Richmond City Council Update: Economic Growth, Federal Funding Challenges, and Retail Regulations

Economic Development: Growth and Challenges

Richmond continues to strengthen its economy with the help of the Greater Richmond Partnership (GRP), which has been instrumental in attracting major companies like Amazon, CoStar Group, and LEGO. Since 1994, GRP’s efforts have led to 560+ projects, creating 55,000 jobs and generating $13.9 billion in capital investment.

Between FY21 and FY24, these efforts resulted in:

• 6,859 new jobs

• $2.9 billion in capital investment

• $798.7 million in labor income

• $3 billion in wealth creation

Despite these successes, Richmond faces population growth challenges compared to peer cities. However, perceptions of the city among corporate executives and site selectors have improved significantly, increasing the likelihood of Richmond being considered for major projects. Strengths include affordability, location, and workforce, while challenges remain in talent retention and research university resources.

Federal Funding: Potential Losses Ahead

Richmond has $294.4 million in federal funding across various departments, but $116.5 million could be at risk due to proposed changes in federal programs.

Departments that may be heavily impacted include:

• Department of Housing and Community Development – Full potential loss of $11.4 million

• Department of Public Utilities – Potential loss of $63.7 million

• Department of Social Services – At risk of losing $16.3 million

Other affected programs include SNAP, TANF, SAFER, and CDBG. The good news? Most of these are one-time grants, but some ongoing funding streams (such as housing and social services) could see long-term effects.

Proposed Regulations on Tobacco and Hemp Sales

Richmond is considering new regulations on tobacco, vaping, and hemp product sales, aiming to protect public health and reduce exposure for adolescents. The proposed rules would:

• Restrict store locations, requiring at least 1,000 feet of distance from residential areas, schools, parks, and similar businesses.

• Define tobacco and hemp retailers based on store layout, sales, signage, and inventory.

The city is responding to concerns over advertising influence on youth and negative public health impacts related to the density of these retailers.

What’s Next from Richmond City Council?

Richmond’s economy is growing, but challenges in funding and public health policy remain. The city council will continue discussing these issues, and public input may shape the final decisions. Staying informed means staying in control—because if we don’t, who will?

Follow our Richmond City Council Summaries for the latest updates that impact YOU. Stay tuned for updates!

For more information on the Richmond City Council, please visit the city's website.