Conduent State & Local Solutions Inc, a subsidiary of Conduent Incorporated (Nasdaq: CNDT), has secured a landmark contract with the Virginia Department of Medical Assistance Services. The agreement, announced August 6, 2026, extends the company’s 25-year relationship with Virginia Medicaid and positions it to modernize one of the largest health program systems in the Commonwealth.
A 14-Year Commitment to Virginia Medicaid
The new contract spans up to 14 years and builds on a partnership that began in 2001. Virginia’s Department of Medical Assistance Services, commonly known as DMAS, selected Conduent State & Local Solutions Inc to continue operating and modernize the Commonwealth’s Medicaid Enterprise Systems and Fiscal Agent Services Solution.
The deal structure includes a two-year design and implementation phase. A six-year base term follows, with six additional one-year renewal options built into the agreement. This structure gives Virginia flexibility while giving Conduent a long runway to execute its modernization roadmap.
Approximately 1.6 million Virginians rely on Medicaid coverage. The scale of this contract reflects how deeply embedded Conduent’s technology has become in the state’s health infrastructure.
What the Modernization Effort Involves
Conduent will deploy its modular Conduent Medicaid Suite, often referred to internally as CMdS, to overhaul Virginia’s claims processing, finance operations, call center services, and reporting functions. This is not a simple system refresh. DMAS officials say the transition toward an integrated, dynamic platform will improve staff access to information and reduce fraud exposure across the program.
Providers and members should also see tangible improvements. Enhanced user experiences are expected to support better health outcomes across the Medicaid population, according to details shared by Conduent.
CXNow Platform Adds AI-Driven Customer Service
Beyond the core modernization work, Conduent will roll out its cloud-based CXNow platform under this contract. CXNow is a Customer Experience-as-a-Service solution already used by government agencies and commercial clients nationwide.
The platform leans on artificial intelligence, automation, and analytics to streamline how members and providers interact with Medicaid services. Phone and chat channels will both benefit from this integration. Self-service options will expand, giving Virginians more ways to manage their benefits without waiting on hold or visiting an office.
For the Commonwealth, these enhancements are expected to translate into meaningful cost savings alongside improved operational efficiency. Government technology observers have described the award as more than a routine renewal, framing it instead as a live test of Conduent’s AI-driven transformation capabilities in a large public-sector environment.
Mail Services Remain Part of the Scope
The contract also retains an operational detail that often goes unnoticed. Conduent State & Local Solutions Inc will continue managing incoming and outgoing mail services that support the Medicaid program. This continuity ensures no disruption to correspondence between DMAS, providers, and program participants during the transition period.
A Long History Rooted in Government Services
Conduent State & Local Solutions Inc traces its origins to Xerox State and Local Solutions, a business founded in 1963. The company later became part of Conduent Incorporated when Conduent spun off from Xerox in 2017. Its main office operates out of Richardson, Texas, and it is classified under the professional, scientific, and technical services sector.
This entity is best known nationally for administering Electronic Benefit Transfer, or EBT, systems for state agencies. States including Ohio, New Jersey, Tennessee, and others have relied on Conduent State & Local Solutions Inc to issue and manage EBT cards tied to SNAP and TANF benefits.
Ohio’s Department of Administrative Services, for example, awarded the company an EBT and Electronic Payment Card systems contract that can extend through June 2033. Conduent has served as Ohio’s EBT vendor since 2014.
Parent Company Context: A Period of Strategic Change
The Virginia Medicaid win arrives during an active stretch for Conduent Incorporated as a whole. The parent company reported second-quarter 2026 revenue of $531 million from continuing operations. Adjusted EBITDA from continuing operations came in at $16 million for the quarter.
Conduent has also been actively reshaping its business portfolio in 2026. The company signed divestitures expected to generate $234 million in gross proceeds. This includes an agreement announced June 30, 2026, to sell its tolling business to Quarterhill Inc for $70 million, with Conduent also receiving a 7% equity interest in Quarterhill. That deal followed a separate agreement to sell the company’s public transit business.
These moves suggest Conduent is sharpening its focus toward government services and health-related technology platforms, the exact space where Conduent State & Local Solutions Inc operates.
Recognition Within the GovTech Sector
Conduent’s government-facing work has earned continued industry recognition. The company was named to the 2026 GovTech 100 list, compiled by Government Technology magazine, marking the fifth consecutive year it has appeared on that roster. The list highlights companies helping government agencies improve service delivery and support better decision-making.
Separately, Conduent was named a Leader in the 2026 NelsonHall Benefits Administration NEAT Evaluation for the ninth year running, reinforcing its standing across both government and commercial benefits administration work.
Financial Reporting Calendar
Conduent Incorporated reported its second-quarter 2026 financial results on August 10, 2026. Investors and industry watchers tracking Conduent State & Local Solutions Inc as part of the broader Conduent government portfolio can expect continued updates through the company’s investor relations channel as the Virginia implementation phase progresses.
Why This Matters for U.S. Government Technology Contracts
Large-scale Medicaid modernization projects rarely happen quickly, and the Virginia award shows how deeply state agencies now expect AI and automation to be part of any new contract. Conduent State & Local Solutions Inc built its reputation managing benefit distribution systems that millions of Americans depend on every month.
This Virginia contract signals that government agencies are willing to extend decades-long vendor relationships when a company can demonstrate a credible modernization plan. With 1.6 million Medicaid members counting on reliable service, the execution of this 14-year agreement will be closely watched across the government technology sector.
What stands out most about this Virginia Medicaid deal? Share your thoughts in the comments and check back for continuing coverage of Conduent State & Local Solutions Inc.