Boeing announced Wednesday that it will move its Defense, Space & Security headquarters to St. Louis, MO, where the division was based from 1997 to 2017. The unit had been relocated to Chicago, IL and then Arlington, VA in 2022 during former Republican Gov. Glenn Youngkin’s administration.

The move affects approximately 18,000 employees. Department of War Secretary Pete Hegseth joined Missouri Gov. Mike Kehoe and Sen. Eric Schmitt at Boeing’s north St. Louis plant Wednesday to celebrate the relocation, calling it a shift “to the heartland of America.”

“You are the patriots that are key elements to ensuring peace through strength,” Hegseth told employees. Boeing Defense, Space & Security CEO Steve Parker said the decision reflects the company’s “continued focus on disciplined performance across our business.” Schmitt added, “St. Louis is the beating heart of America’s defense industrial base. The next-generation fighter aircraft, the F-47, will be made in Boeing St. Louis.”

During the Youngkin administration, Virginia enacted tax reforms and regulatory changes designed to attract industry, with Youngkin personally involved in securing Boeing’s move to Arlington. The recent relocation comes amid expectations that business conditions in Virginia could shift under Spanberger, who took office in January and whose administration and Democrat-led legislature have already proposed multiple tax increases and policy reversals.

Lawmakers have also introduced legislation requiring certain government contracts under $100,000 to be awarded to minority- and women-owned businesses, with DEI-based targets for executive-branch contracts.

Spanberger’s office did not immediately respond to requests for comment on Boeing’s relocation.