Virginia lawmakers approved a $40 million loan in 2024 to kickstart a massive sailor housing project in Newport News. But the absence of language around the loan conditions concerned some city and state officials.
Lawmakers added amendments in the 2026 state budget to clear up that ambiguity. Their changes put into writing that the $40 million loan to the city of Newport News could be forgiven once the housing project is complete. And it’s up to the state’s legislative branch to make the call.
“We're seeing some of the things that are happening at the federal government, where Congress is having to reassert its authority on where money goes and does not go, and so we just wanted to preemptively make sure it was clear on the state level,” said Del. Marcia “Cia” Price, who represents Newport News.
The $40 million loan shows the state has “skin in the game,” Price said.
Newport News Mayor Phillip Jones said the possibility that the state could forgive the loan is an important step forward.
“This is less about ships and more about the people, men and the women that serve on them,” Jones said. “We have a moral obligation to ensure that they have the highest readiness and the highest quality of life, and that includes their housing. So this is a win, not only for the city of Newport News, but the entire Commonwealth and the nation writ large.”
The budget awaits Gov. Abigail Spanberger’s approval.
