Facing imminent severe economic headwinds in the region, the Northern Virginia Chamber of Commerce, alongside elected officials from across Northern Virginia this past week, confirmed a unified call to action aimed at safeguarding and reinventing the region’s economy for a more diversified and equitable future.
“Northern Virginia has long been a powerhouse, but we’re at a defining moment. The old playbook won’t secure our future,” said Julie Coons, the Northern Virginia Chamber (NVC) president, introducing a new paper last week developed for the Chamber, “NOVA Roadmap: A Call to Action for Northern Virginia’s Economic Growth,” which was developed in partnership with professional consultants.
The roadmap directly responds to alarming federal workforce reductions and contracting losses that pose a serious threat to the regional and national economy. Nearly 11,100 federal jobs have been eliminated in Virginia so far this year, with Northern Virginia experiencing the steepest drop among metro areas, putting pressure on regional unemployment, now at 3.5 percent in June.
Issues the report identifies played a major role in the 10th annual “Northern Virginia Regional Elected Leaders Summit,” that drew 200 business, government, and community leaders, including 22 elected officials last week.
The “NOVA Roadmap” paper outlined four strategic priorities:
1. Reinvent the Economy– Embrace emerging sectors, AI, quantum computing, biotech, semiconductors, space, and robotics, and establish tech-driven innovation hubs, supported by modern digital infrastructure and workforce reskilling.
2. Cultivate Workforce Affordability–To retain and attract talent, the region must become affordable—through attainable housing and high-quality, accessible childcare.
3. Attract Sustained Investment—Modernize tax policy, land use, and regulatory frameworks to make the region more competitive and nimble in attracting high-growth industries.
4. Tell Our Powerful Story–Rebrand Northern Virginia as the destination of choice for innovation and investment, backed by compelling storytelling and regional promotion.
The agenda also includes development of a regional Economic Development Index—a targeted, data-driven tool to track performance on metrics like business attraction, workforce transitions, equitable growth, and startup activity.
Economic confidence among regional business leaders has experienced a notable rebound: a Q2 survey (April) reflected widespread pessimism, with 59 percent expecting economic decline and only 12 percent anticipating hiring growth.
By Q3 (July), however, sentiment improved: 40 percent now expect growth, 26 percent foresee stability, and 34 percent anticipate decline. This shift underscores the durability of businesses’ outlook amid persistent concerns around federal cuts and tariffs, even as 80 percent are still worried about the federal DOGE’s (Department of Government Efficiency) impact.
Surveys conducted by the Annandale-based Pinkston, communications firm in collaboration with NVC, have underscored local business concerns: approximately one in three surveyed businesses reported harm from DOGE cuts, with 23 percent downsizing and 7 percent laying off employees.
With Northern Virginia accounting for approximately 42 percent of the Commonwealth’s GDP, the stakes couldn’t be higher. A 10 percent reduction in federal employment could translate to a $6 billion GDP loss and nearly $250 million in lost state tax revenue.
A recent analysis also highlighted the severe strain on communities, including impacts on housing, food security, nonprofits, and human services—even as eateries continue to open in Falls Church—highlighting both challenges and resilience across the region.
NVC, aligned with regional elected officials, has urged:
1. Immediate investment in workforce development, including reskilling programs, boot camps, and certifications tailored to emerging technologies.
2. Acceleration of infrastructure modernization, especially expanding energy capacity to support booming data center growth.
3. Supportive policy investments—ranging from affordable housing to streamlined tax codes—that bolster private-sector growth and community stability.
4. Active collaboration across public, private, academic, and civic sectors to ensure inclusive, sustainable economic recovery and advancement.
Many of these ideas were presented last week when 200 business, government, and community leaders, including 22 elected officials, gathered to discuss some of the region’s most urgent issues at the 10th Annual Northern Virginia Regional Elected Leaders Summit.
This event was held by the Arlington Chamber of Commerce, with premier partner NVC and co-hosts Alexandria Chamber of Commerce, Loudoun Chamber of Commerce, the Northern Virginia Regional Commission, and the Regional Elected Leaders Initiative, and sponsored by Dominion Energy.
The program, held at George Mason University – Mason Square consisted of a panel discussion featuring Alexandria Mayor Alyia Gaskins, Prince William Board of County Supervisors Chair Deshundra Jefferson, Arlington County Board Chair Takis Karantonis, and Fairfax County Board of Supervisors Chair Jeff McKay. NBC Washington reporter Joseph Olmo moderated the panel.
As reported by the Arlington Chamber, at the summit the panelists “began with considering the economic impact of federal workforce reductions.” Chair Deshundra Jefferson of the Prince William Board of County Supervisors discussed the importance of local government services as part of the response. “For local governments, a lot is falling on us. How are we meeting the needs of our residents? How are we stepping up?” said Jefferson. She noted that she remains nervous about the impact that economic uncertainty has on budgeting. “Local government touches people in such an intimate way, and it’s hard when you’re not able to really meet people’s most basic needs and address their most basic concerns.”
“The challenge of high commercial office vacancy was a key theme for panelists as they discussed economic development. Chair Jeff McKay of the Fairfax County Board of Supervisors detailed his county’s struggles with office vacancy and efforts to be proactive in the wake of expiring tenant leases. “We have to be cautious as local governments that as leases expire and fewer new leases come in place, the valuation of those may be much lower, and that’s what’s going to sink your revenue picture,” said McKay. He continued noting that Fairfax County is identifying functionally obsolete office buildings for redevelopment or residential conversion. “We’re making sure that we’re reaching out to those owners to try to be proactive and put our tools on the table and say ‘How quickly can we do a conversion? How quickly can we do a redevelopment if this building is not a candidate for a conversion?’”
“As the conversation moved to housing policy, the panelists questioned the common local framing of being “for density” or “against density”. Alexandria Mayor Alyia Gaskins explained why she rejects this framing. “Density is a tool in the toolkit, a tool that allows us to not only allow growth to happen but also to be strategic in planning for how we want to grow,” said Gaskins. She continued by noting Alexandria’s efforts to boost the housing supply through the tool of density. “We are very thoughtful and strategic about how we leverage that tool, because we know that the only way it’s going to get more affordable is if we have more housing supply.”
“On the topic of transportation, the panelists expressed their preference for the DMV Moves Initiative (the joint venture between WMATA and COG) to identify and establish dedicated funding for WMATA. Chair Takis Karantonis of the Arlington County Board emphasized the need for dedicated funding to be reliable for WMATA and Metro to plan ahead. “It has to be reliable; Metro has to be able to count on this money,” said Karantonis. He continued by noting that the lack of dedicated funding currently makes WMATA unique. “Metro is not working like a normal enterprise here, and we have to bring it back to a place where it is a normal enterprise that knows what its incoming sources of revenue are for their operations.”
The Falls Church Chamber was not included in the summit. As its executive director Elise Bengtson mused to the News-Press, “Sometimes we may be considered just too little to be included.” However, as reported in this newspaper, some of the more creative approaches to addressing the regional challenges have come from Falls Church.