VDOT sees $400 million deficit in emergency budget

RICHMOND, Va. (WRIC) -- The Virginia Department of Transportation (VDOT) emergency budget has faced a budget overrun due to Hurricane Helene and this year's winter storms, but reduced the immediate deficit. The department intends to cover this financial issue with reimbursements and internal loans, as per the 2025 fiscal year budget revision.

With VDOT's actual budget of $220 million for the emergency response in 2025, and full emergency costs expected to reach $640 million, Hurricane Helene and this year's winter storms swamped its emergency budget.

As a result, that will leave a $420 million gap between the budget and the actual costs, with the remaining budget deficit standing at $190 million. The department added that a large portion of the emergency spending may be eligible for reimbursement from the Federal Emergency Management Agency (FEMA) or Emergency Relief from the Federal Highway Administration.

In reimbursements, VDOT is expecting $146 million to $195 million as a result of Hurricane Helen, and $4.9 million following this past winter's floods, according to the budget revisions document.

In February, VDOT implemented numerous administrative actions to save money, including:

• Recruitment for vacant positions beyond maintenance field employment opportunities was paused (classified and wage positions). Any exceptions were approved by the Commissioner.
• Travel was limited, shifting to virtual where possible, and limits were made to out-of-state travel.
• Delayed or cancelled training opportunities.
• Deferred planned purchases.
• Considered all budgetary balances across all programs, excluding Highway Construction Programs.

As the department waits for the federal reimbursement, VDOT plans to borrow funds from the Construction Fund to cover the shortfall and keep these expenditures.

The agency plans to recover from this impact, and in the future, VDOT will need this to get approved.

"This action will align the identified funding to the Maintenance and Operations Program," the department said. "The intra-agency loan will allow VDOT to close the fiscal year with funding to support necessary expenditures."