Money to match a possible Navy housing project in Newport News made it into the final version of the General Assembly’s budget, but in a decidedly different form.

The original proposal in the House of Delegates budget proposal would have given Newport News up to $40 million to match 10% of whatever the Navy will invest in a potentially $400 million housing development for sailors stationed in the city during ship maintenance cycles..

In the budget negotiated between the House and Senate that was released late Thursday, that $40 million was turned into an interest-free loan to Newport News instead of an outright payment. 

Officials said the proposed housing is part of ongoing efforts to improve living conditions after a rash of suicides.

The Navy’s project could cost as much as $400 million, but Newport News’ money will only match 10% of what the Navy spends, so there could be less state money for a smaller project. 

Jerri Wilson, Newport News’ intergovernmental affairs director, said the state putting some money behind the project was a critical move to convince the Navy to move forward with the housing. 

Delegate Cia Price, who introduced the original budget amendment, said getting the funding this far in the budget process is a win in itself.

"The budget amendment shows that the Commonwealth is committed to the project," Price said.

City officials hope the construction will set off redevelopment efforts in downtown Newport News that have struggled to get off the ground.

State lawmakers will vote on the compromise budget Saturday. If passed, it would head to Gov. Glenn Youngkin for approval.

Republican Youngkin appears poised to veto the budget. He’s sparred with Democratic leaders of the General Assembly over budget priorities like funding a sports arena in northern Virginia which Democrats stripped from the final budget. 

If he does, the General Assembly will need to reconvene in a special session to work out a new budget deal.

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