Virginia Governor Signals She Will Sign Budget Legalizing Recreational Marijuana Sales

Virginia Governor Abigail Spanberger announced her support via a press release for a budget package that would legalize licensed adult-use marijuana sales, after the proposal was approved by the full Legislature.

Following passage of the budget by the General Assembly, Spanberger released a statement praising the spending plan as a compromise proposal that her administration helped craft. Although the statement did not specifically mention marijuana, it offered a clear signal that the governor supports the broader budget now headed to her desk.

“There is a lot to be proud of in this budget,” said Spanberger, pointing to raises for teachers and public employees, new investments in schools, affordability measures and a new statewide energy consumption tax on data centers.

She added that the budget is “a compromise proposal — one my administration helped craft — and it builds a strong foundation for further discussions.”

The cannabis provisions included in the budget would create a regulated adult-use marijuana market in Virginia, with licensed recreational sales set to begin July 1, 2027. The agreement was announced last week by Spanberger, State Senator Lashrecse Aird and Delegate Paul Krizek, following years of failed attempts to launch retail sales in the state.

Virginia legalized possession of marijuana for adults in 2021, but lawmakers never finalized a system for licensed sales. That has left adults 21 and older able to legally possess and grow marijuana, but without a legal recreational marketplace to purchase it from.

Under the budget proposal, the Virginia Cannabis Control Authority would regulate the new market and begin accepting applications on February 1, 2027. The plan allows for up to 350 retail cannabis licenses, with a phased rollout and provisions designed to support small businesses, microbusinesses and entrepreneurs.

The measure would also increase the legal possession limit from one ounce to two ounces and allow adults to purchase up to two ounces in a single transaction.

Adult-use marijuana would be taxed at 6% at the state level, increasing to 8% after July 1, 2029. Local governments would be allowed to add an additional cannabis tax of between 1% and 3.5%, on top of the existing retail sales and use tax.

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

Spanberger’s statement emphasized the importance of keeping the state government open, saying that failing to pass a budget “was never an option.”

“My focus remains exactly where it has always been: lowering costs for Virginians, delivering for our schools and communities, and supporting the families who count on their government to meet its most basic responsibilities,” Spanberger said.

If signed into law, the budget would put Virginia on track to become the latest state to launch licensed adult-use marijuana sales, nearly six years after lawmakers first legalized possession.

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