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

In category 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 commonwealth was ranked closer to the middle for economy (No. 23) and cost of doing business (No. 26). Virginia’s coveted 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 economy, which ranked 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.

In a statement issued Thursday, Virginia Gov. Abigail Spanberger said, “Since I took office, I have been focused on growing a stronger, more resilient economy — despite the economic uncertainty coming out of Washington, resulting in rising costs and deep cuts to our federal workforce. In six months, we have brought more than $5 billion in new business investment to communities across the commonwealth, creating more than 3,000 new jobs. We have continued to invest in our exceptional talent, world-class K-12 and higher education institutions, local childcare options, housing opportunities and physical infrastructure.”

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

The governor’s office noted that Virginia’s No. 2 ranking in infrastructure reflected “major investments in recent years, including the Port of Virginia’s recently completed improvements to create the deepest, widest shipping channels on the East Coast and ongoing upgrades to the Interstate 81 corridor.”

Spanberger also highlighted investment in shovel-ready industrial sites, including the General Assembly’s allocation of $50 million for the Virginia Business Ready Sites Program in the current biennial budget.

Virginia Secretary of Commerce and Trade Carrie Chenery said the state’s investment in the Virginia Economic Development Partnership’s Virginia Talent Accelerator Program and InternshipsVA, which was launched by the governor in February, “demonstrate our long-term commitment to economic competitiveness. Virginia is delivering the workforce ecosystem and competitive advantages businesses need to thrive here today and well into the future.”

VEDP President and CEO Jason El Koubi emphasized collaboration between the state, localities, utilities and regional partners. “We’re helping companies reduce risk, accelerate timelines and build for long-term success,” he said in a statement.

CNBC correspondent Scott Cohn said Thursday that while the state’s education category is “still outstanding,” its fall from No. 1 in that category to fifth place reflects lower state funding support for higher education institutions, although Virginia’s higher ed spending is still “better than average.” Also, this year’s calculations removed the presence of historically Black colleges and universities (HBCUs) as a positive factor, leading to fewer points for Virginia, which has five HBCUs.

As for the state’s nine-place fall in economy, Cohn said, “A lot depends on what happens across the Potomac in Washington. As the fortunes of the federal government go, it has some effects on the margins.” Looking toward the future, Virginia’s ranking in this category depends on whether the federal government continues cutting spending and jobs, Cohn added.

He also noted that Virginia’s status as the only state with a single-term limit on governors makes it stand out from other states. Typically, CNBC’s rankings are determined by outcomes of political decisions that influence business, Cohn noted. Virginia’s single-term governorship means that successive administrations, even of different parties, build on each others’ achievements, such as the Youngkin administration’s increased funding of shovel-ready sites impacting the state’s infrastructure ranking.

“Virginia has always been in the mix,” Cohn said of the CNBC rankings. “Coming in third is nothing to sneeze at. We know it’s always going to be in the conversation.”

Recognition of falling rankings

The Virginia Chamber of Commerce took a balanced approach in its reaction to CNBC’s rankings list. “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 chamber said in a statement Thursday.

“This recognition reflects the commonwealth’s many strengths, but some key metrics serve as a warning sign. An economy ranking of No. 23 and cost of doing business ranking of No. 26 signal that we are losing ground where it matters most: job creation, economic growth and private-sector dynamism. Virginia must remain focused on advancing policies that strengthen our economic growth, the cost of doing business and overall competitiveness.”

Todd Haymore, former state secretary of commerce and trade under Gov. Terry McAuliffe, wrote in a LinkedIn post Thursday that he views the state’s No. 3 ranking as welcome news, “given the economic uncertainties businesses have faced over the last 12 months. Thankfully, key pro-business, growth and job creation fundamentals are keeping Virginia in the top echelon of states.”

However, added Haymore, managing director of global economic development, commerce and government relations for Hunton Andrews Kurth, “we cannot ignore our rankings in several key metrics, including the economy, business friendliness, cost of doing business and cost of living, some of which have been impacted by self-inflicted actions and will continue to negatively impact our standing if we don’t heed and address them.

“Whether one likes it or not, these ‘best for business’ rankings are used by business executives, site selectors and other economic development professionals around the world. Sometimes they are the starting and ending points for deciding where to pursue investments and job creation projects.”

Chris Saxman, a former state delegate and CEO of Virginia FREE, a nonpartisan business advocacy group, noted that CNBC’s methodology changes annually, giving different weights to different indicators. He predicted in a June 24 post on Virginia FREE’s site that 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.”

He also noted that timing of the CNBC study matters, particularly with Virginia’s $1.2 billion data center electric usage tax enacted as a last-minute budget compromise in late June. If the network’s calculations “were substantially completed before the data center tax was finalized, the new levy may not be fully reflected in the ranking,” he wrote.

Cohn said that calculations for the year’s ranking start in mid-February and typically are finalized by the second week of June — so the state budget battle over data centers was not a factor in Virginia’s ranking this year. What’s more, Cohn said that a single tax or tax incentive is unlikely to make a large impact on a state’s ranking. “We look at the tax climate for sure, and we look at incentives, and how business reacts to that.”

“When you look at what sets Virginia apart, I’d argue that it’s our two superpowers: talent and infrastructure,” Northern Virginia Chamber of Commerce President and CEO Julie Coons said in a statement. “Virginia continues to educate, attract and retain some of the nation’s best and brightest talent. In today’s economy, talent is often the deciding factor in where companies choose to invest, expand and create jobs.”

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.

Ranking states’ quality of life is typically difficult, as that can be so subjective depending on people’s needs and wants, but CNBC measures crime rates, air quality, worker protections, healthcare and childcare access, as well as inclusiveness based on state law, Cohn said. Virginia ranks well in low crime rates, clean air and healthcare, while childcare access lagged a bit.

“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 the state 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.”