Governor Glenn Youngkin announces proposes disaster assistance fund

Governor Glenn Youngkin has announced a proposed $127 million investment to create the Disaster Assistance Fund, aimed at aiding recovery efforts in the wake of Hurricane Helene’s devastation in Southwest Virginia. The funding will be allocated through the Virginia Department of Housing and Community Development (DHCD) to address critical needs left unmet by federal, private, and insurance relief efforts.

The Disaster Assistance Fund will focus on supporting life, safety, and housing recovery in communities impacted by the hurricane, covering costs not fully addressed by federal or private aid. The fund will be implemented via legislation during the 2025 Virginia General Assembly Session, with specific allocations for the affected regions.

Breakdown of the $127 Million Proposal:

• $25 million from the state’s General Fund
• $102 million from the Regional Greenhouse Gas Initiative (RGGI) 2023 final payment and interest

“Our fellow Virginians have experienced tremendous loss due to Hurricane Helene. As we continue working with our federal, state, and local partners on recovery, the creation of the Disaster Assistance Fund is a vital step in ensuring that Virginia has a dedicated resource to address unmet needs and rebuild our communities,” Governor Youngkin said. “Our commitment to supporting Virginians in their time of need is resolute. Together, we will recover and grow stronger.”

Hurricane Helene, which struck Southwest Virginia, caused catastrophic damage across 36 localities. Key statistics highlight the extensive impact of the storm:

• Over 310,000 Virginians lost power due to severe damage to the electric grid.
• 484 primary and secondary roads and 118 bridges were closed.
• Nearly 10,000 applications for Individual Assistance and 3,000 home inspection requests were filed with FEMA.
• Agriculture sustained $630 million in losses, affecting nearly 3,700 farms.
• The storm also disrupted tourism, particularly impacting the Virginia Creeper Trail, a significant regional economic asset.

In response to the disaster, Congress recently introduced a supplemental disaster relief bill that includes over $100 billion in federal funding for recovery efforts through agencies such as FEMA, HUD, SBA, and USDA. If approved, these funds will be distributed via grants and loans to support state and local rebuilding efforts. However, some of this funding requires states and localities to match up to 25% of the project costs. The new Disaster Assistance Fund will help Virginia meet these match requirements and ensure localities can access the necessary funds for rebuilding.

“The devastation from Hurricane Helene has created numerous challenges for our communities,” said Chief Transformation Officer Robert Ward. “The Disaster Assistance Fund is more than just financial aid—it’s an essential tool in restoring the lives and livelihoods of Virginians impacted by this disaster.”

Bryan Horn, Director of the Virginia Department of Housing and Community Development, emphasized that the fund would fill gaps in federal and private assistance, particularly for life, safety, and housing needs. “When disaster strikes, this fund will allow us to quickly respond and ensure that no locality is left behind in recovery,” Horn said. “We are ready to act and deliver relief to those who need it most.”

This proposal builds on previous initiatives led by Governor Youngkin and DHCD. In 2022, DHCD launched the Hurley Flood Relief Program, allocating $11 million to assist victims of the 2021 Buchanan County flood. The program has provided over $9.1 million in assistance to approximately 140 households and businesses. Similarly, DHCD launched the Whitewood/Bandy Flood Program in 2022 to support communities impacted by floods in Buchanan and Tazewell Counties, distributing over $5.2 million in relief to nearly 90 households and businesses.

For more information about disaster relief programs, Virginians can visit the DHCD website at www.dhcd.virginia.gov.