Major Defense Contractor Flees Spanberger’s Virginia Just Weeks After She Takes Office

Just over a month into Democratic Virginia Gov. Abigail Spanberger’s term, one of the nation’s largest defense contractors is moving its headquarters out of her state.

Boeing announced Wednesday that it will relocate its Defense, Space & Security headquarters to St. Louis, where the division was based from 1997 to 2017. The company previously moved the unit to Chicago and then to Arlington in 2022 during the administration of former Republican Gov. Glenn Youngkin.

The move represents a significant shift for Boeing, which employs roughly 18,000 people in the St. Louis region. Department of War Secretary Pete Hegseth joined Republican Missouri Gov. Mike Kehoe and Sen. Eric Schmitt at Boeing’s north St. Louis plant Wednesday, where he praised the relocation and highlighted the decision to move resources “to the heartland of America.”

“You are the patriots that are key elements to ensuring peace through strength,” Hegseth told a crowd of employees.

Steve Parker, Boeing Defense, Space & Security CEO, said the decision reflects the company’s “continued focus on disciplined performance across our business.”

“St. Louis is the beating heart of America’s defense industrial base,” Schmitt said in a statement. “Our mechanics, engineers, and technicians have built some of the greatest machines ever employed by our military and the next-generation fighter aircraft – the F-47 – will be made in Boeing St. Louis.”

During the Youngkin administration, the state enacted tax reforms and regulatory changes aimed at attracting new industry. The former governor was reportedly personally involved in securing Boeing’s headquarters move at the time, calling the decision evidence “that the commonwealth is the premier location for aerospace companies.”

The new relocation, less than five years later, may signal that businesses expect a less favorable climate under Spanberger, who assumed office in January.

Since taking office, Spanberger and the Democrat-led state legislature — which made significant gains in the 2025 election — have moved to reverse several Youngkin-era policies and have introduced dozens of tax-increase proposals.

Democratic lawmakers have also proposed legislation requiring certain government contracts valued at less than $100,000 to be awarded to minority and women-owned businesses. The bill would direct Virginia’s executive branch to set a target of awarding at least 42% of its contracts based on diversity, equity, and inclusion (DEI) criteria, while also requiring that a portion of contracts under $100,000 be set aside specifically for DEI-qualified businesses.

Spanberger’s office did not immediately respond to the Daily Caller News Foundation’s request for comment.