The project funding from the US Army Corps of Engineers was part of President Joe Biden's 2022 budget proposal released last week, reports New York's FreightWaves.
The $350 million project will deepen the port's channels to 55 feet and widen the channels to allow two-way traffic for ultra-large container ships and would make the Port of Virginia the deepest port on the Us East Coast. Initial dredging began in December 2019.
Virginia Port Authority CEO Stephen Edwards said: 'We are very happy to see that the president's budget includes a new start designation and funding for the construction of the inner harbor portion of our channel deepening and widening project.'
Mr Edwards noted that a record-breaking call made at the port on May 20 by the CMA CGM Marco Polo - with a carrying capacity of 16,022 TEU - underscored the importance of the project.
'It was a historic day as well as a reminder of the shifting dynamics in the supply chain industry as well as the critical role that Virginia plays as a gateway for global trade,' he said.
The port set a new record in April for monthly TEU volume, handling more than 286,000 units.
At $6.8 billion, the Army Corps' 2022 civil works budget is the highest annual budget ever requested for the programme. It includes $1.6 billion in funds - also the highest amount ever requested - to be taken from the Harbour Maintenance Trust Fund to be used to maintain depths of port and harbour channels.