Governor will match $2 million IKEA donation with $2 million from Virginia’s COVID-19 Relief Fund

RICHMOND—Governor Ralph Northam today announced $4 million in funding for the Legal Services Corporation of Virginia, which will support 20 Legal Aid attorneys in providing services to Virginia tenants facing eviction for the next two years. This critical investment comes as thousands of Virginians continue to be at risk of eviction and is supported in part by a $2 million donation from IKEA U.S. Community Foundation. The Governor will match the donation with $2 million from Virginia’s COVID-19 Relief Fund, which was approved by the General Assembly in April.

“Our Commonwealth faced an eviction crisis before COVID-19 arrived in early March, and the ongoing global pandemic is making this problem even worse,” said Governor Northam. “We are deeply grateful to IKEA for this generous donation that, coupled with money from the COVID-19 Relief Fund and other federal resources, will help more Virginians stay in their homes as we fight this virus. In an unprecedented crisis and financial uncertainty, we must be able to get relief to vulnerable populations quickly and efficiently—this additional funding will make that possible.”

IKEA Retail U.S. has stores in Norfolk and Woodbridge and employs approximately 550 Virginians. As part of the company’s efforts to support COVID-19 recovery across the country, IKEA is providing partner states with a donation equal to the amount given to their employees in the form of unemployment benefits. Housing security continues to be a top priority for Virginia amid the ongoing public health crisis, and Governor Northam asked that the $2 million donation from IKEA to the Commonwealth be directed to support eviction relief.

IKEA has continued to follow Governor Northam’s orders to protect the health and safety of both employees and customers. After Governor Northam issued a statewide Stay at Home order, IKEA closed its two Virginia retail locations to keep their staff and customers safe. Now IKEA is giving back to ensure the Commonwealth has the funding to provide essential services and goods to those who need it most.  

“We are appreciative of the ongoing support from the Commonwealth of Virginia, including the unemployment funds paid to our co-workers who were furloughed in the early weeks of the pandemic,” said Javier Quiñones, IKEA Retail U.S. president. “People are the heart of our business, and these unemployment benefits helped IKEA U.S. co-workers during a difficult time. We now have a better understanding of the impact of COVID-19 on our business, and we’ve decided to pay it forward to support the ongoing relief efforts in our local communities.” 

This funding will be matched by $2 million from Virginia’s COVID-19 Relief Fund, which is supported by tax revenue from electronic skill machines. Governor Northam proposed this one-year alternative funding mechanism as a way of providing additional support to small businesses, Virginians who are out of work due to the pandemic, and individuals struggling to stay in their homes.

Although $1.5 million per year for Legal Aid was unallotted from Virginia’s biennial budget, this $4 million in funding will allow for additional support during the COVID-19 pandemic. Legal Aid attorneys play a critical role in eviction diversion in the Commonwealth—Virginia families facing eviction have successful outcomes 72 percent of the time when represented by Legal Aid lawyers, as opposed to just 34 percent without representation.

Governor Northam also established the Virginia Rent and Mortgage Relief Program (RMRP) with an initial $50 million in federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funds and proposed an additional $88 million in funding for the Housing Trust Fund over the biennium to prevent evictions and expand affordable housing. Since launching at the end of June, the RMRP has served more than 3,100 households in Virginia, and over 60 percent of the households served have children in the home.

The Legal Services Corporation of Virginia funds and oversees the work of nine regional Legal Aid programs and a statewide support center, the Virginia Poverty Law Center, that provide services to low-income Virginians in every city and county in the Commonwealth.

Watch the video of today’s announcement here.