RTX said in a news release Tuesday that the contract is a follow-on to a previously awarded integration and production support contract announced in 2018. The new contract includes upgrading Flight IIA destroyers, part of the Arleigh Burke class of guided-missile destroyers, with the SPY-6(V)4 variant.
The SPY-6 family of radars performs air and missile defense on seven classes of ships, according to RTX. Some of the advantages over legacy radars, according to RTX, include greater detection range, increased sensitivity and more accurate discrimination.
The SPY-6(V)4 variant can simultaneously defend against ballistic missiles, hypersonic missiles, cruise missiles, anti-surface and anti-air threats, jamming/clutter and electronic warfare.
Under the contract, Raytheon will provide support through training, engineering services, ship installation, integration and testing and software upgrades. Work is expected to be completed by May 2026.
“SPY-6 is the most advanced radar in the U.S. naval fleet, providing ships a new level of defense against evolving threats,” Barbara Borgonovi, president of naval power at Raytheon, said in a statement. “This contract highlights the essential role of this technology in supporting the U.S. Navy’s technology roadmap for several decades to come.”
SPY-6 is installed on two new U.S. Navy ships, according to RTX, with three additional ships slated for installation and undergoing various stages of testing later this year. According to a news release, over the next decade, SPY-6 is expected to be deployed on more than 60 U.S. Navy ships.
RTX has more than 185,000 employees globally and reported more than $80.73 billion in 2024 sales. The contractor is Virginia’s second-highest ranked company on the 2025 Fortune 500.
Follows similar energy moves by Amazon, Google, and Microsoft
AI’s rapid growth strains tech firms’ clean energy plans
Fossil fuel use remains high despite climate-friendly goals
Meta’s deal to help revive an Illinois nuclear power plant was one way of signaling that the parent company of Facebook and Instagram is preparing for a future built with artificial intelligence.
Meta’s 20-year deal with Constellation Energy follows similar maneuvers from Amazon, Google and Microsoft, but it will take years before nuclear energy can meet the tech industry‘s insatiable demand for new sources of electricity.
In October 2024, Amazon and Dominion Energy Virginia entered into an agreement to explore potential development of small modular nuclear reactors at North Anna Power Plant in Louisa County. Amazon also announced then it had signed three agreements to support SMR development, including an agreement in the state of Washington with Energy Northwest to develop four advanced SMRs. In March 2024, Amazon acquired a nuclear-powered data center campus in Pennsylvania from Talen Energy.
Meanwhile, Google announced last October that it had reached an agreement with Kairos Power to develop and purchase 500 megawatts of power from six to seven SMRs, planned to come online between 2030 and 2035. And in September 2024, Microsoft forged a deal with Constellation Energy to offset power consumption by its data centers by reviving a portion of the Three Mile Island power plant, the Pennsylvania facility that in 1979 experienced a partial nuclear meltdown, the worst nuclear disaster in U.S. history.
AI uses vast amounts of energy, much of which comes from burning fossil fuels, which causes climate change. The unexpected popularity of generative AI products over the past few years has disrupted many tech companies’ carefully laid plans to supply their technology with energy sources that don’t contribute to climate change.
Even as Meta anticipates more nuclear in the future, its more immediate plans rely on natural gas. Entergy, one of the nation’s largest utility providers, has been fast-tracking plans to build gas-fired power plants in Louisiana to prepare for a massive Meta data center complex.
Is the U.S. ready for nuclear-powered AI?
France has touted its ample nuclear power — which produces about 75% of the nation’s electricity, the highest level in the world — as a key element in its pitch to be an AI leader. Hosting an AI summit in Paris earlier this year, French President Emmanuel Macron cited President Donald Trump‘s “drill baby drill” slogan and offered another: “Here there’s no need to drill, it’s just plug baby plug.”
In the U.S., however, most of the electricity consumed by data centers relies on fossil fuels — burning natural gas and sometimes coal — according to an April report from the International Energy Agency. As AI demand rises, the main source of new supply over the coming years is expected to be from gas-fired plants, a cheap and reliable source of power but one that produces planet-warming emissions.
Renewable energy sources such as solar and wind account for about 24% of data center power in the U.S., while nuclear comprises about 15%, according to the IEA. It will take years before enough climate-friendlier power sources, including nuclear, could start slowing the expansion of fossil fuel power generation.
A report released by the U.S. Department of Energy late last year estimated that the electricity needed for data centers in the U.S. tripled over the past decade and is projected to double or triple again by 2028 when it could consume up to 12% of the nation’s electricity.
Why does AI need so much energy?
It takes a lot of computing power to make an AI chatbot and the systems they’re built on, such as Meta’s Llama. It starts with a process called training or pretraining — the “P” in ChatGPT — that involves AI systems “learning” from the patterns of huge troves of data. To do that, they need specialized computer chips — usually graphics processors, or GPUs — that can run many calculations at a time on a network of devices in communication with each other.
Once trained, a generative AI tool still needs electricity to do the work, such as when you ask a chatbot to compose a document or generate an image. That process is called inferencing. A trained AI model must take in new information and make inferences from what it already knows to produce a response.
All of that computing takes a lot of electricity and generates a lot of heat. To keep it cool enough to work properly, data centers need air conditioning. That can require even more electricity, so most data center operators look for other cooling techniques that usually involve pumping in water.
Major changes are on the horizon for Tysons Corner Center — the largest shopping mall in the Washington, D.C., area.
In a May presentation to investors, California-based real estate investment trust Macerich, the owner of the 1.8 million-square-foot mall in Fairfax County, announced plans for a “strategic redevelopment” of the mall to drive net operating income growth. The company calls for “reimagining the shopper experience” at the west end of the mall, from the Bloomingdale’s to the Macy’s, into “a vibrant and walkable retail, dining and entertainment district, anchored by upscale dining and a luxury market.”
Macerich says it is in the process of investing $100 million in enhancements to the mall, including $66 million in retailer investments for store upgrades and new designs, including a redesigned Apple store. Apple’s first retail store completed a relocation and expansion at Tysons Corner Center in 2023.
In addition to the retailer investments, Macerich says it is adding $45 million in mall improvements.
However, the upgrades may result in the removal or relocation of the American Girl. A rendering in the investor presentation shows the exterior of the American Girl store’s existing space in the mall being labeled as “Before.” A rendering labeled “West End Future” shows the exact same space, redeveloped with new dining options, but with the removal of the American Girl store. In its place, the word “Market” appears where the American Girl logo used to be.
A Macerich spokesperson declined to provide additional information beyond what was already shared in the investor presentation. American Girl did not return requests for comment.
Tysons Corner Center opened in 1968 and today has more than 300 retailers. Macerich has owned it since 2005.
Macerich reported a net loss of $197 million in 2024, of which $194 million was attributable to the company. This was an improvement the previous year’s net loss of $278 million, of which $274 million was attributable to the company.
Dollar General sets quarterly sales record at $10.44 billion
Sales rose 5% year-over-year, beating Wall Street forecasts
Company upgrades annual profit and sales outlook
Economic slowdown and budget-conscious consumers drive growth
Dollar General set a quarterly sales record of $10.44 billion and upgraded its annual profit and sales outlook as Americans tighten their budgets and spend more at bargain stores and off-price retailers amid economic uncertainty.
The U.S. economy shrank at a 0.2% annual pace from January through March, the first drop in three years, as President Donald Trump‘s trade wars dented spending by businesses. Consumer spending slowed sharply.
Dollar General, based in Goodlettsville, Tennessee, stands out because it is raising its expectations for the year while most traditional retailers, like Macy’s, Target or Best Buy, are dialing back profit and or sales projections, citing anxious customers or the impact of tariffs.
For the period ended May 2, Dollar General’s sales climbed 5% to $10.44 billion from $9.91 billion. That’s better than the $10.29 billion that Wall Street was expecting, according to a poll by Zacks Investment Research.
Sales at stores open at least a year, a key indicator of a retailer’s health, increased 2.4%.
Customer traffic dipped 0.3%, but the average transaction amount rose 2.7%.
Shares jumped 9% before the opening bell Tuesday and shares of Chesapeake-based rival Dollar Tree, which reports its quarterly performance Wednesday, rose 4%. The discount retailer is set to sell its Family Dollar chain for $1 billion this quarter to two private equity firms, Dollar Tree announced in March. Family Dollar will remain headquartered in Chesapeake and will be led by CEO and Chairman Duncan MacNaughton, who previously was president and chief operating officer of Family Dollar from 2017 to 2019.
Dollar General earned $391.9 million, or $1.78 per share, in the quarter, blowing past the $1.47 per share that Wall Street had expected, as well as the $363.3 million profit it recorded during the same period last year.
Dollar General said that even though it topped its own expectations, there is a lot of uncertainty about how tariffs will impact its business and its customers for the remainder of the year.
People are trading down, or visiting bargain chains, as they seek to extend their spending, but lower-income Americans are much more vulnerable.
“While the macro backdrop continues to be broadly unhelpful, with core lower income consumers still facing considerable pressure on their finances, this was mitigated during the quarter by consumers gently stocking up on things in anticipation of tariffs,” Neil Saunders, managing director of GlobalData, said in a statement.
The company is now projecting 2025 earnings in a range of about $5.20 to $5.80 per share. Its prior earnings forecast was for approximately $5.10 to $5.80 per share.
Analysts surveyed by FactSet are looking for earnings of $5.61 per share.
Sales are expected to climb approximately 3.7% to 4.7%. Dollar General previously predicted sales growth of about 3.4% to 4.4%. Same-store sales growth is now expected to be approximately 1.5% to 2.5% up from a prior outlook for about 1.2% to 2.2% growth.
Virginians bet more than $609.71 million on sports in April, 8.2% more than they bet in April 2024, according to Virginia Lottery data released Friday.
Virginia bettors won more than $546.92 million in April.
About $603.71 million of April’s gross sports gaming revenues came from mobile operators, with the remaining roughly $6 million coming from casino retail activity. Virginia currently has three casinos: the Hard Rock Hotel & Casino Bristol, Rivers Casino Portsmouth and Caesars Virginia in Danville. In April, the state’s casinos reported a total of almost $78.76 million in adjusted gaming revenues.
Casino development continues in the commonwealth. Construction on the $750 million Norfolk casino began in February. In Petersburg, the $1.4 billion Live! Casino & Hotel Virginia held a groundbreaking in March. Rivers Casino Portsmouth and Rush Street Gaming have plans to begin building a $65 million hotel in Portsmouth this summer.
April’s sports handle was an almost 12% decrease from the $689.66 million that Virginians bet in March.
“Virginia’s handle dropped to just over $609 million in April, which is a typical post-March Madness slowdown. But the real story is in [adjusted gross] revenue — sportsbooks posted a 24.5% increase, despite the dip in betting volume,” Christopher Boan, an analyst with sports betting vendor BetVirginia.com, said in a statement.
May and June are typically quieter betting periods, Boan added.
The licensed operators included in April’s sports revenue reporting were:
Betfair Interactive US (FanDuel) in partnership with the Washington Commanders
Virginia places a 15% tax on sports betting activity based on each permit holder’s adjusted gross revenue (total wagers minus total winnings and other authorized deductions). With 11 operators reporting net positive AGR for April, state taxes for the month totaled more than $8.5 million.
Of that, 97.5% — about $8.3 million — will be deposited in the state’s general fund. The remaining approximately $212,900 will go to the Problem Gambling Treatment and Support Fund Allocation, which the Virginia Department of Behavioral Health and Developmental Services administers.
Global markets stay steady amid trade policy uncertainty
Investors await further clarity on Trump’s tariffs
NEW YORK (AP) — U.S. stocks are gaining ground on Tuesday, and financial markets worldwide are holding relatively steady as the wait continues for more updates on President Donald Trump‘s tariffs and how much they’re affecting the economy.
The S&P 500 was 0.6% higher in afternoon trading, coming off a modest gain that added to its stellar May. It’s back within 3% of its all-time high set earlier this year after falling roughly 20% below two months ago.
The Dow Jones Industrial Average was up 170 points, or 0.4%, as of 12:40 p.m. Eastern time, and the Nasdaq composite was 1% higher.
Dollar General jumped 14.3% for one of the market’s bigger gains after reporting stronger profit and revenue for the start of the year than analysts expected. The discount retailer also raised its forecasts for profit and revenue over the full year, though it cautioned that “uncertainty exists for the remainder of the year” because of tariffs and how they might affect its customers.
Many other companies have cut or withdrawn their financial forecasts for the upcoming year because of the uncertainty caused by Trump’s on-again-off-again rollout of tariffs. The Organization for Economic Cooperation and Development said on Tuesday that it’s forecasting 1.6% growth for the U.S. economy this year, down from 2.8% last year.
But while Trump’s tariffs have certainly made U.S. households feel more pessimistic about where the economy and inflation are heading, reports have suggested only a moderate hit so far. Manufacturers have begun to feel the effects, but the overall job market has remained solid overall with layoffs remaining relatively low, and inflation has not taken off.
A report on Tuesday morning showed U.S. employers were advertising more job openings at the end of April than economists expected, another signal that the labor market remains solid. It sets the stage for a more important report coming on Friday, which will show how much hiring and firing U.S. employers did in May.
On the trade front, hopes are still high on Wall Street that Trump will reach trade deals with other countries that will ultimately lower tariffs, particularly with the world’s second-largest economy. The U.S. side said President Donald Trump was expecting to speak with Chinese leader Xi Jinping this week. A Chinese foreign ministry spokesperson said Tuesday that they had no information on that.
On Wall Street, Constellation Energy rose 0.7% after signing a 20-year deal to provide Meta Platforms with power from its nuclear plant in Clinton, Illinois.
In the bond market, Treasury yields held relatively steady. The yield on the 10-year Treasury rose to 4.47% from 4.46% late Monday, though it had been lower earlier in the morning before the stronger-than-expected report on U.S. jobs openings.
It’s a cooldown following a sharp rise for yields over the last two months. Yields had been climbing in part on worries about how the U.S. government may be set to add trillions of dollars to its debt through tax cuts.
Besides making it more expensive for U.S. households and businesses to borrow money, higher Treasury yields can also discourage investors from paying high prices for stocks and other investments.
In stock markets abroad, indexes were mixed amid mostly modest moves across Europe and Asia.
Hong Kong was an exception, where the Hang Seng jumped 1.5%. That came despite a report showing Chinese manufacturing activity slowed in May.
South Korean markets were closed for a snap presidential election triggered by the ouster of Yoon Suk Yeol, a conservative who now faces an explosive trial on rebellion charges over his short-lived imposition of martial law in December.
___
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Sublease supply in Northern Virginia‘s major office hubs has declined by nearly 1.5 million square feet since its 2023 peak
The decline reflects broader state trends
Companies are now reclaiming previously subleased space or opting for cheaper sublease options
Sublease rents may rise as supply shrinks
The sublease supply for Northern Virginia’s top office hubs is shrinking as the market has begun to stabilize after the COVID-19 pandemic, according to a May 22 report from Avison Young.
The report shows that sublease availability in the Rosslyn-Ballston corridor, Tysons and Reston-Herndon submarkets rose during the pandemic and reached a peak in the second quarter of 2023, with more than 4.2 million square feet of space available. Since then, however, the sublease supply has dipped by nearly 1.5 million square feet, with 2.69 million square feet available in the first quarter of the year and 2.75 million in the second quarter of this year.
Ryan Price, chief economist with Virginia Realtors, said that Avison Young’s report is similar to what is happening with the broader Northern Virginia market, as well as the entire state.
Citing data from CoStar Group, Price provided information showing that from the third quarter of 2020 to the second quarter of 2022, the state saw year-over-year increases in vacant sublease space from the previous year. The most drastic spike occurred in the second quarter of 2021, when the state experienced a 110.5% increase in available sublease space compared to the prior year. However, Price said that for the past four consecutive quarters, Virginia as a whole has seen a tightening of sublet availability compared to similar data from the previous year.
“As COVID was underway, we did see a big increase in downsizing footprint, downsizing of firms, which leads to an increase in sublease space as there were more people not working in the office,” Price said. “And so a lot of that space was freed up, you know, for sublease tenants. And we’ve seen a bit of a reversal in that regard, as RTO — return to office mandates — become more widespread. I think a lot of firms are looking at their space needs and kind of reclaiming some of that space that they had made available.”
Henry Murphy, an Avison Young market intelligence analyst, said the initial rise in sublease space was tied to financial uncertainty. During the pandemic and afterward, some businesses struggled to afford their current rents.
“You saw a lot of tenants just listing up a lot of their larger space on the sublease market,” Murphy said. “So, you saw the supply of it just continuing and continuing to rise. But then, it kind of started to hit a cap where you started to see some companies have returned to offices.”
A chart showing sublease availability in top NOVA markets. Image courtesy Avison Young
He noted that sublease space is offered at a discounted rent and that many companies, trying to shrink their footprint while still wanting to have office space, are opting to move into cheaper, subleased space until they have steadier financials. The pivot for many organizations into using subleased space has absorbed a significant portion of the supply.
On the other hand, he noted that some individuals and organizations have reached a point where, having achieved greater financial stability than they had a few years ago, they are now willing to make more long-term commitments through direct deals with landlords.
“[A direct deal] allows tenants to build out their own space to their own liking, rather than taking somebody else’s space that they had already built out,” Murphy said. “So you get a lot more customization with your own space through a direct deal because the landlord will work with you with a tenant improvement allowance to allow you to build out your own space, to make it your own, rather than just having to move in and deal with what was left with the previous tenants’ build-out.”
Murphy also said some spaces that were sitting on the sublease market that never acquired a tenant “came to term,” meaning that the rental agreement with the original tenant has come and passed. Now, these spaces are being listed as a direct deal through the landlord at a higher rent price than what was previously available when the space was on the sublease market.
Since the supply of sublease space is shrinking, Murphy expects that there will be a little bit more of a demand for it because some tenants will try to take advantage of what’s left on the market. He said rates for sublease markets have been relatively consistent the past few years, but as the supply shrinks, he anticipates the rents to climb a bit.
Rents down except for trophy properties
Avison Young reports that from the second quarter of 2023 to the second quarter of 2025, the trophy assets category was the only one in the Rosslyn-Ballston corridor, Tysons, and Reston-Herndon submarkets to see an increase in asking rents, driven primarily by a significant reduction in available supply and continued tenant preference for high-quality space.
Avison Young says that Class A spaces experienced a modest decline in rents, primarily due to stable supply levels and landlords adjusting pricing to remain competitive amid selective tenant demand. However, Class B and C properties saw notable rent declines despite reduced supply, which Avison Young attributes to ongoing challenges in leasing lower-tier space that remains less attractive to tenants and has largely remained vacant.
While Murphy said he can’t predict what the market will look like in the next few years, he does believe it is in a more stable place than it was a few years ago. He said the spike in available space from a few years ago showed how “volatile” things were, and the market now has seen a “basis reset.”
“Because even if some of these deals are just kind of expiring because they’ve been vacant and no tenant has taken up this space, it’s at least now coming back to direct deals,” Murphy said. “So it’s at least giving choice to landlords to make a decision. If it still remains vacant, then they can maybe decide to do something different with the building, whether that’s convert to a multifamily or renovate the space to try to make it more appealing to tenants. I think it brings more options and less volatility to the market than in the previous couple of quarters.”
Price said a decline in sublease activity usually points toward an increased demand for office space, but it’s hard to predict whether it is a good sign for the market at this point.
“I think it’s still a little early to tell,” Price said. “But I would say that when you just step back and look at, sort of the overall inventory picture that’s out there, the amount of space, the pipeline has really dried up — the new construction pipeline. So I think the overall inventory is likely tightening because of that. So we have less new space in the market, and so the existing space is getting occupied.”
Great leadership doesn’t just drive results — it shapes culture, builds trust and inspires lasting change. Across the commonwealth, exceptional executives are guiding organizations through complexity with vision, resilience and a deep commitment to the people they serve.
With that spirit in mind, Virginia Business is proud to present our inaugural Virginia C-Suite Awards, honoring 33 top executives who exemplify integrity, innovation and impact. Representing a broad spectrum of industries — from health care and higher education to local government, nonprofits and major public and private companies — these leaders are shaping Virginia for decades to come.
Nominated by their peers and workplaces, honorees were chosen by Virginia Business editors for their leadership abilities, company performance, integrity, community impact and commitment to excellence. Winners must have their primary work office in Virginia and hold a top corporate executive position (CEO, chief financial officer, chief operating officer, etc.) or equivalent job (such as executive director or owner).
This inaugural cohort of outstanding executives, who will be recognized at a June 5 awards event at Richmond’s Jefferson Hotel, includes top leaders across these major categories: Government; Higher Education; Nonprofits (small and large); Private Companies (small, medium, large and 500+ employees); and Public Companies (below and above $500 million in annual revenue).
While they’re engaged in different sectors and businesses, this year’s 33 honorees all share a passion for building successful teams, creating positive workplaces and bettering their communities. Join us in celebrating this remarkable group for their achievements and dedication to success.
Since 2002, Enochs has been with Marsh McLennan and its predecessor, Rutherfoord Agency, which the insurance provider purchased in 2010. A graduate of Concord and Radford universities who also holds certificates from the Wharton School and Hollins University, Enochs was previously director of human resources at Carilion Clinic and served as adjunct faculty for the Jefferson College of Health Sciences.
At Marsh McLennan, which employs more than 1,100 people in its mid-Atlantic region, Enochs says she’s particularly proud of instituting the MMA Playbook, a process platform that helps streamline projects, and the Mid-Point Colleague Idea Exchange, which encourages dialogue between employees and leaders to contribute to the company’s culture.
Enochs serves on Concord’s board and has volunteered with Big Brothers Big Sisters, Mental Health America’s Roanoke Valley chapter and the United Way of Roanoke Valley, among other organizations. In September 2024, after Hurricane Helene devastated communities in Virginia and North Carolina, Enochs’ office worked closely with clients to support their business needs, as well as donating money and volunteering to help families affected by the storm.
Best advice I’ve received: “Everything is just a conversation.” We get tripped up into believing business is a competition or an opportunity to be right or win, when, in fact, business presents a profound opportunity to find common ground, develop relationships, collaborate and build something great.
Hampton Roads’ homegrown community bank, TowneBank has grown prodigiously since its 1999 founding, a trend that’s been accelerating in recent years. In April, the bank announced its plans to acquire Hampton’s Old Point Financial for $203 million, just after closing on the $120 million acquisition of Midlothian-based Village Bank and its parent company. The Old Point deal is expected to conclude in the second half of 2025.
Today, TowneBank has 51 offices in Virginia and North Carolina, and more than $17 billion in assets.
An Old Dominion University graduate who has an MBA from William & Mary, Foster joined TowneBank in 2004 as regional president for Norfolk, after previously serving as eastern regional president of Central Fidelity Bank. Foster later served as TowneBank’s president for Virginia Beach, Central Virginia and the Carolinas. In 2023, he became the bank’s president and CEO.
Foster is active on local and regional boards, including Goodwill of Central and Coastal Virginia and the United Way of South Hampton Roads’ Tocqueville Society, which raised $3.2 million in donations last year. He also supports the TowneBank Foundation’s annual golf tournament, which raises millions each year for the foundation’s charitable missions. TowneBank and its foundation have contributed more than $126 million to local communities since 1999.
At the start of the year, Tibbetts took the helm as Armada Hoffler’s CEO after having joined the real estate investment trust in 2019 as its chief operating officer and being named president in 2024. Before joining Armada Hoffler, which has more than 6 million square feet in rental properties in its portfolio and an estimated $630.5 million in planned projects, Tibbetts was president and COO for the Port of Virginia.
As Armada Hoffler’s COO, Tibbetts oversaw more than $1.2 billion in transactions and grew the company’s portfolio of net operating income by 56%. A Portsmouth native, he earned degrees from James Madison University and William & Mary’s business school and completed the advanced management program at Harvard Business School. Last year, Tibbetts was instrumental in raising $109 million in equity at Armada Hoffler.
He’s grateful that he’s been able to work in national and international business environments while staying close to his hometown, says Tibbetts, who believes strongly in providing workforce educational opportunities such as internships. He previously served on the board for the Virginia Chamber of Commerce.
How I foster a positive culture: It starts with a leader who actively engages as part of the team. I’ve found that providing a seat at the table fosters significant growth for those willing to put in the effort, ultimately benefiting the company as a whole.
Democratic Sens. Mark Warner and Tim Kaine strongly criticized the U.S. Department of Labor‘s decision to shut down contractor-operated Job Corps centers, calling it a harmful move that will eliminate job training for thousands of young people and cut nearly 13,000 jobs.
The closure is expected to affect two Virginia centers — Old Dominion and Blue Ridge — which the senators say currently serve 163 students, many of whom are homeless or aging out of foster care.
The Labor Department cited financial deficits, including a $140 million shortfall in program year 2024 and a projected $213 million deficit for PY 2025, as the reason for the shutdown
The move aligns with the Trump administration‘s broader effort to slash federal spending, though Warner and Kaine argue the decision is short-sighted and undermines a program that reduces unemployment and supports vulnerable populations.
Democratic U.S. Sens. Mark. Warner and Tim Kaine last week released a joint statement condemning the U.S. Department of Labor‘s decision to shut down contractor-run Job Corps centers throughout the country.
The senators say the move “will abruptly eliminate crucial job training for thousands of young Americans and cut nearly 13,000 jobs across the program’s 99 centers.”
According to a news release from Warner and Kaine, the two affected Job Corps centers in Virginia — Old Dominion in Amherst County and Blue Ridge in Smyth County — collectively serve 163 students, many of whom are homeless or aging out of foster care.
The program provides students aged 16-24 with education, vocational training and job placement assistance. The senators’ news release states that more than 80% of program graduates are employed within six months, resulting in a potential 20% reduction in unemployment in areas with a Job Corps center.
“For decades, the Job Corps program has transformed lives in Virginia and across the country by helping to equip young people with the skills and resources they need to succeed,” Warner said in a statement. “It’s deeply frustrating, and incredibly short-sighted, to see the Trump administration pause operations. We should be investing more in opportunities that lift up our young people, strengthen our workforce, and have a tremendous economic impact in the commonwealth.”
Kaine shared a similar sentiment, saying that Job Corps is “a lifeline for thousands of youths in need.” He said many of the youth who benefit from the program are homeless, in the foster care system or “facing dire socioeconomic circumstances,” but the program has given them direction, taught them hard skills and “set them up for success.”
The DOL announced in a May 29 news release it would begin a phased pause in operations at contractor-operated Job Corps centers nationwide.
“The decision follows an internal review of the program’s outcome and structure and will be carried out in accordance with available funding, the statutory framework established under the Workforce Innovation and Opportunity Act, and congressional notification requirements,” the department said in a statement. According to the DOL, the pause of operations at all contractor-operated Job Corps centers will occur by June 30.
“As the transition begins, the department is collaborating with state and local workforce partners to assist current students in advancing their training and connecting them with education and employment opportunities,” the department said.
The DOL says the decision aligns with President Donald Trump‘s fiscal 2026 budget proposal. Tens of thousands of federal jobs this year have been cut in an effort by the Trump administration to slash federal spending.
According to the DOL release, the Job Corps program faced significant financial challenges under its current operating structure. The DOL said that in program year 2024, the program operated at a $140 million deficit. The DOL said the deficit is projected to reach $213 million in PY 2025.
“Of course fiscal and safety concerns with the program need to be addressed,” Kaine said in a statement. “But instead of working to further invest in the program, the Labor Department has made the shameful choice to give up on thousands of vulnerable young Americans, including 163 in Virginia.”
Warner and Kaine say they “vigorously” opposed the Trump administration’s efforts “to roll back crucial federal programs.”
The department’s Employment and Training Administration on April 25 released the first-ever Job Corps Transparency Report, which analyzed the financial performance and operational costs of the most recently available metrics of program year 2023.
The DOL said in a summary of findings from the report that the average graduation rate was 38.6%, the average cost per student per year was about $80,285, the average total cost per graduate was roughly $155,600 and that, post separation, participants earn $16,695 annually on average.
The summary said there were 14,913 serious incident reports for PY 23. According to the release, these reports included 372 instances of inappropriate sexual behavior and sexual assaults, 1,764 acts of violence, 1,167 breaches of safety or security, 2,702 reported drug uses and 1,808 total hospital visits.
“Job Corps was created to help young adults build a pathway to a better life through education, training and community,” Secretary of Labor Lori Chavez-DeRemer said in a statement. “However, a startling number of serious incident reports and our in-depth fiscal analysis reveal the program is no longer achieving the intended outcomes that students deserve. We remain committed to ensuring all participants are supported through this transition and connected with the resources they need to succeed as we evaluate the program’s possibilities.”
Neither Blue Ridge nor Old Dominion Job Corps officials could be successfully reached by press time.
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