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Heard Around Virginia, July 2025

Richmond accelerator Lighthouse Labs announced in May it’s expanding its services and rebranding itself as Lighthouse Network. Since its founding in 2012, Lighthouse has supported 149 companies, raised over $350 million in capital, helped founders raise an average of $1.8 million each and created over 1,500 jobs. The accelerator’s 11-week program, which provides founders with support from mentors, industry experts and investors, and free office space, will shift to one cohort a year instead of two as part of the change. (VirginiaBusiness.com)

LNC Partners, an Arlington County-based private equity firm investing in professional services companies, announced in May that it closed on its third fund, with $325 million in total commitments. The fund, LNC Partners III, will operate as a licensed small business investment company. “The Fund was oversubscribed and received strong support from both existing and new investors, including a diverse group of financial institutions, fund of funds, university endowments, family offices and high-net-worth individuals,” LNC Partners said. “With the closing of Fund III, LNC Partners has now managed over $1 billion of capital across six investment funds since its founding in 2012.” (Potomac Tech Wire)

Meibel, a startup founded in 2024 that’s developing tools to help companies adopt artificial intelligence technology across enterprises, is moving into its first office space in Tysons after raising $7 million from investors. CEO and co-founder Kevin McGrath said the company will start with about 10 people at a built-out 3,000-square-foot office, which has room to expand, at 7925 Jones Branch Drive. The seed round was led by San Francisco’s Mosaic General Partnership and included participation from Array Ventures, Cofounders Capital, Service Provider Capital and Denver Ventures. (DC Inno)

Nooks, a Crystal City-based provider of classified workspaces, said in June that it had raised $25 million in its first round of funding. Participants included Zigg Capital, Upper90, and Lockheed Martin. The company, which operates in Arlington County, Colorado Springs, and El Segundo, California, focuses on creating secure and affordable access to classified facilities for government agencies, contractors and entrepreneurs.
(Potomac Tech Wire)

Tysons startup pWin.ai, which developed an AI proposals writing tool, has raised $10 million in a seed funding round. MicroStrategy co-founder Sanju Bansal, members of the Blue Delta Capital Partners team and “other government contracting industry leaders” led the round, according to a June news release. The startup developed its generative AI tool in partnership with Shipley Associates, a business development training and consulting company based in Utah. pWin.ai said in a news release its product can improve win rates by up to 20%. (VirginiaBusiness.com)

Shenandoah Community Capital Fund (SCCF) and the Shenandoah Valley Technology Council (SVTC) announced in June the two organizations would merge in a partnership, joining under the SCCF banner to expand “our shared commitment to building a thriving, inclusive, and innovative entrepreneurial ecosystem, while furthering the mission to support established innovators throughout the Shenandoah Valley.” Founded in 2008 and based in Staunton, SCCF is a nonprofit regional hub for entrepreneurial innovation, dedicated to helping entrepreneurs start, sustain, and grow valley businesses. SVTC was established in 1996 and supports the regional technology ecosystem. (News release)

SpecterOps, an Alexandria-based provider of adversary-focused cybersecurity solutions with targeted insights of advanced threat actor tradecraft, announced in March it had raised a $75 million Series B funding round led by global software investor Insight Partners, with participation from Ansa Capital, M12, Ballistic Ventures, Decibel and Cisco Investments. The funding will support SpecterOps’ rapid scaling of BloodHound Enterprise (BHE), a platform for comprehensively removing identity-based attack paths. (News release)

Out & About July 2025

1. Nirali Raval Trovato, senior vice president at Towne Wealth Management in Virginia Beach, and her husband, Tony, celebrated her win during Virginia Business’ Forty Under 40 Awards May 12 at the Westin Richmond. (Photo by Matthew R.O. Brown)

2. (L to R) Sentara Health executives Becky Sawyer and Melinda Hancock accepted the award for Best Overall C-Suite at Virginia Business’ inaugural Virginia C-Suite Awards luncheon June 5 at the Jefferson Hotel. (Photo by Matthew R.O. Brown)

3. (L to R) The Breeden Co. President and CEO Timothy A. Faulkner received his award from Virginia Business Associate Publisher and Editor Richard Foster at the Virginia C-Suite Awards June 5. (Photo by Matthew R.O. Brown)

4. Virginia Business Associate Publisher Richard Foster and Sales Manager Toni McCracken congratulated Virginia Forty under 40 Awards winner Michael Gregg, assistant vice president of development at Peterson Cos., at the May 12 awards event. (Photo by Matthew R.O. Brown)

5. Christina Todd and Nancy Oliver of Richmond-based wealth management firm Cary Street Partners share a laugh during the Virginia C-Suite Awards luncheon June 5 (Photo by Matthew R.O. Brown)

Virginia 500 July 2025 Spotlight: Michael J. Lutes

PLAN FOR 10 YEARS FROM NOW: God willing, I hope to be retired and traveling the world. I’m a lifelong learner with a deep love for history and culture. I enjoy learning about different traditions and experiencing all that the world has to offer.

MOST INTERESTING PLACE I’VE TRAVELED: The Vatican. It’s truly a treasure trove of art, history and religious significance. I’ve been fortunate enough to visit twice, and each time I’m in awe. I hope to spend more time there, so I can better appreciate all that it has to offer.

ON WORK-LIFE BALANCE: I’m always thinking about what I could be doing more of, or better. But to me, that’s not a burden — I genuinely love what I do, so it often doesn’t feel like work.

DOGS OR CATS? I’m definitely a dog person. I have two Aussie doodles who bring joy, love and a whole lot of energy into our lives. They make the world a better place.

DID YOU KNOW? Before joining Bon Secours Mercy Health, Lutes served 15 years in various leadership roles at Atrium Health (now Advocate Health), a large health system based in Charlotte, North Carolina, where he oversaw five hospitals.

US stocks close at an all-time high just months after plunging on tariff fears

Summary

  • , , and Dow hit all-time highs.
  • leads the S&P 500 with a 15% gain.
  • Market steadies after trade tensions with Canada.
  • Stock recovery continues despite concerns.

closed at an all-time high, another milestone in a remarkable recovery from a springtime plunge caused by fears that the ‘s trade policies could harm the economy. The S&P 500 rose 0.5% and finished above its previous record set in February. The Nasdaq composite gained 0.5% and set its own all-time high. The Industrial Average rose 1%. President Donald Trump’s decision Friday to halt trade talks with Canada threatened to derail ‘s run to a record, but the market steadied. Nike was the biggest gainer in the S&P 500 with a gain of more than 15%.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Stocks rose in afternoon trading Friday and put Wall Street on track to close a strong week at an all-time high.

The S&P 500 rose 0.2% and is set to surpass its record reached in February. The Nasdaq composite was up less than 0.1%, within striking distance of a new all-time high. The Dow Jones Industrial Average rose 0.6%, or 261 points, to 43,647 as of 2:32 p.m. Eastern.

A record for the S&P 500 would mark a sharp turnaround from several months ago, when the key measure of Wall Street’s health fell nearly 20% from the February high on fears that President Donald Trump’s trade policy could harm the economy.

The gains on Friday were broad, with nearly every sector within the S&P 500 rising. Nike soared 14.8% for the biggest gain on the market, despite warning of a steep hit from tariffs.

The broader market has seemingly shaken off fears about the Israel-Iran war disrupting the global supply of crude oil and sending prices higher. A ceasefire between the two nations is still in place.

The price of crude oil in the U.S. is mostly unchanged on Friday. Prices have fallen back to pre-conflict levels.

Investors are also monitoring potential progress on trade conflicts between the U.S. and the world, specifically with China. The U.S. and China have signed a trade deal that will make it easier for American firms to obtain magnets and rare earth minerals from China that are critical to manufacturing and microchip production, U.S. Treasury Secretary Scott Bessent said Friday.

China’s Commerce Ministry also said that the two sides had “further confirmed the details of the framework” for their trade talks. But its statement did not explicitly mention an agreement to ensure U.S. access to rare earths, and instead said it will review and approve “eligible export applications for controlled items.”

An update on inflation Friday showed prices ticked higher in May, though the rate mostly matched economists’ projections.

Inflation remains a big concern for businesses and consumers. Trump’s on-again-off-again tariff policy has made it difficult for companies to make forecasts. It has also put more pressure on consumers worried about already stubborn inflation. A long list of businesses from carmakers to retailers have warned that higher import taxes will likely hurt their revenues and profits.

The U.S. has 10% baseline tariffs on all imported goods, along with higher rates for Chinese goods and other import taxes on steel and autos. The economy and consumers have remained somewhat resilient under those tariffs, though analysts and economists expect to see the impact grow as import taxes continue to work their way through businesses to consumers.

“While we also would have expected to already to be seeing a bit more pass through into the inflation statistics, we still expect these impacts to show up in a more meaningful way in the next few months,” said Greg Wilensky, head of U.S. fixed income and portfolio manager at Janus Henderson.

The threat of more severe tariffs continues to hang over the economy. The current pause on a round of retaliatory tariffs against a long list of nations is set to expire in July. Failure to negotiate deals or further postpone the tariffs could once again rattle investors and consumers.

The Federal Reserve is monitoring the tariff situation with a big focus on inflation. The rate of inflation has been stubbornly sitting just above the central bank’s target of 2%. In a report Friday, its preferred gauge, the personal consumption expenditures index, rose to 2.3% in May. That’s up from 2.1% the previous month.

The Fed cut interest rates twice in late 2024 following a historic series of rate hikes to cool inflation. The PCE was as high as 7.2% in 2022 while the more commonly used consumer price index hit 9.1%.

The Fed hasn’t cut rate cuts so far in 2025 over worries that tariffs could reignite inflation and hamper the economy. Economists still expect at least two rate cuts before the end of the year.

Bond yields held relatively steady. The yield on the 10-year Treasury rose to 4.28% from 4.24% late Thursday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, edged up to 3.74% from late Thursday.

Stocks in Europe were mostly higher, while stocks in Asia finished mixed.

U.Va. president resigns under pressure from DOJ

SUMMARY:

  • U.Va. President Jim Ryan has resigned, he says in an email to university community
  • Ryan was under pressure to resign by the over disputes
  • Ryan says he is resigning to preserve federal research funding, university jobs, financial aid for students
  • attorney Gregory Brown, now deputy assistant attorney general, reportedly demanded Ryan’s resignation

On Friday, President James E. “Jim” Ryan wrote that he was resigning his post at the state’s flagship university due to pressure from the federal government.

“I am writing, with a very heavy heart, to let you know that I have submitted my resignation as president of the University of Virginia,” begins Ryan’s email sent to U.Va.’s community late Friday afternoon. “To make a long story short, I am inclined to fight for what I believe in, and I believe deeply in this university. But I cannot make a unilateral decision to fight the federal government in order to save my own job.”

Ryan’s sudden departure after seven years as U.Va.’s president was the culmination of mounting pressure at universities nationwide from the Trump administration to dissolve diversity, equity and inclusion (DEI) initiatives or risk losing federal funding that powers research, funds many university jobs and provides student financial aid. In March, Columbia University’s interim president resigned amid multiple federal investigations by the Trump White House.

In April, Ryan received a letter from the U.S. Department of Justice’s Civil Rights division, which is led by two U.Va. alumni, calling for the university to produce audio and video from a closed session of its board of visitors, as well as provide evidence that every division of the university and its health system has dissolved and dismantled its DEI initiatives, following a board vote in March.

Signed by U.Va. alumni Harmeet K. Dhillon, assistant attorney general for the DOJ’s civil rights division, as well as Deputy Assistant Attorney General Gregory W. Brown, the letter said that the DOJ received complaints that Ryan’s “office and the university may have failed to implement these directives and further that you have refused to produce the report on the matter.” The university was given until May 30 to respond to the letter.

The New York Times reported early Friday afternoon that Ryan had notified the school’s board of visitors he would resign from his post, and on Thursday night, the Times reported that it had learned through three sources that the Justice Department demanded Ryan resign as a condition of settling a civil rights investigation into U.Va.’s diversity, equity and inclusion initiatives.

Ryan’s email continues by saying that he was resigning to protect federal research funding, “hundreds” of university-based jobs and “hundreds of students who could lose financial aid or have their visas withheld.” He also wrote that he had already planned for the next academic year to be his last “for reasons entirely separate from this episode — including the fact that we concluded our capital campaign and have implemented nearly all of the major initiatives in our strategic plan.”

The former dean of Harvard’s Graduate School of and before that a professor at U.Va.’s School of Law, Ryan joined U.Va. as its president in 2018. He has been a prodigious fundraiser for the university, with U.Va. officials noting this week that the university had exceeded a $5 billion fundraising goal set with the October 2019 public launch of the “Honor the Future” campaign, raising more than $6 billion total. On Thursday, Ryan announced two anonymous $25 million donations.

While there are very important principles at play here, I would at a very practical level be fighting to keep my job for one more year while knowingly and willingly sacrificing others in this community,” Ryan’s letter continues. “If this were not so distinctly tied to me personally, I may have pursued a different path. But I could not in good conscience cause real and direct harm to my colleagues and our students in order to preserve my own position.

“It has been an honor to be your president,” the email concludes. “Thanks for the outpouring of support over the last few days and weeks. My deepest gratitude to all of the faculty, staff, students and alumni, who make this university and this community both great and good. This was an excruciatingly difficult decision, and I am heartbroken to be leaving this way.”

Hundreds of protesters came to the steps of the Rotunda Friday afternoon to protest the federal pressure that led to Ryan’s resignation, according to local news reports.

Shortly after the Times released its report, U.S. Sens. Tim Kaine and Mark Warner, both Democrats, issued the following statement: “Virginia’s economy and prosperity depend on the strength and integrity of our system. It is outrageous that officials in the Trump demanded the commonwealth’s globally recognized university remove President Ryan — a strong leader who has served U.Va. honorably and moved the university forward — over ridiculous ‘culture war’ traps.

“Decisions about U.Va.’s leadership belong solely to its Board of Visitors, in keeping with Virginia’s well-established and respected system of higher education governance. This is a mistake that hurts Virginia’s future.”

Two people familiar with the matter told the Times that the U.Va. Board of Visitors had accepted Ryan’s resignation, although the effective date is unclear. In a letter to Rector Robert D. Hardie, Ryan said his resignation could be effective immediately but “no later than” Aug. 15, according to a Times source.

Hardie, who is set to rotate off the board June 30 after serving two four-year terms, said in a statement Friday that earlier in the day “with profound sadness,” he accepted Ryan’s resignation on behalf of the board.

Ryan’s resignation also arrives amid a legal fight between Republican and Senate Democrats over Youngkin’s eight BOV appointees who were rejected by a Senate committee in June. This week, nine Democratic state senators sued the rectors of U.Va., George Mason University and Virginia Military Institute.

In the lawsuit, the plaintiffs say that Youngkin has been trying to nullify the Senate committee vote by refusing “to recognize the rejection of those appointments by a coequal branch of government, in open defiance of the Constitution of Virginia and 50 years of tradition in the Commonwealth.”

Among the appointees rejected was former Virginia Attorney General Kenneth Cuccinelli, whom Youngkin named to U.Va.’s board to replace outspoken conservative member Bert Ellis, who stoked controversy since Youngkin appointed him in 2022.

The governor’s office released a statement late Friday: “I thank President Ryan for his service and his hard work on behalf of the University of Virginia. The Board of Visitors has my complete confidence as they swiftly appoint a strong interim steward, and undertake the national search for a transformational leader that can take Mr. Jefferson’s university into the next decade and beyond.”

Dhillon, a U.Va. law school alum who graduated in 1993, one year after Ryan’s own graduation from the law school, issued a statement Friday: “The United States Department of Justice has a zero-tolerance policy toward illegal discrimination in publicly-funded universities. We have made this clear in many ways to the nation’s most prominent institutions of higher education, including the University of Virginia.

“When university leaders lack commitment to ending illegal discrimination in hiring, admissions, and student benefits — they expose the institutions they lead to legal and financial peril. We welcome leadership changes in higher education that signal institutional commitment to our nation’s venerable federal civil rights laws.”

DOJ attorneys have Wahoo ties

Brown and Dhillon are both U.Va. graduates, and according to the Times’ Thursday story, Brown was particularly active in the investigation and made demands to university officials and representatives to remove Ryan. A Charlottesville-based defense attorney before joining the Justice Department, Brown sued the university in 2024 on behalf of a then-first year student, Matan Goldstein.

A Jewish and Israeli student, Goldstein said that he was the target of antisemitic attacks at U.Va. amid pro-Palestinian protests taking place on Grounds in reaction to the war in Gaza.

Brown claimed in the lawsuit that the university, as well as Ryan and Hardie, “thoroughly and completely failed” to “protect students from discrimination, harassment, abuse, violence and retaliation, including antisemitism.”

According to news reports in December, Goldstein settled with the university for an undisclosed amount.

Brown said via text Friday that he had no comment and directed inquiries to the DOJ’s public affairs office.

Under Ryan’s leadership, U.Va. set an individual gift record with the 2019 $120 million donation by Jaffray and Merrill Woodriff to launch the School of Data Science, and in 2023, U.Va. started construction of the $350 million Manning Institute of Biotechnology with a $100 million donation by Paul and Diane Manning.

Ryan also shepherded U.Va. through difficult times, including the 2022 slayings of three U.Va. football players by a fellow student and the spring 2020 COVID campus shutdown and resumption of remote classes. Last spring, he faced criticism for the university’s handling of a pro-Palestinian student protest on campus, after 27 students were arrested by police in riot gear who sprayed protesters with chemical irritants.

“Jim Ryan has been an extraordinary president of this great university,” Hardie said in his statement. “He has led our institution to unprecedented heights, always doing so with grace and humility. I know I speak for our students, alumni, faculty, and staff when I express my heartfelt gratitude for Jim’s tireless service to our university, especially for the ways he has guided the institution steadily and with great purpose, even in the face of major challenges like a global pandemic. U.Va. has forever been changed for the better as a result of Jim’s exceptional leadership.”

The Virginia State Senate’s Democratic Caucus sent out a statement Friday, saying that it “stands strongly in support of President Ryan and the presidents of all our public universities. We recognize their commitment to maintaining the academic integrity and educational mission that have made Virginia’s institutions world-class centers of learning.

“We call upon all boards of visitors across our 14 public colleges and universities to resist any efforts by the Trump administration to dictate how Virginia runs its own taxpayer-funded schools.”

Other Virginia Democrats, including gubernatorial nominee Abigail Spanberger, a U.Va. alum, and the Virginia Legislative Black Caucus, released statements condemning the Trump administration’s involvement in the matter.

“As governor, I will take decisive steps to ensure that all of our commonwealth’s boards of visitors are composed of individuals committed to the mission of serving and strengthening our public colleges and universities,” Spanberger said. “I will work to restore a standard of leadership that puts academic excellence, Virginia’s students, and the strength of Virginia’s public colleges and universities ahead of any political agenda.”

The VLBC statement blasted the White House and Youngkin: “Their goal is clear: to defund public education, rewrite what is taught in classrooms, restrict who gets to learn, and remove leaders who refuse to conform to their narrow ideological vision. This is not just about one university president — this is about dismantling public education as we know it.”

Mounting pressure

Ryan was under increasing public pressure over the past two months, with America First Legal, a nonprofit right-wing “answer to the ACLU” founded by Stephen Miller, the White House’s deputy chief of staff for policy and one of President Donald Trump’s closest advisers, calling for a full-scale investigation of U.Va.’s DEI practices in May.

In a 98-page missive to Dhillon dated May 21, America First Legal wrote, “the university is operating programs based on race, sex, ethnicity, national origin, and other impermissible, immutable characteristics under the pretext of ‘diversity, equity, and inclusion’ in open defiance of federal civil right law, controlling Supreme Court precedent, and executive orders issued by President Donald Trump.”

The document notes that Ryan was among hundreds of university presidents and other higher education leaders who signed an American Association of Colleges and Universities  in April condemning what it calls the Trump White House’s “unprecedented government overreach and political interference.”

Ryan was the only president of a Virginia public university who signed the petition.

Closer to home, the Jefferson Council, a group of conservative alumni who have been heavily critical of Ryan, launched a website called Reset earlier this year. On its homepage, the site says, “UVA Needs New Leadership” and describes Ryan’s tenure as “politicized and feckless leadership combined with his institutionalization of double standards has led to an unprecedented series of tragedies, scandals and government investigations that have severely damaged U.Va.’s core values and reputation.”

Bert Ellis is among the founders of the Jefferson Council, along with James A. Bacon Jr., a Virginia alumnus who runs the conservative political website Bacon’s Rebellion and was Virginia Business’ founding editor from 1986 to 2002, as well as its publisher for a time.

However, Wahoos4UVA, a group of alumni, students, faculty, staff members and other supporters of U.Va., started its own website and a letter in support of Ryan.

“Wahoos4UVA is dedicated to protecting the university from misinformation and celebrating the incredible work happening across Grounds,” the site says. “These achievements are clear indications the university is headed in the right direction under the right leadership.”

Ann Brown, a 1974 U.Va. alumna and Wahoos4UVA co-chair, called the pressure on Ryan to resign “an assault not only on U.Va. but on the very principles of academic freedom, institutional autonomy and democratic governance,” in a statement Friday. “Jim Ryan has been a singularly effective leader and has made U.Va. stronger even through times of challenge and tragedy. It is shameful for the Trump administration’s Justice Department to use unconstitutional, extortionate tactics to erase that legacy.”

Meanwhile, Roanoke attorney John Fishwick, a former U.S. attorney for the Western District of Virginia, said Friday that he thinks U.Va. has lost its leverage by reacting so quickly.

“I think it’s a mistake by the university to respond so quickly to the kind of shock-and-awe moves by DOJ, because it’s unlikely to end with just one person’s resignation. Without kind of having a complete deal with DOJ, there’s no protection … that there won’t be more repercussions for University of Virginia,” Fishwick said. 

“I think if you’re going to capitulate on one thing, then the DOJ knows you’ll capitulate on other things,” he added. “And so they’ve lost their leverage. They’ve signaled they’re not going to fight DOJ. It’s not over for the University of Virginia. You can fight, and then you can later negotiate, but when you just immediately capitulate, you’re in a very weak position.”

Virginia Business Associate Editor Beth JoJack contributed to this story.

22nd Century Technologies adds 880 jobs in Virginia

McLean-based and IT services company plans to invest $1 million to expand its headquarters in and offices across Virginia, adding 880 jobs.

made the announcement Friday, saying the additional jobs will help deliver major federal and state contracts.

“22nd Century Technologies’ decision to expand in Virginia and create 880 new jobs speaks to the strength of our tech talent pipeline and our leadership in serving the nation’s most critical missions,” Youngkin said in a statement. “This company is a vital partner to the public sector, delivering innovative IT solutions and workforce support to government agencies at every level.”

The company did not immediately return requests for comment and the timeline.

Operating in 14 regional offices nationwide, 22nd Century Technologies has more than 6,000 employees and serves clients across all U.S. states, Canada and Mexico. The company was founded in 1997.

The company says it holds multiyear contracts with 14 of 15 federal executive agencies, 37 additional federal agencies, 50 state governments, 115 city and county agencies and 37 school districts.

Additionally, 22nd Century Technologies says in the past two years it expanded into IP-enabled services by launching customer-centric tech products and acquiring niche tech product firms to deepen its portfolio.

The governor’s office says the worked with the Fairfax County Authority to secure the project for the state.

“Virginia has been a game changer for us,” 22nd Century Technologies CEO Anil Sharma said in a statement. “Since moving our operational headquarters here in 2008, we’ve grown from a $6 million business to a $600 million government contractor, driven by access to talent, partnerships and a pro-business environment. This expansion reflects our commitment to innovation and public service.”

General Dynamics subsidiary wins $1.85B contract modification

General Dynamics Electric Boat, the Connecticut subsidiary of -based defense contractor , has been awarded an up to $1.85 billion contract modification from the for preliminary construction efforts and to purchase long lead time materials and for Virginia-class Block VI submarines.

The U.S. announced Thursday that work will be performed in California, Arizona, Virginia, Texas, Pennsylvania, Massachusetts, New Hampshire, West Virginia, Minnesota, Illinois, Kentucky, New Jersey, New York and other locations, and is expected to be completed by September 2035.

Naval Sea Systems Command, the contracting activity, obligated $1.68 billion in fiscal 2025 shipbuilding and conversion funds at the time of the award, according to the DOD.

Last week, Electric Boat announced that it won a $987 million contract modification from the DOD to allow additional component development, class lead yard support and Submarine Industrial Base development in the production of new submarines for the Navy.

General Dynamics Electric Boat employs more than 24,000 people. General Dynamics employs more than 110,000 people worldwide and generated $47.7 billion in 2024 revenue.

High times in Virginia: legal THC seltzers emerge statewide

SUMMARY:

  • is Virginia’s first THC-infused beverage distributed statewide by major wholesalers
  • New seltzer offers legal, low-dose alternative to alcohol
  • THC seltzer market in Virginia rapidly growing, with ‘s Buzzin’ Berry also thriving
  • Industry leaders hope Virginia laws on THC products loosen to be comparable with other states

Virginians wanting to experience calm, mellow vibes without dealing with the haze of strong products or the tortuous hangovers of alcoholic beverages are in luck, as a new kind of THC-infused beverage is now selling throughout the state. And the best part? It’s completely legal.

Mountain High Seltzer announced earlier this month that its beverage is the first legal THC seltzer to be distributed statewide by major companies, Hoffman Beverage and Distributing, an wholesaler. The milestone is a significant win for Mountain High Seltzer founder and CEO Joe Kuhn, who has delivered the product after years of pivoting and navigating challenges in Virginia’s complex and shifting cannabis laws.

“We are currently the only THC beverage, -derived, to be distributed by bigger players,” Kuhn said.

A functional buzz

Consumers of the Mountain High Seltzer can start feeling its relaxing effects in as little as 10 to 15 minutes. The new beverage contains just 30 calories and zero alcohol, featuring a fast-acting blend of 2 milligrams of THC and 4 milligrams of CBD. Kuhn said when developing the drink, he wanted to provide consumers with a refreshment that offered “good vibes” and made their day better while keeping them functional.

“My motto for our company is, I want you to find your dose, not the dose to find you,” Kuhn said. “I like a lighter dose … like I want someone to relax, have an experience, nice and light, unwind after work kind of thing. I’m not in the business of inebriating people. That is what I do not want to do.”

So far, the seltzers are available in two flavors: Lemon Lime and Wild Berry. A four-pack retails for $17.99.

Company beginnings

Kuhn began his business under the name Albemarle Hemp Co. in 2019 in , starting with $2,000 of his own money. His initial work involved consulting with farmers on how to grow hemp, based on the laws in effect at the time, as outlined in the 2018 federal Farm Bill.

The business soon expanded to include cannabis , outreach and product development. He described himself as an independent “one man show” who slowly built up a following. His friend Blake DeMaso, an entrepreneur in the advertising and publishing industry, eventually joined the company and became a co-owner.

Although ‘s administration tightened cannabis laws, Kuhn found ways to pivot legally. In early 2024, he began developing the Mountain High Seltzer, which would become the name of his new product as well as the rebranded name for his company.

While it is illegal to sell marijuana in Virginia for recreational use, the law does allow the sale of hemp-derived products — albeit with some significant restrictions. One of those restrictions, according to the , is that hemp products may not exceed 0.3% total THC and may not have more than 2 milligrams of total THC per package unless the product’s CBD-to-THC ratio is at least 25 parts CBD for every one part THC.

Both Kuhn and DeMaso noted that THC beverages offered in different states can have significantly higher amounts of THC. The two men believe that 5 milligrams would be ideal for the drink and hope state laws will eventually change to allow that amount.

“Two milligrams is a little light,” Kuhn said. “And in my personal opinion, anything over 10 milligrams is way too much in a beverage.”

The beverage started being sold in small amounts in spring 2024 and was added to the VDACS’ Voluntary Registry of Compliant Edible Hemp Products in November 2024. While drinks that adhere to state laws can still be sold without being on the list, Kuhn says having that “stamp of approval” was essential for getting the beverage out to larger audiences, as it helps assure businesses that the drink is compliant with the law.

DeMaso said Mountain High Seltzer partnered with Blue Mountain Brewery in March to produce the canned beverage. Previously, a small microbrewery in Lynchburg called Three Roads Brewing had made the drink. DeMaso said Hoffman and Virginia Eagle came on board as distributors in May. The drink is now sold throughout Virginia and at all 20 Total Wine & More locations in the state.

A growing industry

Mountain High is not alone in the budding THC seltzer space, as several products from different companies have emerged within the past year. Pure Shenandoah, an Elkton-based, family-run CBD and hemp products business, has found success in this market with its drink called Buzzin’ Berry.

The Buzzin’ Berry also contains 2 milligrams of THC and was the first THC seltzer added to VDACS’ voluntary registry of compliant products in June 2024, several months before Mountain High Seltzer. The drink can be found in Total Wine stores, where it sells about 50,000 cans a month.

Tanner Johnson, Pure Shenandoah’s CEO, said his product is a mixed berry flavor that tastes like a light soda. He said most people “absolutely love it” and that one drink creates a light, subtle relaxation. A second or third will give consumers a buzz. At nighttime, he said, it helps with sleep.

The Buzzin’ Berry is one of the fastest-growing segments of the Pure Shenandoah business. It can be purchased in over 150 stores around Virginia, and the company expects to reach the 500-plus mark by the end of the year.

Like Kuhn, Johnson feels the 2-milligram limit for seltzers is too restrictive and would prefer to offer a drink in the 5-to-10-milligram range.

“But just as politics goes, you know, the pendulum swings one way, and then it kind of swings back the other,” Johnson said. “We’re hoping to see a little bit of correction on the hemp side next year as well.”

For now, the company is self-distributing, but Johnson says he is currently in talks with several mass distributors and also plans to add other THC seltzers with other flavors soon. Johnson says restaurants, bars and breweries throughout the state are increasingly wanting THC seltzer products and that the seltzers are bringing new customers into the THC market.

Kuhn says that right now, the goal of his company is to make the seltzer product well-known throughout Virginia, demonstrating to consumers what a light cannabis product is, how it can serve as an alternative to other adult beverages, and how it can benefit their day-to-day activities. Eventually, he’d like to see the drink make its way into grocery stores and maybe even receive national distribution.

“Part of my dream is to have it be a drink that normalizes cannabis and would be available in the over 21 section of a grocery store, convenience stores, you know, stuff like that,” Kuhn said.

Judge blocks Job Corps shutdown amid legal challenge

Summary

  • issues injunction stopping shutdown.
  • Lawsuit challenges Labor Department’s decision to close centers.
  • Job Corps offers housing, , and health care to youth.
  • Shutdown was scheduled for end of June at contractor-run sites.

NEW YORK (AP) — A federal judge on Wednesday granted a preliminary injunction to stop the U.S. from shutting down Job Corps, a residential program for , until a lawsuit against the move is resolved.

The injunction bolsters a temporary restraining order U.S. District Judge Andrew Carter issued earlier this month, when he directed the Labor Department to cease removing Job Corps students from housing, terminating jobs or otherwise suspending the nationwide program without congressional approval.

Founded in 1964, Job Corps aims to help teenagers and young adults who struggled to finish traditional high school and find jobs. The program provides tuition-free housing at residential centers, training, meals and health care.

“Once Congress has passed legislation stating that a program like the Job Corps must exist, and set aside funding for that program, the DOL is not free to do as it pleases; it is required to enforce the law as intended by Congress,” Carter wrote in the ruling.

Department of Labor spokesperson Aaron Britt said the department was working closely with the to evaluate the injunction.

“We remain confident that our actions are consistent with the law,” Britt wrote in an email to The Associated Press.

The Labor Department said in late May that it would pause operations at all contractor-operated Job Corps centers by the end of June. It said the publicly funded program yielded poor results for its participants at a high cost to taxpayers, citing low student graduation rates and growing budget deficits.

“Secretary DeRemer rightfully paused funding to reassess underperforming programs, operating in a $140 million deficit, with massive safety concerns at Jobs Corps centers,” Taylor Rogers, White House spokesperson, said in an email. “The district court lacked jurisdiction to enter its order, and the looks forward to ultimate victory on the issue.”

The judge rejected the department’s claims that it did not need to follow a congressionally mandated protocol for closing down Job Corps centers because it wasn’t closing the centers, only pausing their activities.

“The way that the DOL is shuttering operations and the context in which the shuttering is taking place make it clear that the DOL is actually attempting to close the centers,” Carter wrote.

The harm faced by some of the students served by the privately run Job Corps centers is compelling, the judge said. Carter noted that one of the students named as a plaintiff in the lawsuit lives at a center in New York, where he is based.

If the Job Corps program is eliminated, she would lose all the progress she’s made toward earning a culinary arts certificate and “will immediately be plunged into homelessness,” the judge wrote. That’s far from the “minor upheaval” described by government lawyers, he said.

The AFL-CIO’s Transportation Trades Department said the decision prevents any Job Corps center closures, job terminations or student removals, pending legislative action. “The law is clear: a federal agency cannot unilaterally dismantle a congressionally-mandated program like Job Corps,” the group said in a statement. “The students who enter the Job Corps program are the embodiment of the American dream: that if you work hard, no matter your beginnings, you can achieve success. We are proud of these students and of the Job Corps program.”

As the centers prepared to close, many students were left floundering. Some moved out of the centers and into shelters that house homeless people.

“Many of these young people live in uncertainty, so it takes time to get housing and restore a lot of those supports you need when you’ve been away from your community for so long,” said Edward DeJesus, CEO of Social Capital Builders, a Maryland-based educational consultancy which provides training on relationship-building at several Job Corps sites. “So the abrupt closure of these sites is really harmful for the welfare of young adults who are trying to make a change in their lives.”

The National Job Corps Association, a nonprofit trade organization comprised of business, labor, volunteer and academic organizations, sued to block the suspension of services, alleging it would displace tens of thousands of vulnerable young people and force mass layoffs.

The attorneys general of 20 U.S. states filed an amicus brief supporting the group’s motion for a preliminary injunction in the case.

Monet Campbell learned about the Job Corps’ center in New Haven, Connecticut, while living in a homeless shelter a year ago. The 21-year-old has since earned her certified nursing assistant license and phlebotomy and electrocardiogram certifications through Job Corps, and works at a local nursing home.

“I always got told all my life, ‘I can’t do this, I can’t do that.’ But Job Corps really opened my eyes to, ‘I can do this,’” said Campbell, who plans to start studying nursing at Central Connecticut State University in August.

The program has been life-changing in other ways, she said. Along with shelter and job training, Campbell received food, mental health counseling, medical treatment and clothing to wear to job interviews.

“I hadn’t been to the doctor’s in a while,” she said. “I was able to do that, going to checkups for my teeth, dental, all that. So they really just helped me with that.”

Campbell said she and other Job Corps participants in New Haven feel like they’re in limbo, given the program’s possible closure. They recently had to move out for a week when the federal cuts were initially imposed, and Campbell stayed with a friend.

There are 123 Jobs Corps centers in the U.S., the majority of them operated by private organizations under agreements with the Department of Labor. Those private jobs corps centers serve more than 20,000 students across the U.S., according to the lawsuit.

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Susan Haigh in Hartford, Connecticut and Rebecca Boone in Boise, Idaho contributed to this report.

SAIC secures $928M Air Force contract

Reston-based announced on Wednesday it has been awarded a $928 million, five-year contract to support the U.S. ‘s Tactical Exploitation of National Capabilities (AF TENCAP).

AF TENCAP is a congressionally mandated rapid acquisition organization that leverages existing air, space, cyber, national and global intelligence, surveillance and reconnaissance systems to accelerate the delivery of secure warfighting capabilities across Air Force and joint military missions for the .

Through the contract, will provide research, development, test and evaluation mission engineering services to help AF TENCAP create tech prototypes that enhance warfighting capabilities and enable the Air Force to make faster and more effective decisions.

“To deter conflict and win wars in today’s data-centric battlefield, warfighters must have integrated actionable data including the full power of intelligence community capabilities,” Vincent DiFronzo, SAIC executive vice president of the Air Force and Combatant Commands business group, said in a statement. “Using our proven expertise in rapid mission integration, SAIC leverages advanced commercial technologies to keep the DoD on the cutting edge of all-domain warfighting capabilities.”

SAIC will use sensor and data fusion, improve command and control decisions in complex environments, integrate new materials and manufacturing processes, fuse data to ensure accurate status of threat and friendly forces, support unique requirements of Special Operations Forces, enhance battlespace awareness, increase air superiority and interoperability and develop innovative cyberspace capabilities.

“SAIC is proud to be a partner of choice to accelerate next-gen warfighting concepts into operational reality,” said DiFronzo. “We’re excited to help Air Force TENCAP achieve evolutionary and revolutionary warfighting improvements in capability, performance and cost savings.”

SAIC has about 24,000 employees and reported annual revenues of $7.48 billion for fiscal 2025.