Virginia has climbed a spot in CNBC’s annual rating of the very best states for business, a yr after federal job cuts helped knock it out of the No. 1 place.
The state positioned third in the 2026 rankings launched at present (Thursday), up from fourth final yr. Ohio took the top spot for the primary time, adopted by North Carolina, with Texas and Minnesota rounding out the top 5. CNBC scored all 50 states on 138 metrics throughout 10 classes in the research, now in its twentieth yr.
The end continues a bumpy stretch for a state that has lengthy dominated the checklist. Virginia has been named the nation’s top state for business a document six instances, most just lately in 2024 — earlier than dropping to fourth in 2025, its worst displaying since 2018.
CNBC tied a lot of that slide, and Virginia’s still-middling economic system rating, to the Trump administration’s cuts to the federal workforce — layoffs concentrated in Arlington and the remainder of Northern Virginia. Virginia ranked twenty third for its economic system this yr and twenty sixth for value of doing business.
The Virginia Chamber of Commerce referred to as these two marks a “warning sign” that the state is dropping floor on job creation and financial development, even because it praised Virginia’s broader strengths.
Virginia scored greatest in the classes CNBC weighted most closely this yr. It ranked second for infrastructure for a second straight yr, fifth for schooling, sixth for know-how and innovation, seventh for high quality of life and tenth for workforce.
Gov. Abigail Spanberger (D), who took office in January, mentioned the improved rating displays the state’s investments in staff and infrastructure. She mentioned Virginia has drawn greater than $5 billion in new business funding and created greater than 3,000 jobs since she was sworn in.
“Virginia’s rise in the rankings reflects strategic investments that are helping companies succeed in our Commonwealth,” Spanberger mentioned in an announcement.
The governor’s workplace pointed to the No. 2 infrastructure rating as a payoff from latest initiatives, together with deeper transport channels on the Port of Virginia and upgrades to the Interstate 81 hall. It additionally cited workforce packages such because the Virginia Talent Accelerator Program and InternshipsVA, which Spanberger launched in February.
The rating lands simply as Virginia wrapped up a months-long battle over its two-year budget, one which turned on how to tax the information facilities clustered in Northern Virginia. Lawmakers finalized the plan on the finish of June, simply earlier than the July 1 deadline that would have compelled a partial state shutdown.
Senate Democrats, led by Finance Chair Louise Lucas (D), pushed to finish a long-standing tax break that saved knowledge facilities practically $2 billion final fiscal yr. Spanberger and House Democrats opposed scrapping it, arguing that it will damage the state’s business-friendly popularity, and the standoff cut up the celebration for months.
The compromise stored the exemption however added a brand new tax on the electrical energy knowledge facilities use, projected to elevate $1.2 billion over two years. An trade group warned the brand new levies may nonetheless damage Virginia’s business-friendly popularity.
The session additionally handed Spanberger’s “Affordable Virginia Agenda”, a $15 minimal wage by 2028 and the state’s first paid leave packages. Spanberger vetoed a number of payments alongside the way in which, and dozens of proposed tax will increase by no means cleared the legislature.
The full press launch on the brand new CNBC rankings, from the governor’s workplace, is under.
RICHMOND, VA — Governor Abigail Spanberger introduced at present that Virginia is #3 in CNBC’s annual “America’s Top States for Business” rankings, rising from final yr.
“Since I took office, I have been focused on growing a stronger, more resilient economy — despite the economic uncertainty coming out of Washington, resulting in rising costs, and deep cuts to our federal workforce. In six months, we have demonstrated success in doing just that; we have brought more than $5 billion in new business investment to communities across the Commonwealth, creating more than 3,000 new jobs,” mentioned Governor Abigail Spanberger. “We have continued to invest in our exceptional talent, world-class K-12 and higher education institutions, local childcare options, housing opportunities, and physical infrastructure.”
Governor Spanberger continued, (*3*)
Virginia’s #2 rating in the Infrastructure class displays main investments in latest years, together with The Port of Virginia’s just lately accomplished enhancements to create the deepest, widest transport channels on the East Coast and ongoing upgrades to the Interstate 81 hall. Additionally, for the primary time, CNBC factored ease of allowing into its rankings. The Commonwealth has a longtime popularity for velocity to market via collaboration throughout state, regional, and native companions. Virginia additionally continues to make investments in business-ready websites, with the General Assembly allocating one other $50 million in the Virginia Business Ready Sites Program this biennium.
“Virginia’s business climate is built on partnership. By working together across state, regional, and local levels, we have created an environment where companies of all sizes can move faster, access exceptional talent, innovate, invest, and scale,” mentioned Secretary of Commerce and Trade Carrie Chenery. “Continued investments in custom talent and sites programs demonstrate our long-term commitment to economic competitiveness. Virginia is delivering the workforce ecosystem and competitive advantages businesses need to thrive here today and well into the future.”
Under Governor Spanberger’s management, Virginia continues to elevate the bar for expertise improvement. Programs comparable to InternshipsVA, launched by the Governor in February, and the Virginia Talent Accelerator Program — just lately ranked the #1 Customized Workforce Training Program in the U.S. by Business Facilities — are serving to equip the following technology of Virginians with the instruments and alternatives they want to succeed. The Spanberger Administration can be deploying strategic web site improvement investments and partnering with localities, utilities, and state businesses to fund modernized infrastructure enhancements.
“Companies choose Virginia because we provide all of the things they need to succeed — a world-class talent ecosystem, robust infrastructure, project-ready sites, a collaborative and transparent permitting process, and exceptional partnership at all levels,” mentioned VEDP President and CEO Jason El Koubi. “Through the Virginia Talent Accelerator Program, continued investments in site development, and close coordination with state agencies, localities, utilities, and regional partners, we’re helping companies reduce risk, accelerate timelines, and build for long-term success. At VEDP, our job doesn’t end when a project is announced. We remain a committed partner throughout a company’s growth journey, ensuring every business that chooses Virginia has the resources, workforce, and support to thrive.”
CNBC is a world chief in business information, and its annual “America’s Top States for Business” rankings measure all 50 states on 138 completely different metrics in 10 key classes of competitiveness to decide which states are delivering most successfully on the issues that imply probably the most to business.