire community who turn to us for support in some form — whether through Medicaid, SNAP, Meals on Wheels, Child Care subsidies, Social work, Head Start, or residential care. This figure underscores both the scale and the importance of our work. DHS oversees more than 84 programs, administered through 15 divisions, each tailored to meet critical needs. From providing protective services and feeding children and seniors, to providing health insurance, safeguarding vulnerable adults, or preparing mass care and shelter operations during hurricanes — DHS is there—steadily, and often without fanfare—woven into the everyday life of our islands, supporting those who need us most 1 FY2026 BUDGET OVERVIEW For Fiscal Year 2026, the Department of Human Services is working with a proposed combined budget of approximately $297.2 million— restoring us to pre-pandemic funding levels, but with less flexibility and greater constraints. Of this total, $228.1 million is projected from federal sources, while $69.16 million will come from the General Fund, representing a decrease of $1.8 million (2.6%) compared to FY2025. With service needs and operational costs remaining high across the Territory, this year’s budget will make for a difficult push as we work to keep pace with the growing demands of our community. The General Fund now covers less than a quarter of total DHS operations, but those local dollars are increasingly stretched to pay for payroll, fringe, utilities, and critical support services. With every line item under pressure, careful planning will be needed to avoid gaps or slowdowns in service. • Personnel: $19,556,499 (down 0.8%) – Modest decrease reflects strategic hiring and staff management without reducing core service delivery. • Fringe Benefits: $9,587,578 (down 1.6%) – Fringe tracks with personnel changes due to retirements, filled vacancies, and tighter benefits administration. • Supplies: $952,111 (down 23%) –Major reduction achieved through consolidating office operations and tighter procurement controls in addition to a shift of expenditures previously allocated under supplies and now shifted to capital per request from the Dept of Finance (DOF). • Other Services: $35,694,006 (down 3.3%) – Reduction comes from renegotiated contracts and streamlined vendor and professional services. • Capital: $192,812 (up 105%) – Allows for the support of urgent investments in equipment, technology, and critical facility upgrades. • Utilities: $2,625,000 (up 14%) – Reflects higher costs tied to expanded leased properties, ensuring continued operations during renovations and relocations. General Fund Budget Changes for FY2026: FY2026 BUDGET OVERVIEW 2 Federal Funds General Fund General Fund Budget FY2026 FY2026 Federal Fund Listing This table details the major federal funding streams and rollover balances that will sustain DHS operations in the coming year. Each line represents a critical resource that, if lost or disrupted, would put core services and vulnerable families at risk. For FY2026, the Federal fund balance of $228.1 million reflects a growing dependence on outside funding to sustain the core programs that thousands of Virgin Islanders rely on—Medicaid, SNAP, Child Care, disaster recovery, and more. These federal investments are not simply additive—they are now the foundation of our ability to serve nearly half of the population. FY2026 BUDGET OVERVIEW FY2026 BUDGET OVERVIEW 3 Miscellaneous General Fund Appropriations For Fiscal Year 2026, the Department’s budget includes $545,000 in Miscellaneous General Fund appropriations. These targeted investments reflect the government’s commitment to addressing urgent local needs specifically: • Energy Crisis Assistance Program (ECAP) – $500,000 • Centennial Living Treasures – $45,000 While the Department’s FY2026 budget request is not directly altered by the recently enacted H.R. 1 (The One Big Beautiful Bill Act), this sweeping legislation introduces a range of new Medicaid, SNAP, and child care provisions that will undeniably shape the Department’s long-term planning and compliance landscape. Miscellaneous General Fund Subgrantee Appropriations: DHS administers a diverse portfolio of sub-grantee awards, funded through the Miscellaneous section of the General Fund supporting a wide range of community-based organizations that deliver essential services such as food security, transitional housing, domestic violence prevention, after-school programs, and health outreach. These targeted appropriations are crucial for meeting urgent needs not addressed through other funding streams and for sustaining safety net programs across the Territory. A detailed listing of all FY2025 Miscellaneous General Fund appropriations fpr Vris Intervention—including sub-grantees, program areas, and award amounts—is provided in the Appendix. Crisis Intervention Subgrantee Appropriations (FY2025) Federal Legislation Outlook – H.R. 1 Implications – One Big Beautiful Bill Act The Department of Human Services provides targeted support to non-profit and community organizations dedicated to crisis intervention and emergency response. These appropriations, encumbered through the Miscellaneous General Fund, enable local partners to deliver vital assistance to individuals and families in acute distress. FY2026 BUDGET OVERVIEW 4 Non-appropriated funds: Total $2,541,360. The Department anticipates receiving approximately $2,152,460 from the VI Lottery for the Pharmaceutical Assistance Program for Fiscal year 2026. Total collections for Fiscal Year 2025 totaled $2,210,065.38. Additionally, the Department is projected a total of $282,000 in collections from the Homes for the Aged, with $210,000 for the Herbert Grigg Home for the Aged and $72,000 for Queen Louise Home for the Aged. Lastly, the Department expects to collect approximately $6,900 in licensing fees for Child Care centers. Exclusions from State-Only Provisions: The Territory remains excluded from several “state” provisions, including: • Work requirements for Medicaid expansion for adults. • New provider tax phase-downs and certain provider tax reforms. • Caps on state-directed payments tied to Medicare rates. • Enhanced FMAP incentives for new Medicaid expansion. • Good faith waiver removals for PERM payment error audits. SNAP/TANF: • The bill introduces new federal work requirements for able-bodied adults without dependents (ABAWDs), revises utility and shelter deduction formulas, and anticipates increased local administrative cost shares beginning in FY2028. These changes require monitoring for future budget and operational impacts. CHILD CARE: • H.R. 1 creates employer-based child care tax credits to incentivize private partnerships with local daycare providers. The actual impact for the USVI will depend on the adoption of federal tax policies and the engagement of local businesses. Federal Legislation Outlook – H.R. 1 Implications – One Big Beautiful Bill Act Medicaid Compliance and Eligibility: H.R. 1 maintains most existing Medicaid rules for the USVI but enacts a series of new federal requirements with staggered effective dates. • Prohibitions on Medicaid funding for certain abortion providers for a 10-year period. (effective immediately) • Stricter provider enrollment checks, including quarterly death master file reviews for both enrollees and providers (effective January 2028). • Tighter eligibility verification, including a prohibition on federal matching funds (FMAP) for individuals whose citizenship or immigration status is unverified (October 2026). • Updated asset limits for long-term care services, setting a maximum home equity cap at $1 million (January 2028). • Reductions in retroactive coverage, limiting backdated Medicaid eligibility to one month for expansion of populations and two months for non-expansion of populations. (January 2027). • Amended definitions of “qualified aliens” and updated rules for Medicaid and CHIP eligibility (October 2026), while continuing to recognize territorial status and carve-outs for COFA migrants. • Loss of FMAP for specified gender dysphoria services, with immediate effect. • Requirements for participation in federal pharmacy data surveys if the USVI Medicaid Drug Rebate Program is active. • Implementation of a federal system to identify duplicate Medicaid enrollment across states and territories (by October 2029). Key Provisions Impacting the Virgin Islands: 5 OUR WORKFORCE: THE ENGINE OF SERVICE DELIVERY None of our programs could function without the dedicated men and women of this Department who carry out their duties with compassion and professionalism. As of June 30, 2025, the Department of Human Services employs 654 active staff members who power the delivery of services across all three islands. Recruitment and Workforce Movement In Fiscal Year 2025, the Department welcomed 46 new employees through various personnel actions, including 14 new hires, 11 rehires, 12 promotions, 6 transfers between departments, and 3 transfers within DHS. During the same period, 34 employees separated from service due to: • St. Croix District: 348 employees • St. Thomas/St. John District: 306 employees Employee Classification Breakdown: 0 100 200 300 400 500 Classified Classified Non-Union Exempt Part-time 483 9 90 72 46.8 53.2 St. Thomas/St. John St. Croix % % VIDHS Employees • 19 Retirements • 13 Resignations • 3 Deaths DHS continues to stabilize and expand its workforce through targeted hiring strategies, job fair participation, and succession planning—particularly for staff nearing or exceeding 30 years of government service. STX STT/STJ EMPLOYEE AND WORKFORCE DEVELOPMENT Labor Relations and Collective Bargaining: 6 Labor Relations and Collective Bargaining: The Department operates under six distinct collective bargaining agreements, several of which are currently active or in negotiation. • Virgin Islands Workers Union (VIWU) • Seafarers International Union (SIUM) • SIU Corrections Officers • United Steelworkers Masters (USWM) • United Steelworkers Supervisors (USW Supervisors) • Law Enforcement Supervisors Union (LESU) Salary adjustments tied to collective bargaining agreements are under review and pending approval by the Office of Management and Budget (OMB). These adjustments will affect both General Fund and federally funded employees. DHS is also in the process of actively addressing seven outstanding grievances—ranging from disciplinary disputes to workplace conditions and salary concerns. Employees Earning Under $35,000 Potentially Impacted by Bill No. 36-0053 The Department of Human Services could not be prouder and greatly appreciates the committed and resilient women and men who serve across our programs and facilities, delivering care and assistance to the most vulnerable members of our community every single day. DHS will honor the proposed salary increases, recognizing the urgent need to keep pace with today’s economic realities and the rising cost of living in the Virgin Islands. However, we do foresee some funding challenges post implementation, especially as they impact both federally and locally funded positions. There are currently 107 DHS employees who would be impacted by the proposed increase in the minimum annual salary under Bill No. 36-0053, which raises the minimum annual salary from $27,040 to $32,000. These employees are primarily located within the following programs: Head Start, Senior Citizens Affairs, Maintenance and Transportation, and the Youth Rehabilitation Center. (Impacted job classifications include Bus Drivers, Bus Driver Aides, Community Nutrition Aides, Cooks, Custodial Workers, Food Service Workers, Executive Chauffeurs, Head Start Nutrition Assistants, Head Start Stock Clerks, Homemaker Aides, Housekeepers, Laundry Workers, Office Assistants, Receptionists, and Social Service Aides) These positions fall under the Virgin Islands Workers Union (VIWU), Seafarers International Union of North America (SIUM), and Exempt classifications. For federally funded positions, federal grant awards will not increase in response to local statutory changes. The available federal dollars will fund fewer salaries, and any shortfall must be met with local funds. This issue could become even more challenging if salary increases ripple into other classifications as a result of the adjustment for these employees. That being said, the Department is prepared to work with the Legislature, OMB and the Bryan/Roach Administration, to address the pay raises, but wants to be clear about the potential for funding gaps and operational strain, if local resources are not increased accordingly. LABOR RELATIONS AND COLLECTIVE BARGAINING 7 Employee Recognition & Workforce Excellence The Department of Human Services deeply values the outstanding individuals who make our mission possible. In FY2025, DHS is honored to recognize two exceptional employees whose dedication and compassion set a standard for public service across the Territory: Mr. Robert Baldwin, Kitchen Manager at Queen Louise Home for the Aged, recognized for exemplary service and commitment to the well-being of senior residents. He brings daily comfort, dignity, humor, and a sense of home to our senior residents—demonstrating that true service is measured not just in meals prepared, but in lives uplifted Ms. Sherene Maynard, an Administrative Assistant in the Office of Intake and Emergency Services, is a dedicated problem solver, and involved in nearly every departmental initiative, volunteering her time and energy even outside of her regular duties. She is also Ms. DHS 2025 for St Croix, a testament to her positive presence in and outside of the office. St. Croix: St. Thomas/St. John: EMPLOYEE RECOGNITION & WORKFORCE EXCELLENCE 8 DIVISION AND PROGRAM SUMMARIES Often referred to as “Child Care” or the “Block Grant” program, the Office of Child Care and Regulatory Services, licenses, regulates, monitors, and provides quality improvement support to all legitimate providers of child care services for children up to age 12 in the Virgin Islands, as well as after school, summer camps and nontraditional child care services . These responsibilities include conducting regular inspections, addressing complaints, supporting provider compliance with health and safety standards, and helping to expand access to reliable child care. The division is funded entirely through the federal Office of Child Care and Development Fund (CCDF), which is projected at $9,101,245M for Fiscal Year 2026. This funding supports both regulatory oversight and child care subsidies that assist low-income families with the cost of care, allowing parents to work or attend education and training programs to enter the workforce. We’ve continued subsidy levels at the 100th percentile of market rates, meaning families face fewer out-of-pocket burdens: Subsidies at the 100th percentile of local market rates, include: • $600/month for infants • $675/month for toddlers • $725/month for preschoolers • $429/month for school-aged children Over 550 children in the territory are currently served by these childcare support grants. Office of Child Care and Regulatory Services (OCCRS): Expanding Access and Quality for Working Families 9 DIVISION AND PROGRAM SUMMARIES Head Start: Building Strong Beginnings for Virgin Islands Children FY2026 Funding and Costs For Fiscal Year 2026, the Department’s Head Start program is supported by a combined operational budget of $10,351,425. The majority of funding is provided through federal sources. These federal dollars cover personnel ($5,873,857 million), fringe benefits ($3,235,239 million), supplies ($435,137), other services ($600,775), and capital outlay ($206,500). This operational budget supports all program staffing, classroom activities, nutrition services, and family engagement efforts. Head Start remains one of the Department’s most vital programs, providing no-cost early education, meals, health screenings, and family support to children ages 3 to 5 across all three islands. While this work was introduced in last year’s budget, the continued development of these sites remains a top capital priority, funded by over $42 million in Office of Head Start Disaster Recovery funding. Several of these projects will break ground in the coming months, marking an exciting new chapter for Head Start in the Virgin Islands. This period of construction and expansion positions us to boost enrollment and, in turn, help restore the federal funding levels necessary to fully support eligible children and families across all three islands. Head Start funded enrollment stands at 794, impacted by demographic shifts and temporary facility closures during major renovations. Despite these reductions, the Department has made significant capital progress, with the federal Office of Head Start Disaster Recovery-funded construction and restoration of key Head Start sites across the territory. As many of you witnessed firsthand during the Cruz Bay ribbon cutting ceremony in December 2024, we are proud to report that the Cruz Bay Head Start facility is now fully completed and will open for the start of the 2025–2026 school year. With that milestone achieved, construction efforts continue across the territory on the remaining five major Head Start facilities. Here is a snapshot of current progress: 10 No local funds are designated for supplies, other services, or capital outlay in FY2026. Local support from the General Fund makes up the remaining $4,564,000, which is allocated for personnel ($2,966,000), fringe ($1,598,000). DIVISION AND PROGRAM SUMMARIES The Office of Intake and Emergency Services (OIES), known simply as Intake, serves as the Territory’s first line of defense for children, vulnerable adults, and families in crisis. With statutory responsibility for responding to all reports of suspected child maltreatment as well as reported dysregulation and at-risk behavior of children, it is the gateway to the department’s array of child welfare services - from advocacy & referrals to Family Court intervention. DCFS is responsible for helping families at risk for separation due to child maltreatment, build capacity, to reduce that risk to zero if possible and for providing foster care and adoption services when separation is necessary. DCFS also recruits, trains and licenses Resource Families (foster and adoptive homes), and coordinates safe family reunification and other permanency options for children in care. DCFS operations and foster care services are supported by Title IV-B and Social Services Block Grant (SSBG). These grants help pay for personnel, training, maintenance and support services for children in care and administrative costs such as promotional and public education initiatives. Division of Children and Family Services (DCFS): Ensuring Safety, Permanency and Well-being Foster Care Payroll • St. Thomas: $10,100.47 (13 resource parents) • St. Croix: $7,588.75 (12 resource parents DCFS continues to face significant challenges recruiting and retaining resource families, especially on St. Croix, where the need for additional foster homes is greatest. The division also works closely with Nana Baby Children’s Home and similar partners to provide specialized placement and wraparound support. Office of Intake and Emergency Services(OIES or Intake): Frontline Crisis Response and Stabilization 11 Between October 1, 2024, and June 30, 2025, Intake received 139 reports, resulting in 155 investigations—a number that reflects both the volume and complexity of the situations encountered. These cases were categorized as follows: • 57 Protective Services cases • 51 Neglect cases, • 34 Physical Abuse cases, and • 13 Sexual Abuse cases. Intake also coordinates immediate support for families facing domestic emergencies, adults with disabilities, and seniors who have no one else to turn to. This is accomplished through a blend of federal Family Preservation grants (under the Social Services Block Grant) and locally funded Emergency Welfare Services, which together provide for emergency needs, crisis stabilization, and even final arrangements for indigent residents through cremation services. As of June 30, 2024, there were 7 children in foster care on St. Thomas, and 9 children in foster care plus 1 child under the Interstate Compact on the Placement of Children (ICPC) on St. Croix. The number of active resource families was 7 in St. Thomas and 2 in St. Croix. The General Fund covers some personnel costs, foster care maintenance payments, contractual payments for Nana Baby Children’s Home, and other administrative and operational costs. Local funds also support emergency placements, court-ordered services, and matching requirements for federal grants Whenever a child, family, or vulnerable adult is in imminent danger, Intake mobilizes resources— financial, legal, and social—to restore safety and stability. The team manages one-time grants to prevent homelessness, repatriation for non-residents in distress, and initiates court proceedings for children experiencing behavioral challenges or family breakdown DIVISION AND PROGRAM SUMMARIES Division of Intervention and Prevention Services (DIPS) - Creating Opportunities for Resilience, Rehabilitation and Restoration The Division of Intervention and Prevention Services (DIPS) continues to address the complex needs of at-risk youth, PINS (Persons in Need of Supervision), and adjudicated youth in both the St. Thomas/St. John and St. Croix districts. DIPS and YRC operations are supported primarily by the General Fund, with a combined FY2026 appropriation of $1,885,109. Supplemental support is provided through the Social Services Block Grant (SSBG), with an allocation of approximately $48,500. Between October 2024 and June 2025, DIPS served 121 youths—80 in St. Thomas/St. John and 41 in St. Croix—through a combination of investigations, court recommendations, treatment planning, oversight of alternative sentencing programs, and pre- and post-release support. Intervention services range from supporting youth who stay with their families to serving those placed at the Youth Rehabilitation Center (YRC), which is a central part of the division’s work. 0 20 40 60 80 100 Adjudicated At-Risk PINS Adjudicated At-Risk PINS 89 30 2 Of the youth served, 89 were adjudicated (75% in St. Thomas/St. John, 25% in St. Croix), 30 were identified as at-risk, and 2 were classified as Persons in Need of Supervision (PINS). A demographic and behavioral profile of these youth reveals the following trends: The average age for adjudicated males was 15.5 years; females, 15.9. For at-risk youth, males averaged 14.1 and females 15.5. • 30% had a history of alcohol or drug use • 67% came from single-parent households • 96% were living at home at the time of arrest or petition • 23% came from very low-income families • 56% were new to the Juvenile Justice System; 17% were repeat offenders • 3% were school dropouts at the time of arrest or petition • 13% required special education services, while 2% were diagnosed with a mental illness • 39% committed a violent offense; 26% committed crimes against property These statistics illustrate both the scope and complexity of the challenges facing DIPS, emphasizing the continued need for targeted intervention, supportive programming, and ongoing collaboration with the courts and community partners to redirect youth away from the justice system and toward rehabilitation and positive development. 12 DIVISION AND PROGRAM SUMMARIES The Office of Residential & Interstate Compact Affairs (ORICA) oversees the department’s largest locally funded service area, managing over $16 million in general fund expenditures to ensure safe, specialized placements for some of the most vulnerable Virgin Islanders—including children, adolescents and adults with developmental disabilities. Seventy-two clients are currently in residential placement (37 out-of-Territory; 35 locally), There are also currently 10 ICPC cases, and 3 ICJ cases being managed. The daily cost for care ranges from $125.00 to $1,011.17. Clients currently in placement range in age from 3 to 69 years old Residential Placement Data: DHS currently manages a continuum of residential placements for clients who require care outside of a traditional home environment. Of the 72 individuals served as of this reporting period, 37 are in out-of-territory placements and 35 are in local residential settings. The Local Residential Placements chart demonstrates the Department’s investment in in-territory care. Placements are distributed across group homes and specialized residences— including Anna’s Hope, Project Hope Outreach, the LSS Ginger Thomas and Yellow Cedar Residences, Queen Louise Home for Children, and Sister Emma Cottage. The Out-of-Territory Residential Placements chart shows that the largest share of clients are placed at Sunrise Community, Inc., which accounts for 28 individuals, including two senior citizens. Smaller numbers reside at Devereux Advanced Behavioral Health in Florida and the Judge Rotenberg Center, with no current placements at Woodward Academy. Office of Residential & Interstate Compact Affairs - Safeguarding the Territory’s Most Vulnerable Residents (ORICA) Long-term guardianship: DHS assumes permanent legal guardianship for residents whose conditions require lifetime care. They come into care and live in residential care for the duration of their lives. This substantial investment demonstrates the Territory’s unwavering commitment to ensuring quality care and protection for those unable to live safely in the community. The Department also continues to work towards introducing the proposed New Interstate Compact on the Placement of Children (ICPC) for ratification by the V.I. Legislature, to replace the existing Compact which was originally drafted in the 1960s. 13 DIVISION AND PROGRAM SUMMARIES The Division of Family Assistance (DFA) administers a comprehensive suite of safety net programs for the Territory’s low-income families, children, seniors, and vulnerable adults. These include the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), Aid to the Aged (AA), Aid to the Blind (AB), Aid to the Disabled (AD), General Assistance, and critical Energy Assistance programs, collectively forming the backbone of support for those most in need across the Virgin Islands. FY2026 Funding and Costs: General Fund: $450,753 (Personnel), $192,705 (Fringe) for program administration Federal Funds: $4,154,516 (Personnel), $2,274,047 (Fringe) for administration; $6,647,122 (Matching/State Admin grants for SNAP) Direct TANF and SNAP benefits are 100% federally funded (over $5 million monthly), while administrative costs are split between federal and local sources. The benefits and Jobs Program remain essential to food security and family stability for thousands of Virgin Islanders. Their administration is supported by a combination of federal and local funds, with direct benefits entirely federally funded. Division of Family Assistance: Comprehensive Support for Families, Seniors, and Vulnerable Adults Program Reach & Benefits (Oct. 1, 2024 – June 30, 2025): • SNAP: 24,638 recipients in 12,707 households; $49,654,388 in food benefits issued • TANF: 138 recipients in 50 households; $114,603 in cash assistance issued District Breakdown (SNAP): • St. Thomas/St. John: 11,504 recipients; $22,147,019 issued • • Christiansted: 11,074 recipients; $22,774,251 issued • • Frederiksted: 2,060 recipients; $4,733,118 issued DFA cash assistance programs reach hundreds of vulnerable residents each year. In FY2025, Aid to the Aged (AA) provided $410,865 in support to 291 recipients; Aid to the Blind (AB) served 23 recipients with $30,600; Aid to the Disabled (AD) delivered $683,252 to 485 recipients; and General Assistance (GA/GD) reached 98 individuals, issuing $122,046 in assistance. Our Energy Assistance programs (ECAP) issued $669,877 in electric payments to seniors and disabled clients, supporting a total of 4,307 cases (3,980 for seniors and 327 for disabled individuals). Of this total, $306,996 was disbursed in the St. Thomas/St. John district and $362,881 in St. Croix. SNAP and TANF both saw enrollment and benefit trends stabilize in FY2025 after the COVID-related surges. DFA continues to address challenges in staffing, certification backlogs, and timely benefit delivery. TANF’s new outcome-based compliance mandates will require even more intensive engagement with clients to support transitions to employment and education. Despite these hurdles, the division continues to expand partnerships, upgrade service delivery, and for the first time in a very long time, directly reach the St. John community with onsite eligibility support at the Cruz Bay Multipurpose Center. 14 DIVISION AND PROGRAM SUMMARIES Medicaid Assistance Program: The Backbone of Health Coverage in the Virgin Islands Medicaid remains the single most important health coverage program in the Virgin Islands, protecting the wellbeing of more than 20,000 residents—including children, seniors, and persons with disabilities. For FY2026, this program continues to anchor our healthcare system, ensuring access to critical medical services, supporting hospitals and clinics, and helping to stabilize families who would otherwise be left uninsured. For FY2026, the Medicaid operational budget includes $3,517,915 from the General Fund and $19,190,338 in federal funds, for a total of $22,708,253 supporting personnel, fringe, supplies, other services, and capital outlay. Federal Medical Assistance Percentages (FMAP) by Program: The Federal Medical Assistance Percentage (FMAP) determines the share of Medicaid program costs paid by the federal government versus the local government. In the U.S. Virgin Islands, the FMAP is especially significant: for most Medicaid services, the federal government covers 83% of costs, with the Territory responsible for 17%. For the Adult Group, the federal share rises to 90%. CHIP is matched at 85% federal, 15% local. This high federal match allows the Virgin Islands to serve thousands of residents who would otherwise go without coverage, but it also means that any local shortfall in meeting the required match could jeopardize federal funding and, by extension, critical healthcare services. Budget Neutrality Federal cost-sharing percentages are designed to keep the program “budget neutral”—meaning the federal government provides a capped share of funding, and the Territory is required to cover all remaining costs, including any increases in enrollment, service demand, or program expansion. This structure ensures that Medicaid remains within the Territory’s fiscal capacity, but it also means any shortfall in the local match could jeopardize continued federal support. MAP Enrollment & Eligibility (FY2026): As of FY2026, Medicaid enrollment stands at 20,202 individuals, a slight decrease from 20,302 at the start of the year. There are currently 1,699 pending applications awaiting processing, underscoring the continued demand for services and the need for ongoing administrative capacity. The number of residents accessing immediate coverage through presumptive eligibility has declined, revealing an opportunity for the Department to strengthen outreach and streamline the enrollment process, particularly for those facing urgent medical needs. 15 DIVISION AND PROGRAM SUMMARIES Frederiksted Health Care: (4163324) Juan F. Luis Hospital & ESRD (4847116) Schneider Regional Medical Center & Myrah Keating Smith (7448709) St. Thomas East End Medical Center (1634221) In FY2025, the Department of Human Services made significant Medicaid payments to key healthcare providers across the Territory, including $7.45 million to Schneider Regional Medical Center and Myrah Keating Smith Community Hospital, $4.85 million to Juan F. Luis Hospital and its ESRD program, $4.16 million to Frederiksted Health Care, and $1.63 million to St. Thomas East End Medical Center. MAP Provider Network & Service Delivery: The Medicaid program maintains a robust network of 1,085 enrolled providers across the Territory, including hospitals, clinics, specialists, federally qualified health centers (FQHCs), and personal care attendants (PCAs). In FY2025, the Personal Care Attendant (PCA) Program served 66 members, with 833 claims processed and a total of $710,447.97 paid out for services, reflecting both the scope of the provider network and the critical support delivered to beneficiaries through this program. Medicaid remains a lifeline for the Virgin Islands, but our ability to maintain this program depends on continued investment, effective administration, and unwavering support from both local and federal partners. FY2026 will be a pivotal year as we navigate challenges and seize opportunities to strengthen healthcare for all our residents. 16 DIVISION AND PROGRAM SUMMARIES Senior Citizens Affairs: Ensuring Care, Dignity, and Nutrition for Our Elders The Senior Citizens Affairs division is dedicated to supporting the territory’s older adults through residential care, transitional support, and critical nutrition programs that help seniors maintain independence and quality of life. For Fiscal Year 2026, the Department of Human Services has allocated more than $8.5 million in local General Fund support and an estimated $6.2 million in federal grants to sustain its core Senior Citizens Affairs programs—including Herbert Grigg and Queen Louise Homes for the Aged, and Meals on Wheels. Local funding covers the majority of personnel and fringe benefits for direct care staff, facility operations, utilities, maintenance, and specialized appropriations such as Centennial Living Treasures and Energy Crisis Assistance. On the federal side, Title III Older Americans Act funds, and the Social Services Block Grant (SSBG) provide critical support for operations, resident services, nutrition programs, and a select portion of administrative costs. In addition, both Herbert Grigg and Queen Louise are benefiting from more than $333 million in FEMA Public Assistance for ongoing reconstruction and modernization. Herbert Grigg Home for the Aged (St. Croix) Herbert Grigg Home continues to provide 24-hour residential care for up to 26 residents, offering daily meals, personal care, nursing, and social support. The facility is preparing for a major FEMA-funded redevelopment to expand capacity, improve infrastructure, and ensure a storm-resilient, modern environment for elder care. The expansion is a crucial response to long-standing waitlists and growing demand for a CMS-certified long-term care nursing beds on St. Croix. • Number of Residents: 22 • Location: STX • Facilities: Herbert Grigg Home • Cost: $5,000 per month per resident ($2,100,000 per annum) • Most residents are not able to pay the full amount of cost of care. • Type of Residence: (24 hrs.) Queen Louise Home for the Aged (St. Thomas) Queen Louise Home currently accommodates up to 16 residents maximum in a supportive environment. In FY2026, residents are being temporarily relocated to the Palms Court Harborview Hotel as the original facility undergoes a comprehensive rehabilitation and modernization—another FEMA-supported capital project. This transition ensures continuity of care and resident safety while positioning Queen Louise for a stronger future as a CMS-certified long-term care provider. • Number of Residents: 14 • Location: STT • Facilities: Queen Louise Home • Cost: $5,000 per month per resident ($2,100,000 per annum) • Most residents are not able to pay the full amount of cost of care. (see attached) • Type of Residence: (24 hrs.) 17 DIVISION AND PROGRAM SUMMARIES The Department manages placements for elderly and disabled individuals who remain in hospital beds at Juan Luis Hospital or Schneider Regional Medical Center due to a lack of appropriate post-acute care placements. As of June 2025, there were 5 boarders at Juan Luis Hospital and 13 at Schneider Hospital. In addition, six DHS clients are placed at Casa de Salud in Puerto Rico, and ten Medicaid clients are currently at Pines Nursing Home in Miami, Florida—receiving essential skilled nursing care that cannot yet be provided locally. These arrangements underscore the critical need for expanded long-term care options within the Territory. Inter-Agency Boarder Support Nutrition Program (Meals on Wheels) DHS’s Nutrition Program, including Meals on Wheels, delivers daily meals to seniors at home and at senior centers, supporting health, independence, and social engagement. As of June 2025, the program served: • St. Croix: 300 home-delivered meals and 38 congregate meals (Richmond Senior Center) • St. Thomas: 381 home-delivered meals and 35 congregate meals (STRIVE Senior Center) • St. John: 12 home-delivered meals and 64 congregate meals (Adrian Senior Center/Episcopal) The Homemakers Program helps seniors and adults with disabilities maintain their independence by providing in-home assistance with daily living tasks, such as housekeeping, meal preparation, and personal care. As of June 2025, the program served 58 clients on St. Croix (with 6 staff 2 SCSEP), 67 clients on St. Thomas (8 staff 2 SCSEP), and 7 clients on St. John (1 staff). Clients typically receive services two to four times per week, allowing them to safely remain in their homes and communities. The program is funded through a combination of General Fund appropriations (personnel, fringe, and operational costs) captured within the Elderly Social Services budget lines, along with federal Social Services Block Grant (SSBG) support. Meals are provided through partnerships with local vendors and community organizations, ensuring no senior goes hungry or isolated. Homemakers Program Senior centers promote socialization, recreation, and wellness for older adults throughout the territory, serving 60 seniors at the Richmond Senior Center on St. Croix, 48 at the STRIVE Senior Center on St. Thomas, and 18 at the Adrian Senior Center on St. John. These centers are thriving community hubs that offer far more than just daily meals—they provide safe spaces for social connection, exercise, health education, cultural programming, and lifelong learning. Senior Centers • General Fund: $235,934 (Personnel), $146,845 (Fringe), $20,900 (Other Services) under Senior Citizens Affairs (Socio-Recreation) • Federal Funds: Title III, Social Services Block Grant, National Family Caregivers Support Program FY2026 Funding and Costs: APS investigates and intervenes in cases of elder and vulnerable adult abuse, neglect, or exploitation. As of June 2025, the active caseload includes 118 clients (ages 18–59) and 143 clients (ages 60+) on St. Croix, and 62 clients (ages 18–69) and 132 clients (ages 60+) on St. Thomas/St. John. For FY2026, APS operations are supported by approximately $350,000 in personnel costs and $176,600 in fringe (both within Elderly Protective Services lines) from the General Fund, along with federal funds from the Elder Justice Act and Social Services Block Grant. The Adult Protective Services (APS) program currently oversees the placement of six residents in an off-island facility at Casa de Salud in Puerto Rico. APS is fiscally responsible only for these residents, with the cost of care set at $165 per person, per day—amounting to $60,225 annually for each individual. This brings the total annual cost for all six residents to $361,350. Adult Protective Services (APS) 18 DIVISION AND PROGRAM SUMMARIES SCSEP provides part-time employment and job training opportunities for low-income seniors, with 22 enrollees on St. Croix and 35 on St. Thomas. In FY2026, funding for SCSEP includes $58,109 in personnel and $18,265 in fringe from the General Fund, as well as $792,946 in personnel and $127,677 in fringe from federal sources. Senior Community Service Employment Program (SCSEP) Prescription Assistance Program (PAP) The Prescription Assistance Program helps low-income seniors afford essential medications, serving 166 clients on St. Croix and 118 on St. Thomas. PAP is primarily funded by $3,170,000 from the Pharmacy Assist to Aged Fund, with additional support from the General Fund covering $479,281 in personnel and $270,325 in fringe costs. Federal program support varies annually based on enrollment and available grants. Office of Legal Counsel The Office of Legal Counsel continues to provide essential support to the Department of Human Services (DHS) on all legal, contractual, and compliance matters. Throughout FY2025, the division played a central role in maintaining program integrity, strengthening interagency partnerships, and advancing initiatives to protect vulnerable residents. Evidentiary Hearings and Program Integrity: The legal division has managed multiple evidentiary hearings on allegations of Medicaid and Medicare billing fraud by medical practices. These cases have led to the suspension of payments and the issuance of formal administrative decisions, reinforcing DHS’s commitment to upholding program integrity and fiscal responsibility. Interagency Collaboration and MOUs: The office has developed and reviewed several Memoranda of Understanding (MOUs), including agreements with the Departments of Health and Education to allow use of Queen Louise Home and Schulterbrandt Nursing Home as clinical training sites for certified nursing students. Other MOUs cover health data sharing, SNAP fraud prosecution, and expanding disability and vocational rehabilitation provider networks. Contract and Provider Agreement Oversight: Legal Counsel reviews all provider contracts, lease agreements, and renewals to ensure legal sufficiency and compliance before submission to the Department of Property and Procurement (DPP). Notably, this year our collaborative efforts saw the successful execution of major lease agreements for new DHS office spaces at Havensight and Tutu Park Mall. Grant Application & Program Development: The division actively supports grant writing and program development. Most recently, legal counsel worked on the grant application for the Criminal Victims Compensation Program, which, if awarded, will fund dedicated staff and enhance services for victims. Criminal Victims Compensation Program: The CVC Commission has approved approximately 19 applicants for FY2025. The total amount of payments approved for these individuals is approximately $68, 000 There are still three cases that have been heard by the Commission but are pending documents for approval , The legal division continues to address a backlog of Victims Compensation cases, driven by increased filings and incomplete documentation from applicants. To resolve these challenges, DHS is implementing strategies such as monthly Commission meetings and more proactive applicant follow-up. The department remains committed to reducing the backlog and improving program accessibility in the coming year, ensuring that available funding reaches eligible victims as efficiently as possible. 19 DIVISION AND PROGRAM SUMMARIES Management Information Systems (MIS) The Management Information Systems (MIS) Unit oversees all DHS technology—managing network security, hardware and software, and IT support—to ensure secure, efficient operations in all our offices and facilities. FY2025 was a defining year for MIS, with the team responding rapidly to a major cybersecurity incident and strengthening protections for sensitive data in partnership with the Bureau of Information Technology (BIT). Looking ahead to FY2026, a significant challenge will be managing the ongoing relocation of multiple DHS offices—moving, reinstalling, and configuring IT infrastructure across new sites or major transitions such as the relocation of Knud Hansen staff to Havensight Mall and Tutu Park on St. Thomas, as well office relocations on St. Croix. MIS has already completed IT installation and configuration at the St John Multipurpose Center to support staff and select agency programs at the site FY2026 Funding and Costs: MIS activities are supported primarily through the General Fund’s Administration category, which covers personnel, hardware, software licenses, and contracted services. For FY2026, our MIS operations are supported by approximately $379,000 from the General Fund, which covers personnel costs at $183,953, fringe benefits at $71,275, supplies and services—including hardware, software, security upgrades, and licensing—at $137,500, and other services at $95,000. MIS will continue to improve the security posture by providing cybersecurity education, investing in security appliances and monitoring its environment. The Division will soon make upgrades to our telephone systems in an effort to centralize communications territorially which will improve call handling capabilities, enhance security and recognize potential cost savings. Operations & Facility Management The Department of Human Services’ Operations & Facility Management division is responsible for the daily functioning, maintenance, and security of all DHS buildings, vehicles, and physical assets territory wide. This includes oversight of both leased and owned facilities, vehicle fleet management, major repairs, capital improvement projects, disaster recovery repairs, safety and ADA compliance, as well as logistical support for core programs such as senior nutrition and residential care. Funding Overview Operations & Facility Management activities for Fiscal Year 2026 are supported through a combination of local and federal funding sources: The primary funding stream, supporting personnel (maintenance, custodial, supervisory), fringe benefits, routine and major facility repairs, lease payments, vehicle operations (fuel, insurance, maintenance), supplies, and compliance-related projects. Select federal grants supplement local funding for capital improvements and disaster recovery. FEMA Public Assistance funds major disaster-related repairs and reconstruction at key sites such as Herbert Grigg Home, Queen Louise Home, and the Knud Hansen Complex. The CDBG-DR program provides local match for capital and recovery projects, while Older Americans Act grants and the Senior Citizens Center Fund help maintain and upgrade senior centers and program spaces. 20 FY2026 stands as a turning point for DHS Operations - disaster recovery and infrastructure modernization portfolio, with several major “prudent replacement” (full rebuild) projects advancing through critical design, procurement, and pre-construction phases across all three islands. With more than $333 million in FEMA Public Assistance obligations, these efforts represent some of the largest capital investments in the history of DHS and the Virgin Islands. Disaster Recovery & Infrastructure Projects: FY2026 Status & Timelines DIVISION AND PROGRAM SUMMARIES Queen Louise Home for the Aged: Full replacement and modernization are underway, with a qualified contractor, leading planning and regulatory steps. The project is advancing as part of the broader Rebuild USVI initiative, with construction mobilization set for the next phase. Knud Hansen Complex: This full replacement project—DHS’s main St. Thomas hub—remains on track, with the project team progressing through design and compliance milestones. Design activities are moving forward in coordination with the Department of Health (DOH). Herbert Grigg Home for the Aged: The prudent replacement and redevelopment of this long-term care nursing facility is currently in the technical design phase. A qualified contractor is in place, and the project is preparing to move into design phases. Palms Court Harborview Hotel Relocation: DHS is preparing for the upcoming temporary relocation of Queen Louise Home residents to the Palms Court Harborview Hotel. This transition, funded by FEMA Public Assistance, is essential to ensure the safety, comfort, and continuity of care for residents while major repairs and construction are underway. St. John Multipurpose Center-is also preparing for the upcoming remediation of Cruz Bay Multipurpose Center. FEMA has awarded $2.5M to DHS, in the interim while the designs are being completed; plans are being put in place to move staff into temporary modular offices while remediation takes place. Project Highlights: Additional capital efforts include preparation of temporary leased facilities to maintain operations during construction (Knud Hansen, St. Thomas). DHS continues to work closely with the Office of Disaster Recovery, FEMA, Rebuild USVI Super PMO, and other key partners to align our projects with federal reimbursement guidelines, address architectural and procurement hurdles, and ensure that construction timelines are met. As our work progresses, we remain committed to providing safe, storm-resilient, and service-forward facilities for clients and staff. Emergency Support Function #6 (ESF-6): Mass Care & Human Services DHS serves as the lead agency for ESF-6 in the Virgin Islands, responsible for mass care, emergency sheltering, and the coordination of disaster feeding and assistance for vulnerable populations. This mandate requires DHS to mobilize staff, open shelters, manage the Senior Disaster Registry, and distribute emergency commodities across the territory—often on short notice and during the most critical times. ESF-6 has played a pivotal role in strengthening the Territory’s capacity to prepare for, respond to, and recover from disasters over the past year. From October2024 to June 2025, DHS led a series of preparedness, training, and operational activities in close coordination with VITEMA, FEMA, the American Red Cross, and other partner agencies. 21 At the heart of this capital transformation are three flagship projects: • Knud Hansen Complex rebuild — $128 million • Queen Louise Home for the Aged — $73 million • Herbert Grigg Home for the Aged — $131 million DIVISION AND PROGRAM SUMMARIES Training & Preparedness: • October 2024: E-PULSE refresher training provided. Facility Readiness: • January–February 2025: Shelter inspections conducted on St. John, St. Thomas, Water Island, and St. Croix, including Bertha C. Boschulte Middle School. Regional & National Collaboration: • April 2025: DHS participated in the National Hurricane Conference, strengthening best practices in mass care. Major Exercises: • June 2025: DHS took part in the Capstone Event with FEMA and VITEMA, testing GVI’s core capabilities in individual assistance, disaster recovery, shelter operations, and distribution points. Public Awareness & Technology: • June 2025: DHS Commissioner launches public hurricane preparedness media campaign. FY2025 Mass Care in Review Highlights: As we close, I want to extend our deepest thanks and appreciation to the exceptional women and men of the Virgin Islands Department of Human Services. It is our employees—across every division and at every level—who work tirelessly and often behind the scenes to ensure that our programs function and our most vulnerable residents are cared for. Our gratitude also goes out to our dedicated support staff, the many volunteers who step up in moments of need, and our agency and community partners whose collaboration makes our work possible. We are especially grateful for the unwavering support of the Bryan-Roach Administration and the guidance of 36th Legislature of the Virgin Islands. Above all, we give thanks to God for carrying us through another demanding year and granting us the strength and wisdom to serve. The past year has been one of extraordinary pressure and constant adaptation. We have managed budget reductions, shifting federal requirements, and operational obstacles while never losing sight of our purpose: to provide a safety net for children, seniors, families, and individuals facing hardship. The programs and services discussed here today are not just numbers on a page—they are lifelines for thousands across our Territory. Our responsibility is great, and the consequences of falling short are even greater. The Department of Human Services is, and always will be, at the heart of the Virgin Islands’ social infrastructure. Every dollar appropriated, every policy decided, and every day’s work contributes to the resilience and dignity of our community. We stand ready to adapt, to advocate, and to deliver— whatever the future brings. Thank you for your continued support, your trust, and your partnership. We now welcome your questions and look forward to working together to protect and uplift the people of the Virgin Islands. Conclusion DHS on June 17-18, 2025, also coordinated a hybrid PULSE training, with over 60 attendees across multiple agencies. PULSE technology is critical for tracking shelter residents and evacuees during emergencies. 22