Virginia has formally enacted a plan to launch licensed recreational marijuana sales, ending years of delays in creating a regulated adult-use market.

On Monday, the Senate and House of Delegates adopted Governor Abigail Spanberger’s (D) proposed amendments to the state budget legislation, which lawmakers had initially approved last week. Because both chambers accepted her recommended changes in full, the measure has now been enacted into law and does not require any further action from the governor.

The new law creates a regulated adult-use marijuana market in Virginia, with licensed recreational sales set to begin July 1, 2027. The Virginia Cannabis Control Authority will oversee the program and begin accepting license applications on February 1, 2027.

The enactment marks a major shift for Virginia, which legalized possession of marijuana for adults in 2021 but never launched a licensed retail system. As a result, adults 21 and older have been allowed to legally possess and grow marijuana, while recreational sales have remained illegal.

Under the new law, Virginia will allow up to 350 retail cannabis licenses, with a phased rollout intended to support small businesses, microbusinesses and entrepreneurs. The plan also includes licensing provisions meant to create a more competitive market and prevent large companies from dominating the industry.

The law increases the legal possession limit from one ounce to two ounces and allows adults to purchase up to two ounces in a single transaction.

Recreational marijuana will be taxed at 6% at the state level when sales begin, with the rate increasing to 8% after July 1, 2029. Local governments will be allowed to impose an additional cannabis tax of between 1% and 3.5%, in addition to the state’s existing retail sales and use tax.

Revenue from the market will be directed toward early childhood and K-12 education, behavioral health programs, substance use disorder prevention and treatment, public health programs and the Cannabis Equity Reinvestment Fund.