The House Appropriations Committee provides funding to incentivize private sector companies to create jobs and to invest capital in the Commonwealth, support programs to facilitate entrepreneurship and small business development, and promote Virginia to out-of-state travelers.
Virginia has a variety of programs and activities to support economic development efforts, such as traditional business recruitment and expansion efforts through the Virginia Economic Development Partnership; the GO Virginia program at the Department of Housing and Community Development, which funds regional job creation activities; and investments in new and small businesses through the Virginia Small Business Financing Authority and Virginia Innovation Partnership Authority. The budgetary investments in these activities are discretionary in nature and are designed to help grow state revenues through job growth or visitation.
Budget Overview
Funding for economic development activities is primarily supported by state general fund resources across a variety of agencies and has grown significantly over time, particularly for industry specific activities and business ready sites. Virginia in FY 2023 and FY 2024 appropriated $234 million for site development activities to make it easier for businesses to locate on a property due to the availability of space, roads, and utilities. Prior to this historic investment, site development funding in Virginia totaled $13.5 million from FY 2013 to FY 2022. Additionally, in recent year, the Commonwealth has invested funding to support research and new business and job creation activities in specific industries: $105 million for the Commonwealth Cyber Initiative, since its creation in FY 2020, $37.5 million for the Commonwealth Center for Advanced Manufacturing since FY 2014 (excluding $40 million in start-up funds as a result of the Rolls Royce economic development deal), $43.8 million the Virginia Bioscience Research Corporation (Catalyst) since its creation in FY 2013, and $127. 7 million for life science specific activities in Charlottesville, Roanoke and Petersburg since FY 2023.
Virginia Spending on Economic Development Activities
Virginia also commits one-time resources for specific companies to locate or expand in Virginia through custom performance grants. The General Assembly created to the MEI Commission, consisting of legislative leadership to review all economic development projects in the state in excess of $10 million and custom performance grants. After MEI review and approval, the General Assembly must approve any custom performance grant. Virginia has committed $1.4 billion to these economic development deals since FY 2005 with about 45% of finished (canceled + completed) custom performance grant projects achieved their job commitments to the state, and only 60% of the jobs committed by these companies came to fruition. This data excludes recent commitments to Eli Lilly, AstraZenca, and Hatichi totaling $152.9 million.
Job Creation Performance of MEI Grant Projects Q2 2025
Program/Policy Highlights
- Business Recruitment and Retention
Provides economic development incentives to companies in exchange for job creation and capital investment activities through funds like custom performance grants, Commonwealth Development Opportunity Fund, Virginia Jobs Investment Program
- Virginia Business Ready Sites Program
Provides grants to localities to help improve the state’s portfolio of locations ready for businesses to build new facilities
- GO Virginia
Funds regional activities that support job creation in the areas of start-ups, economic development sites, and workforce development
- Governor’s Motion Picture Opportunity Fund
Offers grants to production companies and studios to film in Virginia and uses its employees, resources, and goods and services
- Virginia Small Business Financing Program
Offers loans directly to small businesses and nonprofit organizations and credit enhancements to banks that lend to small businesses and nonprofit organizations
- Virginia Venture Partners
Offers pre-seed and seed stage funding to entrepreneurs in Virginia
Reports and Presentations
Resources and Deep Dives
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