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Microsoft’s annual cloud revenue hits $75B, profit beats expectations

Microsoft said Wednesday that annual revenue for its flagship platform has surpassed $75 billion, up 34% from a year earlier.

The Azure cloud business has been a centerpiece of ‘s efforts to shift its focus to artificial intelligence, but until Wednesday the company hadn’t disclosed how much money it makes.

The revelation came in the software giant’s end-of-year . The company also said its fiscal fourth-quarter profit was $34.3 billion, or $3.65 per share, beating analyst expectations for $3.37 per share.

It posted revenue of $76.4 billion in the April-June period, up 18% from last year. Analysts polled by FactSet Research had been looking for revenue of $73.86 billion.

Microsoft launched Azure more than a decade ago, but the product has increasingly become intertwined with its AI ambitions, as the company looks to sell its AI chatbot and other tools to big business customers that are also reliant on its core online services.

But building the infrastructure to power cloud and AI technology is expensive, and Microsoft has looked for savings elsewhere. It has announced  of about 15,000 workers this year even as its profits have soared.

Microsoft CEO Satya Nadella told employees last week the layoffs were “weighing heavily” on him but also positioned them as an opportunity to reimagine the company’s mission for an AI era.

Promises of a leaner approach have been welcomed on Wall Street, especially as Microsoft and other tech giants are trying to justify huge amounts of capital spending to pay for the data centers, chips and other components required to power AI technology.

Google said after releasing its earnings last week it would raise its budget for capital expenditures by an additional $10 billion to $85 billion. Microsoft is expected to outline similar guidance soon.

NTSB finds Army chopper in fatal midair crash with plane was above altitude limit

  

SUMMARY:  

  • Helicopter in January crash was flying above altitude limits 
  • Altitude-measuring equipment was found to be inaccurate 
  • 67 people were killed in the midair collision over D.C. 
  • hearings focus on , Army roles and safety protocols 

 

Investigators probing the January midair collision of a passenger plane and an Army helicopter over Washington that killed 67 people found the chopper was flying higher than it should have been and its altitude readings were inaccurate.

The details came out of the first day of National Transportation Safety Board hearings in Washington, where investigators aim to uncover insights into what caused the crash between the American Airlines plane from Wichita, Kansas, and the Black Hawk helicopter over Ronald Reagan National Airport.

The board opened the three days of hearings by showing an animation and playing audio and video from the night of the collision, as well as questioning witnesses and investigators about how the Federal Aviation Administration and the Army may have contributed to nation’s deadliest plane crash since November 2001.

The board’s final report won’t be released until sometime next year, but it became clear Wednesday how small a margin of error there was for helicopters flying the route the Black Hawk took the night of the nation’s crash.

The January nighttime incident was the first in a string of crashes and near misses this year that have alarmed officials and the traveling public, despite statistics that still show flying remains the safest form of transportation.

Animation, altimeter discrepancy

The hearing opened Wednesday with a video animation showing where the helicopter and airliner were leading up to the collision. It showed how the helicopter flew above the 200 feet (61 meters) altitude limit on the helicopter route along the Potomac River before colliding with the plane.

Investigators said Wednesday the flight data recorder showed the helicopter was actually 80 feet to 100 feet (24 to 30 meters) higher than the barometric altimeter the pilots relied upon showed they were flying. So the NTSB conducted tests on three other helicopters from the same unit in a flight over the same area and found similar discrepancies in their altimeters.

Dan Cooper with Sikorsky helicopters said that when the Black Hawk helicopter involved in the crash was designed in the 1970s, it used a style of altimeter that was common at the time. Newer helicopters have air data computers that didn’t exist back then that help provide more accurate altitude readings.

Chief Warrant Officer Kylene Lewis told the board that she wouldn’t find an 80 to 100 foot discrepancy between the different altimeters on a helicopter alarming because at lower altitudes she would be relying more on the radar altimeter than the barometric altimeter. Below 500 feet (152 meters), Lewis said she would be checking both instruments and cross referencing them.

She said as long as an altimeter registers an altitude within 70 feet of the published altitude before takeoff the altimeter is considered accurate under the checklists.

Army officials said a discrepancy of 70 to 100 feet (21 to 30 meters) between the Black Hawk’s altimeters is within the acceptable range because pilots are expected to maintain their altitude plus or minus 100 feet.

The greater concern is that the FAA approved routes around Reagan airport that included such small separation distances between helicopters and planes when planes are landing.

“The fact that we have less than 500 foot separation is a concern for me,” said Scott Rosengren, chief engineer in the office that manages the Army’s utility helicopters.

But Rosengren said that “if he was king for a day” he would immediately retire all the older Black Hawk models like the one involved in this crash and replace them with newer versions of the helicopters.

Questions over the route

Army officials and the head of a local medevac helicopter company that flies around Washington told the board they believed air traffic controllers would never let them fly the helicopter route involved in the crash anytime a plane was approaching the runway.

Chief Warrant Officer David Van Vetchen said after the crash he talked to many of his fellow pilots and everyone had the same assumption that controllers would never allow them to fly across the path of the runway the American plane was approaching before the crash.

Citing the numbers for runways, Van Vetchen said that “100% of the time when I was on route four and 33/15 was active” he would be instructed to hold until after the plane landed or took off from that runway.

‘Stepped on transmission’

During the two minutes before the crash, one air traffic controller was directing airport traffic and helicopters in the area, a task that involved speaking to or receiving communications from several different aircraft, according to the NTSB’s History of Flight Performance Study.

The air traffic controller had spoken to or received communications from the Black Hawk helicopter, an airplane that was taking off, an Air Force helicopter, an airplane on the ground, a medical helicopter and an inbound flight that was not the American Airlines plane that would crash.

“All aircraft could hear the controller, but helicopters could only hear other helicopters on their frequency and airplanes only other airplanes,” the report stated. “This resulted in a number of stepped on transmissions as helicopters and airplanes were not aware when the other was communicating.”

Stepped on transmissions are those that are unheard or blocked because of other transmissions. The NTSB report provides a list of 29 separate communications between the airport tower and other aircraft during approximately the 1 minute and 57 seconds before the collision.

Previously disclosed air traffic control audio had the helicopter pilot telling the controller twice that they saw the airplane and would avoid it. Officials on Wednesday also raised the use of night vision goggles, which limit the wearer’s field of view, on the helicopter as a factor.

The animation ended with surveillance video showing the helicopter colliding with the plane in a fiery crash.

Investigations have already shown the FAA failed to recognize a troubling history of 85 near misses around Ronald Reagan National Airport in the years before the collision, and that the Army’s helicopters routinely flew around the nation’s capital with a key piece of locating equipment, known as ADS-B Out, turned off.

Proposed changes

U.S. Sen. Ted Cruz, a Republican, introduced legislation Tuesday to require all aircraft operators to use both forms of ADS-B, or Automatic Dependent Surveillance Broadcast, the technology to broadcast aircraft location data to other planes and air traffic controllers. Most aircraft today are equipped with ADS-B Out equipment but the airlines would have to add the more comprehensive ADS-B In technology to their planes.

The legislation would revoke an exemption on ADS-B transmission requests for Department of Defense aircrafts.

Homendy said her agency has been recommending that move for decades after several other crashes.

Transportation Secretary Sean Duffy said that while he’d like to discuss “a few tweaks,” the legislation is “the right approach.” He also suggested that the previous administration “was asleep at the wheel” amid dozens of near-misses in the airspace around Washington’s airspace.

Trump announces 25% tariff on India and unspecified penalties for buying Russian oil

  

SUMMARY:  

  • Trump to impose 25% on Indian goods starting Friday 
  • Additional duties tied to ‘s purchases of  
  • India says it’s reviewing the economic impact of the tariffs 
  • between U.S. and India remain ongoing 

 

 WASHINGTON (AP) — The United States will impose a 25% tariff on goods from India, plus an additional import tax because of India’s purchasing of Russian oil, President said Wednesday.

India “is our friend,” Trump said on his Truth Social platform, but its tariffs on U.S. products “are far too high.”

The Republican president added India buys military equipment and oil from Russia, enabling Moscow’s war in Ukraine. As a result, he intends to charge an additional “penalty” starting on Friday as part of the launch of his administration’s revised tariffs on multiple countries.

Trump told reporters on Wednesday the two countries were still in the middle of negotiations on trade despite the tariffs slated to begin in a few days.

“We’re talking to India now,” the president said. “We’ll see what happens.”

The Indian government said Wednesday it’s studying the implications of Trump’s tariffs announcement.

India and the U.S. have been engaged in negotiations on concluding a “fair, balanced and mutually beneficial” bilateral trade agreement over the last few months, and New Delhi remains committed to that objective, India’s Trade Ministry said in a statement.

Trump on Wednesday signed separate orders to tax imports of copper at 50% and justify his 50% tariffs on Brazil due to their criminal prosecution of former President Jair and treatment of U.S. social media companies. Trump also signed an order saying that government now had the systems in place to close the tariff loophole on “de minimis” shipments, which had enabled goods priced under $800 to enter America duty-free, largely from China.

Trump also said on Truth Social that he was meeting Wednesday with a trade delegation from South Korea, which currently faces 25% tariffs starting on Friday. He also said the U.S. has reached a deal with Pakistan that includes the development of its oil reserves. Meanwhile, Treasury Secretary Scott Bessent was briefing him on trade talks with China.

Trump’s view on tariffs

Trump’s announcement comes after a slew of negotiated trade frameworks with the European Union, Japan, the Philippines and Indonesia — all of which he said would open markets for American goods while enabling the U.S. to raise tax rates on imports. The president views tariff revenues as a way to help offset the budget deficit increases tied to his recent income tax cuts and generate more domestic factory jobs.

While Trump has effectively wielded tariffs as a cudgel to reset the terms of trade, the economic impact is uncertain as most economists expect a slowdown in U.S. growth and greater inflationary pressures as some of the costs of the taxes are passed along to domestic businesses and consumers.

There’s also the possibility of more tariffs coming on trade partners with Russia as well as on pharmaceutical drugs and computer chips.

Kevin Hassett, director of the White House National Economic Council, said Trump and U.S. Trade Representative Jamieson Greer would announce the Russia-related tariff rates on India at a later date.

Tariffs face European pushback

Trump’s approach of putting a 15% tariff on America’s long-standing allies in the EU is also generating pushback, possibly causing European partners as well as Canada to seek alternatives to U.S. leadership on the world stage.

French President Emmanuel Macron said Wednesday in the aftermath of the trade framework that Europe “does not see itself sufficiently” as a global power, saying in a cabinet meeting that negotiations with the U.S. will continue as the agreement gets formalized.

“To be free, you have to be feared,” Macron said. “We have not been feared enough. There is a greater urgency than ever to accelerate the European agenda for sovereignty and competitiveness.”

Seeking a deeper partnership with India

Washington has long sought to develop a deeper partnership with New Delhi, which is seen as a bulwark against China.

Indian Prime Minister Narendra Modi has established a good working relationship with Trump, and the two leaders are likely to further boost cooperation between their countries. When Trump in February met with Modi, the U.S. president said that India would start buying American oil and natural gas.

The new tariffs on India could complicate its goal of doubling bilateral trade with the U.S. to $500 billion by 2030. The two countries have had five rounds of negotiations for a bilateral trade agreement. While U.S. has been seeking greater market access and zero tariff on almost all its exports, India has expressed reservations on throwing open sectors such as agriculture and dairy, which employ a bulk of the country’s population for livelihood, Indian officials said.

The Census Bureau reported that the U.S. ran a $45.8 billion trade imbalance in goods with India last year, meaning it imported more than it exported.

At a population exceeding 1.4 billion people, India is the world’s largest country and a possible geopolitical counterbalance to China. India and Russia have close relations, and New Delhi has not supported Western sanctions on Moscow over its war in Ukraine.

The new tariffs could put India at a disadvantage in the U.S. market relative to Vietnam, Bangladesh and, possibly, China, said Ajay Sahai, director general of the Federation of Indian Export Organisations.

“We are back to square one as Trump hasn’t spelled out what the penalties would be in addition to the tariff,” Sahai said. “The demand for Indian goods is bound to be hit.”

Trump imposes 50% tariffs on Brazil over Bolsonaro case

  

SUMMARY:  

  • Trump signs to impose 50% on  
  • Cites prosecution as economic emergency under 1977  
  • Legal rationale shifts from trade imbalance to political instability 
  • U.S. had a $6.8B trade surplus with Brazil last year 

 

WASHINGTON (AP) — President signed an executive order Wednesday to impose his threatened 50% tariffs on Brazil, setting a legal rationale that Brazil’s policies and criminal prosecution of former President Jair Bolsonaro constitute an economic emergency under a 1977 law.

Trump had threatened the tariffs July 9 in a letter to President Luiz Inacio Lula da Silva. But the legal basis of that threat was an earlier executive order premised on trade imbalances being a threat to the . But America ran a $6.8 billion trade surplus last year with Brazil, according to the U.S. Census Bureau.

A statement by the White House said Brazil’s judiciary had tried to coerce social media companies and block their users, though it did not name the companies involved, X and Rumble.

Trump appears to identify with Bolsonaro, who attempted to overturn the results of his 2022 loss to Lula. Similarly, Trump was indicted in 2023 for his efforts to overturn the results of the 2020 U.S. presidential election.

The order would apply an additional 40% tariff on the baseline 10% tariff already being levied by Trump. But not all goods imported from Brazil would face the 40% tariff: Civil aircraft and parts, aluminum, tin, wood pulp, energy products and fertilizers are among the products being excluded.

The order said the tariffs would go into effect seven days after its signing on Wednesday.

Also Wednesday, Trump’s Treasury Department announced sanctions on Brazilian Supreme Court Justice Alexandre de Moraes over alleged suppression of freedom of expression and Bolsonaro’s ongoing trial.

De Moraes oversees the criminal case against Bolsonaro, who is accused of masterminding a plot to stay in power despite his 2022 defeat.

On July 18, the State Department announced visa restrictions on Brazilian judicial officials, including de Moraes.

Federal Reserve leaves interest rates unchanged even as Trump demands cuts

  

SUMMARY:  

  • Fed leaves short-term interest rate unchanged at 4.3% 
  • Decision marks fifth hold this year amid economic uncertainty 
  • Trump urged rate cuts; Fed cites impact of trade  
  • Two Fed governors dissented, pushing for a rate reduction 

 

WASHINGTON (AP) — The left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President for a cut.

The Fed’s decision Wednesday leaves its key short-term rate at about 4.3%, where it has stood after the central bank made three cuts last year. During a news conference, Chair said that Trump’s sweeping tariffs are starting to push up inflation and it will take time for the Fed to determine whether the uptick in prices will be a one-time effect or something more persistent.

“That is a risk to be assessed and managed,” he told reporters.

There were some signs of splits in the Fed’s ranks: Governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs, while nine officials, including Powell, favored standing pat. It is the first time in more than three decades that two of the seven Washington-based governors have dissented. One official, Governor Adriana Kugler, was absent and didn’t vote.

The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly demanded that the central bank reduce borrowing costs as part of his effort to assert control over one of the few remaining independent federal agencies.

Powell said that while tariffs are starting to push up the cost of goods — and he expects more of that to happen in the coming months — the price of services — rents, insurance, and hotel rooms — has continued to cool.

He suggested it could take some time to determine whether the impact of the tariffs will be short-lived or more persistent.

“We think we have a long way to go to really understand exactly how” the tariffs and prices will play out, Powell said.

Many economists and Wall Street investors have expected the Fed to cut its rate at its next meeting in September, but Powell’s remarks suggest there may not be enough data before September to support a cut.

“We have made no decisions about September,” Powell said. The chair acknowledged that if the Fed cut its rate too soon, inflation could move higher, and if it cut too late, then the job market could suffer.

Major U.S. indexes, which had been trading slightly higher Wednesday, went negative after Powell’s comments.

“The markets seem to think that Powell pushed back on a September rate cut,” said Lauren Goodwin, chief market strategist at New York Life Investments.

Powell also underscored that the vast majority of the committee agreed with a basic framework: Infation is still above the Fed’s target of 2%, while the job market is still mostly healthy, so the Fed should keep rates elevated. On Thursday, the government will release the latest reading of the Fed’s preferred inflation gauge, and it is expected to show that core prices, excluding energy and food, rose 2.7% from a year earlier.

Gus Faucher, chief economist at PNC Financial, says he expects the tariffs will only temporarily raise inflation, but that it will take most of the rest of this year for that to become apparent. He doesn’t expect the Fed to cut till December.

Trump argues that because the is doing well, rates should be lowered. But unlike a blue-chip company that usually pays lower rates than a troubled startup, the Fed adjusts rates to either slow or speed growth, and would be more likely to keep them high if the economy is strong to prevent an inflationary outbreak.

Earlier Wednesday, the government said the economy expanded at a healthy 3% annual rate in the second quarter, though that figure followed a negative reading for the first three months of the year, when the economy shrank 0.5% at an annual rate. Most economists averaged the two figures to get a growth rate of about 1.2% for the first half of this year.

Some of the disagreement likely reflects jockeying to replace Powell, whose term ends in May 2026. Waller in particular has been mentioned as a potential future Fed chair.

Bowman, meanwhile, last dissented in September 2024, when the Fed cut its key rate by a half-point. She said she preferred a quarter point cut instead, and cited the fact that inflation was still above 2.5% as a reason for caution.

Waller also said earlier this month that he favored cutting rates, but for very different reasons than Trump has cited: Waller thinks that growth and hiring are slowing, and that the Fed should reduce borrowing costs to forestall a weaker economy and a rise in unemployment.

There are other camps on the Fed’s 19-member rate-setting committee (only 12 of the 19 actually vote on rate decisions). In June, seven members signaled that they supported leaving rates unchanged through the end of this year, while two suggested they preferred a single rate cut this year. The other half supported more reductions, with eight officials backing two cuts, and two — widely thought to be Waller and Bowman — supporting three reductions.

The dissents could be a preview of what might happen after Powell steps down, if President Donald Trump appoints a replacement who pushes for the much lower the White House desires. Other Fed officials could push back if a future chair sought to cut rates by more than economic conditions would otherwise support.

Overall, the committee’s quarterly forecasts in June suggested the Fed would cut twice this year. There are only three more Fed policy meetings — in September, October, and December.

When the Fed cuts its rate, it often — but not always — results in lower borrowing costs for mortgages, auto loans and credit cards.

Some economists agree with Waller’s concerns about the job market. Excluding government hiring, the economy added just 74,000 jobs in June, with most of those gains occurring in health care.

“We are in a much slower job hiring backdrop than most people appreciate,” said Tom Porcelli, chief U.S. economist at PGIM Fixed Income.

Michael Feroli, an economist at JPMorgan Chase, said in a note to clients this week if the pair were to dissent, “it would say more about auditioning for the Fed chair appointment than about economic conditions.”

CoStar sues Zillow for alleged copyright infringement

SUMMARY:

  • Arlington-based has sued for allegedly using CoStar’s copyrighted photos on its site
  • Nearly 47,000 infringed photos appear on Zillow.com and partner sites, complaint says
  • CoStar CEO Andy Florance calls for removal of images on Zillow partner sites and as well

-based CoStar Group and one of its subsidiaries have sued Zillow, claiming that the website is using nearly 47,000 CoStar-copyrighted images illegally.

The was filed Wednesday by CoStar Group and subsidiary CoStar Realty Information in the U.S. District Court for the Southern District of New York. It claims that Zillow Group and subsidiary Zillow Inc. have published CoStar’s real estate photos on Zillow.com and other Zillow sites, as well as distributing CoStar’s copyrighted photos to Zillow’s partnership network of listing sites, including Realtor.com and Redfin.

The outcome, the lawsuit says, is that the images are displayed more than 250,000 times online illegally.

“Zillow’s willful, mass infringement warrants the imposition of permanent injunctive relief as well as a substantial award of damages,” says the complaint, which requests that the court require the “purging and destruction of all CoStar copyrighted photographs” from Zillow’s databases and systems by a third-party source that will monitor Zillow’s future compliance. CoStar also requests an award of its costs, including attorneys’ fees, and exemplary and punitive damages.

Andy Florance, CoStar’s CEO and founder, issued a statement in a news release Wednesday: “Zillow’s theft of tens of thousands of CoStar Group’s copyrighted photographs is nothing short of outrageous. Zillow is profiting from decades of CoStar Group work and the billions of dollars we have invested. Even worse, Zillow is magnifying its infringement on Redfin and Realtor.com. If these other sites do not immediately remove our images, we will have no choice but to sue them as well. We are committed to stopping this systematic infringement and holding the wrongdoers to account.”

The lawsuit provides screenshot images of photos on Zillow’s website that it alleges are CoStar’s images, as well as examples on Redfin and Realtor.com. According to the complaint, “about half of the infringing photographs located on Zillow include CoStar’s watermark. In many instances, Zillow’s listing pages obscure the watermark until a user clicks on and enlarges the actual photograph.”

What’s more, the lawsuit alleges, “Despite having the technical capability to screen out CoStar-watermarked photographs, however, [Zillow] has failed to do so.” The complaint says that Zillow announced in May 2024 it would “dramatically expand its presence in the rental listing market,” and by May 2025, the number of multifamily had risen 50% to 60,000. Zillow also reportedly had 1.9 million active rental listings at the end of 2024, which had risen to 2.2 million in May, the lawsuit says.

CoStar alleges in the suit that Zillow was able to grow its rental listings by “infringing CoStar’s copyrighted images on a staggering scale,” which allegedly allows Zillow to “enhance its products, gain customers and earn revenue.”

Zillow did not immediately respond to a request for comment on the lawsuit Wednesday.

Leidos secures $128M FBI contract

Reston-based has been awarded a $128 million task order to modernize the FNI’s Next Generation Identification (NGI) system, the bureau’s biometric and criminal history repository, the company announced Tuesday.

The NGI repository of biometric and criminal history information enhances the investigative capabilities of the and other enforcement and intelligence agencies. Leidos stated that it has collaborated with the FBI to improve the system’s accuracy to over 99.6% for fingerprint identification.

Under the task order, Leidos will provide more capabilities, including mobile apps, biometric algorithms, automated testing and the integration of other emerging technologies.

“Leidos has long partnered with the FBI to deliver mission-critical biometric systems, including NGI — the largest, most efficient electronic repository of biometric and criminal history data,” Leidos National Security Sector President Roy Stevens said in a statement. “Leidos’ work with the FBI to improve the system’s accuracy facilitates many more criminal identifications, helping to keep America safe.”

The task order covers a one-year base period of performance, with four one-year options.

In May, the U.S. Department of Homeland Security terminated a $2.4 billion IT and cybersecurity contract awarded in 2024 to Leidos, the Agile Cybersecurity Technical Security (ACTS) contract. That same month, Leidos announced it had acquired Kudu Dynamics, a Chantilly-based tech company that builds AI-powered cybersecurity tools for defense customers, for $300 million.

With 47,000 employees worldwide, Leidos reported $16.7 billion in revenue for the fiscal year that ended Jan. 3.

Mars to pump $2B into U.S. manufacturing

SUMMARY:

  • plans to invest $2 billion in U.S. by end of 2026
  • Candymaker has already committed $6 billion to U.S. manufacturing since 2020
  • Mars also launched $250 million innovation fund

-based candymaker and pet care giant Mars announced on Tuesday that it plans to infuse $2 billion into its U.S. manufacturing operations by the end of 2026.

The maker of Snickers, M&M’s, and Twix says the investment will support a new, $240 million facility for Nature’s Bakery in Salt Lake City, slated to open on Wednesday. The 339,000-plus-square-foot site will create over 230 jobs and expand the brand’s capacity.

“This investment is about building a stronger, more resilient business in the U.S. — one that can grow with our consumers, deliver for our partners and create lasting economic impact in the communities where we operate,” Mars Chief Financial Officer Claus Aagaard said in a statement.

Mars says 94% of its products sold in the U.S. are produced in the country.

“The U.S. is our biggest and most important market, and a key engine of growth for the long term — not only through our legacy manufacturing footprint but also through the expansion of strategic acquisitions like Nature’s Bakery, which is already scaling quickly,” Aagaard said. “That’s why we’ve committed $6 billion to U.S. manufacturing in the last five years, with another $2 billion planned by the end of next year.”

The $2 billion investment isn’t the only major new initiative to come from Mars. Earlier this month, the company announced the launch of a $250 million investment fund dedicated to fostering business innovation and growth. The innovation fund aims to provide capital to companies developing solutions to address sustainability challenges in the food industry.

Mars says it plans to deploy the fund as direct investments. It will focus on supporting technologies that reduce the emissions associated with agricultural inputs in its products, developing lower emission alternatives to current ingredients and creating a new type of packaging designed for circularity, with a focus on recyclable, compostable or otherwise bio-benign replacements for flexible plastics.

The fund was announced on July 1, the day Mars released its most recent sustainability report. In that report, Mars said that by the end of 2024, it had achieved another 1.9% reduction in absolute greenhouse gas emissions compared with its 2015 baseline while growing the business by over 69% to approximately $55 billion in annual sales during the same period.

Last month, the European Union’s watchdog organization announced that it has opened an investigation into Mars’ proposed $35.9 billion acquisition of , the producer of Cheez-It, Pop-Tarts, Pringles and Eggo. Although the deal could still go through, it will be delayed at least through Oct. 31, possibly until the end of the year. However, the U.S. Federal Trade Commission cleared the deal following an antitrust review.

Mars is Virginia’s largest privately held company and the fourth largest in the United States. In recent years, it has made acquisitions in the pet care and candy sectors in an effort to double its sales by 2033. The company employs more than 70,000 people globally.

Milestones: Virginia companies celebrating big anniversaries in 2025

Summary

  • Virginia’s AI sector now valued at $1.71 billion amid global boom
  • 10 Virginia companies celebrate 25 to 175 years in business
  • marks 175 years of community service
  • and others show how tradition meets innovation

Even amid the AI revolution currently underway, there are viable signs of stability.

The global AI market could grow twenty-fivefold — from $189 billion in 2023 to $4.8 trillion — by 2033, according to a report this year from the United Nations. Containing the largest concentration of data centers in the world, Virginia, too, has been swept up in the artificial intelligence boom, with tech trade association the Chamber of Progress estimating the state’s AI sector is already worth $1.71 billion.

While predictions about AI’s transform-ative impact on business range from bold to scary, the full extent remains to be seen. But for all that could change, much will remain the same, if history is any guide.

Several prominent Virginia-based companies celebrating milestone anniversaries in 2025 demonstrate that while disruptive technologies will come and go, businesses that provide essential services and build loyal customers can thrive across decades and even centuries.

Through wars and recessions, shifts in politics and consumer preferences, these venerable businesses have found success by offering specialized services and becoming cornerstones of their communities. Here are the stories behind 10 Virginia companies celebrating milestone anniversaries this year, from 25 years to 175 years.

Shannon Pierce was named CEO of Virginia Natural Gas in April. Photo courtesy Virginia Natural Gas

175 YEARS

VIRGINIA NATURAL GAS
Virginia Beach

By the mid-1800s, major changes were afoot in America — railroads and electric telegraphs made the nation feel more cohesive. And perhaps most noticeably, cities across the U.S. were increasingly transitioning to gas lighting. In 1850, the City of Norfolk joined the parade, granting a charter to City Gas Light Co. to illuminate its streets with gas lights.

That deal marked the beginning of Virginia Natural Gas (VNG), a utility serving 300,000-plus customers across southeastern Virginia. While the past 175 years have brought many, many changes, the company’s mission remains the same.

“Even if our words or our mottos may change and evolve over time, the core of who we are and what we do has remained constant — and that is to make sure we are delivering safe and reliable natural gas service to our customers,” says Shannon Pierce, who was named CEO of Virginia Natural Gas in April.

Today’s VNG has evolved out of numerous acquisitions and consolidations, and Pierce says a major company milestone is comparatively recent: In 2000, VNG was acquired by AGL Resources, which then became Southern Company Gas, part of Atlanta-based Southern Co., a gas and electric utility holding company.

“That was a pivotal part in VNG’s history because it allowed us to benefit from resources from a much bigger parent company and to share best practices and leverage those resources locally,” explains Pierce. VNG’s access to resources has grown “exponentially,” she adds, which benefits research and development, charitable giving efforts, and collaborations.

Virginia Natural Gas traces its lineage back to 1850 and City Gas Light Co. Photos courtesy Virginia Natural Gas

Such resources are valuable as VNG strives to serve growing energy demands. Earlier this year, it announced a partnership with the Hampton Roads Sanitation District to build a renewable natural gas facility at the Atlantic Treatment Plant, a sewage facility in Virginia Beach. Converting biogas from wastewater treatment into natural gas will provide an additional source of supply for customers, while honoring the company’s commitment to environmental stewardship and sustainability.

“That’s just an example of how we are continuing to make sure that we find innovative ways and use technology to meet the energy demands of the future,” Pierce says. Other recent efforts include modernizing 575-plus miles of pipeline and cutting emissions by 35% since 2012, she adds.

Looking ahead, VNG’s “safety-first” value remains crucial, both for its 1,000-member workforce and the communities it serves. But Pierce says increasing the company’s “exceptionality” around community engagement will create a legacy that will also help the company thrive for years to come.

And it’s already seeing the fruits of such outreach pay off. Before breaking ground on a new operations headquarters in Chesapeake this spring, VNG sought feedback from the broader community. “Frankly, the project was better because of the feedback and the engagement we’ve had with many stakeholders,” Pierce says.

Colonna’s is one of the nation’s largest privately owned shipyards. Photo courtesy Colonna’s Shipyard

150 YEARS

COLONNA’S SHIPYARD
Norfolk

If, by some magic, Charles J. Colonna could visit the shipyard he started in 1875, he’d see Railway No. 3, installed in 1890, still serving barges and fishing vessels in the commercial maritime market. Beyond that, though? “It would largely be unrecognizable,” says Randall Crutchfield, chairman and CEO of Colonna’s Shipyard and Colonna’s great-great grandson.

“But I think he’d be impressed by what the generations have been able to put together in the past 150 years.”

Not surprisingly, much has changed at the shipyard, a mainstay along the Elizabeth River in Norfolk. As one of the nation’s largest private shipyards, Colonna’s now operates three dry docks and a 1,000-metric-ton travel lift, supplies on-site welding services, and has expanded its reach to San Diego and Kentucky.

While the variety of work and customer base have broadened, building and repairing ships is work that’s still done mostly by hand. And the company’s core values of respect, pride, truth, and family continue to permeate the work culture.

“We have this sense that we’re a family business, and it’s not just the Colonna family,” says Crutchfield, who became CEO in 2024 and marks the fifth generation of Colonna descendants to lead the shipyard. “There are many instances of folks who have chosen to make this their family’s business over multiple generations.”

Though Colonna’s strives to stay true to its roots, the company constantly seeks ways to improve and expand. Technology, Crutchfield notes, is an increasingly important component of the time-intensive projects undertaken by the shipyard’s 700-plus employees.

“We are doing the things we can do to get more advanced so that our work processes can be done quicker with the tools that are at our disposal,” Crutchfield says. Whether serving the military or the fishing and maritime industries, the company prides itself on “never saying no to a customer who has a need.”

Crutchfield hopes to leave his mark through long-term plans to modernize the waterfront and by continuing to expand operations beyond Norfolk. While his philosophy might not sound “super lofty,” he says doing enough things well now and continuing along this path to moderately grow the company will set it up for the next generation, whenever that time comes.

But even as he looks toward that future, Crutchfield draws upon lessons from the past, including how Colonna’s navigated “really scary” times and the wisdom of his great-great grandfather, who put everything into motion.

“His main mantra was hard work, good value and fair dealing,” Crutchfield says. “Those are things that we hold near and dear and ascribe to and rate ourselves against any chance we get.”

The Bank of Southside Virginia’s deep local roots stretch back to 1905. Bank photo courtesy Bank of Southside Virginia;

120 YEARS

BANK OF SOUTHSIDE VIRGINIA
Carson

At least 10% of the accounts at Bank of Southside Virginia were created in the leather-bound ledger days that predate when the bank began computerizing records in the 1970s. This illustrates the longevity of a bank with roots dating back to 1905 that, for nearly a century, hasn’t changed names, locations, or even its kinetic-motion vault.

As the latest to helm this multigenerational company, BSV Chairman and CEO Will Clements feels tasked with honoring the bank’s long-standing commitment to the communities it serves. Managing the bank with longevity in mind, he says, means following a simple philosophy: “Take care of employees, take care of customers, take care of your neighbors — and don’t forget that.”

The biggest turning point for BSV happened between the 1970s and 1990s, when the bank doubled its number of branches while Clements’ grandfather was sitting in his same office. Though interstate banking was becoming popular at the time, BSV never left Virginia and instead focused on deepening its regional presence.

“That really cemented our current footprint as it exists today,” Clements says. The bank’s 15 branches now stretch north-south from Chesterfield to Southampton and east-west from Isle of Wight to Dinwiddie.

With such deep local roots, Clements says he’s been fortunate to work with customers spanning four generations during his 20-year career at the bank, along with BSV’s longest-tenured employee, who joined 60-plus years ago. While he’s proud of BSV’s advanced technological and security investments, especially for a bank its size, Clements also sees opportunities to grow through digital channels while continuing to help customers during their best and hardest times.

As automated systems become increasingly streamlined in the future, banking will become even more of a people business, Clements says.

“We’ve done well here so far,” he says. “Why mess with the formula?”

Andrew Kidwell bought his family’s window treatments business, MannKidwell, from his father in 1997. Kidwell photo by Jay Paul

75 YEARS

MANNKIDWELL
Richmond

After graduating college in 1993, Andrew Kidwell was contemplating heading out west when his father invited him to lunch. “I need you to come help in the business,” Kidwell recalls his father, Andy Kidwell Jr., saying. “I immediately said yes.” In 1997, Kidwell bought the small family-owned interior window treatments company from his father.

“Here I am,” Kidwell says, 32 years after that lunch, “and I still love what I do every day. That’s a great feeling to express.”
For 75 years, MannKidwell has served customers in Richmond with blinds, shutters and other window treatments.

Ted Mann founded the window shades business in 1950 and sold it in 1967 to Kidwell’s father and grandfather (Andy Kidwell Sr.), who rebranded the company as MannKidwell. Under the third generation of Kidwell ownership, the variety of window treatments the company sells has grown, particularly as motorization has become more standard.

The personal touch and a customer-first approach have long been hallmarks of an experience designed to be seamless and pleasurable from start to finish — and why MannKidwell serves so many repeat and multigenerational customers, Kidwell says. “I have been very, very emphatic about maintaining what we do as a great experience,” he notes, crediting the service provided by the company’s five employees.

What’s more, Kidwell is “extremely proud” that MannKidwell is one of only 39 businesses designated as a Legacy Company with Gold Status by the Henrico Authority. “I’m confident that this business will always be a staple here in Richmond.”

The company E. Rhodes Carpenter founded in 1950 has become Carpenter, the world’s largest vertically integrated manufacturer of flexible polyurethane foam. Photo courtesy Carpenter

75 YEARS

CARPENTER
Henrico County

In 1950, E. Rhodes Carpenter launched a latex foam distribution business in Richmond. Today, that company bills itself as the world’s largest vertically integrated manufacturer of flexible polyurethane foam. The modern-day Carpenter, with more than 8,000 employees worldwide, makes proprietary foams found in mattresses, pillows and other products, as well as polyester fibers and insulation materials.

All of that growth didn’t happen overnight. A key year on the company’s timeline was 1954. That’s when E. Rhodes Carpenter hired Stanley F. Pauley and the pair pivoted from latex to polyurethane. In 1972, Carpenter launched Carpenter Chemical Co., which makes a key raw material needed for polyurethane foam. When E. Rhodes Carpenter died in 1980, Pauley became the company’s chairman and CEO as well as its majority shareholder.

Moving forward to the 1990s, Carpenter expanded to Europe. Today, the company has also branched out to the Middle East, Africa and Asia.

Pauley died at the age of 93 in 2020, weeks after relinquishing the title of CEO to Brad Beauchamp, the company’s present-day leader.

Even while celebrating a landmark anniversary, Beauchamp is thinking about the company’s future. “Carpenter is a world leader today because our founding leadership was always thinking of the years ahead,” he said.

Richmond architecture firm Glavé & Holmes was founded in 1965 on principles of historic preservation and adaptive reuse. Top photo courtesy Glavé & Holmes;

60 YEARS

GLAVÉ & HOLMES ARCHITECTURE
Richmond

In the 1960s, while many Richmond architects favored tearing down old buildings, Jim Glavé went against the grain: He championed historic preservation and adaptive reuse projects. Sixty years later, Glavé’s vision continues thanks to a historic preservation studio established within the firm in 2019.

Whether designing new buildings or reimagining existing structures, the current iteration of Glavé & Holmes is defined by an ethos of contextual design, says Lori Garrett, president and senior principal of the now-women-owned firm. “Our whole focus — and what gets us up in the morning — is creating places where people can thrive and grow and flourish.”

Drawing upon physical surroundings and the culture and identity of clients means one building’s design won’t work if transplanted elsewhere, Garrett says. It’s a design philosophy that’s proven successful:

Revenue has grown 50% since 2020, while the firm’s headcount has nearly doubled during Garrett’s 22-year tenure to around 60 employees.

Several projects spanning decades of relationships are also key to the firm’s success and growth, including work for the Virginia Museum of History and Culture, Lewis Ginter Botanical Garden, The Valentine museum and Christopher Newport University.

Looking ahead, Garrett’s goals include expanding the firm’s presence in destination hotels, building upon its specialization in education, and adding to its tally of 34 out-of-state projects in the past decade. “We can take our vision to elevate the human spirit and bring that to communities throughout Virginia — not just Richmond — and even throughout the East Coast.”

It’s hard to remember a time when Kings Dominion’s one-third-scale Eiffel Tower didn’t loom over the trees along Interstate 95 in Doswell. The amusement park celebrates its 50th anniversary in 2025. bottom photo courtesy Kings Dominion

50 YEARS

BUSCH GARDENS WILLIAMSBURG
Williamsburg

KINGS DOMINION
Doswell

If you’ve got the cash and a strong stomach, you could ride Apollo’s Chariot at Busch Gardens Williamsburg and then drive roughly 71 miles north to Doswell to succumb to the 300-foot plunge of Kings Dominion’s Pantherian — all in a single day.

The two theme parks opened 13 days apart in May 1975. By keeping the coasters rolling for 50 years, the rival attractions have proven there are more than enough thrill-seekers to support two major amusement parks in the commonwealth for generations.

Kings Dominion and Busch Gardens Williamsburg are part of what makes Virginia a “premier tourism destination,” says Eric Terry, president of the Virginia Restaurant, Lodging and Travel Association. “These landmarks don’t just draw millions of visitors each year — they fuel economic growth, support thousands of local jobs, and showcase the diversity and vibrancy of our commonwealth.”

Developed at a cost of $50 million as a joint venture between Taft Broadcasting and Top Value Enterprises, Kings Dominion officially opened on May 3, 1975. About 52,000 visitors were let in that first day, and thousands of disappointed thrill-seekers had to be turned away. In a video made for Kings Dominion’s 40th anniversary, Dennis Speigel, the park’s first general manager, recalled letting many visitors in without charging admission because he feared a riot.

Those first visitors enjoyed thrills that included Rebel Yell, a wooden roller coaster, the Shenandoah Lumber Co. log flume and the Eiffel Tower, a one-third-scale replica of its Parisian big cousin.
That opening year also offered an air-conditioned monorail through Lion Country Safari, an African wildlife preserve that opened to visitors in 1974 as a drive-thru park preview. (For that single season, guests were allowed to drive their Ford Pintos alongside elephants and lions.)

As for Busch Gardens Williamsburg, its existence can be credited to the fact that beer magnate August A. Busch Jr. wanted to build a brewery in Virginia. Winthrop Rockefeller, a Colonial Williamsburg Foundation board member, convinced Busch to buy a 2,500-acre tract in James City County. The Anheuser-Busch development grew to include not only a brewery but a resort and residential community and the theme park.

Busch Gardens Williamsburg’s beloved Loch Ness Monster roller coaster debuted in 1978, three years after the park opened under its original name, Busch Gardens: The Old Country. Photo courtesy Busch Gardens Williamsburg

Busch Gardens: The Old Country officially opened on May 16 with an appearance by TV personality Ed McMahon. At the European-themed park, early visitors enjoyed attractions such as a replica of Shakespeare’s Globe Theatre, a monorail to the brewery and the Glissade, a German steel roller coaster.

Both theme parks have also changed hands over the decades.

In 1984, Taft Broadcasting sold Kings Dominion, along with Kings Island in Ohio and Carowinds in North Carolina, to Kings Entertainment. And in 1993, Kings Entertainment sold its parks to movie studio Paramount. That led to new theming at Kings Dominion, including an area paying tribute to “Wayne’s World” with a roller coaster dubbed The Hurler. CBS ended up with the parks, which it sold in 2006 to Ohio-based Cedar Fair Entertainment. In 2024, Cedar Fair merged with Six Flags Entertainment in an all-stock deal valued at $2 billion.

Busch Garden Williamsburg’s ownership change followed the 2008 merger between InBev and Anheuser-Busch. The new company promptly moved to sell Busch Entertainment Corp., a collection of 10 theme parks including SeaWorld Attractions and the Busch Gardens parks in Tampa and Williamsburg. In 2009, the Blackstone Group acquired the bundle of attractions, rebranding it as SeaWorld Entertainment, which debuted in 2013 on the New York Stock Exchange. Last year, it changed its name to United Parks & Resorts.

Kings Dominion and Busch Gardens Williamsburg have also followed each other’s twists and turns closely over the decades, lest one gain an edge on the other.

For example, in 1992, Busch Gardens’ parent company purchased the neighboring Water Country USA water park. That same year, Kings Dominion opened Hurricane Reef, which has expanded over the years into present-day Soak City.

In 1999, Busch Gardens launched Howl-O-Scream, its Halloween season event. By 2001, Kings Dominion followed suit with FearFest, redubbed Halloween Haunt after Cedar Fair took over.

Busch Gardens introduced Christmas Town in 2009, featuring more than a million twinkling lights. Nine years later, Kings Dominion launched WinterFest, a holiday season that saw its Eiffel Tower decorated like a 331-foot Christmas tree.

In 2021, Busch Gardens announced it would be open year-round, followed by Kings Dominion, which opened for year-round operations in 2023, but axed that plan after a single year. In 2025, Kings Dominion also discontinued its WinterFest.

To celebrate their golden jubilees, both parks introduced new roller coasters this year.

For Kings Dominion, that’s Rapterra, the world’s tallest and longest launched wing coaster. And Busch Gardens unveiled a new inverted roller coaster, The Big Bad Wolf: The Wolf’s Revenge, a sequel to its popular roller coaster that closed in 2009.

Will Paulette (center) succeeded his father, KBS founder and chairman Bill Paulette, as president of the 50-year-old construction firm in 2022. Top photo courtesy KBS;

50 YEARS

KBS
Richmond

Achieving a half-century of success in any industry is difficult, which is why long- lasting relationships are so vital. Even as the work itself may change, Will Paulette hopes one thing will forever be woven into the fabric of the construction firm he’s presided over since 2022: “I always want KBS to be a great place to go to work.”

Inside KBS’ Richmond headquarters, walls celebrate about 70 past and present employees with 20- or 30-year tenures. Today, the company’s nearly 120 employees work on projects ranging from constructing new manufacturing facilities to renovating a local YMCA.

Projects inevitably bring problems for which there’s no playbook, requiring KBS to be both creative and flexible while working with clients. This relationship-building aspect is as gratifying as the construction itself, particularly because clients often return to KBS again and again, Paulette says. “They feel almost like part of our company.”

Paulette’s father, Bill, remains chairman of the company he founded in 1975 with a $1,000 investment from the late George B. Clarke III, then president of Kenbridge Construction in Lunenberg County. Originally named Kenbridge Building Systems and started as a Richmond partnership with Kenbridge Construction, KBS has since become one of the largest contractors serving Central Virginia, and multifamily housing is now a major focus of its work, Paulette says. “That evolution of our organization has been good for us.”

While working at KBS as a laborer in the late 1990s during high school and college summers, Paulette saw firsthand the variety of work and diversity of people he could work with, which made joining the firm attractive. “I’m glad I did,” he says. “I think it’s a great industry to work in.”

Commence CEO Pat Feliciano (right) founded the government contracting firm formerly known as Doma Technologies in 2000. bottom photo courtesy Commence

25 YEARS

COMMENCE
Virginia Beach

In the same year Doma Technologies celebrated its 25th anniversary, it merged with Livanta and Advanta Government Services, rebranding as Commence. Amid so much change, Doma’s leadership remains intact within Commence, and Doma’s roughly 250 employees have quickly adapted to the new company’s future, says Ian Checcio, Commence’s chief growth officer.

“This is exciting to see the new brand take shape,” Checcio says. “Even something as simple as the new signage on our facility looks great, feels great, and I think everybody’s just gotten very comfortable moving forward.”

That’s because the mission embedded into Doma since its 2000 founding won’t change — providing cloud-based document management services specifically tailored for health care. Long-time contracts with the Department of Veterans Affairs and the Defense Department have helped veterans and active-duty military members receive health care benefits sooner. In the case of veterans, Doma’s technology has cut processing time from 40 days to less than 12, Checcio says. “That was a metric that we were significantly proud of.”

Doma founder and CEO Pat Feliciano carried over as leader of Commence, which aims to have 1,000 workers and an expanded headquarters in the next year.

Commence’s goal now is to become the “go-to modernization partner” for all government health programs, Checcio says. More than a new name, he adds, it’s a new platform for impact, drawing on combined expertise to focus on what’s next: Greater data for the greater good. “The heart of the company has been unwavering: that deep care for the mission.” ■

Reimagining regulations

Summary:

Banks and credit unions in Virginia are celebrating some early victories as President ‘s new administration has begun rolling back regulations and reconsidering the future of finance.

“Under the new administration, there is a relook at a number of these policies that were objected to by the industry,” explains Atlantic Union Bankshares CEO John Asbury, who also chairs the American Bankers Association, the Washington, D.C.-based trade group. Thus far, he says, the new administration’s focus has mostly been reversing “this tsunami of regulation which has been swamping the industry.”

While such changes are welcomed, there are reasons to be optimistic about a more “pragmatic” approach to regulation to come, adds Asbury.

Industry experts had a better sense of what to expect in Trump’s second administration, though there was also “a very clear signal” things would be different this time around, says Samantha Beeler, president of the League of Credit Unions & Affiliates, the regional trade association representing nearly 400 credit unions in Alabama, Florida, Georgia and Virginia.

The league’s first meeting with the new administration came in February, and Beeler says it offered positive indications for the future. “We were excited to hear that they know that the financial environment is changing rapidly and that the government can’t just catch up with that, that they have to help us pioneer it safely for consumers.”

Overdrafts overruled

One early change came in March, when Trump nominated Michelle Bowman as vice chair for supervision at the Federal Reserve following a stint as a central bank governor. As a former community banker, Bowman understands why tailoring is so important — that regulations should be attuned to the complexity and the size of banks, Asbury says.

During her first speech after starting her new role in June, Bowman outlined the principles that will guide her approach to supervision and the bank regulatory framework, saying she intends to “pursue sensible and pragmatic reforms.”

It was heartening for people in the industry to hear Bowman echo their concerns about tailoring in lieu of a one-size-fits-all approach, says Matthew Bruning, executive vice president of government and member relations for the Virginia Bankers Association in Glen Allen. “That is a positive because we’re seeing some industry messaging line up with what’s happening on the agency side.”

Tailored regulation is likewise an important theme in the community banking world because these institutions have a fundamentally different model than too-big-to-fail banks, credit unions, or fintech players, notes Corey Connors, president and CEO of the Virginia Association of Community Banks. “We need regulation that understands who we are — not just how big we are.”

The administration got a faster start out of the gates because it had a “clearer plan” for action than during Trump’s first term, Bruning notes. And that plan has already facilitated some wins for the industry.

The White House and congressional Republicans have deployed a previously little-used tool to overturn rules issued by federal agencies — and particularly any pushed through toward the end of President Biden’s term. In May, Trump signed a Congressional Review Act resolution that nullified a rule that had not yet taken effect that would have limited overdraft fees to $5  for financial institutions with more than $10 million in assets.

The banking industry had opposed this rule from the Consumer Financial Protection Bureau, Asbury says, arguing that it would cost banks more for overdrafts than it would be permitted to charge
and was an example of regulatory overreach.

Changes at

While the topic of much news and legal wrangling, the CFPB still exists, and its future policy agenda will look much different than in the recent past.

A realignment at the agency is good, says Beeler, because it might not have been most effectively championing consumer protections. “We’re pretty optimistic about changes that are being made at the CFPB, as that agency had grown outside of its original intentions.”

In May, the CFPB indicated in a court filing that it planned to rescind Section 1033 of the Act, which would have mandated that banks make personal financial data available to consumers.

While this rule had an assets threshold of $850 million, thereby exempting most members of the Virginia Association of Community Banks, Connors says, the costs would have been considerable for smaller banks, while there were also concerns about consumer privacy, liability and third-party information breaches.

In June, the CFPB also announced that it pushed back compliance deadlines and will revisit its Section 1071 rule of the Dodd-Frank Act. This rule would have required financial institutions to compile, maintain, and submit a whole host of different data about credit applications by small businesses.

The rule delays and reconsiderations are positive developments for community banks as this would have created undue burdens, along with privacy concerns, Connors says. What’s more, the information banks would have been required to collect was “really intrusive” for small business owners and could have put banks in a “terrible position,” adds Asbury.

Crypto considerations

Beyond regulatory reform, there are positive developments brewing elsewhere that have implications for banks and credit unions. Take, for example, cryptocurrencies. Both chambers of Congress have worked on legislation this year that’s focused on establishing federal regulations for U.S. dollar-pegged stablecoins.

It’s encouraging that Congress is considering the future of currency, particularly as we’re headed toward an almost completely digital economy, Beeler says. “It’s smart of the government to be thinking about these digital currencies,” she says. “We as credit unions want to help custody those funds to help consumers keep them safe but also look at the future of transactions.”

The banking industry is also keeping tabs on these developments. While supportive of the innovation around cryptocurrencies and ensuring there’s a role for cryptocurrencies in the economy, both Bruning and Asbury note that regulatory oversight is necessary.

“What we don’t want to see is for this to essentially become some sort of loosely regulated alternative to bank accounts,” Asbury says. “If we were to see a big movement toward that, then what’s going to happen is that there’ll be less capital available to finance people in business, which will be bad for the American economy.”

But for an industry that favors consistency, the changes thus far in Trump’s second term, while mostly expected, still amounted to “a bit of whiplash,” Bruning says, adding that a flurry of activity at the tail end of the Biden administration was also a factor.

Looking ahead, the industry’s goal is to promote more stability with future regulations.

“We are not antiregulation; we are pro-balanced regulation,” Bruning says. And Connors adds that “good, smart, targeted reforms” are necessary to help community banks do what they do best — serve their communities: “We’re really interested in working with our partners at the federal level on smart reform — not reform for reform’s sake.”

While so much has already been accomplished, advocates have some other items on their wish lists.

Asbury, for his part, wants the government to look at what he terms “super” credit unions. The banking industry, he says, believes these types of credit unions are going “way beyond” what they were legally commissioned to do and operate almost like regional banks — but without the same regulatory oversight or tax requirements.

“We have no issue with small, traditional credit unions that are doing what they’re supposed to be doing: meeting the needs of people of modest means,” he says. But “act like a bank? Be regulated like a bank, be taxed like a bank, so that you have a level playing field.”

Meanwhile, Beeler says, the credit union industry is also open to further change, including the opportunity to modernize its federal charter. It’s important, she adds, for credit unions to be adaptable in an industry that’s rapidly evolving.

“The administration has pretty clearly signaled that they do want to evolve, rein in and change the regulatory landscape in D.C.,” Beeler says. Such changes shouldn’t be perceived as a “doomsday” for credit unions if they eventually happens, she says, because for issues like cybersecurity, credit unions need to be just as safe as the biggest banks. “There are some shared resources that we all shouldn’t balk at.”