Virginia has climbed a spot in CNBC’s annual ranking of the best states for business, a year after federal job cuts helped knock it out of the No. 1 position.
The state placed third in the 2026 rankings released today (Thursday), up from fourth last year. Ohio took the top spot for the first time, followed by North Carolina, with Texas and Minnesota rounding out the top five. CNBC scored all 50 states on 138 metrics across 10 categories in the study, now in its 20th year.
The finish continues a bumpy stretch for a state that has long dominated the list. Virginia has been named the country’s top state for business a record six times, most recently in 2024 — before dropping to fourth in 2025, its worst showing since 2018.
CNBC tied much of that slide, and Virginia’s still-middling economy score, to the Trump administration’s cuts to the federal workforce — layoffs concentrated in Arlington and the rest of Northern Virginia. Virginia ranked 23rd for its economy this year and 26th for cost of doing business.
The Virginia Chamber of Commerce called those two marks a “warning sign” that the state is losing ground on job creation and economic growth, even as it praised Virginia’s broader strengths.
Virginia scored best in the categories CNBC weighted most heavily this year. It ranked second for infrastructure for a second straight year, fifth for education, sixth for technology and innovation, seventh for quality of life and 10th for workforce.
Gov. Abigail Spanberger (D), who took office in January, said the improved ranking reflects the state’s investments in workers and infrastructure. She said Virginia has drawn more than $5 billion in new business investment and created more than 3,000 jobs since she was sworn in.
“Virginia’s rise in the rankings reflects strategic investments that are helping companies succeed in our Commonwealth,” Spanberger said in a statement.
The governor’s office pointed to the No. 2 infrastructure ranking as a payoff from recent projects, including deeper shipping channels at the Port of Virginia and upgrades to the Interstate 81 corridor. It also cited workforce programs such as the Virginia Talent Accelerator Program and InternshipsVA, which Spanberger launched in February.
The ranking lands just as Virginia wrapped up a months-long fight over its two-year budget, one that turned on how to tax the data centers clustered in Northern Virginia. Lawmakers finalized the plan at the end of June, just before the July 1 deadline that could have forced a partial state shutdown.
Senate Democrats, led by Finance Chair Louise Lucas (D), pushed to end a long-standing tax break that saved data centers nearly $2 billion last fiscal year. Spanberger and House Democrats opposed scrapping it, arguing that it would hurt the state’s business-friendly reputation, and the standoff split the party for months.
The compromise kept the exemption but added a new tax on the electricity data centers use, projected to raise $1.2 billion over two years. An industry group warned the new levies could still hurt Virginia’s business-friendly reputation.
The session also passed Spanberger’s “Affordable Virginia Agenda”, a $15 minimum wage by 2028 and the state’s first paid leave programs. Spanberger vetoed several bills along the way, and dozens of proposed tax increases never cleared the legislature.
The full press release on the new CNBC rankings, from the governor’s office, is below.
RICHMOND, VA — Governor Abigail Spanberger announced today that Virginia is #3 in CNBC’s annual “America’s Top States for Business” rankings, rising from last year.
“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 demonstrated success in doing just that; we have brought more than $5 billion in new business investment to communities across the Commonwealth, creating more than 3,000 new jobs,” said Governor Abigail Spanberger. “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.”
Governor Spanberger continued, “Virginia’s rise in the rankings reflects strategic investments that are helping companies succeed in our Commonwealth. Companies the world over know that Virginia has a reputation as a business environment where world-class talent, leading infrastructure, and a collaborative approach to economic and community development give companies the confidence to grow here.”
Virginia’s #2 ranking in the Infrastructure category reflects 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. Additionally, for the first time, CNBC factored ease of permitting into its rankings. The Commonwealth has an established reputation for speed to market through collaboration across state, regional, and local partners. Virginia also continues to invest in business-ready sites, with the General Assembly allocating another $50 million in the Virginia Business Ready Sites Program this biennium.
“Virginia’s business climate is built on partnership. By working together across state, regional, and local levels, we have created an environment where companies of all sizes can move faster, access exceptional talent, innovate, invest, and scale,” said Secretary of Commerce and Trade Carrie Chenery. “Continued investments in custom talent and sites programs 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.”
Under Governor Spanberger’s leadership, Virginia continues to raise the bar for talent development. Programs such as InternshipsVA, launched by the Governor in February, and the Virginia Talent Accelerator Program — recently ranked the #1 Customized Workforce Training Program in the U.S. by Business Facilities — are helping equip the next generation of Virginians with the tools and opportunities they need to succeed. The Spanberger Administration is also deploying strategic site development investments and partnering with localities, utilities, and state agencies to fund modernized infrastructure improvements.
“Companies choose Virginia because we provide all of the things they need to succeed — a world-class talent ecosystem, robust infrastructure, project-ready sites, a collaborative and transparent permitting process, and exceptional partnership at all levels,” said VEDP President and CEO Jason El Koubi. “Through the Virginia Talent Accelerator Program, continued investments in site development, and close coordination with state agencies, localities, utilities, and regional partners, we’re helping companies reduce risk, accelerate timelines, and build for long-term success. At VEDP, our job doesn’t end when a project is announced. We remain a committed partner throughout a company’s growth journey, ensuring every business that chooses Virginia has the resources, workforce, and support to thrive.”
CNBC is a world leader in business news, and its annual “America’s Top States for Business” rankings measure all 50 states on 138 different metrics in 10 key categories of competitiveness to determine which states are delivering most effectively on the things that mean the most to business.
