AGP Executive Report

Gun-Law Showdown: The U.S. Justice Department sued Virginia over new semi-automatic firearm restrictions, arguing they violate the Second Amendment as multiple court fights gear up. Energy & Land-Use: Virginia lawmakers advanced clearer rules for solar and battery storage, aiming to give counties workable guardrails while keeping local control. Data Centers & Power Demand: A new wave of reporting spotlights how AI-driven data center growth is colliding with heat, grid strain, and rising household bills—fueling calls for moratoriums and tougher planning. Critical Minerals: IperionX says it completed its Camden acquisition, positioning ultra-high-grade surface stockpiles to speed U.S. titanium and rare-earth supply chains. Defense Industrial Base: Norfolk Naval Shipyard coverage focused on the paint shop, supply operations, and material sourcing—day-to-day work that keeps warships ready. Tech & Services: GTT earned a top-10 spot on the 2026 MSP 501 managed services ranking, underscoring Virginia’s growing role in enterprise IT. Local Business: A Henrico home sold for $460K over asking after pre-listing design consultation and staging.

Gun Policy in Court: The U.S. Justice Department sued Virginia over its new semi-automatic “assault weapons” ban, while multiple localities won injunctions that delay the July 1 start—setting up a fast-moving Second Amendment showdown. Cannabis Rollout: Virginia finalized the timeline for a regulated retail marijuana market, with hemp rules shifting under the Cannabis Control Authority in August 2026 and retail opening planned for July 2027. Higher Ed Costs: VCU approved a 3.9% tuition increase next year as military waiver costs and staffing expenses rise. Road Safety: A bus driver in a fatal I-95 crash in Stafford County pleaded not guilty to involuntary manslaughter. Data Centers & Energy: A Virginia budget locks in major data-center tax changes, while debate continues over power demand, planning, and local impacts. Health Care: UVA Health highlighted living organ donation to reduce waits for kidney and liver transplants. Workforce/Industry: Micron announced a $250M “Trump Accounts” investment aimed at supporting up to one million children across states where it operates.

Virginia Infrastructure & Traffic: Route 33 westbound in Harrisonburg will close for about 10 days starting July 6, with I-81 exit 247 ramp restrictions and detours in place while crews finish paving and striping for the bridge/interchange project. Energy Grid & Power Projects: The SCC approved Route 3A for Dominion’s Golden-Mars 500-kilovolt transmission line project in Loudoun County after the school board declined consent for the commission’s preferred Route 4. Data Centers & Electricity: With extreme heat stressing the mid-Atlantic grid, the DOE allowed PJM to potentially require data centers to run backup diesel generators beyond typical emissions limits—raising public health and air-quality concerns in Virginia’s data-center boom. Semiconductors for Auto Manufacturing: Micron and GM signed a strategic supply agreement for memory and storage platforms, supported by Micron’s Virginia manufacturing footprint. Defense Manufacturing in Virginia: IperionX won up to $6.6M from the OSW-SWIB program to scale high-performance titanium plate for defense applications, expanding large-format titanium component production in Virginia. Local Governance: Nelson County supervisors voted to study relocating school administration offices to the high school to free courthouse space for the commonwealth’s attorney.

Energy & Policy: Gov. Abigail Spanberger signed 18 energy bills, including steps to rejoin RGGI and a new credit meant to offset higher power bills, while also pushing protections so data centers and other high-load users don’t leave families holding the tab. Agriculture: USDA issued a federal disaster declaration for Virginia counties hit by late spring frost and freeze, unlocking relief for farmers and forestry. Economic Development: GO Virginia released $5.6M in Growth and Opportunity grants, including funding to ready an industrial park site in Washington County for advanced manufacturing, food processing, and logistics. Food Safety: Clover Hill Dairy’s listeria-linked cheese recall continues to ripple, with reports of one death and multiple illnesses tied to products sold across several states including Virginia. Workforce & Education: Radford University and Virginia Western Community College launched a “two-plus-two” transfer pathway connecting data, tech, business, and AI careers. Transportation: VDOT provided updates on the Vesta section of the U.S. 58 widening project, with construction slated to ramp up in 2026 and run through 2031. Public Health & Community: Sussex County opened cooling stations ahead of an extreme heat watch into the July 4 holiday.

Space & Defense: Rocket Lab is betting big on competition with SpaceX by buying Iridium in an $8B deal aimed at satellite communications, while Amentum won NASA’s COSMOS contract to support mission operations and systems. Public Health & Food Safety: A listeria-linked Clover Hill Dairy outbreak keeps widening, with La Ceiba Foods recalling requesón sold in Maryland, Virginia, and D.C. Virginia Cannabis Industry: Virginia’s budget-backed law clears the way for adult-use retail sales starting July 1, 2027, with up to 350 shops expected—Jushi says it’s ready to scale cultivation, manufacturing, and retail. Data Centers & Energy Policy: Virginia’s new two-year budget adds a per-kilowatt-hour tax on data center electricity use, while Digital Realty agreed to buy Blackstone’s stake in three Northern Virginia data centers in a $7.8B transaction. Tech & Education: Amentum?—no, Marketon installed hologram teaching tools at Columbia College in Vienna, signaling more immersive classroom tech in Virginia. Weather & Infrastructure: A heat dome is forecast to push extreme temperatures in the Staunton area July 1-3, raising pressure on local systems.

Virginia Budget Deal: Virginia lawmakers finalized Gov. Abigail Spanberger’s $207B two-year budget with 14 amendments, including 4% teacher raises, 3.5% state employee raises, and a new $600M-a-year electricity fee on data centers after months of brinkmanship. Recreational Cannabis Rollout: Virginia approved a regulated path for recreational marijuana retail sales, with regulators taking retail license applications starting Feb. 1, 2027 and stores opening July 1, 2027 (up to 350 shops). Power & Industry Pressure: A first-in-the-nation electricity tax on data centers is now law, while a separate push continues in Washington over the NextEra–Dominion megamerger, with Sen. Angus King urging regulators to reject it. Food Safety: The Clover Hill Dairy listeria outbreak grew to 12 cases across Illinois, Maryland, New York, and Virginia, adding Illinois to the list of affected states. Local Business & Jobs: Hitachi Energy broke ground on a $457M South Boston expansion expected to create 825 new jobs, expanding transformer production for electrification demand. Infrastructure: VDOT opened a new Route 58 eastbound flyover ramp in Suffolk to improve safety at the SPSA landfill entrance.

Data Centers & Power Costs: A new analysis warns meeting AI-driven electricity demand could add tens of billions to bills by 2030, with fossil-heavy buildouts potentially costing customers $30B to $40.5B a year. Virginia Budget & Governance: Virginia lawmakers return Monday to weigh Gov. Spanberger’s 14 amendments to the roughly $205B budget before the fiscal deadline, with changes aimed at lowering costs and funding services. Local Infrastructure Planning: Arlington’s 10-year capital plan leaves no money for new library facilities near Columbia Pike, despite resident pressure to revive or expand the corridor’s library. Cyber & Public Safety Tech: Cycurion agreed to buy Kustom Entertainment’s Legacy Video Solutions unit, bringing in in-car video, body-worn cameras, and evidence management plus a patent portfolio. Construction & Semiconductors: Skanska USA Building named Bryan Northrop to lead its Advanced Technology unit covering semiconductor and data center projects across Virginia and other states. Health Tech Leadership: Surescripts hired Laura Moran as President and Chief Commercial Officer to lead its unified commercial organization. Space & Defense Industry: Rocket Lab struck a deal to acquire Iridium in a major vertically integrated space communications push. Energy Industry Politics: Reporting says a NextEra-Dominion megamerger is being pitched to Virginia lawmakers as grid investment ramps up, while critics warn about oversight timing and influence. Cannabis/ Hemp Compliance: Virginia’s hemp-to-legal-cannabis transition is raising questions for retailers as federal hemp definitions shift and the legal market is set to start next summer. Solar Recycling Progress: Comstock Metals says industry-scale solar panel recycling equipment has arrived and key unit operations are being commissioned.

Defense & Tech Procurement: Lockheed Martin landed a $2.2B F-35 maintenance contract, underscoring continued Pentagon spending momentum. Space & Microelectronics: BAE Systems in Manassas hit a testing milestone for its Endura rad-hard space processor, aiming to speed up defense satellite computing. Energy & Water: Virginia’s drought outlook is tightening around metro Richmond, with an advisory expected July 1 if James River flows don’t rebound. Data Centers & Power: A new DEA hearing in Arlington, Virginia, is set to weigh marijuana rescheduling—while separate coverage keeps spotlighting how data centers are reshaping electricity demand and local costs. Public Safety: A Virginia judge denied a bid to pause the state’s new assault firearms restrictions, keeping them on track for July 1. Local Industry & Infrastructure: A new trail connection opened at Seven Bends State Park, expanding access to Shenandoah Valley public lands. Maritime & Clean Shipping: Lawmakers reintroduced the Next Generation Shipping Act to fund clean shipping technology and infrastructure.

Cannabis & Small Business: A Virginia Beach grow-equipment CEO says the proposed recreational cannabis compromise could finally create jobs and a clearer path for entrepreneurs, while still raising questions about seed restrictions. Forestry Leadership: Tennessee appointed Heather Slayton as state forester, tasked with managing 168,000 acres of state forests and supporting forest health, landowners, and wildfire prevention. AI Governance: UVA professor Renée Cummings is promoting “GOVERN™,” arguing AI readiness must start inside organizations, not just government. Richmond History: Churches led a “Walking With the Enslaved” pilgrimage tracing Richmond’s slave-trade “slave trail,” linking past to present through walking, silence, and spirituals. Venezuela Earthquake Response: Virginia Task Force 1 and other U.S. teams rescued an infant and mother from rubble as search efforts continue after deadly quakes. Data Centers & Cost Control: AWS previewed an AI-driven FinOps Agent to investigate AWS cost anomalies and route findings to teams. Virginia Agriculture: Southside farmers report extreme drought impacts, with forage production down sharply and livestock feed concerns rising.

Data Centers & Energy Policy: Virginia’s budget conference report adds a new consumption tax and fresh rules aimed at power-hungry data centers, with the industry still stuck in unresolved fights over exemptions and energy sources. Offshore Minerals: BOEM opened a 30-day public comment period on potential marine mineral leasing off Virginia’s coast, seeking input without committing to any lease sale. Agriculture Relief: USDA issued a secretarial disaster declaration for 43 primary and 61 contiguous Virginia counties hit by spring frost and freeze, unlocking federal help for growers. Active Transportation: VDOT and Transurban opened the 495 Express Lanes Extension bicycle and pedestrian trail in McLean, adding a 2.5-mile shared-use path and safer crossings. Food Safety: Reser’s recalled mislabeled “Molly’s Kitchen” pasta salad tubs sold into Virginia due to undeclared egg and milk allergens. International Response: The U.S. sent more than 250 search-and-rescue personnel, including teams from Fairfax County, to support Venezuela earthquake efforts.

Agriculture Relief: Gov. Abigail Spanberger says USDA Secretary Brooke Rollins has issued a Secretarial Disaster Declaration covering 43 Virginia primary disaster counties plus 61 contiguous counties after late-spring frost and freeze damage, aiming to help farmers and forestry producers through a likely delayed harvest. Defense & Manufacturing: L3Harris broke ground on two new PAC-3 propulsion facilities in Camden, Arkansas, to expand U.S. Army interceptor output with new assembly and case-prep space and AI-assisted inspection. Public Safety & Courts: A Lancaster County judge issued a preliminary injunction blocking Virginia State Police from enforcing the new assault weapons ban, setting up an immediate appeal from AG Jay Jones. Energy & Data Centers: Virginia’s data-center power tax and ongoing debates over incentives and water/air impacts keep pressure on localities and lawmakers as AI demand drives construction. Offshore Minerals: The Trump administration is seeking input on a potential first federal lease for seabed mineral mining off Virginia’s Eastern Shore, drawing both industry interest and environmental concern. Health Tech: NASA tested a drone delivering a kidney from its Langley Research Center in Virginia, pointing toward faster organ transport routes between hospitals. International Shipping/Defense Ties: India’s INS Sudarshini arrived at the Port of Baltimore after sailing through the Norfolk-to-Baltimore route, continuing Sail250 outreach with U.S. naval partners.

Data Center Tax Fight: Virginia lawmakers approved a new two-year tax on certain data center electricity use ($0.011 per KWh, starting July 1, 2026), with details on scope and how refunds would work—while localities and utilities keep debating costs and grid impacts. Local Governance & Utilities: Hanover County is weighing how to handle data center development and equipment taxes, with staff drafting a policy approach instead of immediately raising rates. Energy Affordability: State Sen. Bill Stanley rolled out proposals aimed at lowering utility costs and boosting billing transparency, including limits on how RGGI-related expenses could be recovered. Public Safety—Pools: A new Virginia law taking effect July 1 tightens safety requirements for public aquatic facilities after 97 child drowning deaths since 2021. Food Safety: Clover Hill Dairy cheese products face expanded Listeria-related recalls in Maryland, and Reser’s Fine Foods recalled mislabeled ready-to-eat pasta salad that may contain undeclared egg and milk allergens. Defense & Industry: L3Harris broke ground on expanded PAC-3 propulsion facilities in Arkansas, signaling continued ramp-up for U.S. missile production. Tech Security: QWERX announced general commercial availability of its device authentication platform for enterprises, targeting risks from static credentials. Health Care Construction: VCU Health broke ground on a new Pauley Heart Center outpatient pavilion in Richmond’s Diamond District, slated to open in 2028.

Agribusiness & Local Infrastructure: Wythe County Cannery repairs are underway for apple butter season after a boiler failure, funded by a $50,000 Governor’s Agriculture and Forestry Industries Development Infrastructure Grant. Plant Health & Regional Services: RTEC Treecare (Northern Virginia) acquired Maryland-based Integrated Plant Care, expanding plant health care coverage across the region while keeping service continuity for existing clients. Food Safety: The FDA classified a major recall of 684,248 bags of Zapps and Dirty chips as Class I due to potential Salmonella exposure tied to a seasoning ingredient. Energy & Environment: Virginia levied a $106,288 civil penalty on a Halifax County solar project developer over erosion and sediment control violations at the Alton Post Office Solar site. Construction & Municipal Growth: Cape Charles awarded a $6.22 million contract for a new municipal building to consolidate town operations. Workforce & Education: YouthBuild graduates highlighted how the program pushed them into accountability and construction-trade pathways, including GED/diploma completion and apprenticeship track goals. Policy & Courts: The U.S. Supreme Court cleared the way to end Temporary Protected Status for Haitians and Syrians, with major ripple effects for nursing homes and employers. Defense & Tech: Fortrea named Jason Knoblauch as CFO, effective July 6, as the CRO continues its push back toward growth. Virginia Business & Alcohol: Virginia’s alcohol industry is urging lawmakers to protect ABC agent staffing as regulatory responsibilities shift toward the new Cannabis Control Authority. Data Centers & Power Costs: Virginia’s budget amendment would return part of RGGI funds to ratepayers, while utilities face new carbon-credit purchase requirements.

Gun Safety & Courts: A Lancaster County judge blocked Virginia’s assault weapons ban before it takes effect July 1, with state police enforcement paused while the case plays out. Public Safety Tech: Roanoke is removing 30 of 41 gunshot detector sensors after they were installed at the wrong addresses. Data Centers & Water: New Virginia rules will require more detailed water-use reporting tied to data-center activity, as drought conditions heighten scrutiny of power and water impacts. Energy & Industry: BOEM has opened a first step toward potential commercial mineral mining off Virginia’s Eastern Shore, seeking interest for leasing marine minerals. AI & Regulation: The NRC says AI has already cut nuclear licensing review timelines, and the agency is looking to expand those gains. Environment & Agriculture: Sterile grass carp were released into Smith Mountain Lake to target invasive hydrilla. Legal/Policy Backdrop: The U.S. Supreme Court cleared the way for ending Temporary Protected Status for many Haitians and Syrians, while also ruling on Monsanto Roundup liability and striking down a Hawaii gun law.

Data Centers & Power Costs: A new wave of debate is heating up over whether AI data centers should pay for grid strain—consumer advocates warn costs could land on residential electric bills, while industry argues the projects bring jobs and local infrastructure. Grid Bottlenecks: Construction is being delayed not by chips but by missing grid hardware and long interconnection timelines, with roughly half of planned 2026 data centers reported stalled. Virginia Policy Watch: Virginia’s budget fight over data center tax exemptions is still shaping the state’s final deal, as lawmakers push for revenue and regulators move to speed grid access. Workforce & Training: Danville backed an OSHA General Industry Safety and Health program, graduating 28 professionals to help local employers reduce workplace hazards. Environment & Cleanup: Virginia lawmakers approved emergency funds to contain toxic leachate from the bankrupt Shoosmith Landfill in Chesterfield, aiming to prevent a larger environmental disaster. Health Tech: DeepHealth won FDA clearances for new AI breast imaging tools, including arterial calcification assessment and prior exam integration. Local Business: RYAM named a new CEO as it continues a strategic review that could include a sale.

Food Safety: Clover Hill Dairy is expanding a cheese recall after illnesses, hospitalizations, and a death tied to Listeria monocytogenes; the recall covers all Clover Hill Dairy cheeses now on the market, sold across multiple states including Virginia. Workforce & Industry: Mesabi Metallics is building its DR-grade iron ore pellet operation near Nashwauk and says it’s already hired about 200 people, including a new wave of Gen Z workers alongside experienced operators. Transportation: NCDOT and contractors are pushing construction on North Carolina’s S-Line passenger rail upgrades that will connect faster with Virginia, including major grade-separation bridge work. Public Safety Tech: Christiansburg police chief Chris Ramsey addressed resident concerns about ALPR “Flock” cameras, clarifying how the system works and what law enforcement can’t do. State Policy & Accountability: Virginia AG Jay Jones highlighted firearm industry accountability laws taking effect July 1. Defense & Space Infrastructure: NASA’s watchdog warns Kennedy Space Center and Wallops are nearing capacity for Artemis and commercial launches, with a need for about $1B in upgrades. Local Governance: Prince William supervisors deferred a decision on Dominion Energy’s Vint Hill switching station, citing concerns about SF6 and requesting more information. Business & Growth: ROC is acquiring Virginia-based ZTC to expand end-to-end investigative biometric video intelligence for government and public-safety customers.