Youngkin Announces Proposal of $127 Million Investment to Establish the Disaster Assistance Fund and Deliver Targeted Support for Communities

RICHMOND, VA – Governor Glenn Youngkin today proposed a $127 million investment to establish the Disaster Assistance Fund at the Virginia Department of Housing and Community Development (DHCD). This one-time funding will address critical recovery needs by leveraging existing resources to fill gaps left by federal and private recovery efforts, providing targeted support to rebuild communities.

The Disaster Assistance Fund will support life, safety, and housing-related recovery efforts for costs not covered by federal assistance, private donations, or insurance. Distributions from the Fund would be appropriated by specific legislation. Relief to Southwest Virginia from the lasting devastation of Hurricane Helene will be enacted by legislation during the 2025 Virginia General Assembly Session.

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Breakdown of the $127 Million Investment:

• $25 Million from the General Fund

• $102 Million from the Regional Greenhouse Gas Initiative (RGGI) 2023 Final Payment and Interest

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“Our fellow Virginians have suffered an unimaginable impact from Hurricane Helene. As we continue to work with our federal, state, and local partners on the path to recovery and rebuilding, the creation of the Disaster Assistance Fund is a critical step toward ensuring the Commonwealth has a reserve fund in place to address unmet needs where they exist in our communities in the wake of natural disasters,” said Governor Glenn Youngkin. “Our commitment to support Virginians in times of desperate need is unwavering. Together, we will recover, rebuild, and grow stronger.”

Hurricane Helene caused unprecedented damage across Southwest Virginia, with 36 localities heavily impacted. Key statistics underscore the scale of devastation:

• Over 310,000 Virginians lost power due to severe damage to electric distribution infrastructure.

• 484 primary and secondary roads and 118 bridges were closed.

• Nearly 10,000 applications for Individual Assistance and 3,000 home inspection requests have been filed with FEMA.

• Agriculture suffered $630 million in direct and future financial impacts, affecting nearly 3,700 farms.

• Tourism was heavily disrupted, including catastrophic damage to the Virginia Creeper Trail, a critical economic driver in the region.

Yesterday, Congress introduced a disaster supplemental bill containing over $100 billion in disaster relief funding for FEMA, HUD, SBA, USDA and other agencies for recovery and rebuilding after the storm. If approved, these agencies would then deploy capital through grants and loans to states and localities for approved rebuilding and resiliency projects. Portions of this federal funding come with the requirement that both a state and locality must match as much as 25% of the project cost. The creation of this important vehicle would allow the Commonwealth to provide for the state match requirements and support the localities by providing access to funding in line with the required local match as well.

“The devastation caused by Hurricane Helene has left communities with a wide range of challenges,” said Chief Transformation Officer Robert Ward. “Establishing the Disaster Assistance Fund represents more than a financial commitment; it’s a pivotal step toward restoring lives and livelihoods.”

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“When disaster strikes communities, the Disaster Assistance Fund will enable state government to respond and supplement life, safety and housing costs not covered by federal assistance, insurance, or private donations so those localities are not left behind,” said Director of Virginia Department of Housing and Community Development Bryan Horn. “Our Department stands ready to act and deliver.”

In 2022, with the support and leadership of Governor Youngkin, the Department of Housing and Community Development stood up a first-of-its-kind initiative in Virginia when it established the Hurley Flood Relief Program with $11 million from the General Assembly to provide aid to the victims of the 2021 flood in Buchanan County. To date, the Department has provided relief to roughly 140 households and businesses in the community of Hurley, with over $9.1 million in relief assistance.

Virginia did it again when the Department set up the Whitewood/Bandy Flood Program to provide aid to the victims of the 2022 flood that struck Buchanan and Tazewell Counties. To date, the Department has provided or approved relief to approximately 90 households and businesses in the communities of Whitewood and Bandy, with over $5.2 million in relief assistance.

These programs provide relief to Virginia residents who lost or suffered physical damage to their real estate – both homes and businesses – as a result of the floods. Depending upon the type of damage, the programs supply replacement costs or repair costs. More information on these programs may be found on the DHCD website, https://www.dhcd.virginia.gov/.