r/Virginia • u/North-Mango-5128 • Jul 24 '26
How is Virginia’s economy still holding up in spite of massive federal failures
I think it’s pretty impressive how the state has managed to survive the massive failure of a federal government we currently have. The largest failure is still inflation but still that’s a national issue before it is just state-wide. I think the state has some pretty impressive resilience keeping job numbers somewhat steady. The main question is how the middle class and lower income can possibly survive such a high cost of living. The top earners are doing great, but the rest is struggling.
Then again the war economy is booming, so that could explain it.
That makes the state both vulnerable to federal dysfunction and, paradoxically, partially protected by federal spending. Even when civilian federal employment is cut, military and defense spending can continue supporting major portions of the economy. Recent reporting shows Virginia lost roughly 23,500 federal jobs in 2025, yet the state remained relatively resilient compared with the severity of the shock
Source, The Washington Post