The Amtrak station in Christiansburg is moving further down the track toward completion, with an anticipated $1 million in funding.
The Rex Theatre in Galax is slated to receive $700,000 for a renovation.
Lee County is earmarked for $687,940 to help build a hotel in Pennington Gap.
And the New River Valley is in line for $100,000 to study the region’s housing needs.
Those four projects were among 22 recommended by Gov. Abigail Spanberger to receive funding through the federal Appalachian Regional Commission. The nearly two dozen projects located across Southwest Virginia are in line with the commission’s aim: to help bolster the economy in the impoverished Appalachian Region. In all, about $8.4 million will be heading to Southwest Virginia.
Kevin Byrd, executive director of the New River Valley Regional Commission, said the $1 million grant that his organization is slated to receive will offset the $3.7 million cost to rehabilitate the 1948 passenger rail station depot in Christiansburg. The commission also received a $2 million grant from the Federal Railroad Administration for the project.
“This $1 million from the Appalachian Regional Commission can go a long way in helping to deliver the project and also decrease the local cost to deliver the project,” Byrd said.
The building, which was constructed in 1906, will see a complete remodel and a digital technology update for the first time since its last renovation in 1948. The passenger rail station is a part of a 13-year-long project to revitalize rail travel in the New River Valley. Passenger rail service in the region is expected to begin in 2027 for the first time since the late 1970s, Byrd said.
The New River Valley Regional Commission was also awarded $100,000 for a regional and local housing study.
The study, Byrd said, is expected to help the commission identify changes in trends regarding housing in the region following a similar study done in 2021.
“It will be new information for us to identify strategies for unhoused populations in the region, and also a chance to revisit strategies that were launched in 2021,” he said. “All of this information helps inform strategies, helps inform decision makers on what they can do.”
The second-largest funding amount was stamped onto a project in Galax, where a renovation to the historic Rex Theatre downtown is underway. Grants Administrator Sara McKellop said the $700,000 allocated will go toward the theater’s balcony renovation, helping make an elevator and bathrooms accessible, and updating seating.
The theater has already seen improvements in lights and sound, McKellop said, but still has a ways to go in its multimillion-dollar renovation.
The town of Pennington Gap received $687,940 to support building a chain hotel in Lee County, the first of its kind. The money will help provide the utility infrastructure for the access road leading up to the hotel property, said Town Manager Keith Harless.
“For a small town like us, who would ever think a road would cost $4 million?” Harless said. “The obstacle has always been for us to develop the property, and the grant has made it possible.”
More about the governor’s recommendations and the ARC program
The governor’s office said in a statement that these projects would support infrastructure improvements, job creation, small-business support, downtown revitalization and workforce development across the region. Spanberger’s office estimated that the projects would serve 1,240 businesses, provide 11,500 households with new or improved infrastructure and create 58 jobs across the region.
“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,” Spanberger said in a statement. “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.”
The ARC program was established in 1965 to help the impoverished Appalachian region grow its economy in step with the national economy. The organization aims, through its grants, to build a strong and sustainable economy by funding projects that could bring jobs and prosperity to Appalachian communities while preserving their character.
The annual ARC grants are federally funded, and the selection of award recipients is based on recommendations by the governor. The governor’s recommendation does not guarantee funding from the federal government, however. Final approval of program funding will be made by the Appalachian Regional Commission’s federal co-chair.
The 22 projects slated to be recipients of the 2026 round of grants could advance critical water and sewer upgrades, rehabilitate public utility systems, and prepare key industrial and commercial sites for future private investment.
The projects could 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.
And the funding could fuel small-business expansion, artisan market access, entrepreneurship services and shared-use facilities that help local producers and startups grow, the governor’s office said.
The projects
Nineteen projects were recommended by the governor, for a total of just over $7.1 million:
- New River Valley Regional Commission: $1 million for the NRV Passenger Rail Station in Christiansburg
- City of Galax: $700,000 for 2026 City of Galax Rex Theater Revitalization Phase II
- Reynolds Homestead and the Virginia Tech Foundation: $700,000 for the Reynolds Homestead Shared-use Kitchen and Agribusiness Incubator 2026
- Buchanan County Public Service Authority: $700,000 for the Southern Gap Road Water and Sewer Project
- Town of Pennington Gap: $687,940 for the Hotel Development Utility Infrastructure Project
- Lee County Board of Supervisors: $556,284 for the Western Lee County Water Improvements Project
- Friends of Southwest Virginia: $300,000 for the Friends of SWVA: Appalachian Downtowns: Downtown Inventory and Real Estate Redevelopment Strategy
- Round the Mountain: SWVA’s Artisan Network: $300,000 for Round the Mountain Appalachian Made: Expanding Market Access and Economic Opportunity for Southwest Virginia Artisans
- People Incorporated of Virginia: $299,993 for PIFS Area Development 2026
- Appalachian Sustainable Development: $297,959 for Building Pathways for Recovery-Centered Supported Employment
- City of Radford: $255,568 for the New River Crossing Economic Development Project
- The Crooked Road: $175,000 for The Crooked Road, Strengthening Southwest Virginia’s Musical Ecosystem, 2026
- The Rector and Visitors of the University of Virginia: $140,000 for the UVA Wise RALLY Fellowship Program 2026
- Town of Tazewell: $100,000 for the Rural Trades and Ag Fab Lab
- New River Valley Regional Commission: $100,000 for the Regional + Local Housing Study
- Smyth County: $80,000 for the Smyth County Mission Critical 47: Comprehensive Site Planning for 213-acre Opportunity
- Grayson County: $50,000 for the Grayson County Outdoor Recreation and Tourism Strategic Plan 2026
- Town of Honaker: $50,000 for the Honaker Market Square & Downtown Commons Planning Grant
- Town of Hillsville: $35,000 for the Town of Hillsville Economic Development Plan.
Three additional projects, totaling just over $1.2 million, are slated to receive full funding if the localities meet certain requirements:
- Dickenson County Public Service Authority: $700,000 for the Haysi Sewer Infrastructure Replacement Project (Phase 1)
- City of Norton: $640,400 for the Water Plant Filter Rehabilitation Project
- Wise County Board of Supervisors: $529,133 for the Ramsey Road Waterline Replacement Project
Under the program, only distressed counties are eligible for ARC infrastructure funding.
Wise County and Dickenson County will no longer be classified as distressed counties by ARC, effective Oct. 1, according to the Virginia Department of Housing and Community Development. The city of Norton could still be classified by ARC as distressed. The Virginia DHCD has been working with ARC to get clarity regarding the eligibility of the three recommended projects.
