Gov. Spanberger and General Assembly compromise on adult-use sales; language inserted in the final budget, and other bills become law

In 2021, Virginia became the first state in the South, and the 17th in the nation, to legalize cannabis for adults. However, key parts of the law required “re-enactment” but were not re-enacted, so sales remain illegal and unregulated. In 2024 and 2025, the General Assembly passed adult-use sales bills, but then-Gov. Glenn Youngkin (R) vetoed them. The statewide election of November 2025 brought in a new governor who campaigned on being ready to sign adult-use sales legislation. However, Gov. Abigail Spanberger (D) vetoed legal sales bills after the General Assembly rejected her rewrite of them.

The patrons of the adult-use sales bill did not give up and inserted a compromise bill into the budget, which was signed by Gov. Spanberger on June 30, 2026. The compromise includes some provisions the governor outlined in her heavily-amended version of the legislation passed by the General Assembly earlier this year. You can read an overview of the adopted bill here. Virginia will be the first Southern state to have a comprehensive legalization law in place. The compromise language includes:

• Personal possession amounts will increase from one ounce to two ounces
• Adult-use sales will begin on July 1, 2027
• There will be up to 350 stores across the Commonwealth
• The retail tax will increase from 6% to 8% on July 1, 2029 (in addition to the 5.3% sales tax, and localities may add a 1% to 3.5% tax)
• The Virginia Cannabis Control Authority (VCCA) will regulate all cannabis products, including hemp products
• The VCCA will be governed by a five-member board appointed by the governor

The compromise includes raising the civil fine for public consumption of cannabis products to $250, from the current civil fine of $25. This and other new penalties will go into effect on July 1, 2027, so this increase can be altered in the next legislative session. Possession by those under 21 will remain a $25 civil fine, but will also include mandatory participation in a substance abuse program, education program, or both. This compromise was critical because the governor had wanted misdemeanor criminal charges for those violations.

Only possession and home cultivation of modest amounts of cannabis are currently legal for adult use in Virginia. Adults can legally possess and share up to one ounce of cannabis and cultivate up to four cannabis plants at their primary residence. In 2026, the General Assembly passed HB642/SB542, which finally legalized and regulated adult-use sales. On the last day to decide the fate of the bills, Gov. Abigail Spanberger (D) sent a re-written version of the bills rather than giving specific amendments the General Assembly could evaluate on a case-by-case basis. She added hefty criminal penalties and even attempted to overturn the decriminalization of public consumption of cannabis, a successful bipartisan policy passed in 2021. The General Assembly rejected the governor’s amended version of the bills, and she then vetoed the legislation. Neither the governor nor her legislative team engaged with the House of Delegates or the state Senate patrons (bill sponsors) on the details during repeated opportunities during the session. The governor and the General Assembly did compromise and the amended language was added to the budget signed on June 30, 2026. Legal sales will commence on July 1, 2027.

Many other cannabis victories in 2026

Despite Gov. Spanberger’s adult-use sales veto, and eventual compromise, there were many victories in the 2026 legislative session. Legislation was signed into law to protect parents from being considered child abusers based solely on the responsible use of cannabis (HB942). Legislation also passed to allow for the resentencing of people previously convicted of some cannabis violations (HB26/SB62). SB 230, which is also now law, expands the expungement of records for prior cannabis convictions that are now lawful activity. SB543 will explore the penalties and increase enforcement for those who continue to sell cannabis and hemp products outside the regulatory system.

Another new law, HB75, will allow hospital staff to possess and administer medical cannabis to patients. Staff in nursing homes and hospice facilities have been authorized to provide these services since 2021. HB391 expanded delivery options for patients and packaging requirements. Finally, SB332 will create a working group to try to create policies to safely administer medical cannabis to terminally ill patients.

Odor of cannabis can no longer be used as a pretext for searches

During a special session in late 2020, both chambers of the Virginia General Assembly approved, and then-Gov. Ralph Northam (D) signed, a modest cannabis reform bill — SB 5029.

This legislation prevents law enforcement from using the odor of cannabis as a pretext for searching and seizing property. In 2026, SB12 attempted to overturn this law, but was killed in committee.

Virginia’s medical cannabis law

Since enacting a 2017 law that permitted patients suffering from intractable epilepsy to use some types of cannabis oil with a doctor’s certification as an affirmative defense, lawmakers have continually improved Virginia's medical cannabis program.

Virginia patients with any condition are now able to receive recommendations to use and purchase cannabis preparations with no more than 10 milligrams of THC per dose. In 2021, the legislature passed legislation that improved the medical cannabis law by allowing patients to use whole-plant, “botanical” cannabis (HB 2218/SB 1333). The legislature also passed a bill that protects patients from being disciplined or fired by their employers for using medical cannabis away from work (HB 1862). In 2026, lawmakers passed SB 332 to study the use and dispensing of medical cannabis in hospital facilities for terminally ill patients.

You can check out our full summary of the medical cannabis law here. Optional registration card applications, a list of current registered practitioners for medical cannabis, and a list of medical cannabis dispensing locations can be found through the Virginia Cannabis Control Authority website.

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