infrastructure funding

The Cost of Delay: Inside Virginia’s Push to Reinvest in Public Infrastructure

By Staff Writer | Hampton Roads Construction News Network (HRCNN)

Virginia’s infrastructure is standing at a crossroads. Across the Commonwealth, the pipes, pavements, and public systems that quietly sustain daily life are aging faster than they’re being replaced. From stormwater networks in Hampton Roads to transportation corridors linking Richmond and Northern Virginia, the need for reinvestment has become both an engineering and fiscal imperative. State and local leaders now face a defining question: will Virginia build ahead of the curve—or fall behind it?

In Hampton Roads, the urgency is visible with every storm. Tidal surges and seasonal flooding routinely test public drainage systems that were never designed for today’s rainfall intensity or sea-level rise. As these systems approach the limits of their capacity, cities such as Virginia Beach, Norfolk, and Chesapeake are accelerating long-term capital improvement programs, realigning priorities to protect homes, businesses, and infrastructure from chronic inundation.

Municipal budgets now reflect a growing recognition that infrastructure investment is no longer discretionary—it is essential. Capital Improvement Plans across Virginia emphasize proactive renewal: relining pipes before they rupture, rehabilitating roadways before they crumble, and upgrading pump stations before failure. This shift from reactive to preventive spending marks a fundamental change in how public infrastructure is managed and financed, driven by the understanding that every year of delay compounds the eventual cost of repair.

Private contractors are playing an increasingly vital role in this new era of reinvestment. Skanska USA—one of the nation’s leading heavy-civil and infrastructure firms—continues to advance the $1 billion Long Bridge rail corridor connecting Arlington to Washington, D.C., a federally supported project critical to Virginia’s freight and commuter mobility. Granite Construction, a national leader in transportation and water infrastructure, is expanding its work across the Commonwealth, reinforcing flood-prone drainage systems and upgrading transportation corridors. Together, these firms demonstrate how public-private partnerships can deliver complex projects faster, more efficiently, and with lasting economic value.

Progress, however, comes with challenges. Inflationary pressures, skilled-labor shortages, and supply-chain constraints continue to affect project schedules and budgets. Deferred maintenance compounds the problem: aging underground utilities and corroded pipelines can derail new construction or add millions in unforeseen costs. For local governments trying to balance fiscal restraint with public demand, the difference between “deferred” and “delivered” often determines whether critical services hold steady—or fail when they’re needed most.

Federal legislation has given Virginia an unprecedented opportunity to act. The Infrastructure Investment and Jobs Act (IIJA) and the American Rescue Plan Act (ARPA) have unlocked billions of dollars for communities ready to move projects from design to construction. Agencies such as the Virginia Department of Transportation (VDOT), the Department of Environmental Quality (DEQ), and the Virginia Passenger Rail Authority (VPRA) have expanded funding pipelines for localities demonstrating readiness, compliance, and accountability. As many engineers note, the challenge is not the availability of capital—but the administrative capacity to deliver projects efficiently before inflation erodes their value.

That urgency is not lost on state lawmakers. Senator Schuyler VanValkenburg has urged modernization of local approval processes, warning that “Virginia is on the precipice of an energy and housing crisis. Restrictive local processes and delayed approvals keep us from meeting the scale of what’s required—whether that’s housing, clean energy, or infrastructure. We need solutions that streamline progress without compromising public accountability.” His message captures a broader truth: when policy and permitting lag behind practical need, communities pay the price—in both dollars and lost opportunity.

The true cost of delay is not abstract. It is measured in flooded roadways, lost productivity, and diminished public trust. Investing in infrastructure is more than an exercise in engineering—it is an act of foresight and stewardship. Virginia’s economy, safety, and resilience depend on the willingness of leaders at every level to act before the next crisis forces their hand. The time for planning has passed; the time for building is now.

About HRCNN

The Hampton Roads Construction News Network (HRCNN) provides verified reporting and professional commentary on construction, infrastructure, zoning, and development across Virginia. HRCNN connects industry practitioners, policymakers, and the public with accurate, timely insights into how the built environment shapes the Commonwealth’s future.

Readers are invited to contribute editorials, commentary, and coverage ideas that promote informed dialogue about Virginia’s growth and infrastructure. To submit an article or propose a story, visit earthlyinfrastructure.com/hrcnn/submit-an-article and join the conversation shaping the future of the Commonwealth’s built environment.

Who Pays for Growth? Virginia’s Debate Over Impact Fees

By HRCNN Staff Writer
Hampton Roads Construction News Network

When local governments weigh new development, one unavoidable question lingers: who pays for the infrastructure that growth demands? Roads, schools, utilities, and stormwater systems all must expand to meet the needs of new subdivisions and multifamily communities. Across much of the country, states impose “impact fees” to ensure that new housing and commercial projects contribute their share of those costs.

In Virginia, however, the practice remains rare. Unlike states such as Florida, Texas, or California, where impact fees are a standard tool, Virginia leans heavily on negotiated developer contributions—known as proffers—or on general tax revenues. The result is that the costs of growth often fall on the broader public, rather than being tied directly to the developments that generate new demand. In 2025, House Bill 2683 sought to make impact fee authority more accessible by lowering the population threshold for localities and removing a growth-rate requirement. The bill, however, stalled in committee, leaving the status quo intact.

There is one notable exception. In late 2024, Stafford County revived its transportation impact fee, becoming the only Virginia locality currently using the tool. Beginning in July 2025, Stafford will levy fees on residential, retail, and commercial projects, with revenue projections between $15 million and $20 million annually to fund transportation improvements. This example underscores how limited the practice remains across the Commonwealth.

The debate resonates strongly in Hampton Roads, where population growth continues to strain classrooms, roads, and stormwater systems. At zoning hearings in Chesapeake and Virginia Beach, residents frequently voice concerns about crowded schools and congested roadways. Local officials acknowledge the urgency but, absent a broader impact fee framework, they are left to rely on case-by-case proffers or general funds. For many residents, this feels like subsidizing development with their tax dollars.

Developers counter that Virginia’s existing proffer system already places heavy financial obligations on them. They warn that layering impact fees on top could increase housing costs in a region already grappling with affordability challenges. Supporters, on the other hand, argue that without new revenue mechanisms, infrastructure will continue to lag behind growth—leaving long-term strains on communities and taxpayers alike.

For now, Virginia’s growth is paid for through negotiated contributions and public resources. But as Hampton Roads continues to expand—and as demands on transportation networks, schools, and stormwater systems grow—the question of who pays is unlikely to fade. Whether the Commonwealth eventually embraces broader impact fee authority or clings to its traditional approach, Hampton Roads will remain at the center of the debate.

About HRCNN
Hampton Roads Construction News Network (HRCNN) is the region’s dedicated platform for reporting on development, infrastructure, and policy. By delivering accurate, timely coverage, HRCNN works to keep residents, builders, and decision-makers informed about the forces shaping the future of Hampton Roads.