Virginia’s new restrictions on hemp-derived products are now in effect after a federal judge declined to block the state from eliminating its 25:1 cannabidiol (CBD)-to-THC exemption.
The exemption previously allowed certain hemp products containing more than 2 milligrams of total THC per package to remain legal as long as they contained at least 25 times as much CBD as THC. With the exemption gone, hemp products sold in Virginia must contain less than 2 milligrams of total THC per package and no more than 0.3% total THC concentration.
Seven Virginia hemp businesses sought a preliminary injunction before the changes took effect, arguing that the new definition would make large portions of their existing inventories illegal to sell and cause severe financial damage.
Judge Robert Ballou of the U.S. District Court for the Western District of Virginia rejected that request Friday.
The lawsuit was brought by Kultivate Wellness, Cypress Hemp, Redfern Hemp Co., District Hemp, Pure Elkton Manufacturing, NoVa Hemp and Simply Hemp against Virginia Governor Abigail Spanberger, Attorney General Jay Jones, the Virginia Cannabis Control Authority and several local prosecutors.
Among the businesses, Cypress Hemp said roughly 79% of its Virginia inventory, valued at approximately $1.8 million, would no longer comply with the law. Kultivate Wellness said about 98% of its products would be affected, while Redfern Hemp Co. estimated that $270,000 of its approximately $500,000 inventory would become noncompliant.
The companies argued that the restrictions violated their constitutional property rights by sharply reducing the value and commercial usefulness of products they had legally produced or acquired.
Ballou found that the law does not require businesses to surrender or destroy their products, but instead limits how they can be sold. He also concluded that companies operating in a heavily regulated and rapidly changing industry could not reasonably assume existing hemp rules would remain unchanged indefinitely.
The judge separately rejected claims involving due process and equal protection, finding that the changes apply to the hemp industry generally and that Virginia may regulate hemp and marijuana under different legal frameworks.
Following the decision, the Cannabis Small Business Association called on lawmakers to restore the previous hemp definition and asked state officials to consider holding off on enforcement until the General Assembly can revisit the issue.
Virginia had maintained the 25:1 exemption since 2023. Its elimination was included in a state budget approved in June that also established a framework for recreational marijuana sales beginning in July 2027.
Adult possession and use of marijuana have been legal in Virginia since 2021, although recreational retail sales remain prohibited until the new market launches.
