Lawmakers Revive Virginia Cannabis Legalization Effort In New Budget Compromise

Lawmakers in Virginia set the stage for legalizing adult-use cannabis sales statewide by approving a budget compromise on Monday.

The proposal is part of a $207 billion state budget. It now heads to Democratic Gov. Abigail Spanberger’s table, who indicated she will sign it. It includes the compromise to launch recreational cannabis sales by July 1, 2027, reported Cannabis Business Times.

The new policy changes include raising possession limits for adults 21 and older from one ounce to two ounces, setting up a 6% cannabis excise tax, increasing it to 8% in 2029, and allowing up to 350 licensed dispensaries statewide.

Under the proposal, medical cannabis companies that already operate in the state can transition into the recreational market by paying a $10 million conversion fee.

While the new proposal includes equity-focused funding mechanisms, it also increases penalties for public consumption violations from $25 to $250. That, according to advocacy groups, threatens to disproportionately impact low-income and minority communities.

The latest push is the third time this year that Virginia lawmakers have attempted to advance the cannabis policy change, following a final deal reached through negotiations between Spanberger and Democratic leaders in the Virginia General Assembly.

The previous version of the bill was first passed in the legislature in March, only to be amended subsequently by Gov. Spanberger. The amended version was rejected by the state lawmakers in May.