Anniversaries are a time of celebration, and also of reflection, so as the Tobacco Commission celebrates its 25th year of existence, we are presented with an opportunity to look back on all that the Commission has accomplished and the impact it has had on the economies of Southern and Southwest Virginia. Back in 1999 there was, as Ross Perot called it, a “giant sucking sound" of manufacturing jobs going to Mexico as a result of 1994’s North American Free Trade Agreement or NAFTA. In Southern Virginia, that sound was deafening as the region’s textile and furniture manufacturers began reducing hours, cutting jobs or closing entirely. Unemployment rates in many communities were upwards of 20% and local economies began to atrophy. Southwest Virginia also started shedding manufacturing jobs, which was exacerbated by declines in the coal mining industry. Declines in the tobacco industry and changes to the quota system impacted manufacturing and farming in both Southern and Southwest Virginia.

The entire region was experiencing its greatest economic downturn since at least the Great Depression. For generations, work in tobacco, coal, furniture and textiles had supported communities and served as consistent sources of income for families across rural Virginia. With their decline, new solutions were needed. Fortunately, a major new resource from an unexpected source was on its way. In 1998, after years in the courts, a deal between 46 states and the country's four largest tobacco companies was reached. These states would soon be receiving billions of dollars to compensate them for smoking-related healthcare costs, and two legislators from Southern Virginia knew just where some of those dollars should go. Delegate Whitt Clement and Senator Charles Hawkins foresaw that a portion of the funds Virginia would receive could have a huge impact if they were utilized to spur economic growth in Southern and Southwest Virginia. This idea took hold, and what would become the Tobacco Region Revitalization Commission was created.

Since its founding 25 years ago, the Commission has awarded a total of $1.5 billion through nearly 2,500 grants. That level of investment leads to big impacts. Perhaps the biggest of these impacts occurred in workforce education, a topic near and dear to one of the Commission’s founding and most influential members, Senator Frank M. Ruff, Jr. Motivated by a simple but powerful idea, Senator Ruff said, “Our young people deserve opportunities, and our employers need good employees. We need young people to have that opportunity and a reason to remain a part of our communities. Getting them well trained for good paying careers close by will give them that opportunity."

This commitment to education as a pathway for economic advancement has been a central pillar of the Commission’s investment strategy since the very beginning, and it has resulted in over 12,500 residents of Southern and Southwest Virginia receiving GED credentials, more than 15,000 residents receiving financial aid for community college and more than 9,000 students receiving scholarships and loans for 4-year degree programs.

In addition to individual students, the Commission has invested heavily in our community colleges and helped stand up and expand important education hubs like the Southwest Virginia Higher Education Center in Abingdon and the Institute for Advanced Learning and Research in Danville. Through these investments, the Commission is achieving Ruff’s vision of creating opportunities for the citizens of Southern and Southwest Virginia, ensuring that the regions remain great places to live, to work and to raise a family.

Alongside workforce development and scholarships, another major category of Commission investment, 30% in total, has been in the sites and infrastructure needed to attract major new employers to the region. Developing raw land into shovel-ready sites is a long and expensive process, but the potential benefit to a region cannot be overstated. This reality makes the Commission’s sustained investment in this category especially impressive, and recent success has shown just how impactful it can be. Major high-quality manufacturing companies like Press Glass in Henry County, Iperion X in Halifax and PepsiCo in Wytheville’s Progress Park chose the Tobacco Region in large part because of investments made by the Commission. In November 2024, Governor Youngkin announced the region’s biggest economic development project to date: advanced battery component manufacturer Microporous will be investing $1.35 billion and creating over 2,000 jobs at the Southern Virginia Megasite at Berry Hill. While we celebrate these big wins, it’s important to note that the Commission made its first investment in Berry Hill in 2008, and in the years since, has awarded over $60 million in grants and loans for its development. It’s hard to imagine another funder willing to invest that much over such a long period, and this turns Berry Hill into “Exhibit A" when it comes to making the case that the Commission is an indispensable resource for the region.

One other especially important area in which the Commission made a truly transformational investment is broadband internet access. Having an early understanding of just how critical good internet access would be for economic growth and quality of life in rural communities, the Commission invested more than $150 million in this priority. This led to the installation of more than 3,000 miles of fiber, including critical backbone fiber, that has connected over 71,000 homes and businesses in the region. This investment made it possible for students to engage in virtual learning during the pandemic, brought telemedicine to residents in need, and has allowed the region to attract top employers, for whom broadband access is a requirement. Looking forward, the early investment in broadband will allow Southern and Southwest Virginia to bring AI and datacenter businesses to the region, which has already begun with the Microsoft datacenter in Mecklenburg. This forward-thinking investment has positioned the region well for future growth and opportunities.

So, as we look back on 25 years of the Tobacco Commission and its work, we can say for certain that the region is better off today, in part due to Commission investment, than it was 25 years ago. In Southwest Virginia, wages are growing at a faster rate than the state average. In Southern Virginia, some communities have done such a good job of attracting employers that they are struggling to find enough workers or houses for workers to live in. In short, the days of 20% unemployment and rampant vacancy that defined the Commission’s early years are far behind us, and the future, while not without its challenges, is indeed bright.

How do we continue to build on all of this success? The Commission is committed to continuing to invest in critical areas like workforce development, education, site development, agriculture, business development and place-making. However, more must be done. As the needs of our region change, so too must our programs. The Commission’s willingness to innovate is demonstrated by new programs, like the new Energy Ingenuity Program, Workforce Housing Pilot Program and our lending partnership with the Virginia Small Business Financing Authority that will help solve access to capital issues faced by many of our communities and businesses. By adapting to the evolving needs of the region and pursuing innovative strategies, the Commission is poised to continue driving economic growth and improving the quality of life for residents of Southern and Southwest Virginia for years to come.

Looking forward, the Commission is committed to doing what it has always done: listening to our partners, innovating when we can and taking a long-term view as we build a vibrant, economically diverse economy for Southern and Southwest Virginia. We thank everyone and every organization that has made our success, and more importantly the success of Southern and Southwest Virginia, possible over the last 25 years. We look forward to working with anyone who has a desire to make Southern and Southwest Virginia even better places to live and to thrive.