The City of Richmond released a report assessing the federal government shutdown and impacts on the region

RICHMOND, Va. (WRIC) -- The City of Richmond says its commitment to maintaining essential services for all residents in a new document published by The City in response to the ongoing federal government shutdown.

On Friday, Oct. 17, The City of Richmond released an initial assessment document detailing The City's response to the ongoing federal government shutdown.

The shutdown began on Wednesday, Oct. 1 and is approaching the record of the second longest government shutdown according to sources.

The document is available through Richmond's website and provides residents with transparency on the potential impacts and outlines the City's response plan.

Richmond's Mayor, Danny Avula stated that, "While this moment brings uncertainty, it isn't uncharted territory. We've navigated this before—and we will again."

According to the release Avula previously lead Richmond and Henrico Health Districts through the 35-day shutdown in 2018. "My commitment is to stay as transparent as possible and to keep residents informed as we learn more."

Per The City, these are some key points the assessment highlighted as significant potential impacts on Richmond and its residents: 

• Supplemental Nutrition Assistance Program (SNAP) benefits: Could be impacted as soon as Nov. 1--more than 54,000 residents rely on SNAP benefits for food assistance. 
  • And already we’ve heard that these benefits may indeed be at risk.
• Temporary Assistance for Needy Families (TANF): Over 3,000 families dependent on TANF for basic needs.
  • Last year, those benefits translated to nearly $90 million in food and basic needs spending across our local economy—almost all of it federal funding.
• Energy assistance: thousands of Richmond households keep the heat on during colder months
  • In the last fiscal year, $3.9 million in federal fuel assistance supported residents through the heating season.

The report states that if those programs experience delays or a reduction in funding, it could create pressure on local resources and on the community organizations that help to fill the gap.

Richmond's Chief Administrative Officer, Odie Donald expressed that essential city services such as water, sanitation, emergency response, and waste collection will continue uninterrupted, and that approximately 160 of the city's more that 400 federally supported programs could experience negative impacts due to funding delays. 

"While the circumstances around the current federal shutdown are not ideal, the prudent fiscal management and steady leadership of our Mayor and Council have positioned the City of Richmond to continue the consistent delivery of core services and safeguard essential operations during what we hope is a brief impasse," stated Donald.

Donald also emphasizes in the report that it serves as a, "key tool the City of Richmond will use to navigate this federal impasse," and to "update to our more than 230,000 residents on our service delivery activities despite the changes in the federal environment."

The assessment states that The City of Richmond currently receives millions of dollars in funding from federal funding and that interruptions in cash flow from Washington can directly disrupt service delivery to Richmond's most vulnerable residents

Per the assessment, as of right now, programs such as the Department of Social Services (DSS), Housing & Community Development (HCD), and Department of Public Utilities (DPU) would face the most immediate impact.

This is due to the nature of those programs and their reliance on federal funding. DSS will face the largest impact as the shutdown continues, as over half of its funding is tied to federal programs such as SNAP, TANF, and Low-Income Energy Assistance.

Preliminary reports by The City show that across all departments, around 160 programs have identified negative impacts on service delivery due to a federal funding delay.

As of now, city services such as water, sanitation, emergency response, and waste collection will continue as normal. However, Certain projects involving federal grants or federal funding like road repairs or affordable-housing construction, may pause temporarily until federal approvals resume.

Findings

Funding Gaps: Over $32 million in funding combined across multiple departments could see a reduction or delay if federal payments pause. This does not apply to the millions in additional resources at risk of not passing or being received by the State.

How long will impacts last: Most programs report delays lasting up to 30 to 90 days depending on the length of the shutdown.

Staffing Continuity: About 12% of city positions are linked to federally funded programs according to reports. Most departments have short-term contingency plans to maintain staffing and services, but longer disruptions will increase financial strain.

Federal funding delay breakdown:

• One month: If the shutdown lasts for the duration of a month the estimated delay in federal aid according to The City would be $2 million.
• Three months: If the shutdown lasts for the duration of 3 months the estimated delay in federal aid according to The City would be $7.3 million.
• Six months: If the shutdown lasts for the duration of 6 months the estimated delay in federal aid according to The City would be $12.3 million.

How is Richmond responding?

According to a press release from Mayor Avula's office, The City has developed a comprehensive six-point response strategy:

• Mitigating economic harm through a 60-day financial contingency plan:
  • Prepare to replace suspended federal funding to minimize interruptions to service delivery and operations.
• Absorb additional stress on local operations and services, in part by activating existing Continuity of operations (COOP) plans and services.
• Protecting low-income and vulnerable residents through prioritized support. 
  • Support impacted residents, implementing plans to assist residents and local federal employees affected by lost wages or benefits.
• Maintaining communication with federal partners.
• Advocating with state and federal officials on behalf of Richmond
  • Collaborate with state officials. Work with state officials to ensure the uninterrupted provision of healthcare and other services.
• Providing frequent, transparent communication to all stakeholders.
  • Announce any potential reductions in "non-essential" services well in advance.

Residents are asked to visit this website for updates and to access the full document, follow Richmond's social media pages for updates and sign up for Richmond Ready Alerts for critical notifications.