Virginia Poised for Transformative Year: Blue Trifecta, Economic Boom, and Policy Shifts Set to Reshape Commonwealth in 2025
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On the policy front, CBH reports that Virginia’s popular research and development tax credits have effectively expired for tax years beginning in 2025 after an extension bill failed during the last General Assembly session, leaving many tech and innovation firms without a key state incentive and positioning reinstatement efforts as a likely flashpoint in the 2026 session.[CBH] According to VPM News, lawmakers are also weighing new rules for artificial intelligence in health care and preparing for 2026 redistricting fights that could reshape political maps again.[VPM News]
Economically, Virginia Business highlights a surge of large-scale investments, including Eli Lilly’s plan to build a 5 billion dollar pharmaceutical manufacturing facility in Goochland County, creating about 650 high-wage jobs and roughly 1,800 construction jobs and strengthening Virginia’s role in domestic drug production.[Virginia Business] The Virginia Economic Development Partnership reports additional manufacturing and data center expansions, from Cornerstone Building Brands’ 4.9 million dollar investment and 50 new jobs in Rocky Mount to new data center campuses in Stafford and Wythe counties, signaling continued confidence in Virginia’s workforce and infrastructure.[Virginia Economic Development Partnership][Cardinal News]
At the community level, Cville Right Now reports that Albemarle County leaders are debating a 230 to 240 million dollar proposal for a fourth high school to relieve projected overcrowding, a move tied to renewed legislative pushes for a local one-cent sales tax dedicated to school construction after a similar measure was vetoed by Governor Glenn Youngkin.[Cville Right Now] Louisa County officials say their new middle school project is more than 90 percent complete and under budget, reflecting ongoing investment in school facilities across the state.[Citizen Portal]
On public safety and health, the Virginia Department of Health’s latest situation update notes that respiratory illnesses, including flu and COVID-19, are trending upward, while recent snow and winter weather have created travel hazards and concerns about nighttime refreezing west of Interstate 95.[Virginia Department of Health]
Looking Ahead, listeners can watch for the January General Assembly session, where debates over right-to-work, R&D tax credits, school funding tools, and AI regulation are expected to headline, alongside continued announcements of major manufacturing and data center projects that could reshape Virginia’s economic landscape.
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