Virginia's Business Rebound.
Virginia rebounds to No. 3 in CNBC's Top States for Business 2026; infrastructure weight shifts rankings.
Key Points
Virginia's education ranking fell to No. 5 in CNBC's 2026 rankings, down from earlier No. 1 years, illustrating how the surge in infrastructure weighting shifted state profiles even as Virginia remains strong overall.
Washington's rise to No. 11 comes amid ongoing tax-policy debate; Gov. Ferguson created an Economic Development Council with leaders from Microsoft, Amazon, Boeing and T-Mobile to bolster competitiveness.
Pennsylvania is No. 13—the highest in CNBC's rankings in 15 years—driven by Gov. Shapiro's red-tape and permitting reforms, with more than $41 billion in private investment and over 24,000 new jobs.
Connecticut rose to No. 23, with education ranking No. 4 and quality of life No. 5, but remaining weaknesses in affordability—cost of doing business No. 40 and cost of living No. 44; infrastructure sits at No. 29.
CNBC's 2026 rankings elevate infrastructure as the top-weighted category for the first time, and the study also flags the first-time inclusion of ease of permitting as a measurable factor in site-selection decisions.
Virginia has climbed back to No. 3 in CNBC's America's Top States for Business rankings for 2026, trailing only Ohio at No. 1 and North Carolina at No. 2, according to WTVR. The rankings are built on 138 metrics, and this year CNBC made infrastructure the top-weighted category for the first time — a shift that reshuffled the standings across the country.
The 2026 study also added ease of permitting as a measurable factor for the first time, reflecting what site selectors increasingly say matters most when picking where to build or expand a business, WTVR noted.
Virginia Rebounds Despite Economy Ranking Slide
Virginia ranks second in infrastructure nationally, which helped push the state back up one spot from its 2025 position, according to Augusta Free Press. But the state's economy ranking actually fell — dropping from No. 14 in 2025 to No. 23 in 2026. CNBC tied that slide to federal budget cuts from the Trump administration, which hit Virginia's government-heavy economy hard.
Virginia's education ranking also slipped to No. 5, down from years when it held the top spot. Still, the state's overall strength across categories was enough to secure third place, according to WXII12, which noted North Carolina held second after slipping one spot from last year.
Washington Climbs to No. 11 Amid Tax-Policy Debate
Washington state rose to No. 11 in the rankings despite a wave of new taxes and growing anxiety among businesses, according to GeekWire. The state still trails its former top-five standing, but the climb signals that its deep tech workforce and infrastructure give it staying power.
Governor Bob Ferguson responded by creating a new Economic Development Council. The council includes executives from Microsoft, Amazon, Boeing, and T-Mobile. Ferguson said the goal is to sharpen the state's competitive edge as tax-policy debates continue, GeekWire reported.
Pennsylvania Hits 15-Year High at No. 13
Pennsylvania jumped to No. 13 — its best CNBC ranking in 15 years. Governor Josh Shapiro pushed hard on cutting red tape and speeding up permitting, and the results showed up in the data. The state attracted more than $41 billion in private investment and added over 24,000 new jobs, according to WTVR.
Pennsylvania's rise fits a clear pattern in the 2026 rankings. States that made permitting faster and regulation lighter tended to move up. Shapiro's approach gave businesses more certainty about timelines, which site selectors say is a top priority when choosing a location.
Connecticut Climbs to No. 23 but Affordability Remains a Drag
Connecticut rose to No. 23, boosted by strong education and quality-of-life scores. The state ranked No. 4 in education and No. 5 in quality of life, according to Augusta Free Press. The new weight given to infrastructure in the 2026 rankings also helped Connecticut move up the overall list.
But affordability remains a serious problem. Connecticut ranked No. 40 for cost of doing business and No. 44 for cost of living — near the bottom nationally. Its infrastructure score sat at No. 29. Those numbers show the state still has a long way to go before it can compete with top-tier business destinations.
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