VA Loses No. 1 Spot In America’s Top States For Business Ranking

After landing in the top spot last year, Virginia has dropped to No. 4 on the America’s Top States for Business list compiled by CNBC, its worst showing since 2018.

Virginia, a top-three finisher in each of the last five years, ceded the No. 1 spot to North Carolina.

According to CNBC, a major reason was the drop in the state’s economy ranking. Virginia fell to No. 14 in 2025 from No. 11 last year. Economy is the heaviest weighted category in the study under this year’s methodology, "as more states pitch themselves as safe havens in a potential downturn," CNBC wrote.

According to this year's list, Virginia fell from the top spot because federal job cuts have disproportionately affected the state's economy.

"Virginia is already seeing a small downturn of sorts, as the Trump administration sets out to slash the federal workforce," CNBC continued. That hits The Old Dominion where it lives."

Related: VA Launches Jobs Website For Federal Workers Hit By Layoffs

According to the report, the federal government accounted for more than 144,000 jobs in Virginia last year. That number approaches 300,000 when including Virginians who work for federal contractors or commute to federal jobs elsewhere in the D.C. metro.

To compile the list of top states for business, CNBC scored each on 135 metrics across 10 categories of competitiveness. Metrics included workforce, quality of life and education.

Virginia scored 1,578 out of a possible 2,500 points, according to this year's list. The state ranked No. 1 for education and No. 2 for infrastructure. Virginia also ranked in the top 10 for quality of life, technology and innovation, business friendliness and access to capital.

This year's top five states also included Texas at No. 2, Florida at No. 3 and Ohio at No. 5.

See CNBC's full ranking of America's Top States For Business.

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