Virginia lawmakers have passed a bill to legalize recreational marijuana sales after reaching a compromise with the governor, following her earlier veto of a similar reform proposal.
On Monday, the Senate approved a wide-ranging budget bill that includes cannabis-related provisions by a 23–16 vote, while the House of Delegates backed it 71–22. The legislation now moves to Governor Abigail Spanberger, a Democrat, for final consideration.
“Today, with the passage of the biennium budget, Virginia also formally adopted its adult-use cannabis retail marketplace,” Sen. Lashrecse Aird (D), who sponsored the Senate version of the previous legalization measure and negotiated with the governor on the final agreement, told Marijuana Moment after the vote. “Countless leaders paved the way for this moment, and too many Virginians have experienced real consequences because of our delay in establishing this market. Now, that changes.”
“While our framework is not perfect, it protects consumers, supports small businesses and creates real economic opportunity,” she said. “Like the first steps we took years ago, today’s action is another milestone in a long journey as we continue to build, strengthen and support a safe, responsive and successful cannabis marketplace.”
Del. Paul Krizek, a Democrat who sponsored the earlier House version of the legislation, described approval of the revised plan as “a big deal, in more ways than one.”
“The language in the budget we just passed for the regulation of an adult-use retail cannabis marketplace reflects both Gov. Spanberger and the General Assembly’s shared focus on protecting consumers and children, encouraging entrepreneurs and equity, while ensuring strong penalties for bad actors, criminal organizations and illegal out-of-state operators,” he told Marijuana Moment. “Virginia has waited for this moment for more than five years, and finally can see the light at the end of the tunnel.”
The revised proposal contains several notable changes compared with the earlier bill passed by lawmakers this year, which was later rejected by the governor.
For instance, the plan now schedules the start of recreational marijuana sales for July 1, 2027. This aligns with amendments proposed by Spanberger to the earlier legislative framework, which had initially set January 1 as the intended opening date for the market.
The updated agreement also establishes a limit of 2 ounces for both public possession and individual purchase transactions, up from the existing one-ounce cap. In contrast, the earlier version approved by lawmakers this year had proposed allowing adults to carry up to 2.5 ounces.
The bill also accepts Spanberger’s proposal to raise the marijuana excise tax from 6% to 8% after two years of legal sales.
As part of the compromise, the revised agreement introduces a $250 civil fine for public marijuana use, up from the existing $25 penalty. This is less severe than the class 4 misdemeanor the governor had proposed in amendments to the earlier bill. However, the higher penalty would only begin on July 1 next year, leaving open the chance that legislators could revisit and potentially reverse the change in the next session.
Advocates have pushed back against the proposed increase in cannabis penalties, arguing that it could “deepen racial and economic disparities.”
The cannabis legalization bills were originally approved by lawmakers in March, but the governor later proposed amendments that included postponing the launch of sales by six months, raising tax rates, and introducing tougher penalties for cannabis users. However, in April, legislators chose not to consider those changes during a brief reconvened session, effectively turning them down, after which Spanberger proceeded to veto the measure.
Spanberger said last week that discussions with lawmakers on a compromise plan to legalize adult-use cannabis sales had been “really productive” and “incredible,” with Marijuana Moment earlier reporting on the ongoing negotiations.
After Spanberger’s veto, senior lawmakers have publicly floated the idea of adding measures to legalize adult-use cannabis sales into remaining budget legislation, which is expected to be passed by July 1.
The issue remained under active discussion during the first session of the legislature’s Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market, held after the governor’s decision to block the earlier proposal regulating adult-use marijuana sales.
The governor has also publicly defended her decision to veto the bill, saying she believes that “taking a little bit longer” to establish the market is not necessarily “negative,” arguing that ensuring the system is properly structured is more important than rushing its rollout.
A survey has found that a bipartisan majority of Virginia voters support Spanberger signing the cannabis legislation into law and disagree with her proposal to delay the rollout of legal sales.
In a recent interview, the governor admitted that her decision to veto the cannabis legislation has not been well received, noting that “a lot of people are not pleased,” including “friends and family.”
Spanberger has consistently pushed back against criticism from bill sponsors and advocates over her proposed cannabis changes, saying the revisions were informed by discussions with officials in other states that have already launched adult-use marijuana programs.
When asked by Marijuana Moment, a spokesperson for Spanberger did not disclose which governors she spoke with regarding cannabis policy.
The governor recently said in an earlier interview that she still supports launching a legal cannabis market, but expressed concern that the plan involved a “rushed timeline” and included “far more stores across Virginia” than she believes is appropriate.
In Virginia, personal possession and home cultivation of marijuana have been legal since 2021. However, former Governor Glenn Youngkin (R) twice rejected legislation that would have established a regulated system for legal adult-use cannabis sales.
Aird and Krizek, who sponsored the earlier legalization bills, encouraged fellow lawmakers to reject the governor’s proposed amendments, even if doing so could lead to a veto from Spanberger once the legislation reached her desk again.
Under the revised plan, adults would be permitted to buy up to 2 ounces of marijuana per transaction, or an equivalent quantity of other cannabis products as defined by regulators. This raises the limit from the current one-ounce allowance. Earlier legislation had set the cap at 2.5 ounces, while the governor had proposed a lower limit of 2 ounces.
The start date for legal cannabis sales has been set for July 1, 2027. This represents a compromise, as earlier legislation proposed beginning on January 1, 2027, while the governor had advocated for a later rollout on July 1.
There is also a broader set of tax changes included in the deal. The legislation introduces a 6% excise tax on cannabis sales, alongside the existing 5.3% state retail sales and use tax, while allowing local governments to add up to an additional 3.5% tax. Starting July 1, 2029, the state excise tax would rise to 8%, matching a change previously proposed by the governor in her earlier amendments.
