Virginia’s Regulatory Reforms Keep Business Booming, While Other States Struggle with Heavy-Handed Rules

Thanks to targeted regulatory reforms that fuel economic growth without stifling innovation, Virginia has cemented its national reputation as a business powerhouse. Back in 2019, Virginia was named America’s top state for business by CNBC. “We went from number three to number one because of our regulatory reform,” Virginia Delegate Michael Webert explained. This success was sparked by a three-year regulatory reform pilot project in collaboration with the Mercatus Center at George Mason University and several other groups.

The success of that initiative paved the way for Governor Glenn Youngkin’s creation of the Office of Regulatory Management (ORM), designed to “improve the lives of Virginia citizens by modernizing regulatory policy and creating a best-in-class regulatory system,” according to its website.

“Across the country, you see various efforts to rein in state bureaucracy,” Webert noted. “It’s nice to have a singular office that focuses on that and acts as a facilitator for all branches and agencies alike.”

Webert takes pride in Virginia’s achievements, telling Think American News, “The burden of government is so large that the average citizen has no idea how much it can oppress businesses and keep folks out of the marketplace.” This year, Governor Youngkin’s administration has doubled down on its efforts by strategically eliminating more burdensome regulations.

Delegate Webert supports Youngkin’s plan to make it easier for businesses of all sizes to thrive in the Commonwealth. He continued, “from zoning to labor to proper handling of products, there’s a lot more regulation going into things than people realize. If we can soften that burden, businesses become much more productive.”

These reforms have focused on streamlining processes for business, cutting red tape that has historically hindered growth, and reducing compliance costs, especially for small and medium-sized enterprises. By limiting unnecessary government intervention, Virginia has attracted major industries like technology and manufacturing while encouraging innovation across sectors.

Governor Youngkin’s regulatory approach emphasizes transparency, with the state’s Unified Regulatory Plan developed through significant input from both business leaders and the public. This collaborative process ensures that Virginia’s regulatory environment remains competitive while aligning with industry needs. Workforce development and infrastructure have also been key areas of focus, positioning Virginia as a leader in both tech and traditional manufacturing sectors.

In contrast, states burdened by heavier regulations are facing mounting challenges. California, for instance, has seen its business climate dampened by stricter environmental and labor regulations, which many argue have increased costs and driven businesses out of the state. Similarly, New York has grappled with regulatory complexity, which has hindered business innovation, particularly in financial and real estate sectors.

Virginia’s success stems from its balance between fostering a business-friendly climate and maintaining necessary environmental and labor standards without over-regulating industries. By prioritizing economic growth and limiting government overreach, the state has emerged as a national leader in job creation and business retention. The results are evident as companies continue to flock to Virginia, ensuring that its economy remains strong and resilient in an ever-competitive national landscape.

Webert pointed out that Governor Youngkin’s business policies are immensely popular. “Just reducing that burden means that the business community in Virginia understands they’re given the benefit of the doubt, as opposed to the massive hand of government being upon them,” Webert said, noting how small businesses across the state are thriving.

As other states struggle to balance regulation with economic growth, Virginia’s model demonstrates the power of a strategic, measured approach to governance, offering a clear example for the rest of the nation.

For Webert, the reforms have “streamlined the process,” making it “easier for businesses to be compliant” and keeping Virginia at the top of the list of business-friendly states.