Virginia has received a $7.2 million federal disaster-recovery grant from the U.S. Department of Health and Human Services to expand childcare in communities across Southwest and Southside Virginia, the governor’s office announced Friday.

The award comes as Virginia continues to recover from Hurricane Helene, which caused catastrophic damage when it swept through the state in 2024, with extreme rainfall washing out roads and bridges and destroying homes and businesses. Two Virginians were killed in the disaster. 

Gov. Abigail Spanberger’s office said the grant will increase childcare capacity and support workforce participation and economic development in Danville and in Pittsylvania, Tazewell and Washington counties. 

“Our future depends on our ability to support working families and prepare the next generation for success,” Spanberger said in a statement. “These investments will expand access to high-quality childcare in communities experiencing both workforce growth and childcare shortages — particularly in the aftermath of Hurricane Helene.” 

The funding, along with $10.5 million in other investments, will support three childcare projects: a new $8.3 million center in Danville and Pittsylvania County, that will use $2.7 million in federal funding; a $5.8 million center in Tazewell County, including $2.5 million from the grant; and a $615,000 expansion in Washington County. Another $1.2 million will support coordination and workforce development across the projects. 

EO Companies, the Virginia Department of Education’s designated regional early childhood partner for Ready Region Southwest, will implement the projects, which are expected to create more than 55 new jobs while expanding access to care for nearly 450 children.

EO’s core mission is to support education, workforce, and economic development initiatives that strengthen communities, state leaders said in the announcement.

“Strong childcare systems are essential to educational success, workforce participation, and economic prosperity,” said Virginia Secretary of Education Jeffery Smith. “This investment will help ensure more Virginia families have access to safe, affordable, and high-quality care while creating new opportunities for children to learn, grow, and thrive. We are proud to partner with EO Companies and local communities to advance this important work.”

Travis Staton, president and CEO of EO Companies, said that access to affordable, high-quality childcare remains one of the most pressing workforce and economic development challenges facing communities across Virginia. 

“This historic investment demonstrates what is possible when federal, state, local, philanthropic, and community partners come together around a common goal,” Staton said in a statement. “These projects will not only expand access to early childhood education and out-of-school programming, but they will also strengthen local economies, support working families, and help communities remain competitive in attracting and retaining talent.”

Approximately 65% of Virginia employers said their workers struggle to find open child care slots and more than 85% cited cost as a major burden in a survey earlier this year conducted by the Virginia Early Childhood Foundation, the Richmond Fed and the Virginia Chamber Foundation.