The Special Subcommittee on Federal Impacts to Resources convened on April 2, 2025, at 9:30 AM in SR A (305) to discuss pressing issues affecting businesses in Virginia. The meeting highlighted significant concerns regarding trade, tariffs, and their implications for local firms.

The discussion opened with a focus on trade and tariffs, which emerged as the top concern among businesses, with approximately 30% of firms citing it as a major issue. Inflation was also noted as a rising concern, while uncertainty in the business climate made its way into the top five concerns for the first time in several years. The political climate and election-related worries did not diminish as much as anticipated, despite the survey being conducted after the recent elections.

The committee examined how trade and tariffs specifically impacted firms' expectations regarding their prospects. Analysis revealed that firms heavily engaged in trade with Canada, China, and Mexico expressed lower optimism about their future, particularly concerning employment, revenues, and costs. This correlation was noted as significant, especially given that the survey was conducted shortly before the implementation of new tariffs in early March.

Further discussions addressed the anticipated effects of federal policy areas on hiring and capital spending. The trade tariff policy was identified as likely to decrease hiring among firms. In contrast, responses regarding regulatory policy were mixed, with an equal number of firms expecting either an increase or decrease in hiring. Corporate tax and immigration policies did not appear to significantly influence hiring expectations at this time, with most respondents indicating no anticipated changes.

In conclusion, the meeting underscored the ongoing challenges businesses face due to trade and tariff policies, alongside the broader uncertainties in the economic landscape. The subcommittee plans to continue monitoring these issues and their impacts on the workforce and business operations in Virginia.