Richmond outlines plan to manage shutdown impacts

(The Center Square) – Richmond officials have released a new report detailing how the city is preparing for possible funding delays caused by the ongoing federal government shutdown.

The city’s October report, Resilient Richmond, outlines how a prolonged shutdown could temporarily delay millions in federal reimbursements across key departments. Officials say they are tracking reimbursement timelines and communicating with federal grant offices to keep essential programs running.

The report shows Richmond could see delays of about $16.3 million for social services, $11.4 million for housing and community development, and $63.7 million for public utilities if the shutdown continues. City officials said those amounts show where the city could face temporary funding gaps if the shutdown drags on.

Mayor Danny Avula said in the report that city staff are staying in close contact with department heads and state agencies to make sure programs continue operating smoothly.

The city depends heavily on federal support for food, housing, and energy assistance. The Department of Social Services serves more than 54,000 Richmond residents through SNAP and about 3,000 families through TANF, two federal programs that help low-income households afford food and basic needs.

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Avula noted in the letter that Richmond residents received nearly $90 million in federally funded food and assistance benefits last year through those programs.

The report says roughly 12% of city jobs rely in some way on federal funding. Most departments have short-term plans in place to keep staff paid and services running, but officials said longer shutdowns could make that harder to manage.

Richmond’s plan includes a 60-day backup plan for finances, daily tracking of reimbursements, and a funding task force that meets regularly to make sure payroll and other essential services continue without interruption.

Richmond’s analysis estimates that a one-month shutdown could delay about $2 million in federal reimbursements, while a six-month shutdown could push that number to $12 million.

As previously reported by The Center Square, Gov. Glenn Youngkin declared a state of emergency on Oct. 23 to allow Virginia to use emergency funds to maintain food benefits while Congress negotiates a funding deal.

State data show how large that need is. The Virginia Department of Social Services reported that about 854,169 Virginians received SNAP benefits in September 2025, including 741,171 households, 365,594 adults, and 439,865 children across the Commonwealth.

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Earlier this month, the U.S. Department of Agriculture asked states to hold off on sending out November benefits until Congress reaches a funding agreement.

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