A pot of state money tied to Virginia's return to a regional carbon market is now headed for roofs, wiring, plumbing and new affordable apartments.
Gov. Abigail Spanberger on Thursday, Oct. 8, announced the release of more than $67 million in Regional Greenhouse Gas Initiative funds, according to a release from the governor's office. The governor's office says the money had been withheld by the Youngkin administration.
The money goes to two programs run by the state Department of Housing and Community Development, which the release says uses its RGGI proceeds for just these two purposes.
$15 million for repairs
The first is the Weatherization Deferral Repair program, which received $15 million. It pays for the repairs a home needs before it can be weatherized, including:
- Leaking roofs
- Structural problems
- Electrical and plumbing repairs
- Mold, moisture and water damage
The state says the money will cover critical repairs to more than 1,000 homes. Once those fixes are made, homes become "weatherization-ready" and can get upgrades through the federal Weatherization Assistance Program, such as new insulation, air sealing, energy-efficient light bulbs and carbon monoxide detectors.
DHCD runs both programs through a statewide network of 15 weatherization providers. Homeowners apply through their local provider.
Commerce and Trade Secretary Carrie Chenery said the extra money will let the state "both serve more homes and take on previously cost-prohibitive repairs for greater impact."
DHCD Director Tamarah Holmes said the program has an established delivery network. "We stand ready to use these additional funds immediately to ensure continuity of services for eligible households," she said. "As we enter the next 50 years of weatherization work, we are committed to expanding capacity, strengthening partnerships, and ensuring every eligible household can benefit from these life-changing services."
$52 million for affordable housing
The bigger share, $52 million, goes to DHCD's Affordable and Special Needs Housing program. According to the release, that money will be used to build enhanced energy-efficiency standards into the construction, rehabilitation and adaptive reuse of affordable housing.
"Investing in energy efficiency is one of the most effective and impactful ways to lower monthly energy costs for Virginians," Spanberger said. "These services lower high energy costs for families, improve indoor health and safety, and support long-term housing stability across the state."
The release says Virginia's RGGI proceeds are expected to reach the hundreds of millions of dollars over the next two years. When the state rejoined RGGI, the governor and General Assembly also created bill credits for residential customers and small businesses meant to offset its cost in the near term.
Across all RGGI states, the release says, $5.7 billion in auction proceeds invested in energy efficiency and clean energy so far is projected to produce $22.6 billion in total bill savings for consumers.
The announcement follows the release of the 2026 Virginia Energy Plan. The state budget also includes $25 million to carry out recommendations from a new Virginia Weatherization Task Force.
Why it matters for Contractors
This is real money for real repair work. Leaking roofs, sagging floors, bad wiring, failed plumbing and mold are exactly the jobs that keep low-income homes from getting weatherized. This round puts $15 million behind that kind of work in more than 1,000 homes.
That work moves through the state's 15 weatherization providers. Roofers, electricians, plumbers, remediation crews and general remodelers who want a piece of it should contact the weatherization provider that covers their area and ask how it hires repair contractors. Expect questions about licensing and insurance, and possibly training or certification requirements.
The $52 million side affects a different group: contractors who build and rehab affordable housing. If the state requires enhanced energy-efficiency standards on projects it funds, builders will need to deliver tighter building envelopes, better insulation and more efficient mechanical systems, and be ready to pass the testing that comes with them.
The release did not say how the $52 million will be awarded or which projects will get it, so affordable housing developers and their contractors should watch for program guidelines and funding rounds.
Holmes said DHCD stands ready to use the repair money immediately. For repair contractors, that makes now the time to reach out to the local weatherization provider, before its schedule fills up.