Virginia Gov. Ralph Northam said Thursday the state’s Supreme Court will not extend a statewide moratorium on evictions that expires Sunday. The Democratic governor said he would use federal CARES Act funding to create a $50 million program to assist with rent and mortgage payments.

“Once the moratorium is lifted, it is expected that thousands of Virginians will face eviction and that’s just not acceptable,” Northam said. “So today, I am calling on our chief circuit court judges around the state to further extend the moratorium as appropriate in their locality.”

The Virginia Rent and Mortgage Relief program will launch Monday, June 29, Northam said in a briefing. Additional assistance will be available to help cover energy payments and debts, he said.

The state will enter Phase Three of reopening July 1, meaning Virginians will be able to gather in groups of up to 250 people; gyms can operate at 75% capacity and nonessential businesses will have no capacity limit.

Virginia’s Secretary of Health and Human Services Dan Carey said the state had 1,050 contact tracers, including 400 contractors. He said more contractors were being hired; previously the Virginia Department of Health announced a goal of 1,300 contact tracers.

Dr. Karen Remley, who heads the state’s testing task force, said testing in Virginia has ramped up; she said the state was hitting its target of 10,000 tests a day in June. She said the state would use federal funding to expand the capacity of public health laboratories in Fairfax and Richmond, and partner with three more facilities to ramp up testing.

Moreover, she said there were 26 free clinics testing for COVID-19, up from four in April.

Remley will soon take a position at the Centers for Disease Control, Northam announced Thursday. She admonished Virginians to keep vigilant amid the pandemic.

“Nobody let your guard down, because it’s going to be a long summer and a long fall for COVID,” Remley said.

Nevertheless, Northam projected an atmosphere of loosening urgency. He announced he will end his regular twice-a-week briefings, moving to a more ad-hoc schedule.

Even as restrictions ease, business has not returned to normal. On Thursday Northam doubled a current 90-day extension on renewing drivers licenses that expire before July 1. Department of Motor Vehicles offices are open by appointment only.

His chief of staff Clark Mercer said Phase Three meant schools could reopen, but said that did not mean all schools would.

“Final decisions about reopening are squarely in the hands of local school boards,” Mercer said.

Northam noted that lawmakers will convene in a special session in mid- or late August to discuss the budget after they froze new spending to account for coronavirus-related economic harm. He said he was also speaking with legislators, activists and police groups about passing new laws this summer to reform police behavior following the killing of George Floyd by police in Minnesota.