Virginia ranks No. 3 in CNBC Top States for Business list

Virginia ranked third in the annual CNBC Top States for Business list, up one spot from last year, the cable business news network announced Thursday morning.

Ohio placed first for the first time, followed by North Carolina at second place.

In other rankings, Virginia placed No. 2 for infrastructure a second year in a row, sixth for technology and innovation, seventh for quality of life, 10th for workforce and 11th for business friendliness. The state was ranked closer to the middle for economy (No. 23) and cost of doing business (No. 26). The state’s No. 1 ranking for education in previous years fell to fifth place this year.

Virginia’s ranking in the category of access to capital remained stable at No. 10, and its cost of living ranking rose from No. 21 in 2025 to No. 15 this year.

Virginia has been ranked No. 1 six times, an all-time record for the 20-year ranking by CNBC, but fell from first place in 2024 to No. 4 in 2025, mainly due to federal budget cuts and tariffs impacting the state’s economy, which placed No. 14 last year and fell nine places in the 2026 list.

CNBC noted that federal budget and personnel cuts have continued to hurt the state’s economy ranking.

According to CNBC, infrastructure was the most heavily weighted category in the 2026 ranking, including ease of permitting, which was considered for the first time this year. Economy, last year’s top category, went to second place this year, followed by workforce.

“The rankings once again highlight the commonwealth’s many competitive advantages, including infrastructure, technology and innovation, quality of life, and workforce, which reaffirm Virginia’s position as one of the nation’s premier destinations for business, investment and talent,” the Virginia Chamber of Commerce said in a statement Thursday.

Texas at No. 4 and Minnesota at No. 5 round out the top five states in this year’s CNBC ranking.

Chris Saxman, a former Virginia delegate and CEO of Virginia FREE, a nonpartisan business advocacy group, noted that CNBC’s methodology changes annually, giving different categories different weights. He wrote in a June 24 post on Virginia FREE’s site that because of the increase in focus on infrastructure, one of Virginia’s strongest categories, would keep the state steady in CNBC’s rankings.

“Virginia ranked near the top in infrastructure, education, technology and access to capital,” Saxman wrote. “Those are not minor advantages. They are the foundation of Virginia’s modern economy.”

In an email Thursday, Saxman said he was not surprised Virginia rose one place from last year, because CNBC’s methodology “largely aligns with Virginia’s economy and it really whacks conservative states on policy,” including Texas’ No. 49 ranking for quality of life, compared to No. 7 in Virginia.

“But ranking infrastructure as No. 1 was … interesting to say the least,” Saxman said of the network’s weighting of the category. “How can a state fall from 14 to 23 in economy but rise in overall ranking? CNBC methodology. Of which, I am not a fan.”

Last month, Virginia ranked first in customized workforce training in Business Facilities magazine’s annual state rankings report, and will be in the top 10 for the publication’s Best Business Climate list running in its July-August issue.

“In our 2026 annual state rankings, Business Facilities is pleased to recognize the Virginia Talent Accelerator Program as a leader in workforce recruitment and training,” Editorial Director Anne Cosgrove said in a statement. “The program’s balance of traditional recruitment and training strategies with the use of technology for a customized approach is significant in supporting the businesses that utilize this resource. The ability to provide higher-level organizational development is also a highlight of the Virginia program.”

This is a breaking news story that will be updated.