Countdown to CNBC's America's Top States for Business Starts Wednesday, July 9

CNBC

11-06-2025

ENGLEWOOD CLIFFS, N.J., June 11, 2025 – Since the start of his second term, President Trump has worked to reshape the balance of power between the federal government and the states. This shift has significantly influenced how states compete for economic growth and job creation, resulting in essential changes in CNBC's 2025 rankings of America's Top States for Business.
Beginning Wednesday, July 9, CNBC will broadcast coverage of its 19th America's Top States for Business study. The network will present special coverage around the exclusive study with the rankings being revealed during the network's Business Day programming on Thursday, July 10. CNBC.com will feature the complete overall ranking for all 50 states and include an in-depth look at each of their corresponding rankings across the ten broad categories of competitiveness.
CNBC Special Correspondent Scott Cohn will broadcast live from the top-ranked state beginning on Wednesday and will announce the top five states on the 2025 list on "Squawk Box" (6AM-9AM ET) Thursday morning.
In addition, CNBC's digital destination, topstates.cnbc.com, will feature coverage of each state, including economic snapshots (employment, budget, tax, and housing data) and exclusive stories examining the unique issues facing them this year.
Follow CNBC on your favorite social media platforms and use #TopStates to join the conversation.
CNBC's exclusive study scores all 50 states on 135 metrics across ten categories of competitiveness. The methodology grades the states based on factors companies consider each year when making site selection decisions, and the states pitch in their efforts to win business. Then, the economic development marketing pitches of every state are analyzed to determine the appropriate weight for each category. The more weight a category carries, the more metrics it includes.
Here are the 2025 categories and weightings:
Economy (445 points: 17.8%)
Particularly in uncertain times, companies are seeking states with stable finances and solid economies. We examine the economic strength of each state by looking at GDP growth and job growth over the past year. We measure each state's fiscal condition by looking at its credit ratings and outlook, its overall budget picture including spending, revenues and reserves, as well as pension obligations. We rate the health of the residential real estate market based on multiple factors including inventory, price appreciation, equity, foreclosure activity and mortgage delinquencies, affordability, home seller gains, and property taxes. Because a diverse economy is important in any environment, we consider the number of major corporations headquartered in each state. We measure each state's entrepreneurial economy based on new business formations. New in 2025, we measure the states' tariff risks by considering the importance of international trade in relation to their overall economy, their dependence on trade with China in particular, and the potential costs of increased tariffs. We also consider the role of federal spending and employment in each state's economy, and their overall dependence on federal dollars. Also new in 2025, we consider the survival rates of new businesses.
Infrastructure (405 points: 16.2%)
Revitalizing domestic manufacturing, rebuilding supply chains and redefining the very nature of work takes a reimagined infrastructure. We measure the vitality of each state's transportation system by the value and volume of goods shipped by air, waterways, roads and rail. We look at the condition of highways and bridges, the availability of air travel, and the time it takes to commute to work. With skyrocketing demand for abundant, reliable power, we measure each state's electrical grid. Water demand is soaring too, so we evaluate the condition of each state's water and wastewater utilities. And, in an increasingly data driven world, we look at broadband connectivity. New in 2025, we also measure large-scale computing power in each state. We consider access to markets by measuring the population living within 500 miles of each state. We look at the availability of vacant land and office and industrial space, and we measure state site readiness programs in terms of their overall funding and the number of certified or "shovel ready" sites. We measure each state's sustainability in the face of climate change, looking at the risk of flooding, wildfires, and extreme weather. New this year, we also look at resiliency measures that allow states to withstand disasters.
Workforce (335 points: 13.4%)
With skilled workers in such short supply, and with the rising role of advanced manufacturing, the definition of a qualified worker is expanding. In addition to measuring each state's concentration of science, technology, engineering and math (STEM) workers and the percentage of workers with college degrees, we also consider workers with associate degrees and industry-recognized certificates. We look at which states are most successful in attracting talent at all levels, considering the net migration of educated workers to each state, and how states are faring in the competition to attract skilled workers. We look at state worker training programs, right to work laws, and worker productivity based on economic output per job.
Cost of Doing Business (295 points: 11.8%)
With costs a growing concern amid recession fears and persistent inflation, we look at what each state's ability to ease business expenses. We consider the competitiveness of each state's tax climate. We also measure wage and utility costs, as well as the cost of office and industrial space. With the nationwide insurance crisis spreading, we are looking more closely in 2025 at the cost of property-casualty insurance, along with forecasted premium increases. We consider the incentives and tax breaks that states offer to reduce business costs, and we consider available incentives targeted toward development in disadvantaged communities.
Business Friendliness (270 points: 10.8%)
Companies follow the path of least resistance. That includes a legal and regulatory framework that does not overburden business. We measure each state's lawsuit and liability climates, regulatory regimes covering areas such as trade and labor, as well as overall bureaucracy. As companies race to build new facilities and expand existing ones, we look at state land use regulations. We also consider how hospitable states are toward emerging industries including artificial intelligence and cryptocurrency, giving them a framework for growth without stifling innovation.
Quality of Life (265 points: 10.6%)
With workers in short supply, companies are seeking to locate in states that can attract a broad array of talent. That makes quality of life an economic imperative. We rate the states on livability factors like per capita crime rates, environmental quality, and health care. With studies showing that childcare is one of the main obstacles to employees entering the workforce, we consider the availability and affordability of qualified facilities. We look at worker protections including livable wage policies, paid leave, and rights to organize. We look at inclusiveness in state laws, including protections against discrimination of all kinds, as well as voting rights and secure election systems. And with surveys showing a sizeable percentage of younger workers would not live in a state that bans abortion, we factor reproductive rights in this category as well.
Technology & Innovation (255 points: 10.2%)
Truly competitive states prize innovation, nurture new ideas, and have the resources to support them. We measure the states based on results, including the number of patents issued per capita. We also consider federal health, science and agriculture research grants. But with many of those programs now on the chopping block under the Trump administration, we also measure each state's risk from cuts and changes in grant formulas. We also consider which states provide their own support for research and development, independent of the federal government. With domestic semiconductor research, development and manufacturing taking center stage, we look at how each state's place in this crucial technological ecosystem. And we measure each state's role in the artificial intelligence revolution in terms of where new AI models are being developed and where the AI jobs are.
Education (110 points: 4.4%)
A state's education system is its main source for talent and an engine of innovation. It is also a key consideration for companies and families deciding where to put down roots. We look at multiple measures of K-12 education including test scores, class size and spending. We consider the number of colleges and universities in each state as well as long-term trends in state support for higher education. We also consider historically Black colleges and universities (HBCUs), which companies are increasingly seeking to partner with. With the search for talent expanding to include employees with marketable, industry-recognized skills, we measure each state's community college and career education systems.
Access to Capital (60 points: 2.4%)
Companies large and small need ready access to financing. We look at venture capital investments in each state, as well as traditional bank lending by state in relative and absolute terms. We also look at state-backed capital assistance and loan guarantee programs. And we measure foreign direct investment in each state.
Cost of Living (60 points: 2.4%)
With inflation persisting, companies and workers are seeking states where prices are stable and daily living is affordable. The cost of living helps drive the cost of doing business. We measure the states based on an index of costs for basic items. With a deepening national housing crisis, we are looking more closely at housing costs in 2025, considering the impact for both homeowners and renters. And as the insurance crisis spreads, we consider the cost to insure a median priced home in each state.