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CHARITY VOLMAN-WINN | President, TowneBank Norfolk

Charity Volman-Winn joined Suffolk-based TowneBank in 2019 as president of corporate , with nearly three decades of financial services experience. The following year, Volman-Winn became president of TowneBank Norfolk.

In the role, Volman-Winn oversees the region’s staffing, financial results and overall member satisfaction. An aspect of her job that she especially enjoys is coaching and developing employees.

“With my team, those who require structured, real-time coaching get it,” she says. “Those who prefer a more hands-off, collaborative style get that as well. I consider myself very adept at identifying what works for each individual.”

Hundreds of TowneBank employees have been mentored by Volman-Winn. This year, she helped build a more robust curriculum of assignments for summer commercial banking interns.

“Even while overseeing some of the bank’s biggest portfolios, Charity is never too busy to offer guidance and provide mentorship,” her nominator says.

Volman-Winn started her banking career at Crestar Bank in 1990. After its 1998 merger with SunTrust Banks, Volman-Winn became SunTrust’s South president, the first woman in the role.

In 2024, Gov. Glenn Youngkin appointed Volman-Winn to the Chesapeake Bay Bridge and Tunnel Commission. She is also chair of the board of the d’Art Center, a community art center in Norfolk, and sits on the board of the Chrysler Museum of Art. She is a trustee emeritus for the Eastern Virginia Medical School Foundation.

Volman-Winn has a degree in English from what was then known as Randolph-Macon Woman’s College.

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JENNIFER WOLD | Virginia market managing partner, Forvis Mazars

With more than three decades of audit and accounting experience, Jennifer Wold has an “unwavering commitment to advancing the accounting profession — particularly for women,” according to her nominator.

Throughout her career, Wold has intentionally sought out firms focused on the recruitment, retention and advancement of women. She has helped to create and operate programs designed to boost women’s success in the corporate world. At Forvis Mazars, Wold is active with the Protégé Program, which focuses on retention and advancement of women CPAs.

“Her first assigned protégé was promoted to partner in the year following the completion of their program, a success that Jennifer is very proud of,” her nominator says.

In 2023, Wold moved to Virginia from Kansas to become Forvis’ top executive in the state. The following year, Forvis Mazars was formed when Forvis acquired Paris-based audit, tax and advisory firm Mazars’ U.S. arm.

Prior to joining Forvis in 2018 as an audit partner, Wold served as an audit partner at Grant Thornton. She has assisted companies with mergers and acquisitions. Wold also has experience with forecasting, preparation of financial statements, operational reviews and reviews of accounting systems.

Wold holds an accounting degree from Wichita State University. She sits on the boards of the Virginia Chamber of Commerce and the MCV Foundation.

 

Return to the full list of this year’s recipients

Virginia Women in Leadership Awards 2025

Hailing from public and private sector workplaces throughout Virginia, our winners were nominated by colleagues and Virginia Business’ editors. Many are the top women leaders in their organizations as well as prominent contributors to their communities.

This year’s Women in Leadership cohort represents a wide swath of industries, including energy, legal, health care, financial consulting, construction, defense and higher education.

At a time when women leaders make up just 11% of Fortune 500 CEOs and 18% of Virginia 500 executives, it’s important to remember that while these Women in Leadership winners have come a long way, others are still waiting for their opportunity.

In these short profiles of this year’s honorees, you’ll learn about the fascinating journeys that these Virginia executives took to leadership and success. Please join Virginia Business in congratulating the 2025 winners of the Virginia Women in Leadership Awards

Virginia CEO compensation continues climbing

Summary

It’s nice work if you can get it.

Virginia CEOs made an average of $10.17 million in total compensation in 2024, up from $9.4 million in 2023 — a 7.8% increase year-over-year. And the average compensation for S&P 500 CEOs last year was $18.9 million, a 9.2% increase from 2023, according to data analyzed for the Associated Press by California-based Equilar, a corporate leadership data firm.

CEOs in the commonwealth make less on average than their national peers because tends to vary by industry, hypothesizes Equilar Director of Research Courtney Yu.

For example, “tech companies usually tend to pay their CEOs quite a bit more, so industry is a large part,” he says, noting that the Old Dominion doesn’t have as high a concentration of tech companies as California.

To determine executive pay, Equilar tallies salary, bonus, perks, stock awards and other compensation. Altogether, Equilar examined CEO compensation data for 51 Virginia-based public companies with annual revenues of $1 billion or more.

According to data provided by Equilar, Virginia’s most highly compensated CEO in 2024 was Capital One Financial founder, Chairman and CEO Richard D. Fairbank. Last year, his total compensation was

$29.85 million, a 9% increase over 2023, when he pulled down roughly $27.4 million.

It makes sense that Fairbank made bank in 2024, according to Lei Gao, an associate professor of finance who studies executive compensation at George Mason University’s Costello College of Business.

In February 2024, McLean-based Capital One announced its plan to acquire Discover Financial Services in a blockbuster transaction valued at $35.3 billion.

An acquisition of one gigantic credit card company by another doesn’t happen every day, says Gao. “It takes a lot of effort and potentially has a significant wealth impact, so stockholders are happy,” he says.

It’s a safe bet Fairbank will be among Virginia’s most handsomely paid executives for 2025 as well.

Capital One’s board voted to award Fairbank with stock valued at $30 million to recognize the “ongoing and anticipated work” relating to the Discover deal, according to a June 5 financial filing with the U.S. Securities and Exchange Commission, although his bonus won’t fully vest until 2030. The Discover acquisition closed in May.

Capital One Chairman and CEO Richard D. Fairbank was the top-paid Virginia CEO last year, earning $29.85 million. Photo courtesy Capital One Financial

Highs and lows

Coming in second place for highest total compensation among Virginia CEOs of public companies was Christopher J. Nassetta, president and CEO for Hilton Worldwide Holdings, the global hospitality company headquartered in McLean. Nassetta made about $27.96 million in total compensation in 2024, a 5% increase over 2023, when he made $26.56 million.

Last year was a good one for Hilton. The company added 973 hotels and nearly 100,000 rooms in 2024 — the single biggest increase in rooms in its 106-year history.

For 2024, Hilton reported a net income of $1.5 billion, exceeding a third quarter earnings projection of full-year net income between $1.4 billion and $1.42 billion. The hospitality company reported $11.17 billion in revenue.

During a February earnings call, Nassetta said, “Given our strong momentum, robust pipeline and resilient fee-based business model, we’re confident that we are well-positioned to continue driving strong performance in 2025 and beyond.”

Kathy J. Warden, president, CEO and chair of Falls Church-based aerospace and defense contractor Northrop Grumman, had the third-highest total compensation in 2024 among Virginia CEOs of publicly traded companies. In a year when Northrop Grumman reported $41 billion in sales, a 4.4% year-over-year increase, Warden made about $24.1 million, a 2% increase from the $23.53 million she earned the year before.

However, Warden received the highest base salary among Virginia CEOs in the survey: $1.79 million. (At the other end of the spectrum, Fairbank received nothing in base salary. That’s in keeping with his long-term practice of being paid primarily in company stock.)

Nationally, the highest-paid CEO identified in the Equilar/AP survey of S&P 500 CEO compensation was Patrick W. Smith of Arizona-based Axon Enterprise, which makes Taser stun guns and body cameras. Smith earned $164.5 million in total compensation for 2024, a year when Axon posted record annual net income of $377 million.

Among Virginia CEOs, the executive who saw the biggest drop in total compensation in 2024 was Carey Smith, chair, president and CEO of Chantilly-based defense contractor Parsons.

Smith received about $10.99 million in 2024, a 41% decrease from the $18.58 million she earned in 2023.

However, that pay dip is due to a one-time equity award package Smith received in 2023 partly as a performance reward. After all, Parsons reported $235 million in net income last year, a 46% year-over-year increase.

In 2023, Smith saw the biggest increase in earnings, with her compensation increasing 167% year-over-year, from $6.97 million in 2022 to about $18.58 million in 2023. The bulk of her 2023 compensation came from that equity award package, which totaled about $15.22 million.

“After considering Ms. Smith’s performance as CEO, her unvested equity holdings, and the competitive market for CEO pay in our sector, the compensation and management development committee approved a one-time equity award package,” the company said in its 2024 proxy statement.

Northrop Grumman President, CEO and Chair Kathy J. Warden made $24.1 million in 2024. Photo courtesy Northrop Grumman

Rewarding performance

Equity compensation, which can include stock options or other ownership stakes in a company, is the biggest driver behind a CEO’s compensation, according to Yu. It’s a way that shareholders can make sure executives have skin in the game.

“They want the executives to have as much of the compensation tied to the stock price as possible, so that they are feeling the same risks as shareholders,” he explains.

The average equity award in 2024 was about $6.95 million. The largest equity award made to a Virginia CEO in the 2024 survey was $24.24 million, which went to Fairbank.

Due to equity awards, Dominion Energy Chair, President and CEO was the Virginia CEO who saw the biggest percentage gain in total 2024 compensation. He made $12.11 million in total compensation last year — a 141% increase over 2023, when he received $5.03 million, according to Equilar data. Equity awards accounted for $8.5 million of his total 2024 compensation.

Approximately 89% of Blue’s targeted 2024 total direct compensation was performance-based, according to a proxy statement Dominion Energy issued in March.

Blue’s big pay boost didn’t go unnoticed by the Fortune 500 utility’s critics. Brennan Gilmore, executive director of Clean Virginia — a nonprofit founded by Charlottesville investor Michael Bills to fight “utility monopoly corruption in ” — said in an April statement, “Dominion’s CEO is handed a premium for rewarding the company’s shareholders, not responding to the needs of its captive customers.”

Dominion, though, summed up Blue’s job performance this way in a proxy filing: “During his tenure, the company began addressing unprecedented load growth in our service area, conducted a transparent business review, advanced the [Coastal Virginia Offshore Wind] commercial project, grew our clean energy portfolio and had one of its safest years for our employees in the company’s history.”

In addition to equity awards, Virginia CEOs also profited from bonuses, averaging $1.88 million apiece in 2024. On average, Virginia CEOs on the job for more than two years saw their bonuses grow 13.6% over the previous year.

“I think the growth in bonuses kind of signals just how well companies did in Virginia,” Yu says.
Fairbank earned the biggest bonus among Virginia CEOs of publicly traded companies, reaping $5.5 million. Warden came in second, with $5.19 million.

And two Virginia CEOs tied for the largest percentage gain in their bonus pay last year. John M. Steitz, president and CEO of Tredegar, the Chesterfield County-based plastic films and aluminum extrusions manufacturer, and Bruce L. Caswell, president and CEO of Tysons government contractor Maximus, saw 233% increases in their bonus pay. Steitz received about $938,000, while Caswell earned $2.97 million in bonus pay in 2024. (A spokesperson for Maximus pointed out that CEO bonus pay is tied to company performance, noting that the percentage growth of Caswell’s 2024 bonus was an “anomaly” because it followed a “challenging” year of below-target company performance.)

Odds and ends

At a time when Tesla’s board is negotiating an unprecedented 10-year, $1 trillion compensation package for Chief Executive Elon Musk, don’t expect CEO pay to decline in 2025. Given how well the stock market has performed this year, as well as how companies have mitigated tariff impacts, Yu expects CEO compensation to remain on course.

In its CEO pay report, Equilar also tracked “other compensation,” which includes perks like the use of company aircraft, a car and driver, or security services. In Virginia, the average value of such added compensation for the 51 CEOs in the survey was $154,609.

In an analysis of 208 S&P 500 companies released earlier this year, Equilar found there had been a 36.3% upturn between 2023 and 2024 in spending for CEO security.

It’s unclear whether that increase was driven in part by the highly publicized Dec. 4, 2024, killing of UnitedHealthcare CEO Brian Thompson. But “as the 2025 proxy season draws to a close, it is anticipated that more companies will highlight enhanced security perquisites as a part of executive pay packages,” according to Equilar.

Last year, for example, Dominion Energy said in a 2024 proxy statement that its CEO, Blue, who received the equivalent of $166,843 in other compensation last year, shouldn’t fly commercial for safety’s sake. “For security and other reasons, the board has encouraged Mr. Blue to use the corporate aircraft for air travel, including personal travel,” the document states. “Mr. Blue’s family and guests may accompany him on any personal trips.”

Regarding gender equality, four women were among the 51 Virginia CEOs whose compensation Equilar studied, comprising 7.8% of the list. Nationally, of the CEOs heading Fortune 500 companies in 2024, 10.4% were women.

In addition to Warden, two other top-paid women CEOs of Virginia companies are Phebe Novakovic, chairman and CEO of Reston-based General Dynamics, and Toni Townes-Whitley, CEO of Reston’s SAIC (Science Applications International Corp.). Novakovic made about $23.8 million in total compensation in 2024, and Townes-Whitley, who was named SAIC’s chief executive in 2023, received $10.24 million.

Meanwhile, at Virginia’s top-ranked Fortune 500 company, Freddie Mac, its former CEO, Diana Reid, made just $205,258 for leading the McLean-based government- backed mortgage financing provider in 2024. That’s because she started the role in September 2024. However, she probably earned even less for 2025 because the fired her in March.

Also worth noting in this year’s executive compensation data is the nation’s widening wealth gap between CEO pay and median employee pay.

The Washington, D.C.-based Institute for Policy Studies, a left-of-center think tank, released a report Aug. 21 that found the wage gap between CEOs and workers at the 100 S&P 500 companies with the lowest median worker pay rose by almost 13% between 2019 and 2024.

In the Equilar/AP survey of S&P 500 companies’ compensation, workers earned a median pay of $85,419 in 2024, a 1.7% increase year-over-year. At half of those companies, it would take a worker at the middle of a company’s pay scale 192 years to make what their CEO earned in one year.

Among the Virginia public companies with the highest paid top executives, CEO and employee compensation ratios varied widely. The median pay ratio was 219:1, with median worker pay totaling about $88,000, according to Yu.

Richmond-based NewMarket, parent company of Afton Chemical and Ethyl, had the lowest pay disparity of the Virginia companies surveyed, with a 24:1 CEO-worker pay ratio. Employees there made a median salary of $127,813 last year.

And Richmond-based leaf tobacco supplier Universal Corp. had the highest disparity, with a 3,083:1 pay ratio — likely due to the company’s heavy use of seasonal part-time laborers.

For his part, Gao doesn’t think CEOs are overpaid. After all, the median tenure of outgoing CEOs in 2024 was 6.7 years, according to Equilar data.

“The job is high risk, right?” Gao asks. “You don’t expect other people you know will step down from their work [or] lose their job” in five to six years.

Chances are also good that CEOs are toiling away many nights, weekends and even holidays. “They’re paid really, really well,” Gao says, “but they also work really hard.”

Editor’s note: This story has been updated. 

 

Hampton Roads seeks opportunities amid federal policy changes

Summary

  • Hampton Roads coalition outlines economic risks in Trump era
  • steady, but tariffs and hit the Port of Virginia
  • faces setbacks despite bipartisan Virginia support
  • Leaders see growth in defense tech, maritime and nuclear industries

In March, a coalition of and government organizations wrote a nine-page letter to their congressional representatives pointing out areas of opportunity and risk as the Trump administration moved forward — and sometimes backward — on a wide swath of policies impacting federal employment, defense spending, trade and renewable energy.

Signed by the Virginia Maritime Association, the Hampton Roads Alliance, the Hampton Roads Chamber, the Hampton Roads Workforce Council and other regional groups, the letter aims to strike a balance between “optimism and concern” about the region’s future under President Donald Trump.

“We are living in an era of unprecedented national and global shifts, and Hampton Roads is uniquely positioned to thrive,” the signers wrote to U.S. Sens. Tim Kaine and Mark Warner, as well as U.S. Reps. Jennifer Kiggans, Jennifer McClellan, Bobby Scott and Rob Wittman. “Our national economy is amid a profound restructuring, beyond cyclical ebbs and flows, driven by large federal and private investments in three areas: the reconstitution and strengthening of our military, the re-onshoring of vulnerable supply chains and critical technologies, and the need for diverse energy sources and resilient infrastructure.”

As home to the world’s largest naval base and the nation’s biggest military shipbuilder, Hampton Roads is the “epicenter of our nation’s security interests,” the letter says, and is likely to benefit from building a larger military, but tariffs and and defense spending cuts are major concerns for the community.
Hurdles to the continued growth of offshore wind and clawbacks of approved funding for environmental resilience and higher education programs are also areas of regional concern, the groups write.

A few months into Trump’s second term, the new administration’s fast-moving and wide-reaching federal policy changes have had a mixed impact on Hampton Roads.

Defense spending has mostly stayed the same or grown, and changes in federal offshore wind policy have not impacted ‘s Coastal Virginia Offshore Wind project, although in August the government withdrew $39.7 million allocated in 2023 to the Norfolk Offshore Wind Logistics Port.

But the president’s trade war and fluctuating tariffs, especially those on Chinese goods, are having an impact on trade at the Port of Virginia and raising costs for certain materials and projects, including CVOW. In May, Dominion Energy Chair, President and Bob Blue said that higher tariffs could boost the wind farm’s cost to $10.9 billion.

Nevertheless, business leaders remain hopeful for the region’s economy and workforce.

“Uncertainty does create opportunity,” says Jared Chalk, chief business officer for the Hampton Roads Alliance. “There are areas of risk, but there’s also areas of opportunity that we can lean in and try to capture in the best way we can.”

The areas of opportunity focus on the military and technology. With continued conflicts in Ukraine and the Middle East, tensions in the Indo-Pacific, the climate crisis, the rise of artificial intelligence and federal upheaval, Chalk says there is a renewed focus on defense and reshoring critical technologies.

“Defense, knowledge work and cyber, energy and unmanned systems, and then transportation logistics are our bread and butter and what we’re focused on when you think about Hampton Roads’ economic position,” he adds. “We’re the 35th, 36th largest metro in the country, but the No. 1 [Department of Defense] spend per capita, and we’re in the top five of the total DOD contract spending behind New York, Boston, Dallas and D.C. So, we’re really punching above our weight in terms of that defense spending.”

Regional businesspeople and analysts also have high hopes for commercializing technology produced for the federal government to create further revenue streams — a necessity if defense spending goes down amid the growing federal debt.

Shawn Avery, president and CEO of the Hampton Roads Workforce Council, says shipbuilders are still in need of skilled workers. Photo by Katherine Zeis

Opportunity knocks

With three submarines and two aircraft carriers being built by NNS, along with ongoing ship repairs, there is a strong demand for skilled maritime workers.

The Hampton Roads Workforce Council has been training workers to meet that demand, says Shawn Avery, the council’s president and CEO. He notes that shipbuilding’s economic impacts ripple beyond the drydocks to second- and third-tier suppliers. Carriers need furniture, paint and many other items, and the more of that can be supplied locally, the better for Hampton Roads’ economy.

And the region’s strength in defense spending can be leveraged by attracting contractors that can also find customers in private industries.

In September 2024, Kongsberg Defence & Aerospace announced plans to invest $71 million to build a Navy missile assembly plant in James City County that will employ about 190 people. But the Norwegian company’s subsidiary also builds undersea robotics and unmanned surface vessels to inspect wind turbines and transatlantic cables.

“Many companies that we’re attracting and having conversations with are like that,” Chalk says. “They have a defense customer, but they can pivot to other things. Their sonar technology might work for defense, but it also works for commercial vessels.”

In 2021, Australia, the United Kingdom and the United States entered into the AUKUS agreement, in which the U.K. and the U.S. share nuclear propulsion tech with Australia, while the Royal Australian Navy agreed to acquire at least eight nuclear-powered submarines built by HII.

Early in Trump’s second term, Defense Secretary Pete Hegseth said he would continue the nation’s involvement in AUKUS, but in August, the DOD announced it would review AUKUS by this fall. Lawmakers from both parties have urged the White House to continue the partnership for national security reasons, but the agreement also means money for Hampton Roads.

“We view AUKUS as a critical near-term opportunity to grow and diversify our military industrial base,” the Hampton Roads coalition’s letter says.

Beyond the sale of subs to Australia, Chalk notes that the region’s work for the nuclear Navy also places it ahead of the pack in terms of building small modular nuclear reactors, a technology on which Gov. Glenn Youngkin and other leaders are pinning their hopes as energy demand increases substantially due to AI use.

“In Hampton Roads, we’re the only place in the world that’s building small modular reactors,” Chalk says. “We’re putting one on each sub and two on each aircraft carrier. So, we’ve got the talent, and we’ve got a pretty decent supply chain here in Virginia to pivot into the commercial sector there.”

Energy headwinds

Meanwhile, out on the ocean, CVOW is still on track to be completed by the end of 2026, Dominion Energy officials say, but it faces headwinds from Trump administration policies.

As mentioned, the Fortune 500 utility forecasts that construction costs for the wind farm could balloon by more than $506 million if U.S. trade policies remain in place through the end of 2026.

Meanwhile, the fossil-fuel friendly Trump administration has been notably opposed to wind energy, with one official calling wind farms “experimental,” “expensive” and “proven failures.” Under Trump, the federal government has moved to cancel construction of wind farms that have not completed the federal approval process, and the president has halted sales of ocean leases.

This has delayed development on two new ocean leases Dominion purchased last year in North Carolina — projects that were expected to produce up to 4 gigawatts of electricity.

Additionally, in August, the Trump administration issued a halt to construction of the nearly complete $4 billion Revolution Wind offshore wind farm off the coast of Rhode Island and Connecticut, citing the need to review the project for unspecified national security concerns. The administration also previously stopped work for several weeks on a New York offshore wind project.

While Dominion’s offshore wind farm enjoys bipartisan support from Virginia politicians, it’s unclear whether CVOW might fall under the same kind of federal scrutiny at some point.

And although CVOW and ‘s $700 million subsea cable manufacturing plant in Chesapeake are still moving forward, other offshore wind investments have stalled locally, despite earlier interest, the letter says. “Wind energy business leaders are now taking a wait-and-see approach to further investment, given the uncertainty of the regulatory environment under the new administration.”

This uncertainty makes diversification from defense investment into private business a necessity, says Robert McNab, professor of economics and director of the Dragas Center for Economic Analysis and Policy at the Strome College of Business at Old Dominion University.

The author of an annual economic forecast for the region, McNab says that diversification “is a chance to play the long game. The battlefield is evolving with the use of drones. If the United States pivots towards unmanned systems that are cheaper than large-scale weapons system platforms, then large-scale systems like carriers may fall by the wayside over the long term.”

McNab sees opportunities in unmanned technology, both for the Department of Defense and the private sector. “Can we leverage this interest and money from the Department of Defense into these unmanned technologies, which also have civilian counterparts in terms of tourism, transportation, delivery, etc.?” McNab asks.

“Why do I say that? Because we know no tree grows to the sky. We know at some point in time the defense budget will come down,” he says, noting that defense spending in the region has doubled this century and is likely to decrease, given the ballooning national debt.

“If you diversify your economic base and you improve your economic resiliency and defense spending doesn’t go down, you’re just still growing faster,” McNab adds. “You’re matching the pace of Nashville and Raleigh and Jacksonville. But if you build out, if you prepare for [spending cuts] and it does happen, then you mitigate some of the worst effects. You don’t turn into a Pittsburgh after the steel industry collapses or Detroit after the auto industry downsizes.”

Ripple effect

The letter, also signed by the heads of the Hampton Roads Executive Roundtable, the Virginia Peninsula Chamber and the Hampton Roads Military and Federal Facilities Alliance, points to several other potential regional risks from new federal policies.

They may not be the headline makers, but federal spending cuts impacting Jefferson Lab, NASA, the Veterans Administration, the U.S. Coast Guard and the National Oceanic and Atmospheric Administration have cascading local effects that will be reflected later this year, McNab and others note.

So far, Northern Virginia has borne the brunt of federal job cuts in the commonwealth, while Hampton Roads has been sheltered by its defense economy, McNab says, but the coastal region will see an economic slowdown related to federal workers who took buyouts this year and officially left the government at the end of September.

Tariffs also could lead to more private sector layoffs, a trend already being seen among government contractors in Northern Virginia.

The Weldon Cooper Center for Public Service at the University of Virginia forecasts higher unemployment for the state later this year, edging up to an average of 3.9% in 2025 and 4.7% in 2026.

Meanwhile, traffic at the Port of Virginia has slowed amid the Trump administration’s trade war. “Volumes are a little soft at the moment, and that is a reflection of the current trade environment,” says Joe Harris, senior director of media relations at the Virginia Port Authority.

While the effects of tariffs accumulate over time, they are also nuanced, especially as Trump continually makes deals with individual countries, as well as increasing and pausing tariffs unpredictably.

Scott Swan, a professor at William & Mary’s Mason School of Business who has produced the Port of Virginia’s economic impact reports, sees “generally positive things among the chaos. It’s baked in right now that it’s probably some short-term negotiation ploy.”

As long as tariffs remain low, Swan says, the effects will be minimal for most industries. “If it changes dramatically from that, if they’re much higher than 10% on average, and if they last longer, then there’ll be … a resettlement about how companies are thinking about this. But the world economy is robust to the chaos right now.”

That resettlement means a realignment of trading partners, as well as fewer Chinese imports, although the United States and China have extended their tariff pause to Nov. 10 as negotiations continue.

But from early April to May 11, when the two countries agreed to their first 90-day pause, the U.S. placed a 145% levy on Chinese goods, and Chinese tariffs on U.S. exports stood at 125%, causing deadlock.

Nonetheless, the Port of Virginia has reacted smartly to this challenge, Swan says. In May, Virginia Port Authority CEO Stephen Edwards said Virginia’s port is “the least-exposed major U.S. port on trade with China,” as about 19% of all trade going through the port comes from China, as opposed to close to 45% of exports into the Port of Los Angeles.

Chalk, meanwhile, sees the disruption from the ongoing federal policy changes as an opportunity for the region to focus on its defense maritime industrial base and grow.

“We’ve got to lean into that,” he adds, “particularly when we see the next decade that there’s a renewed importance on the things that we do here in Hampton Roads.”

Atlantic Park surf lagoon makes waves in Virginia Beach

Summary

For decades, the waters off Virginia Beach have been a proving ground for East Coast surfers. Now, just a short stroll from the ocean, the new Wavegarden lagoon provides wave breaks that don’t depend on the weather.

Seven years after Virginia Beach-raised music and fashion superstar first introduced the idea of building a man-made on the Oceanfront, Atlantic Park Surf opened in August as the centerpiece of the $350 million entertainment project known as Atlantic Park.

The park’s year-round technology, developed by Spain-based Wavegarden Cove, can generate up to 1,000 waves an hour, with 20 different wave types for all skill levels. Wavegarden operates nine parks on five continents and lists 70 more in . At Atlantic Park Surf, a 55-minute surfing session costs between $90 and $161, depending on wave level and season.

The 2.67-acre lagoon, which started filling with water in June, is about the size of two football fields.

The Virginia Beach site is Wavegarden’s first venture on the East Coast and the closest of its parks to an actual ocean, a fitting location for a city with a long surfing heritage.

“With a strong surf community and high visitation, the only thing missing was consistent waves,” Wavegarden COO Fernando Odriozola said in a statement. “With Atlantic Park Surf, that’s now covered.”

In addition to the surf lagoon and The Dome, Atlantic Park features shopping, restaurants, a 309-unit apartment complex and 20 luxury lodges near the lagoon, and lead developer Venture Realty Group says that other retail and dining options will open through the end of the year.

The Dome, a new 70,000-square-foot indoor-outdoor concert venue with 3,500 capacity, revives the name of the venue that closed in 1994 and hosted Jimi Hendrix and the Rolling Stones, among many others. In May, Three Dog Night played the first show, a suitable choice since the rock band was the final act to perform at the old Dome. Alison Krauss, Maren Morris, Diana Krall, Shaboozey and many others were on the 2025 schedule, set by Live Nation and OVG360, which operate and book the venue.

“Atlantic Park is unlike any other development of its kind in the world,” says Donna MacMillan-Whitaker, managing partner of Venture Realty Group.

“Its conception and final execution is the direct result of pure determination and persistence among the 40 consulting firms and more than 250 individuals who have diligently worked on creating this amazing project.”

Although Atlantic Park is by far the biggest star among the region’s new entertainment venues, there are plenty of others on their way.

Casino action

As of mid-August, Norfolk’s temporary casino is still on track to open in November on the Elizabeth River waterfront next to Harbor Park, according to vice president and general manager Ron Bailey. Named The Interim Gaming Hall, the casino will have 130 slot machines and be open 10 a.m. to 2 a.m. daily.

Meanwhile, construction is simultaneously underway on the permanent, $750 million casino developed by Boyd Gaming and the Pamunkey Indian Tribe. Site work started in February, and the developers expect to complete the project in late 2027. The resort, which will be the state’s fourth casino, will include 13,000 square feet of meeting space, a 65,000-square-foot casino, a 200-room hotel and 1,500 slot machines and 50 table games.

The Interim will be on a smaller scale and employ about 75 people, says Bailey, who began his career as a bellman in San Antonio, Texas, and most recently led Boyd Gaming’s Valley Forge Casino Resort outside of Philadelphia.

The temporary casino will be inside a tent structure, not unlike the facilities you might see at a professional sporting event or concert. Local chef Blake Sehestedt and his Ghost Kitchen brand will operate a food truck nearby.

“We are focused on hiring from the local area,” Bailey says. “With the unique timeframe we have for this, we have the ability to train people over time. There are specialties out there that are opportunity positions like slot techs, where we’ll have the opportunity to get some training and maybe certificates.”

The casino has partnered with Norfolk State University, and Tidewater Community College for a task force that can develop job pipelines to the casino, which will eventually have about 850 positions when the full casino opens in 2027.

One of Bailey’s biggest challenges, he says, is drumming up support for the casino when delays have slowed the development over the years. Norfolk city voters approved the casino by referendum in 2020, but it took four years and a change in developers for the building to be approved by city leaders late last year.

“There was a lot of skepticism that this project was going to happen,” Bailey says. “My job is to show folks that this is really happening. I’m not here if this isn’t really happening.”

Across the water, Rivers Casino Portsmouth is set to start construction late this year on a $65 million hotel adjacent to its casino on Victory Boulevard. The Landing Hotel will offer 106 rooms and suites, as well as conference space. Developer Rush Street Gaming has hired S.B. Ballard Construction to build the hotel, which is expected to open in early 2027.

In partnership with Yates Construction, Virginia Beach-based S.B. Ballard developed and built the 270,000-square-foot Rivers Casino Portsmouth, which opened in January 2023 as Virginia’s first permanent casino, and the firms are also building Norfolk’s casino.

“We are proud to continue our investment in Portsmouth and to be working again with a local company to expand our offerings for the community and the commonwealth of Virginia,” says Tim Drehkoff, of Rush Street Gaming and Rivers Casino Portsmouth.

Sporting life

Meanwhile, Williamsburg’s new regional indoor sports center is on schedule to open by early summer 2026, says city spokesperson Nicole Trifone. As of August, construction was about 65% complete on the 200,000-square-foot facility, which will include 12 basketball courts that can be converted to volleyball and pickleball courts, plus three indoor soccer fields, a climbing wall and facilities for meetings.

Trifone anticipates the complex will bring in 200,000 visitors in its first year, generating $17 million in direct spending and nearly $900,000 in tax revenue.

The center has already booked several events through the end of 2027, including multiple youth basketball and volleyball tournaments. Large brands like USA Basketball and Adidas have secured dates in 2027, and the biggest commitment has come from North Carolina-based Phenom Hoops, which is set to hold youth basketball events over seven weekends in 2027. They’re designed to give youth athletes exposure to college coaches.

“Larger sports tournaments often look to secure space over a year in advance,” Trifone notes. “Securing long-term commitments from respected event operators like Phenom Hoops helps establish the standard and reputation of the facility from day one.”

Other non-sports events familiar to Williamsburg are scheduled to shift to the center, like the BurgQuest tabletop gaming festival and the Virginia Cat Festival. There’s also a holiday craft show and a Pancake and Bourbon Festival scheduled for the second half of 2026.

Election 2025: Earle-Sears vs Spanberger race guarantees history

Summary

In January, Virginia will inaugurate its first female governor — but that’s about the only thing Virginians can count on. Who will win this fall’s election and what her legislature will look like are still up in the air.

In the Democrats’ corner is former U.S. Rep. Abigail Spanberger, a three-term congressional representative and former CIA officer who grew up in Henrico County. Lauded by some and chided by others for her moderate record, Spanberger has focused her gubernatorial campaign on producing jobs with business-friendly policies, as well as lowering energy, housing and costs.

Her Republican opponent is Lt. Gov. Winsome Earle-Sears, elected in 2021 as the state’s first female lieutenant governor, as well as the first Black woman and female military veteran to hold statewide office in Virginia.

A native of Jamaica who immigrated to New York as a child, Earle-Sears is a Marine Corps veteran who represented parts of Norfolk and as a Republican state delegate in the early 2000s before she unsuccessfully challenged U.S. Rep. Bobby Scott, D-Newport News, for his seat in 2004. A small business owner, she has focused on lowering costs for Virginians, but with an emphasis on tax cuts and ridding the state of wasteful spending.

Statewide polls have consistently placed Spanberger leading the race beyond the margin of error, although an August Roanoke College poll indicated that Earle-Sears has gained ground as Election Day nears.

As of June 30, Spanberger had also considerably outpaced Earle-Sears in campaign fundraising, bringing in $27 million to Earle-Sears’ $11.5 million.

In addition to the gubernatorial candidates, Virginians will choose the state’s next attorney general and lieutenant governor this fall. Also, all 100 seats in the Virginia House of Delegates are up for grabs, determining which party will control the legislative body.

Virginia Business requested interviews with both gubernatorial candidates to discuss their business-focused policies and other major priorities. Spanberger answered questions via email in early September, but Earle-Sears’ campaign did not respond to multiple requests, following an initial contact.

Photographed in 2022, Lt. Gov. Winsome Earle-Sears is the first Black woman to hold statewide office in Virginia and now seeks to become the commonwealth’s first female governor. Photo by AP Photo/Steve Helber

Trump 2.0 impact

While the candidates aim to keep the focus on Virginia issues, President Donald Trump is undoubtedly the elephant in the room, especially with the impact on Virginia from his administration’s cuts to the and contracts held by Virginia government contractors.

This has been to Spanberger’s benefit during the campaign, as she has been able to connect rising unemployment and job losses directly to the Republican White House — and score points on her opponent’s reluctance to discuss its toll on the state’s federal , which is the second largest in the nation.

In a CNN interview in July, Earle-Sears declined to answer questions about Trump’s federal job cuts, saying, “I want to talk about real issues,” a line that Spanberger’s campaign promptly used in an ad criticizing Earle-Sears’ support for Trump.

The lieutenant governor, after changing campaign management, has spoken more about her military and business-owner background, as well as focusing on parental rights and anti-transgender rhetoric familiar to national political watchers.

In September, an Earle-Sears ad said Spanberger is for “they/them, not us,” referring to Spanberger’s congressional votes supporting transgender people’s access to public bathrooms and school sports.

Even without Trump’s policies disproportionately impacting Virginians, Earle-Sears would be at a disadvantage running for governor with a Republican in the White House, says Stephen Farnsworth, director of the University of Mary Washington’s Center for Leadership and Media Studies. Four years ago, some observers chalked up Democratic former Gov. Terry McAuliffe’s 2021 loss to Republican Glenn Youngkin in part due to Democratic President Joe Biden’s unpopularity.

“Virginians tend to show anger against whoever is in the White House,” Farnsworth says. “The key challenge with the Earle-Sears campaign is dealing with the headwinds from the Trump administration.”

Earle-Sears, speaking at an August campaign stop in Hopewell, has hewed closely to Gov. Glenn Youngkin’s policies during her run. Photo by AP Photo/Olivia Diaz

Meanwhile, the lieutenant governor, who wrote in her 2020 memoir that Trump shouldn’t run in 2024, still had not received the president’s official endorsement as of mid-September, although Trump said in August he “would” endorse her.

So far, Earle-Sears appears to be hewing closely to the term-limited Youngkin’s agenda, note both Farnsworth and Virginia Commonwealth University political science associate professor Amanda Wintersieck.

“There is not a lot of daylight between [Earle-Sears] and Youngkin,” Wintersieck says, comparing the two to former Vice President Kamala Harris and Biden. “As a successor, you don’t want to criticize your boss.”

However, personality-wise, politicos say, Spanberger and Earle-Sears are both different from Youngkin, a former co- who has been criticized for his lack of communication and negotiations with the legislature, which has been under at least partial Democratic control his entire term.

Youngkin’s biggest casualty was the failed multibillion-dollar Alexandria arena he pitched that would have been home to the Washington Wizards and Capitals teams, a plan blocked by state Senate Democrats who were not consulted before the governor announced it.

Greg Habeeb, a former Republican delegate and now president of lobbying and communications firm Gentry Locke Consulting, says Youngkin’s attitude caused “frustration among Republicans as well as Democrats,” and that Spanberger has a reputation as being “more collaborative” in Congress, even without experience in Richmond.

Earle-Sears, meanwhile, has “had to find ways to work with people across the aisle,” Wintersieck says. “When I talk with people who have worked with her in various capacities, they say she is very pleasant to work with.”

Even if Republicans regain control of the House of Delegates and Earle-Sears were elected governor this fall, she would still need to work with the Democratic majority state Senate, where she occasionally cast tie-breaking votes as lieutenant governor.

However, with wins in statewide and local races this fall, Spanberger and Democrats could run the table.

If Democrats maintain control of the General Assembly, Spanberger will have opportunities to pass legislation with relatively little friction — but political experts say they don’t expect a rerun of 2020-21 under Gov. Ralph Northam, when the state passed some of its most progressive legislation in state history, including legalizing marijuana possession and ending capital punishment.

Speaking in June at the USS Wisconsin in Norfolk, Spanberger has campaigned on producing jobs and lowering energy and health care costs. Photo courtesy Spanberger campaign

Former Republican state Del. Chris Saxman, president of nonpartisan organization Virginia FREE, which focuses on state politics’ impact on business, notes that the legislative “new kids on the block” who arrived with Northam in 2018 had more progressive priorities. Current state House Democrats, especially Speaker Don Scott, are “more pragmatic, more willing to listen to the business community,” Saxman says.

Also, adds Wintersieck, this is a “different political space now compared to 2020-21. I think [Spanberger] will have two solid years to pass her agenda, and a lot of legislation will get through the legislature. Spanberger will bring it back to the economy, cost of living [and] clean energy around data centers,” as well as protecting abortion rights in the state constitution.

Finally, the second half of Northam’s term hit during COVID and the 2020 national racial justice protests, “so he was moving with his time,” Habeeb notes, but Scott and Spanberger would likely not go as far in pursuing progressive legislation “because of backlash. Scott acts as the brakes.”

Abigail Spanberger, the Democratic candidate for Virginia governor, is a former CIA officer and member of Congress. Photo by AP Photo/Ryan M. Kelly

Competing viewpoints

If elected governor, Spanberger’s major legislative priorities would be to “lower health care, housing and energy costs across the board — including by leveraging all tools available to protect Virginia businesses from tariff uncertainty brought on by the Trump administration,” she wrote in response to Virginia Business’s questions.

“I will work with our General Assembly to build an economy that brings new opportunities to Virginia workers and businesses,” as well as prioritizing the state’s public schools — “not defund them like my opponent would,” Spanberger wrote.

Her agenda also includes “investing in a skilled and prepared workforce, reliable infrastructure, affordable and quality health care, affordable child care and housing for Virginia workers, and strong public schools,” she wrote.

Earle-Sears’ economic platform is focused on reducing the cost of living, including “common-sense tax cuts” such as eliminating the car tax, according to her website. She also is a “staunch supporter of Virginia’s right-to-work policy,” and says that the state’s business- and worker-friendly environment “has contributed to our increased job growth, higher wages and lower unemployment rates.”

Asked about the state’s rising unemployment rate over the past seven months, as well as predictions of more job losses in 2026, Spanberger wrote, “My administration will work aggressively to foster a strong business climate that attracts new economic investment to communities across Virginia and support businesses in Virginia wanting to expand their operations. I will also put the full strength of my administration behind assisting fired federal employees and contractors with finding new jobs that keep these public servants in Virginia.”

In addition to her CNN quote about preferring to focus on “real issues” when asked about federal workforce cuts, Earle-Sears was captured on audio at a March event saying to supporters, “How many here have ever lost a job? Oh, you mean it’s not unusual? It happens to everybody all the time? OK. The media is making it out to be this huge, huge thing, and I don’t understand why.” MeidasTouch, a liberal media outlet, distributed the audio, which Virginia Democrats seized on to criticize Earle-Sears.

In a June interview with The Hill, the lieutenant governor brought up Youngkin’s talking points about federal job cuts, which include that Virginia has 250,000 job openings statewide and more than $1.5 billion in the state unemployment insurance fund.

As for economic development and business attraction, Spanberger pointed to her “Growing Virginia” plan to attract business investments across the commonwealth and potentially restore Virginia to No. 1 on the CNBC Top States for Business rankings, after it fell to No. 4 this year.

“I will work with the General Assembly to make sure we’re setting up businesses and workers for success in our 21st-century economy,” Spanberger wrote, “including by investing in registered apprenticeship programs for the next generation of Virginians.”

In July, Earle-Sears’ press secretary issued a statement regarding Virginia’s decline in CNBC’s Top States for Business rankings as being the fault of “liberal control in the General Assembly. It’ll be hard-working Virginians who pay the price if Abigail Spanberger is governor.”

Earle-Sears, speaking to The Hill in June, accused Spanberger of “saying that she is going to force all of us, … every single employee, to join a union,” although Spanberger said in May that she would not repeal right-to-work laws. The lieutenant governor went on to say that repealing the state’s right-to-work statute would be “a nightmare” that would cause businesses to “up and move.”

As for energy priorities, Spanberger says she is “committed to the long-term goals of the Virginia Clean Economy Act — and right now, I think we need to focus on how to get there. I also understand that Virginia must meet immediate energy needs with affordable, reliable energy — and that natural gas will continue to be an important part of our energy mix in the short- and medium-term.

“Virginia has the potential to be a global leader in advanced energy technologies — and we must be much more aggressive in our pursuit of building new clean energy generation, including small modular nuclear reactors.”

In a Washington Examiner op-ed addressing energy policy, Earle-Sears echoed Youngkin’s “all of the above” energy plan, including “oil, natural gas, small modular nuclear reactors, biomass and renewable energy,” which “all have a place in our dynamic future.” She calls the VCEA a “disastrous” law that produced a “hefty increase in electricity bills.”

Spanberger supports Dominion Energy’s $10.9 billion farm in Virginia Beach, which is set to be complete in 2026, but added that the Trump administration has taken a “sledgehammer approach to governing” that is “hurting Virginia,” pointing to the August withdrawal of a $40 million federal grant to an offshore wind facility in Norfolk.

Saxman and other political observers say that Spanberger would need to be careful as governor not to irritate Trump, lest he halt work on the wind farm or engage in some other form of retribution. “I think if you poke that bear across the river, the bear’s going to come out of that cage,” Saxman says. “We’re in a very vulnerable position.”

Earle-Sears, like Youngkin, has been quietly supportive of Dominion’s Coastal Virginia Offshore Wind project, which is about 60% complete. In an interview with Cardinal News, the lieutenant governor said she is “not against solar, not against wind,” a position that puts her at odds with the fossil fuel-friendly Trump administration.

Regarding the increasing energy demand from data centers, Spanberger wrote, “Virginia needs a statewide strategy, not a mandate. … Virginia can benefit from having data centers here — but to reap those benefits, we need to make sure we are accounting and planning for the energy generation, water and other resources needed to support them,” as well as making sure the associated costs don’t drive up household energy rates.

Earle-Sears acknowledged in a July interview with Radio IQ that “data centers aren’t going anywhere,” and in August, she told Cardinal News that she would “bring people to the table and find a compromise” on solving the state’s energy challenges.

Meanwhile, the candidates are also in opposition on the issue of diversity, equity and inclusion programs in the public sector — as well as the Trump administration’s investigations into Virginia universities.

Earle-Sears’ campaign sent out a fundraising email that connected slavery to DEI in May, saying, “Slaves did not die in the fields so that we could call ourselves victims now in 2025.” It went on to call diversity initiatives “DEI nonsense.”

Spanberger, meanwhile, told the Virginia Mercury that she would support universities’ hiring their own counsel to deal with federal investigations and would support making university board appointees’ participation contingent on their confirmation by the state legislature, instead of allowing them to begin sitting on boards immediately after being appointed. A University of Virginia alumna, Spanberger criticized the federal pressure campaign that led to President Jim Ryan’s July resignation.

Addressing another contentious issue between Virginia Democrats and Republicans, Spanberger says she supports creating a legalized retail market for cannabis “that both prioritizes public safety and grows Virginia’s economy,” she wrote. Earle-Sears has not spoken publicly about cannabis retail policy during her gubernatorial campaign but voiced her opposition to recreational marijuana use in 2021.

 

Hampton Roads Business 2025: Executive Insights

Virginia Business asked six leaders to discuss how their organizations are contributing to the region’s success and meeting challenges such as changing policy, regional cooperation and training.

PAT DAVIS-HAGENS

Market president, Bon Secours Hampton Roads, Suffolk

How does Bon Secours assess where to open new facilities, like the hospital in Suffolk and primary care clinic in Portsmouth, within the region? Bon Secours chooses new facilities based on detailed community health needs assessments, population trends and input from community members and care providers. Expansion is driven by demand expressed by care providers and community members to meet an unmet need. So far in 2025, Bon Secours Hampton Roads has expanded or added sites in Suffolk, Portsmouth and Virginia Beach.

What challenges do health systems in Hampton Roads face that are unique within the state? Hampton Roads faces distinctive challenges where workforce constraints and socioeconomic inequities converge, perhaps in greater volumes than other regions across the commonwealth. Bon Secours is addressing these issues by working alongside our government partners, community organizations, care providers and other key stakeholders. Among the most pressing challenges are 1) Severe labor shortages across physicians, nurses and allied health professionals, particularly in underserved communities, impacting early diagnosis and timely care, and 2) High prevalence of mental health, oral health and cardiovascular issues, which drives increased demand for accessible primary and behavioral health services.


CAPT. JANET DAYS (U.S. NAVY, RET.)

Director of , City of Suffolk, Suffolk

What lessons and skills from your time as commanding officer of have you taken into your new role? My time as commanding officer of Naval Station Norfolk — the largest naval installation in the world — taught me the importance of collaboration, resilience and decisiveness in dynamic environments. I led with a people-first mindset while managing large-scale logistics, crisis response, infrastructure projects and community engagement. These skills are directly transferable to economic . Today, I use my leadership experience to build partnerships, improve communication between public and private stakeholders and make data-driven decisions that support long-term economic growth.

What industries is Suffolk targeting for business attraction and retention, and why? Suffolk is strategically focused on attracting and retaining businesses in advanced manufacturing, logistics and distribution, agribusiness and data infrastructure. Our location provides direct access to the , key interstate corridors and expansive land options — all of which make us especially competitive in these sectors.

What strategies could Hampton Roads implement to attract more businesses? To attract more businesses, Hampton Roads must continue to approach economic development regionally, with shared priorities and coordinated infrastructure planning. Joint investment in utilities, particularly in power reliability and high-speed fiber, is crucial for modern industries such as biotech, the Department of Defense and advanced manufacturing. In addition, streamlining site readiness, enhancing workforce development pipelines and modernizing zoning and permitting processes will allow us to compete more effectively with other metropolitan regions. Ultimately, by leveraging our military presence and veteran talent, Hampton Roads has a distinct advantage in providing a highly skilled, mission-driven workforce.


Faulkner

TIMOTHY A. FAULKNER

President and , The Breeden Co., Virginia Beach

How are tariffs affecting projects Breeden has under ? While tariffs have introduced a layer of complexity to our procurement strategies, we’ve been able to mitigate much of the volatility through proactive planning and strategic foresight. … We’ve long prioritized early project buyouts, which allows us to lock in pricing and secure materials well in advance — minimizing exposure to sudden cost escalations or supply disruptions. In response to the current environment, we’ve also refined our construction contracts to include more definitive language around risk allocation, particularly concerning tariff fluctuations.

What trends are you seeing in industrial real estate in the region? The industrial sector, particularly warehouses, has seen a notable shift. Coming out of COVID, there was a surge in speculative warehouse development, especially in port-adjacent areas. That initial boom was driven by supply chain disruptions and the e-commerce explosion. However, as supply chains have normalized and consumer demand has moderated, we’re now seeing a pullback. Occupancies in some of those speculative builds have dropped, and the market is correcting. It’s as if we’ve returned to a new baseline — one that reflects more sustainable, long-term demand rather than the pandemic-driven spike.


CLIFF FLEET

President and CEO, The Colonial Williamsburg Foundation, Williamsburg

How are you preparing for the United States’ 250th birthday celebration in 2026? The Colonial Williamsburg Foundation has been preparing for the nation’s semiquincentennial since 2020, when we began work on many of our key 2026 initiatives. Several commemorative projects have already been completed, including three consecutive A Common Cause to All planning conferences that brought together semiquincentennial leaders from across the nation, the opening of the new American Indian encampment with expanded programming, the restoration of the Williamsburg Bray School, and the growth of our teacher institute and digital programs to extend our educational reach. Next year, Colonial Williamsburg will continue our 2026 commemorations with a centennial exhibition at our art museums celebrating the foundation’s 100th anniversary, the grand opening of a new archaeology center, programming around the 250th anniversary of the First Virginia Declaration of Rights, a statewide July 4 celebration, the opening of the reconstructed African Baptist Meeting House and Burial Grounds, and more.

How do you keep Colonial Williamsburg, a historic property, “fresh?” Historical research is the basis of The Colonial Williamsburg Foundation’s educational programming and exhibitions. Every day, Colonial Williamsburg’s archaeologists, preservationists and research historians uncover evidence of new historical facts. This ongoing discovery infuses our programming with new perspectives and new information.


TYRONE NOEL

Hampton Roads market president, Bank of America; Greater Virginia market executive, Merrill Lynch Wealth Management, Williamsburg

How are the bank’s clients in the region handling the current housing market conditions? Our clients are approaching today’s housing market in various ways, influenced by persistently high interest rates, inventory shortages and economic uncertainty. Some clients are opting to rent longer, adjusting expectations by looking for smaller homes, renovating existing homes versus buying new ones, and improving their overall personal financial picture so they’re prepared to buy when the time and market is right for them. At the same time, Bank of America is seeing an increase in purchase applications during what is now peak homebuying season. Prospective homebuyers in Hampton Roads are also turning to the bank for grants we make available for down payment and closing cost assistance.

What does BofA expect in terms of inflation and interest rate cuts? Evidence so far suggests that inflation worries may be overblown. While inflation reports may reflect some impact from tariffs in the months ahead, the Fed is watching closely for signs of higher prices and any slowdown in hiring and employment. In other words, the Fed is in a wait-and-see mode. BofA Global Research is expecting the Fed to stay on hold throughout 2025, and forecasts about 100 basis points of rate cuts in the second half of 2026, assuming year-over-year inflation falls below 3% by then.


COREY L. McCRAY

President, Paul D. Camp Community College, Franklin

What purpose will the Isle Maritime Trades Academy lab school that’s launching this fall serve? The Isle Maritime Trades Academy (IMTA) is a partnership between Paul D. Camp Community College, Isle of Wight County Public Schools and Newport News Shipbuilding. IMTA will provide high school students the opportunity to earn up to three maritime credentials, an associate degree and their high school diploma simultaneously. While doing so, students will gain valuable career skills, workplace training and exposure to leading employers in the shipbuilding and ship repair industries. This innovative program expands the career readiness pipeline, preparing students to enter the maritime workforce immediately upon graduation. In addition to supporting student success, IMTA will help build a sustainable talent pipeline for our industry partners.

Camp Community College opened its Nursing & Allied Health Professions building in Franklin in January. What need did you see for the expansion of these programs? One of the biggest challenges in health care education is access to high-quality training programs. While other institutions serve the Hampton Roads area, Paul D. Camp Community College is uniquely positioned to reach underrepresented and underserved communities in Suffolk and Western Tidewater. This state-of-the-art, 14,000-square-foot facility enables Camp Community College to enhance its existing programs such as RN, CNA, phlebotomy technician and other allied health pathways — and expand into new areas such as advanced EMT, paramedic and patient care technician training. These offerings represent a significant step forward in meeting the region’s health care workforce needs.

Health systems forecast pain from Medicaid cuts

Summary

  • Virginia could lose $26B in payments over 14 years.
  • Up to 600,000 Virginians may lose health coverage by 2027.
  • face closures, threatening care access and jobs

Earlier this year, Augusta Health was returning to the financial stability it had enjoyed prior to the COVID-19 pandemic. Then came the One Big Beautiful Bill barreling down from Capitol Hill.

In response to ‘s signature domestic spending legislation, which was signed into law in July, Augusta Medical Group announced in September that it was closing an urgent care clinic and two primary care clinics in the Augusta and Rockbridge counties area, meaning patients will need to travel farther for medical care.

A press release cited the One Big Beautiful Bill Act and said the closings “are necessary to ensure the future of Augusta Health and to provide the consistent, cost-effective care our communities deserve.”

Among other major policy changes, the legislation is set to slash spending, which will impact hospitals’ budgets across the country. Some may even close, according to multiple forecasts.

States like Virginia that rapidly expanded Medicaid coverage in recent years will be hardest hit, according to the Congressional Budget Office and other sources.

Augusta Health, a 255-bed community hospital near Staunton, is in the third year of a five-year recovery plan after COVID. And “we were on track to get back to our 4.5% margin by 2027 [or] 2028,” says Augusta Health President and CEO Mary N. Mannix.

Now, Mannix and her board are looking at increased annual expenses and revenue reduction that will grow to a $40 million operating loss in 2034 from the combined effects of increased uncompensated care costs, declining reimbursement and other impacts. This means digging into hard choices.

“We are developing an alignment plan to adjust our cost structure down to align with these new financial realities. We also plan to grow our revenue as a strategy to address this situation, making investments in our future growth,” Mannix says. “We don’t want to just cut our way to the point of financial stability; we also want to grow our way back to financial stability. Both pathways will be essential. This will be very hard and complex work.”

Starting in 2027, to maintain coverage, most adult Medicaid recipients will have to spend at least 80 hours a month working, volunteering or attending school, unless they have a disability or caregiving responsibility for a disabled relative or a child under age 13.

Nearly 1.9 million Virginians are currently covered by Medicaid, with about 630,000 people having gained access after the state expanded coverage in 2019. However, at least 350,000 Virginians are expected to lose their insurance once Medicaid changes take effect.

The state’s 2019 Medicaid expansion helped reduce the number of uninsured people to 7% of the state’s population, but , Virginia’s Democratic senior senator, anticipates that percentage could soon grow to 15% or 16%, with as many as 500,000 to 600,000 Virginians losing health coverage.

That, he and others warn, will be “devastating” to rural hospitals that rely on Medicaid funding for a significant part of their budgets. Jobs and treatment are at risk, and uninsured patients’ care costs will likely lead to higher insurance bills for companies and individuals, officials say.

In the red

Even with Medicaid revenue and state funding, hospitals in rural areas were already strained to the breaking point, says the Virginia Hospital & Association, which represents 113 hospitals statewide. More than a third of all rural Virginia hospitals operated in the red in 2022, the organization says.

In the weeks leading up to the Big Beautiful Bill’s signing, the University of North Carolina’s Sheps Center for Health Services Research identified 338 rural hospitals nationally at risk of closing, including six in Virginia. The report based its findings on whether a hospital lost money over the past three years and how many Medicaid patients it serves.

Statewide, hospitals in Franklin, Emporia, South Hill, Tazewell, Kilmarnock and Lee County are listed as at risk of closure.

But it’s not just small, rural hospitals that are scrambling. From Hampton Roads health care system Sentara Health to smaller community hospitals like Augusta, and their boards are drawing up plans to address the coming attack on their bottom lines.

Virginia’s Department of Medical Assistance Services anticipates that hospitals statewide will likely lose $26 billion in payments over the next 14 years as a result of the federal legislation, a figure Aubrey Layne, Sentara Health’s executive vice president and chief administrative officer, says Sentara has corroborated.

“The bottom line is they cut a trillion dollars out of the system and the Medicaid program over 10 years,” Layne says. “So, there’s going to be less money in the system.”

This means three things, he adds: Fewer people will be covered, fewer services will be offered, and health care providers will be paid less for their services.

However, people without coverage will still show up at emergency rooms, Layne predicts. And under the law, nonprofit hospitals like Sentara’s 11 Virginia facilities can’t turn patients away, so those costs must be covered in other ways like higher fees for insured patients, he notes.

“Medicaid reimbursement was sort of the glue in the system. What happens with that being reduced?” Layne asks. “Either we’ve got to find ways to reduce costs or charge the cost on to somewhere else, whether it’s commercial clients or whatever.”

“If we overwhelm the emergency rooms with folks who don’t have health care coverage, those costs have to be absorbed,” Warner said during a Sept. 11 call with Virginia media. “The only way they’re absorbed is if insurance rates for all of us go up.”

As a result of the cuts, an average 60-year-old couple in the Roanoke Valley making $80,000 annually, according to Warner, will likely see their health insurance prices go up about $800 or $900 monthly.

Patients will also see the impact in other ways, Layne adds: “Accessibility, your ability to find a doctor, your ability to get certain services at certain times are going to be impacted because of these cuts.”

Warner notes that Virginia’s uninsured population was at 17% in 2013, but that number was reduced to 7% as a result of state Medicaid expansion and the federal Affordable Care Act.

Now, he predicts there will be a backslide beginning in 2027, when Virginia could lose about a fifth of its Medicaid enrollment and corresponding federal funding, according to forecasting from KFF (formerly Kaiser Family Foundation). That’s one of the largest reductions in the nation, and KFF projects the number of uninsured Virginians will increase by 350,000 over the following decade.

At the same time, hospitals will lose state funding that currently makes up the difference between federal Medicaid spending and the hospitals’ treatment costs. The state has imposed a 6% tax on net revenue at 63 private acute-care hospitals, money that accounts for 16% of net revenue at hospitals across the commonwealth and even more at rural hospitals, where state funds make up between 20% to 34% of their income.

But under the Big Beautiful Bill, Virginia and 21 other states will be required to reduce the 6% tax to 3.5%.

“I am by no means saying that the status quo is perfect, but the idea of going back from roughly 7% of Virginians to 15 or 16% uninsured could potentially devastate rural hospitals,” Warner says. “But even in suburban and urban hospitals, it’s going to take a heavy toll.”

On the ground

According to the UNC rural hospital report, Lee County Community Hospital is at risk of closing. A 12-bed facility run by Ballad Health in Pennington Gap, the hospital reopened in 2021, eight years after it closed.

“It’s become a viable little operation,” says Warner, who attended the reopening ceremony. “For all those years, the community worked their tail off with Ballad Health there [to reopen]. And it’s one of the hospitals that could disappear if this law is fully implemented.”

Ballad Health CEO Alan Levine warned before the bill’s passage that the legislation would have “devastating” impacts on the Appalachian region’s health care and jobs, but lawmakers say they’re working to save these institutions. In July, following the bill’s signing, U.S. Rep. Morgan Griffith, R-Salem, chair of the House Subcommittee on Health and congressional representative for the Southwest Virginia region, visited the Lee County hospital.

Griffith said in a TV interview that he doesn’t intend for the hospital to close again and that the is working on fixes to keep rural facilities open and running.

Nonetheless, health system officials are preparing for the worst.

Valley Health CEO Mark Nantz, whose Winchester-based system operates four hospitals in northwest Virginia and two in West Virginia, expects to see revenue cuts result from lower state-directed payments and fewer people covered by Medicaid or ACA.

By 2031, Valley Health projects, these changes will result in $73 million in lost annual revenue. Nantz says that the health system already had narrow profit margins that fell from 4% to zero during the height of the pandemic, and he anticipates this year’s margin to be between 2% and 3%.

Republicans have touted the federal bill’s fund for rural hospitals that could deliver $100 million annually to Virginia facilities for the next five years, but Nantz says his system will probably receive only $7 million annually at best. That still leaves a $66 million shortfall.

“What are we going to do about it? I’m not going to tell you I’m shutting down hospitals and I’m laying off people,” he says.

“We will have to tighten our belts. We will have to adjust our ministry in whatever ways are necessary to get that $66 million out of cost. Unlike the federal government, we can’t run with a deficit for years on end. We actually have to make our books balance.”

Hospitals contribute $62 billion to the state and directly employ about 141,000 people, according to the VHHA, which adds that each health care job supports two other local jobs. The Commonwealth Fund predicts that the state could lose 13,200 health care jobs by 2029.

Insurance costs

In addition to operating health care facilities, Sentara is the largest Medicaid health insurance provider in the state, with about 47% of its health plan business related to Medicaid and 15% of its patients relying on Medicaid, Layne says.

Federal standards on what Medicaid will and won’t cover are coming up for renewal soon, which Layne anticipates will “be a big fight over the next few years.”

In the meantime, Sentara is creating a three-year plan to reduce costs in anticipation of reduced Medicaid coverage of treatment starting in 2028.

“I think it’s a misnomer that these politicians are saying we’ve got three years to work through this,” Layne adds. “We don’t.”

Cost reduction plans also will impact the state and local economy, health care officials anticipate. Sentara employs more than 34,000 people in Virginia and eastern North Carolina, while Valley Health has more than 6,200 employees who are collectively paid $600 million annually.

Beyond the effects on staffing and service levels, as well as vendors and contractors, health care systems may scale back community programming like health clinics and charitable work. Businesses will also be expected to pay more to insure employees.

“The spillover effect is significant,” says Julian Walker, vice president of communications for VHHA. “We have a complex, multilayered system where so many components are tied together. The reality, for better or worse, is that if one portion of the system atrophies or fails, it’s not just that thing in the corner that is going to feel the effects.”

Hospitals need to be transparent with patients about what’s anticipated to happen, Warner says, because “these cuts are coming, and they’re going to hurt across the board, and they’re going to be disproportionately hitting rural hospitals.”

Once the full impact of the Big Beautiful Bill becomes apparent, Warner and Mannix say, it may force a deeper examination of health care in the United States, possibly leading to a correction federally.
“I didn’t believe this 10 years ago, but maybe it’s time to start with a system where we have basic health care for everybody, and then you can add on top,” offers Warner.

“Any common sense tells me there has to be a correction,” Mannix says. “When hospitals begin to have more uncompensated care, that puts them in a very precarious financial position. You’re going to see a huge erosion in the health care delivery system of the United States.

“One would think,” she adds, “that there would have to be some level of correction for the sake of humanity.” ■

Associate Editor Beth JoJack contributed to this report.

Hampton Roads projects under construction or recently delivered

Harbour View Medical Center, Suffolk

In May, Bon Secours opened its three-story, 100,000-square-foot Harbour View Medical Center in Suffolk. The facility, which adjoins the existing Bon Secours Health Center at Harbour View, came with a price tag of about $85 million.

Harbour View Medical Center, which includes 18 private inpatient rooms and four operating rooms, is Bon Secours Mercy Health’s first “smart” hospital. Each of its inpatient rooms has an electronic whiteboard that displays information including the patient’s care plan, medications and tests that their physicians have ordered, as well as when results are available. Sensors in the room can detect potential safety risks, such as falls, in real time.

Bon Secours brought on board about 100 new staff members for the hospital. The architect for the facility was Cincinnati -based Champlin Architecture, and Richmond-based Hourigan Group led .


USA, Chesapeake

On April 28, LS GreenLink USA, a subsidiary of South Korea’s LS Cable & System, broke ground in Chesapeake on a roughly $700 million advanced cable manufacturing and port facility. It will produce high-voltage direct current submarine power cables used by farms.

Phase one of the project includes a pier, a 750,000-square-foot advanced manufacturing facility and a 660-foot tower to support the production of the massive subsea cables. Once completed, the tower is expected to be the tallest structure in Virginia. There are also future plans for additional investment in the site, according to a company spokesperson.

The facility is being built on about 50 acres of a 96.6-acre brownfield property that the company purchased for an undisclosed amount. Phase one is expected to be completed by the third quarter of 2027, with the site anticipated to be operational in the first quarter of 2028.


, Norfolk

After years of shifting plans, construction began on Norfolk’s $750 million casino resort in February. A month earlier, partners Boyd Gaming and the Pamunkey Indian Tribe announced that -based S.B. Ballard Construction and Mississippi-based Yates Construction — the companies that built Rivers Casino Portsmouth — will lead construction on the project.

In August, construction workers were focusing on efforts “to drive the concrete pilings that will serve as part of the foundation” for the casino resort, according to Ron Bailey, vice president and general manager of Norfolk Casino.

The new resort will feature a 45,000-square-foot amenity deck, a 200-room hotel and eight food and beverage outlets. It will offer 1,500 slot machines and 50 table games.

A temporary facility, named the Interim Gaming Hall, is expected to open in November, with the permanent casino expected to open to guests by late 2027.


Tempo by , Virginia Beach

Pembroke Square Associates first announced plans to redevelop the aging Pembroke Mall in 2021, with three initial projects planned: a retirement facility, a hotel and apartments.

Aviva Pembroke, the senior living community, opened late in 2024. Work is slated to begin on luxury apartments in July 2026. As for the seven-story Tempo by Hilton hotel, construction began in May.

The 163-room, 176,299-square-foot hotel is expected to open in summer 2027, about two years later than originally announced. The delay was attributed to unanticipated setbacks such as increased costs and rising interest rates. As of August, the hotel’s structural piers had been completed and footings were being installed, according to a project spokesperson.

Developed through a partnership between Pembroke Square Associates and Virginia Beach-based Landmark Hotel Group, the hotel will feature a bar and restaurant. Virginia Beach-based Core 22 Design Build is the contractor.


Biological Sciences Building, Norfolk

Old Dominion University broke ground April 28 on its $184 million, five-story Biological Sciences Building near the Mills Godwin Life Sciences Building.

The 162,586-square-foot Biological Sciences Building will house classrooms, teaching laboratories and a 120-seat lecture hall. Additionally, the Arthur and Phyllis Kaplan Orchid Conservatory will be relocated within the building with an added water feature and a two-story tropical display house. The building’s exterior will incorporate an existing pond and feature a terraced seating area.

In August, workers were busy with site and utility work and were installing precast driven piles for the building’s foundation, according to a spokesperson.

Newport News-based W.M. Jordan Co. is serving as general contractor on the Biological Sciences Building, which was designed by a team that includes Charlottesville-based VMDO Architects, Pennsylvania-based Ballinger and Charlottesville-based O’Shea Wilson Site Works. It’s expected to be ready by spring 2028.


Virginia Natural Gas operations headquarters, Chesapeake

Virginia Beach-based Virginia Natural Gas broke ground May 27 on its $50 million operations headquarters in Chesapeake. The facility is being built on a 30-acre property and will feature 39,000 square feet of office space and a 30,000-square-foot warehouse. A compressed natural gas fueling station for Virginia Natural Gas vehicles is also part of the plan.

The first phase of constructing the operations headquarters, which included demolition of dilapidated structures, is complete, according to company spokesperson Morgan Chase. The next phase will be sitework. In August, Virginia Natural Gas expected to choose a contractor for the project by early October.

The building will house Virginia Natural Gas’ field operations, customer solutions and , customer care center, construction operations and engineering departments. About 160 employees are expected to work at the facility. Virginia Natural Gas expects the Chesapeake facility to be completed in the first quarter of 2027.