Governor Spanberger Recommends $8.4 Million in 2026 Appalachian Regional Commission Grants for Southwest Virginia

Governor Abigail Spanberger today announced the recommendation of 19 projects and letters of intent for 3 projects totaling $8,397,277 through the 2026 Virginia Appalachian Regional Commission (ARC) program, supporting infrastructure improvements, job creation, small-business support, downtown revitalization, and workforce development across Southwest Virginia.  

These recommended projects will collectively serve 1,240 businesses, provide 11,500 households with new or improved infrastructure, and create 58 jobs across the region. These projects reflect immediate community priorities and long-term regional goals, positioning Southwest Virginia for sustained economic resilience, increased private-sector opportunity, and continued quality-of-life improvements.

“With these new investments, we are strengthening the foundations of local economies, expanding workforce opportunities and good-paying jobs, and improving the quality of life for families across Southwest Virginia,” said Governor Abigail Spanberger. “I am proud to support these efforts and am grateful for the regional leaders, organizations, and residents who continue to build a stronger future for Appalachia.”

Established in 1965, the goal of the ARC program is to assist the region in achieving economic parity reflective of the nation’s overall economic growth. The Virginia ARC region encompasses 25 counties and 8 independent cities in Southwest Virginia. ARC grants are aimed at supporting the goal of building a strong and sustainable asset-based economy by funding projects that serve as catalysts for bringing jobs and prosperity to Appalachian communities, all while preserving their character.  

“These ARC awards reflect the Commonwealth’s commitment to advancing long-term, durable economic development throughout Southwest Virginia,” said Secretary of Commerce and Trade Carrie Chenery. “Each funded project addresses a clearly defined need and demonstrates strong collaboration among localities, Planning District Commissions, nonprofits and private-sector partners.”

The 22 recommended ARC projects reflect a comprehensive strategy to strengthen the economic backbone of Southwest Virginia. They advance critical water and sewer upgrades, rehabilitate public utility systems, and prepare key industrial and commercial sites for future private investment. At the same time, they broaden workforce capacity through hands-on job training, recovery-to-work pathways, and fellowship placements that deepen the connections between education, employers, and local industry. These investments fuel small-business expansion, artisan market access, entrepreneurship services, and shared-use facilities that help local producers and startups grow. Communities across the region will see revitalized cultural venues, enhanced tourism assets, and new momentum for downtown redevelopment, while planning studies will guide long-term housing, recreation, and economic growth strategies across localities.  

The Department of Housing and Community Development (DHCD) works with localities and stakeholders in the region to develop strategic projects, which are evaluated by DHCD and the Governor, to be recommended to the federal commission for approval.

“The 2026 awardees represent some of the most innovative and high-value proposals we’ve seen,” said Tamarah Holmes, Ph.D., DHCD Director. “Our team works closely with applicants to ensure projects are strong, strategic, and responsive to regional needs, from infrastructure to entrepreneurship to downtown revitalization.”

ARC is a federal-state partnership that supports economic opportunity across 13 states. In Virginia, ARC investments strengthen business development, workforce training, infrastructure, cultural and natural assets and community capacity building. To learn more, visit dhcd.virginia.gov/arc.

Projects recommended for funding are below:  

Projects recommended for provisional approval are below. These projects would receive full funding after the applicant completes certain agreements.

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