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Richmond council weighs reallocations for shelters and opioid funds

Richmond council weighs reallocations for shelters and opioid funds

Money Moves Richmond, VA local

Public hearing on $1.6 million in budget amendments for winter shelters, opioid abatement, and family services

Today: Council holds hearing on budget amendments

Overview

Updated 1 hour ago

Richmond's City Council heard public comment Monday on roughly $1.6 million in budget adjustments that would keep the city's winter shelter running and steer new opioid settlement money to local programs. The amendments would give CARITAS $844,143 for its surge overflow shelter and warming center, accept $614,406 in opioid settlement funds, and move $100,000 to ACTS to run the Family Crisis Fund.

The reallocations fine-tune the $3.4 billion FY2027 budget the council adopted in May. A vote is pending. One resident backed the CARITAS funding but questioned the ACTS transfer, while another supported climate resilience grants.

Why it matters

Approval keeps Richmond's winter shelter beds open and decides how new opioid settlement money gets spent.

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Key Indicators

$844,143
Proposed transfer to CARITAS
Funds surge overflow shelter and warming center operations.
$614,406
Opioid settlement funds to accept
Virginia settlement money restricted to abatement and remediation.
$100,000
Transfer to ACTS for Family Crisis Fund
Administration of the family services program, questioned by one resident.
$3.4B
FY2027 total city budget
Adopted by council on May 11, 2026; these amendments adjust it.

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People Involved

Organizations Involved

Timeline

January 2021 September 2026

6 events Latest: Today
Tap a bar to jump to that date
  1. Council holds hearing on budget amendments

    Today Hearing

    Public comment on CARITAS shelter funds, opioid settlement acceptance, and the Family Crisis Fund transfer.

  2. OAA approves $35.2M in new opioid grants

    Funding

    Authority backs 150 projects across Virginia for FY2027, its largest award round to date.

  3. Council adopts $3.4B FY2027 budget

    Vote

    Council approves a balanced city budget for the fiscal year starting July 1.

  4. Mayor submits FY2027 budget proposal

    Proposal

    Danny Avula delivers the proposed $3.4 billion budget to the council.

  5. Virginia opioid settlement payments begin

    Funding

    Payments start; total expected to exceed $1.1 billion by 2041.

  6. Virginia creates Opioid Abatement Authority

    Legislation

    General Assembly establishes the OAA to oversee 55% of Virginia's opioid settlement funds.

Scenarios

1

Council passes shelter, opioid, and family fund amendments

Likely Resolves by Nov 15, 2026

Discussed by: Richmond City Council budget documents and standard amendment procedure

The council moves the amendments from the public hearing to a formal vote at an upcoming meeting. Most budget amendments pass as proposed because they carry funds that city departments and nonprofits already planned around, and the CARITAS shelter money is time-sensitive ahead of winter.

2

Council modifies or rejects the ACTS transfer

Possible Resolves by Nov 15, 2026

Discussed by: A resident who submitted public comment questioning the ACTS arrangement

Concern about how the Family Crisis Fund is administered could prompt the council to reduce the $100,000 transfer or send it back for more justification. The shelter and opioid money would still move, but the family services portion would be reworked or delayed.

3

Council tables the budget amendments

Possible Resolves by Nov 15, 2026

Discussed by: Council budget procedure and the contested public comment

The council could postpone a final vote to gather more information, leaving the funds unallocated through the fall. That would force a later decision before winter shelter demand peaks, tightening the timeline for CARITAS operations.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

November 1998

Tobacco Master Settlement Agreement (1998)

46 states signed a settlement with the four largest tobacco companies worth $206 billion over 25 years, meant to recover smoking-related health costs. Participating states agreed to use the money for tobacco control and prevention.

Then

States began receiving annual payments in 2000 and often used them to close budget gaps.

Now

By the 2010s, only a small share of settlement money went to tobacco prevention; most was diverted to general funds or unrelated programs.

Why this matters now

The opioid settlements follow the same structure: large, restricted-use payouts spread over decades. Richmond's choice to direct its share to shelters and abatement programs, rather than general spending, echoes the tobacco decision — and carries the same risk of diversion down the road.

March 2020

CARES Act local funding (2020)

The $2.2 trillion CARES Act sent one-time federal aid to cities, much of it used for emergency shelter, rental assistance, and homelessness services as the pandemic hit. Richmond used funds to expand shelter capacity and hotel programs.

Then

Cities rapidly scaled up shelter capacity during the pandemic.

Now

When the one-time funds expired, many programs closed or required new local money to survive.

Why this matters now

Opioid settlement funds are similarly finite and restricted. Richmond's decision on how to spend its share, and whether to build ongoing programs around it, reflects the same budget-cliff risk that followed the CARES money.

Sources

(11)

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