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Sail250 to bring 60 ships to Norfolk for America’s big birthday

SUMMARY:

  • Virginia, celebrating America’s 250th anniversary, will take place for 10 days, starting June 12, 2026
  • Norfolk will be the primary host city, with 11 Virginia cities participating
  • Planned since 2019, Sail250 is expected to draw more than 3 million visitors to the state, with an expected $150 million in tourism impact

last week kicked off the one-year countdown to Sail250 — an enormous maritime festival that’s expected to draw more than 3 million visitors to Virginia and generate at least $150 million in tourism revenue.

The event, which celebrates the nation’s 2026 250th anniversary — or semiquincentennial — will see more than 60 tall ships and military vessels from 20 countries pass through various harbor cities in Virginia for 10 days, starting June 12, eventually docking in Norfolk. About 10,000 people will collectively crew the vessels, according to Norfolk Mayor .

Youngkin was joined by several Roads mayors Friday afternoon at the American Rover ship, which was docked at Norfolk’s Waterside marina, to announce the planned festivities. Ships blared their horns at the end of the ceremony as a way of kicking off the countdown.

The American Rover docked at Waterside in Norfolk for the event kicking off the countdown to Sail250 Virginia. Photo by Josh Janney
The American Rover docked at Waterside in Norfolk for the event kicking off the countdown to Sail250 Virginia. Photo by Josh Janney

Youngkin spoke of the integral role Virginians played in the United States’ journey to independence, highlighting Thomas Jefferson’s role in drafting the Declaration of Independence and Hanover County native Patrick Henry’s declaration to the Second Virginia Convention, “Give me liberty or give me death.”

“America was really founded by Virginians,” Youngkin said. “This story is one that we have to remind ourselves is part of not just our national narrative, but Virginia’s. And therefore, could it be any more appropriate for us to come together this time next year and welcome 60 vessels from 20 countries?”

Norfolk will be one of several cities across the country expected to host the Sail250 American international fleet, along with New Orleans, Baltimore, New York and Boston.

Norfolk’s planned activities for the event include a boat parade, concerts and fireworks. The event will coincide with the city’s Juneteenth celebrations. Karen Scherberger, and CEO of Sail250 Virginia, said that the event will be “one of the largest and most historic maritime configurations in Virginia history.

The sail route for the Sail250 Virginia boat parade, slated for June 19, 2026. Image Courtesy Sail250 Virginia
The sail route for the Sail250 Virginia boat parade, slated for June 19, 2026. Image Courtesy Sail250 Virginia

“And more than just a spectacle, Sail250 Virginia honors our naval heritage, promotes international goodwill, and brings millions in economic activity, thousands of international visitors and unforgettable experiences to families across the commonwealth,” she said. “Norfolk has always been a proud maritime city, the home of the largest naval base in the world, and with Sail250 Virginia, we reaffirm our identity, not only as a harbor of history but as a global port of goodwill and celebration.”

Scherberger said the event has been planned since 2019 and has involved the work of hundreds of people from numerous organizations and cities in the area.

She described the event as an “enormous undertaking” but said that it should generate at least $150 million in visitor spending over 10 days in 11 Virginia cities. Other Virginia cities participating in the celebration include , , Chesapeake, Hampton, Onancock, Portsmouth, Richmond, Smithfield/, and Yorktown.

Richmond issues boil-water advisory after plant issue

SUMMARY:

  • Richmond issues boil- advisory due to operational issue at .
  • Some plant filters clogged, affecting water quality.
  • Second plant issue this year; in January, 230,000 residents lacked drinkable water for nearly a week.
  • City urging residents to boil tap water before using.

UPDATE: Richmond lifted its boil-water advisory on May 29.

RICHMOND (AP) — Officials issued a boil-water advisory Tuesday in parts of Virginia’s capital city, leaving many residents without drinkable tap water following an operational issue at the city’s water treatment plant for the second time this year.

Richmond officials said that the city’s water treatment plant experienced an operational hiccup that clogged some of the plant’s filters. In the morning, the water system had been restored to full production, but reclogged roughly an hour later.

Large swaths of the city, spanning Richmond’s West End to downtown by the Capitol, and its northern neighborhoods, were under the advisory, and as of Tuesday evening, some neighborhoods south of the James River were added to the boil-water advisory, including Manchester, Hillside Court, Bellemeade and the Jeff Davis corridor to the city’s southeastern border.

The city posted an interactive map of the impacted area just before 5 p.m., and meanwhile, Richmond City Council canceled its Tuesday night meeting without an explanation.

In a news release, officials said all residents were asked to conserve water. Residents in the impacted area were told to boil tap water before drinking it, and to use bottled water for brushing teeth, washing fruits and vegetables, and making juices or fountain soft drinks.

People were also advised to not drink from water fountains in parks, public or private buildings that receive water from the city’s public utilities department.

said the state’s Office of Drinking Water is “actively investigating” the water situation in Richmond in a Tuesday afternoon tweet. “I know this is challenging for everyone following this winter’s problem. We’re told by Richmond officials that they are working diligently to resolve these issues,” the governor wrote, adding that the state is providing technical support.

Richmond Mayor Danny Avula said he would determine the acute cause of the clogging.

“There’s ongoing work that needs to be done,” Avula said, adding, “And so after we get out of this recovery phase, then our eyes will turn towards what’s the prevention-focused work that we need to be doing to ensure that this doesn’t happen.”

He said during a Tuesday afternoon news conference that restaurants, hospitals and offices are allowed to remain open in the impacted area as long as they follow the boil-water advisory. Avula said he didn’t know if city hospitals, which include Bon Secours Retreat Hospital and VCU Medical Center in the affected part of the city, were bringing in tankers of fresh water, as they did in January. He said the school system is discussing whether to have classes Wednesday.

Scott Morris, the city’s director of public utilities and formerly the Virginia Department of Environmental Quality’s director of water, said during the news conference that once water in the affected tank is at full water pressure, a sample will be sent to the health department for testing. Sixteen hours after an initial clean test, a second sample will be sent to the health department, and if that comes back clean, the boil-water advisory will be lifted.

In response to questions about why some city residents who signed up for text message alerts for emergency notifications did not receive them following Tuesday’s water issue, Avula said the city would investigate.

The boil-water advisory follows a nearly weeklong period in January when approximately 230,000 Richmond residents were without drinkable tap water after a power failure caused a malfunction at the water treatment facility.

In April, the Virginia Department of Health released a report saying the crisis was avoidable, pointing to city officials’ poor emergency planning and faulty maintenance practices.

announced Tuesday afternoon that it had temporarily disconnected from the city’s water system, which ordinarily supplies water to parts of the county. According to the 1:30 p.m. announcement, the county’s water is safe and water pressure remained normal throughout the county.

Hanover County, another Richmond water customer, has also been impacted, and Henrico said it has been working closely with Hanover, which issued a statement saying that it is not under a boil-water advisory at this time. “As a precaution, we are asking residents to conserve water until further notice by turning off automatic irrigation systems,” Hanover said.

According to Henrico, it has staff on site at the city’s water treatment plant, and the county became aware of the problems at the plant at about 12:27 a.m. Tuesday.

Chesterfield County, another customer, said that it stopped taking water from the city at about 2 a.m. Tuesday after the city’s public utilities department requested that the county reduce its take of the water from three entry points. Chesterfield said in a post Tuesday that its water is safe to consume, and its distribution system “has continued to operate as designed through this incident.”

Virginia Business Deputy Editor Kate Andrews contributed to this story. 

Clark Nexsen acquired by Maryland firm

Virginia Beach firm has been acquired by Maryland-based , architecture and related services company Johnson, Mirmiran & Thompson.

‘s of Clark Nexsen closed on May 9. The company announced the merger May 21 and did not disclose the financial terms of the transaction.

Clark Nexsen’s approximately 325 employees will join JMT’s roughly 2,450-person workforce to form a firm with more than 2,750 employees. JMT is 100% employee-owned.

“The current structure of Clark Nexsen will continue as we build and strengthen both the JMT and Clark Nexsen brands to our clients and partners over the coming months,” JMT Chief Marketing Officer Eric Madden wrote in an email.

Clark Nexsen will help strengthen JMT’s capabilities in architecture and facilities engineering and in the transportation sector. Both companies serve the education and federal market sectors.

“Combining with JMT is transformative for all of us,” Clark Nexsen Terri Hall said in a statement. “We will continue to build on more than a century of achievements, add new geographies and areas of expertise and provide our employees with many new avenues for professional growth. This is truly an exciting time.”

Founded in 1920, Clark Nexsen has nine offices across the Southeast. A notable project the firm worked on is a monument honoring the World War II predecessors of the Navy SEALS and special boat crews, unveiled in Normandy, France, in 2024.

Wall Street rallies as its roller-coaster ride whips back upward after Trump pauses more tariffs

SUMMARY:

  • Trump delayed 50% tariffs on European Union goods, easing market concerns.
  • S&P 500 surged 1.6%, Dow gained 529 points, Nasdaq climbed 2%.
  • U.S. data came in stronger than expected, bolstering optimism.
  • Nvidia led the rally in tech and chip stocks.
  • fell as investors balanced risk appetite and safe-haven assets.
  • The market rebound erases most of Friday’s steep losses from tariff fears.

 

NEW YORK (AP) — Wall Street is rallying Tuesday as the roller-coaster ride created by President Donald Trump’s trade policies whips back upward, this time because of a delay for his tariffs on the European Union.

The S&P 500 was up 1.6% in its first trading since Trump said Sunday that the United States will delay a 50% tariff on goods coming from the European Union until July 9 from June 1. The European Union’s chief trade negotiator later said on Monday that he had “good calls” with Trump officials and the EU was “fully committed” to reaching a trade deal by July 9.

The Industrial Average was up 529 points, or 1.3%, as of 11:15 a.m. Eastern time, and the Nasdaq composite was 2% higher. They’re on track to more than recover their losses from Friday, when Wall Street’s roller coaster dropped after Trump announced the tariffs on France, Germany and the other 25 countries represented by the European Union.

Such talks give hopes that the United States can reach a deal with one of its largest trading partners that would keep global commerce moving and avoid a possible recession. Trump reached a similar pause on his stiff tariffs for China earlier this month, which launched an even bigger rally on Wall Street at the time.

Caution still remains on Wall Street, of course, even if the S&P 500 has climbed back within 4% of its record after falling roughly 20% below the mark last month.

Talks don’t guarantee results, and a worry is that all the uncertainty caused by on-again-off-again tariffs could damage the economy itself by pushing U.S. households and businesses to freeze their spending and investments out of fear of what’s to come. Surveys have already shown U.S. consumers are feeling worse about the economy’s prospects and where inflation may be heading because of tariffs.

On Tuesday, though, optimism mostly ruled. The stock market’s gains accelerated after a report released by the Conference Board said confidence among U.S. consumers improved by more in May than economists expected.

It was the first increase in six months, and consumers’ expectations for income, business and the job market in the short term jumped sharply, though it still remains below the level that typically signals a recession ahead. About half the survey results came after Trump paused some of his tariffs on China.

Nvidia rallied 2.9% and was one of the strongest forces driving the market higher ahead of its profit report coming on Wednesday. It’s the last to report this quarter among the “Magnificent Seven” Big Tech companies that have grown so large that their stock movements dominate the rest of the market.

Nvidia has been riding a tidal wave of growth created by the frenzy around artificial-intelligence technology, but it is also facing criticism that its stock price has shot too high.

Informatica climbed 5.6% after Salesforce said it would buy the AI-powered cloud data management company in an all-stock deal valuing it at about $8 billion. Salesforce added 0.9%.

The gains were widespread, and more than 90% of the stocks within the S&P 500 were rising.

One of the outliers was AutoZone, which fell 3.3% following a mixed report on its performance for the three months through May 10. Its profit fell short of analysts’ expectations, though its growth in revenue was stronger than expected.

Phil Daniele said both its DIY and commercial businesses did well domestically, but shifting moves in foreign-currency values put pressure on the retailer’s operations outside the United States. The U.S. dollar’s value has been swerving against other currencies because of uncertainty around Trump’s trade policies. And when the dollar weakens, it can mean each peso of sales made in Mexico is worth fewer dollars.

In the bond market, Treasury yields eased to take some of the pressure off the stock market. The yield on the 10-year Treasury fell to 4.45% from 4.51% late Friday. It had been rising last week, in part because of worries about the U.S. government’s rapidly increasing debt.

Yields have been climbing for bond markets around the developed world, particularly in Japan, where a recent auction of longer-term bonds found relatively few buyers. But analysts said worries eased a bit after Japan’s finance ministry sent a questionnaire to bond investors that they took as a signal of efforts to calm the market.

In stock markets abroad, European indexes rose, while Asian indexes were mixed.

___

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Henrico issues new RFI for arena project

SUMMARY:

  • has issued a new request for interest on the “Best Products Reimagined” project, including a 17,000-capacity
  • Former developers defaulted on more than $5 million in payments due in February and are tied up in court with the county and ASM Global
  • New arena is projected to open in 2028

Following the collapse of the $2.3 billion GreenCity project in March, Henrico County on Tuesday released a new call for developers to submit plans for an arena-anchored in the county’s West End.

Developers must submit their plans by July 28, according to the county’s request for interest, and supervisors are expected to approve the chosen plan in December. After that, the 93-acre property would be conveyed to the winning development team in January 2026, with the 17,000-capacity arena expected to open in 2028. The county has dubbed the project “Best Products Reimagined” in a nod to the site’s former incarnation as the corporate headquarters campus for Best Products, a national retailer that went out of business in 1997.

Currently, the Henrico County Economic Development Authority is suing the developers of the failed GreenCity project to return the 93-acre site to the EDA after the developers defaulted on more than $5 million in payments in March. Dennis Bickmeier, executive director of the Henrico Sports and Entertainment Authority, confirmed Tuesday that the land has not yet been conveyed back to the county.

In April, the Henrico EDA sued two LLCs linked to the GreenCity developers, Michael Hallmark of Los Angeles-based Future Cities and Susan Eastridge of Falls Church’s Concord Eastridge, in Henrico County Circuit Court. According to the lawsuit, the EDA agreed to sell the 93 acres at the intersection of Interstate 95 and Parham Road to the developers in a November 2022 agreement for $6.2 million, and the sale took place on Feb. 28, 2023.

After paying the county $1 million in two installments on time in 2023, the developers failed to pay the remaining $5.2 million due Feb. 28, the complaint says. In March, the EDA sent a notice of default, giving the developers until March 13 to make the payment. When they failed to pay, the EDA notified Hallmark and Eastridge that the county would exercise its repurchase option of $1 million on April 15, the lawsuit says.

Meanwhile, ASM Global, which was set to be the operator and manager of the GreenCity arena, sued the developers in April, saying that the developers owed an ASM subsidiary more than $1.5 million, including interest and attorney’s fees. On April 11, a Henrico County Circuit Court judge issued a garnishment summons to the EDA, seeking to garnish any sums it was holding for the development team, and the developers have filed a motion to vacate the judgment.

Since the garnishment summons was issued, the EDA’s complaint says, the developers have “refused to convey the property to the EDA, despite the EDA’s willingness to pay the repurchase price, unless ASM agrees that the EDA may pay some or all of the repurchase price to [the developers] rather than to ASM, as may be required by the garnishment summons.”

Bickmeier said that nothing has changed regarding the conveyance of the property since the county sued the developers April 29.

According to the RFI, “the previous developers of the Best Products site defaulted on their purchase agreement for the property by failing to make the final installment payment of the purchase price. The EDA is in the process of enforcing its repurchase option and expects to complete the reacquisition of the site in the coming months.”

Despite the legal turmoil, “I think there’s a high level of excitement to get this restarted,” Bickmeier said. “We’ve opened up the doors for developers to be creative.”

According to the RFI issued this week, the Best Products property to be developed comprises the southern 93 acres of a 204-acre district that is zoned as a conditional urban with a provisional use permit that would allow development of an arena, 1.9 million square feet of office space, 135,000 square feet of retail space, three hotels and 2,138 residential units.

Bickmeier said, however, that the winning development plan could differ from those parameters — such as an arena having a 17,000-person capacity rather than 17,000 seats, which would give the facility more flexibility to host NCAA sporting events, for instance. Also, the GreenCity developers’ intention to build the nation’s “greenest arena” is “not the driving force” of what may ultimately be developed, although sustainability is still a priority, Bickmeier added.

Asked whether ASM Global will still be involved in the project, Bickmeier said that’s “to be determined.”

Meanwhile, an adjoining 110-acre parcel, known as Scott Farm, is under development by Scott Farm Partners, a limited liability corporation linked to Markel|Eagle Partners, and construction of residential units and a park at that site is expected to start later this year, the county says.

Southwest Virginia Community College president appointed

Clinton R. Hayes, provost of Kentucky’s Somerset Community College, will be the next of , the state’s community college system announced this week.

“We’re excited to welcome Dr. Hayes to lead Southwest Virginia Community College, and we know he will continue to provide the kind of dynamic leadership that has made SWCC such a cultural center and economic driver in its region,” David Doré, chancellor of the , said in a statement. “We also want to express our deepest thanks to Dr. Victoria Sue Ratliff, who has provided leadership at Southwest Virginia as interim president since last January.”

Hayes will start his new job July 1.

SWCC is based in Cedar Bluff and serves the counties of Buchanan, Dickenson, Russel and Tazewell. Hayes has spent much of his career at Somerset Community College, where he is provost and senior vice president of academic affairs, and previously served as associate provost, associate dean of academic affairs and director of institutional effectiveness and research. He also taught biology at Somerset and was an adjunct instructor and graduate assistant at Eastern Kentucky University, where Hayes earned his bachelor’s and master’s degrees.

He earned an associate degree in science at Somerset and a doctorate in education at University of the Cumberlands.

“As a first-generation college student from a rural community whose life was shaped by the education and support I received at a community college, I understand firsthand the transformative power of institutions like Southwest Virginia,” Hayes said. “I look forward to working alongside faculty, staff and community partners to build on the college’s remarkable legacy and invest in the future of our region by helping more students succeed in ways that transform their lives, support their families and strengthen the communities they call home.”

Tommy Wright, SWCC’s previous president, left last year to become the VCCS’s senior vice chancellor for finance and operations. He served as president beginning in 2018.

Institute of Peace reclaims its headquarters after court win over Musk’s cost-cutting team

SUMMARY:

  • Federal judge rules that ‘s illegally fired nonprofit ‘s board and employees in March
  • Two months after being escorted off premises, the institute’s acting and attorney returned to its Washington, D.C., headquarters this week
  • Institute officials say they plan to hire back employees

WASHINGTON (AP) — The U.S. Institute of Peace retook control of its headquarters Wednesday, two days after a federal judge said the firing of its board and employees by Elon Musk’s Department of Government Efficiency was illegal.

The institute’s acting president, , entered the organization’s headquarters with private security and the institute’s outside attorney for the first time since being escorted off the premises during the DOGE takeover. Moose and most of the institute’s board were fired in March, part of the mass slashing of the spearheaded by Musk.

The institute and many of its board members filed a lawsuit against the Trump administration soon after, seeking to prevent their removal and stop DOGE from taking over its operations. U.S. District Court Judge Beryl A. Howell’s opinion on Monday reversed DOGE’s actions.

Speaking after a short examination of the headquarters, Moose said all appeared to be in order.

“We just did a quick walk-through — externally, visibly, things look to be in pretty good shape,” he said. “I didn’t see anything, any destruction, if you will, no damage that I can see that is visible.”

Moose, a former ambassador and career member of the U.S. Foreign Service, said a team of employees from human resources, technology and finance would be in the building Thursday getting the nonprofit ready to welcome back its workforce. He expected to bring back all the staff who want to return.

In an email Wednesday, White House spokeswoman Anna Kelly did not comment on workers returning to the building, but signaled that the administration may challenge the decision.

“President Trump is right to reduce failed, useless entities like USIP to their statutory minimum, and the rogue judge’s attempt to impede on the separation of powers will not be the last say on the matter,” she said.

The administration filed a motion of appeal Wednesday evening and requested a stay of the judge’s ruling while that appeal is considered, arguing in part that Howell “erred” in concluding that the institution’s functions were not executive functions.

Agencies across the federal government have been slashed or dismantled by Musk’s DOGE team. Wednesday’s low-key scene at the institute’s headquarters marked a rare moment when a DOGE-targeted agency or organization has been able to begin reestablishing itself.

The judge’s ruling said the Trump administration did not have authority to unilaterally dismantle the institute, which was established by Congress in 1984 as an independent organization that would promote peace and seek to end conflicts around the world. It was operating in more than two dozen conflict zones at the time Musk’s team took it over and shut it down.

The saga began when Trump issued an executive order in February that targeted the institute and three other agencies for closure in an effort to deliver on campaign promises to shrink the size of the government. The first attempt by DOGE to take over the headquarters led to a standoff. Members of Musk’s DOGE group returned days later with the FBI and District of Columbia Metropolitan Police to help them gain entry.

DOGE installed new leadership, ordered a mass firing of nearly all the staff through their private emails, and handed over the institute’s headquarters to the General Services Administration.

The institute, concerned about liability and security of the building in the aftermath of the judge’s ruling, reached out to the government attorneys earlier this week and again on Wednesday. George Foote, the institute’s outside attorney, said the exchange was very smooth and orderly.

Moose said the goal now is to get back to the work the institute was created to do 40 years ago and “projects, ideas that are, we believe, of interest to the American people.”

DOJ reaches deal with Boeing to avoid prosecution over 737 Max crashes

SUMMARY:

  • strikes deal with DOJ to avoid prosecution
  • Company to pay and invest over $1.1 billion
  • Charges stem from crashes in 2018 and 2019 that killed 346
  • Victims’ families oppose the DOJ’s agreement

WASHINGTON (AP) — The Justice Department has reached a deal with Boeing that will allow the company to avoid for allegedly misleading U.S. regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people, according to court papers filed Friday.

Under the “agreement in principle” that still needs to be finalized, Boeing would pay and invest more than $1.1 billion, including an additional $445 million for the ‘ families, the Justice Department said. In return, the department would dismiss the fraud charge in the criminal case against the aircraft manufacturer.

“Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits,” a Justice Department spokesperson said in a statement.

“Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers.”

Many relatives of the passengers who died in the crashes, which took place off the coast of Indonesia and in Ethiopia less than five months apart in 2018 and 2019, have spent years pushing for a public trial, the prosecution of former company officials, and more severe financial punishment for Boeing.

“Although the DOJ proposed a fine and financial restitution to the victims’ families, the families that I represent contend that it is more important for Boeing to be held accountable to the flying public,” Paul Cassell, an attorney for many of the families in the long-running case, said in a statement earlier this week.

Boeing was accused of misleading the Federal Aviation Administration about aspects of the Max before the agency certified the plane for flight. Boeing did not tell airlines and pilots about a new software system, called MCAS, that could turn the plane’s nose down without input from pilots if a sensor detected that the plane might go into an aerodynamic stall.

The Max planes crashed after a faulty reading from the sensor pushed the nose down and pilots were unable to regain control. After the second crash, Max jets were grounded worldwide until the company redesigned MCAS to make it less powerful and to use signals from two sensors, not just one.

In 2021, Boeing settled with the Justice Department for $2.5 billion that included a previous $243.6 million fine, but last year, prosecutors said Boeing violated terms of the agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws. Boeing agreed last July to plead guilty to the felony fraud charge instead of enduring a potentially lengthy public trial.

In December 2024, a federal judge rejected the plea deal, and since then, the Justice Department and Boeing have been discussing a new deal. A criminal trial was expected to start in Texas in June, and last week, the Justice Department said it would consider written submissions from crash victims’ family members through May 22.

The criminal case developed after the January 2024 midair blowout of the door on a Boeing jet being flown for Alaska Airlines. The incident led to federal investigations, cancelled jet sales, nearly $12 billion in revenue loss and the resignation of former and Dave Calhoun, who was replaced by Kelly Ortberg in September 2024.

Virginia Business Deputy Editor Kate Andrews contributed to this story.

Booz Allen CEO says 7% of employees to be laid off

SUMMARY:

  • Hamilton , and Horacio Rozanski announced 7%, or about 2,500, of its employees will be laid off by the end of June.
  • Most affected employees are in the civil division of the -based company, which has seen flat revenue since the start of the year, and Rozanski anticipates 6% decline in consolidated top line for fiscal 2026
  • Five major civil contracts’ run rates were reduced in April, and a VA contract concluded at end of fiscal 2025, Rozanski said

McLean-based Fortune 500 management consulting business will lay off 7% of its 35,800-employee workforce, mainly in its civil division, Chairman, CEO and President Horacio Rozanski said Friday during an earnings call.

That works out to about 2,500 employees.

Noting that there has been a “slowdown in the civil procurement and spending environment” recently in the federal government, Rozanski said that five of Booz Allen’s major civil technology contracts’ run rates were reduced in April. Meanwhile, a major Veterans Affairs tech contract ended in the last fiscal year.

The loss of the VA contract and the reduction in run rates for the other five contracts are expected to lower Booz Allen’s consolidated top line by 6% in fiscal 2026, Rozanski said.

“As a result of these factors, year-over-year revenue in civil was flat in the fourth quarter, and we now anticipate that our civil business will see a revenue decline in the low double digits in FY26,” he said. “However, we do anticipate our civil business will rebound, as a number of big transformation and efficiency initiatives for our civil customers are already beginning to take shape.”

The , which will be “heavily concentrated” in Booz Allen’s civil division, will take place during the business’s first quarter, which ends June 30, Rozanski said during the call. He did not specify how many people based in Virginia will be impacted by the layoffs, although some of the civil sector’s leaders are based in Northern Virginia. A spokesperson for the company did not immediately respond to a request for comment Friday.

Despite the challenges in Booz Allen’s civil sector, the company recently won three contracts from the National Geospatial-Intelligence Agency and the Air Force totaling $1.2 billion, and its qualified pipeline for fiscal 2026 is $53.4 billion — a decrease from fiscal 2025 but higher than the pipeline was in fiscal 2024, Rozanski said.

Kristine Martin Anderson, Booz Allen’s and executive vice president, said that the federal government has reviewed the “vast majority” of the company’s civil projects as part of a government-wide reassessment of spending.

“We weren’t targeted in those reviews,” Anderson said during the earnings call. “What we saw was agencies and departments looking at their full portfolio with targets in mind, whether it was on or off the [General Services Administration] list. This is really agency-driven.”

Rozanski noted that federal procurement “slowed down significantly” after President Donald Trump took office in January because many sub-Cabinet level positions had not yet been filled, “and people were waiting to see what the specific agendas were. Now that those are beginning to get flushed out, we’re getting strong indication that because our tech works … we’re gonna see growth in the second half” of 2025.

Booz Allen announced Friday that its fiscal 2025 total revenue was up 12.4% year-over-year, reaching $12 billion, with $4.17 billion in civil division revenue, up from $3.83 billion in fiscal 2024. However, in the first three months of 2025, civil revenue was at $989 million, slightly down from the same quarter in 2024, when the company reported $992 million in civil revenue.

Choice Financial announces new president, mid-Atlantic leader

SUMMARY:

  • Troy Dillow has been named and of , taking over daily operations and strategic initiatives.
  • Joe Harrow has been appointed executive vice president for the mid-Atlantic region, focusing on growth strategy and in five key states.
  • Bob Hilb now also holds the title of .

-based insurance broker Choice Financial Group has announced several changes to its leadership this month.

Troy Dillow has been named president and chief operating officer, where he will be responsible for leading the company’s day-to-day operations and executing strategic initiatives. He joined the organization in 2021 as its first merger partner through the of Bernier Insurance in Rochester, New Hampshire. He later helped the company expand and was most recently executive vice president of operations and carrier relations.

Bob Hilb, chairman and CEO of Choice Financial Group
Bob Hilb, chairman and CEO of Choice Financial Group. Photo courtesy Choice Financial Group

“Troy has lived every chapter of the Choice story,” Choice CEO Bob Hilb said in a statement. “He’s been an independent agency owner, an integration leader, and a trusted voice in our most important conversations. I could not be more enthusiastic about this appointment; Troy is a true partner to me and our leadership team. Most importantly, however, is how our other merger partners respect Troy and embrace his leadership.”

Before his insurance career, Dillow was a nuclear general foreman and later nuclear director at the U.S. Department of Defense, overseeing modernization and decommissioning of nuclear submarines. He entered the insurance industry in 2015 and, in 2017, acquired Bernier Insurance from his father-in-law, Harvey Bernier Jr.

“I’m honored to step into this role at such a defining moment for our company,” Dillow said in a statement. “What makes Choice special is our commitment to preserving the independence and legacy of our partners while equipping them with the tools to grow stronger together. It’s a mission I believe in deeply because I’ve lived it.”

Meanwhile, Joe Harrow has joined as executive vice president of the mid-Atlantic region, in a newly established role where he will oversee growth strategy, talent, and market relationships. His early focus will be on Maryland, Washington, D.C., West Virginia, North Carolina and South Carolina.

Joe Harrow has joined Choice Financial Group as executive vice president, Mid-Atlantic. Photo Courtesy Choice Financial Group
Joe Harrow has joined Choice Financial Group as executive vice president for the mid-Atlantic region. Photo courtesy Choice Financial Group

Harrow started his career in banking before transitioning into the insurance industry in 1994, founding Mid-Penn Insurance in Williamsburg. He led Mid-Penn until its acquisition by TowneBank in 2018. After the acquisition, Harrow was president of Towne’s Virginia market until 2022. Since then, Harrow has worked as chief officer and risk manager for VersAbility Resources, an organization dedicated to supporting people with disabilities.

“I am excited to join Choice because it stood out to me as a unique place where agency owners keep their entrepreneurial independence while also being able to collaborate with other agency partners to provide the best solutions for our clients,” said Harrow in a statement.

In a statement, Hilb praised Harrow’s “ability to think and act strategically while at the same time execute a myriad number of details” for clients.

Meanwhile, Hilb has taken on the title of chairman in addition to CEO. He is the founder of Richmond-based broker The Hilb Group and has led more than 30 acquisitions at Choice.

Based in Virginia Beach, Choice includes more than 30 partner agencies across more than 20 states and is backed with funding from private equity firm Northlane Capital Partners.