Dozens of community projects halted after federal funding was omitted from Congressional stop-gap spending bill

Tens of millions of federal dollars for community projects will not be sent to Southwest and Southside Virginia, or anywhere in the state for that matter, this year.
Congress passed a continuing resolution in mid-March to fund the government through September and avoid a shutdown, the third such measure in fiscal year 2025. That action will round out a full 12 months of federal funding through stop-gap measures for the fiscal year.
Federal funding that was negotiated in the House and Senate appropriations committees in 2024 for dozens of community infrastructure projects in Southwest and Southside Virginia was halted as a result. Those earmarks could have been included in a federal spending bill if Congress had adopted a budget for the 2025 fiscal year.
“It is definitely disappointing,” said Lydeana Martin, the community and economic development director for Floyd County. The county had applied for federal money to help extend public utilities to undeveloped land just outside the Floyd town limits to enable more affordable housing to be built there. The county had applied for $1.5 million in federal money.
“It’s very, very difficult to develop sites and housing that local workers can afford, especially because of our terrain in Floyd and the overall cost of land and development in Floyd,” Martin said.
From $2 million that would have gone towards upgrades to the drinking water treatment facility in the town of Pound, to $1.6 million that would have gone towards revitalizing a blighted structure into a mixed-use community-focused facility in Danville, to $2.5 million that would have gone toward construction of a health care facility to serve Lexington, Buena Vista and Rockbridge County, many localities and organizations are left wondering how to foot the bill for projects meant to improve their communities.
A rundown of the different projects
Dozens of localities and organizations across Southwest and Southside Virginia applied to receive federal funding for community projects.
Some of the projects with higher price tags include:
- $7 million requested for Virginia Coalfields Expressway Authority, for the phase II paving project of Corridor Q, U.S. 460 Connector.
- $5.5 million for Roanoke County to expand and pave the parking lot at McAfee Knob and to add restrooms, a shuttle stop and National Park Service signage.
- $4.7 million requested for New River Valley Emergency Communications Regional Authority for their Interoperable P25 Public Safety Communications System Project.
- $3 million requested for the Craig County Emergency Communications Project.
- $2.75 million requested for the Town of St. Paul, safety building improvements.
- $2.5 million for the city of Lexington, the city of Buena Vista and Rockbridge County to construct a health facility to serve the region.
- $2.1 million for Goodwill Industries of the Valleys to develop a free public high school in Roanoke that provides adults with the opportunity to earn a high school diploma, access higher education and receive wraparound services such as food and child care support.
- $2 million for the Wise County Public Service Authority to upgrade drinking water infrastructure in Pound.
- $2 million requested for a multipurpose facility in Pennington Gap.
- $2 million requested for Virginia Tech to enhance nuclear reactor testing and safety.
- $1.8 million for Dickenson County to support communication infrastructure between first responders.
- $1.6 million for Danville to revitalize a blighted structure into a mixed-use, community-focused facility with housing and an educational center.
- $1.5 million for the Economic Development Authority of Floyd County to extend public utilities to an undeveloped area for affordable housing.
- $1.1 million for the Roanoke Regional Airport Commission to extend the airport’s runway.
- $1 million to help small businesses within Roanoke’s health and life sciences sector access specialized biotech equipment.
- $772,000 for the Martinsville-Henry County Coalition for Health and Wellness to expand access to medical, dental, and behavioral health services in Patrick County.
- $683,000 for Lonesome Pine Community Hospital to purchase an Ion Lung Bronchoscopy machine at Norton Community Hospital and Black Lung Clinic.
Dana Cronkhite, executive director of Dickenson County’s industrial development authority and the county’s economic development director, said the county’s need for funding to complete its project “remains critical.”
“Our current system leaves multiple areas of the county without reliable communication between first responders and dispatch, which includes several of the areas that experienced flooding in February,” she said.
Renee Burton, director of planning for Danville’s community development department, said it was anticipated that the federal money would cover the total cost to rebuild blighted property into a housing and education center. That project has been scrapped, for now, though the city may consider reapplying for federal funding next year.
In Floyd County, the lack of federal funding has put the effort to extend utilities to develop affordable housing on hold indefinitely.
“Extending at least public water (and ideally public wastewater) is a foundational piece to being able to do the project. So, no, we cannot move forward with water and sewer expansion until we find funding,” Martin said via email. “Like many small communities, our PSA [public service authority] struggles just replacing and maintaining an old system, so there aren’t resources for expansion.”
Roanoke County Administrator Richard Caywood said the county plans to apply again next year for money to pave and expand parking and add a waterless restroom to the McAfee Knob trailhead, a popular hiking spot that sees about 50,000 visitors a year.
“We’re still somewhat in limbo,” Caywood said.
What do federal lawmakers think?
Funding for community projects has been included in federal budgets since the first Congress in 1789, with a pause between 2011 and 2021. That pause took place after it was discovered that members from both parties had used earmarks to benefit themselves, rather than the communities they served. After safeguards were put in place, Congress revived the process.
Every time a new Congress is sworn in, the rules regarding earmarks, also known as congressionally directed spending, can change. The rules or limits regarding earmarks for fiscal year 2026 had not yet been determined by congressional leadership as of Wednesday.
Different localities and community organizations were able to apply for federal funding in 2024 for projects to be included in the federal budget for fiscal year 2025. Dozens of those projects were accepted, pending the passage of a full budget. A number of applicants were notified at the beginning of March that it was unlikely that the funding requests would be included in the continuing resolution.
“We were pleased in 2024 when we learned that our senators [Mark Warner and Tim Kaine] had fought hard to include this request in the Senate bill,” said Tom Carroll, Lexington’s city manager, about a funding request for a health care center to serve the Lexington, Buena Vista and Rockbridge County region.
“With the new Congress only passing a Continuing Resolution last Friday [March 14], it is my understanding that this CDS [congressionally directed spending] is effectively dead, and we are very disappointed by this outcome.”
Carroll said the localities plan to move forward with the project, which costs roughly $10 million, and will reapply for federal funding again next year to alleviate some of the financial burden.

Valeria Rivadeneira, spokesperson for U.S. Senator Mark Warner, D-Va., said that it is difficult to quantify the effect of the lack of spending included in the continuing resolution on a particular region given the “broad nature of these cuts.” She noted that a substantial portion of the $13 billion in non-defense spending that was “cut” in the continuing resolution came from the discontinuation of funding for local projects.
Rep. Morgan Griffith, R-Salem, pushed back against that characterization.

“While some FY2025 appropriations bills passed in the House of Representatives, which included earmarked projects, currently called ‘community funded projects,’ the U.S. Senate did not move to pass any of them,” Griffith said via email. “Because the U.S. Senate did not move on the House bills, no funding has been enacted or appropriated to agencies on FY2025 community-funded projects. Therefore, the CR that passed Congress last week could not cut funding from these projects.”
In simpler terms: Money for community projects was simply not included in the full year of continuing resolutions passed by Congress for 2025. Rivadeneira argued that House Republicans acted alone and without input from their Democratic colleagues when drafting the continuing resolution. She said, because House Republicans chose to “go at it alone,” that they are responsible for the lack of funding for these projects.

“We had done all of this work on these community projects and they just struck all of them,” through the lack of inclusion, U.S. Sen. Tim Kaine, D-Va., said during a roundtable event in Roanoke on March 21. “In Democratic districts, Republican districts, any kind of project, they struck all of them.”
“I’m really disappointed,” Kaine said. “A lot of folks who felt good that we were able to get them commitments now have to postpone for a year, which is very unfortunate.”
The office of U.S. Rep. Ben Cline, R-Botetourt County, did not respond to a request for comment. Cline sits on the House Appropriations Committee.
In a statement after the continuing resolution was passed, Griffith said that the stripped-down spending bill would deliver critical funding to border enforcement authorities and will help President Donald Trump to carry out his effort to make “government work more efficiently.”
“Hopefully, both the House and the Senate will support bills this year that appropriate funds in the regular order and include community-funded projects,” Griffith said when asked about the lack of inclusion of those projects in the continuing resolution.
What’s next for these projects and communities?
Some localities and organizations are moving forward with the projects without the federal money.
The Roanoke Regional Airport Commission chose not to factor in the $1.1 million it requested from the federal government into the airport’s plan to extend its runway. That money would have helped to reduce reliance on aviation funds to secure property for the extension, airport spokesperson Alexa Briehl said.

Goodwill Industries of the Valleys opted to make cuts elsewhere in its project, a high school for adults opening this year, without the federal money.
“We are proceeding with the Excel Center even without the $2.1 million in federal funding,” said Chelsea Moran, spokesperson for Goodwill Industries of the Valleys. “However, the school will have reduced capacity for students and staff positions.”
Brad Boettcher, Roanoke’s innovation administrator, said the city opted to hold off on buying highly specialized biotech equipment, which is what the $1 million in federal money would have gone toward. The city plans to move forward with the rest of the project.
Doug Janz, a spokesperson for Ballad Health, said the health system will be able to purchase a new Ion robotic bronchocopy machine for the Norton Community Hospital’s Black Lung Clinic without the federal money, because the project is self-funded.
Others have opted to try again next year while looking elsewhere for other funding sources.
Dickenson County officials are looking into various funding routes, while they plan to apply for congressionally directed spending again for the fiscal year 2026. Funding at the local level for communication infrastructure for first responders is extremely limited, Cronkhite said.
Brittany Anthony, a spokesperson for Connect Health + Wellness, said that the federal money would have helped to renovate and expand the current clinic’s space to serve more people in Patrick County. Without that money, the Patrick Springs clinic remains open, but, Anthony said, the clinic has begun to explore other funding opportunities to support renovations and increase capacity.
And some have considered multiple different approaches.
Cody McElroy, executive director of the Wise County Public Service Authority, said that the county has been working with the town of Pound to upgrade the water and wastewater systems since 2021, when those utilities were consolidated.
None of the money the county requested for fiscal year 2025 was received, and it would have made up about 15% of the total price of the project. McElroy said the county and the town will have to scale the work back a bit to make up the shortfall, but it may also apply for federal funding again in fiscal year 2026.
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