
More than $116M Richmond stands to get in federal funding could be in flux, officials say
Richmond stands to lose more than $116 million in federal funding depending on how things shake out with President Donald Trump’s disputed plans to freeze or end a variety of federal programs and grants, city officials said Wednesday.
Of about $294.4 million the city expects to get in “active or anticipated federal financial assistance,” roughly $116.5 million could be impacted, according to a city memo.
The money is mostly one-time grant funding spread across several budget years.
The memo from the city’s Office of Intergovernmental Affairs includes several caveats about the uncertainty surrounding the situation and says the city has not yet seen “direct disruptions” to federal funding as a result of the Trump administration’s actions.
Officials were clear that the actual impact is unknown, partly because Trump’s funding freeze is currently tied up in court. But the analysis is part of the city’s efforts to prepare for what could happen by taking a closer look at what kind of federal funding the city gets.
“There is a lot going on right now with the federal government. We are trying to keep track of it,” Director of Intergovernmental Affairs Maggie Anderson said.
Anderson presented her analysis to the City Council’s Finance and Economic Development Committee Wednesday afternoon.
“There’s some really big numbers here,” Councilor Stephanie Lynch (5th District) said after looking at the financial breakdown Anderson provided.
Nearly a dozen city departments could be impacted, but three stand out as facing particular uncertainty, Anderson said.
The Department of Public Utilities could potentially lose almost $64 million in funding meant to help upgrade the city’s natural gas infrastructure. However, Anderson said infrastructure funding appears less likely to be a major target for the Trump administration than other federal programs.
Funding related to housing and social services is more at risk, she said. The city’s Department of Housing and Community Development could lose about $11.4 million, while the Department of Social Services has almost $16.3 million in limbo.
In housing and social services, the federal funding covers core services like SNAP food assistance, block grants for affordable housing and community development and programs meant to promote the welfare of children and families.
“A lot of times we spend the money and have to be reimbursed by the federal government,” Anderson said, explaining that the city is continuing all work that could be impacted by future federal action.
Councilor Ellen Robertson (6th District) said she was concerned that could leave the city on the hook if the federal funding doesn’t come through. But she said she recognized that the lack of clarity about what’s happening in D.C. doesn’t leave Richmond with many options apart from trying to prepare for whatever the new Trump administration might do.
“Four years in government is a short period of time,” Robertson said. “It could be devastating. But we’re going to get past this four years.”