The Special Subcommittee on Federal Impacts to Resources convened on May 20, 2025, to discuss pressing economic concerns affecting Virginia. The meeting highlighted significant issues regarding the lagging economic data in relation to ongoing policy changes, particularly in the context of international trade and tariffs.

A key point raised during the meeting was the decline in forward-looking container bookings, especially from China, which suggests that the state may face supply chain challenges in the coming months. Experts warned that if demand for goods in the United States increases, the availability of shipping containers could be limited, as vessels may be redirected to other markets. This situation could lead to rising prices and shortages as inventories deplete over the summer and fall.

The discussion also touched on the impact of tariffs on supply costs and economic uncertainty. Anecdotal evidence from the Federal Reserve's beige book indicated that tariffs are affecting capital expenditures and hiring plans among businesses. While these anecdotes may initially seem subjective, they could signal broader economic trends if they accumulate.

Virginia's economy is particularly vulnerable to federal policy changes, with anticipated reductions in federal employment likely to decrease state tax revenues. The subcommittee expressed concern that persistent tariffs would further lower traffic through the Port of Virginia, exacerbating economic challenges.

Looking ahead, experts projected that Virginia might struggle to achieve more than 2% growth in 2025, with potential job losses and GDP growth falling below 1%. The meeting underscored the importance of monitoring these economic indicators and the need for responsive policy adjustments to mitigate adverse impacts on the state's economy.