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State funding cuts and wheel-tax incentive could change Richmond’s road funding; administration estimates 6 miles of paving for 2025
Summary
Beth Fields said legislative changes to the Community Crossings Matching Grant cut available statewide funding from over $350 million to $100 million and added a noncompetitive distribution for municipalities that enact a wheel tax; Beth estimated an enacted wheel tax could bring Richmond about $300,000, while current funds support roughly six miles of paving in 2025.
Beth Fields told the Committee of the Whole that the legislative changes to the Community Crossings Matching Grant program (described in Senate Bill 1 during the meeting) reduced the total competitive pool available to communities from "a little over $350,000,000" this year down to $100,000,000 for 2026. She said the bill adds a noncompetitive distribution to communities that have enacted a wheel tax, and based on Richmond’s lane miles an enacted wheel tax would yield approximately $300,000 in noncompetitive funds; the bill also creates an additional competitive bucket for communities with a wheel tax.
The administration cautioned council that future eligibility for the matching grant program could favor municipalities that have enacted a wheel tax, and that the situation is being monitored closely. Council members pressed on how the city uses available funds: an estimate given during the meeting said current funds would allow Richmond to pave roughly six miles of roads in 2025. Street department representatives also explained the distinction between in‑house crew projects (smaller, non-curb streets and patching) and larger, curb/mill projects that typically rely on Community Crossings funds.
Beth also noted administrative changes required by the State Board of Accounts: county wheel tax receipts that the county collects and forwards should be deposited in the motor vehicle highway fund rather than a stand‑alone wheel-tax fund the city had planned.
Why it matters: Reduced statewide grant funding narrows Richmond’s competitive opportunities; enacting a local wheel tax could produce a predictable noncompetitive allocation but would require council action and voter or legislative steps (as applicable). The administration estimated available funds would support ~6 miles of paving in 2025, a planning figure for maintenance work.
Next steps: The administration will continue monitoring state legislation and grant guidance. Council may consider discussions about a wheel tax if grant eligibility remains tied to wheel-tax adoption.
