Federal government cancels $12 million grant scheduled for Richmond water plant

Federal government cancels $12 million grant scheduled for Richmond water plant

Richmond will not receive $12 million in grant money previously approved by the federal government, which was earmarked for the city's water treatment plant.

The grant, titled “Feeder Channel Retaining Wall Restoration and Pre-Sedimentation Berm Improvement,” had been approved and scheduled for payout, but FEMA told localities in a Friday email that all money not distributed has been canceled, as well as future funding opportunities.

"Any project not awarded from previous BRIC grant cycles has been canceled," the email said. "FEMA is now reassessing how grant funds can better align with the new Administration’s priorities. This shift aims to ensure that grants support disaster planning, response, and recovery efforts for states and local communities in a more effective and efficient manner."

The grant was in the works before a January outage at the water treatment plant triggered a nearly weeklong outage for the city and surrounding residents.

In a statement, Mayor Danny Avula said the denial of the grant will not impact immediate operations at the plant, or the work being done to bounce back from the crisis.

He said he was "disappointed" in the decision.

"By cutting funding for critical infrastructure, the federal government is shifting significant costs directly onto our residents and ratepayers," Avula wrote. "I urge FEMA to reissue these funds, and I will work with our federal reps to advocate for our residents."

Sen. Mark Warner called the decision "unbelievable" in a Friday night tweet.