VIRGINIA – Virginia Gov. Abigail Spanberger, Senate Majority Whip Lashrecse Aird and Del. Paul Krizek announced an agreement Tuesday that would establish a legal, regulated retail cannabis market in the Commonwealth, marking a major shift after the governor rejected similar legislation last month. 

The proposal, reached through budget negotiations, would create a framework for adult-use cannabis sales beginning July 1, 2027, giving state regulators time to build out licensing, testing and enforcement systems before the market opens, according to a press release from the governor’s office. 

READ MORE: Spanberger vetoes cannabis retail market and prescription drug pricing bills

What we know:

Under the plan, the Cannabis Control Authority would oversee the new industry, with applications for retail licenses set to open in early 2027. The agreement also sets limits on the number of businesses allowed in the market and establishes a state tax on cannabis sales, with additional local taxation options permitted.

Officials say the framework is designed to tighten enforcement against illegal operators while prioritizing consumer safety, youth protections and clear product standards.

The plan also includes restrictions on marketing aimed at minors, packaging requirements intended to prevent child appeal and increased oversight of intoxicating hemp products, per the release. 

Revenue from cannabis sales would be directed toward education funding, public health initiatives, substance-use treatment programs and a reinvestment fund aimed at communities disproportionately impacted by past drug enforcement policies, according to state officials. 

The backstory:

The agreement represents a reversal from the administration’s earlier position.

Last month, Spanberger vetoed a wide slate of legislation, including a bill that would have created a regulated cannabis retail market in the state, citing concerns about implementation, cost and effectiveness, according to previous FOX 5 D.C. reporting. 

“It is my responsibility as Governor to make sure all new laws can be successfully implemented and protect against unintended consequences that harm Virginians,” she said in a statement at the time. 

“Virginians deserve a system that replaces the illicit cannabis market with one that prioritizes our children’s health and safety, public safety, product integrity and accountability,” she added. 

What they’re saying:

Supporters of the new deal say it addresses those concerns by adding clearer regulatory authority and a more gradual implementation timeline.

“Getting this done took hard conversations and a shared commitment to move Virginia beyond the failed status quo,” Senator Aird said in a statement. “Virginia legalized adult possession years ago, but without a regulated retail market, we left the illicit market to fill the gap.” 

“This compromise gives us a smarter and safer path forward — one that protects consumers, keeps products tested and accurately labeled and creates a legal marketplace that is affordable and accessible enough to actually compete,” she added. 

“For too long, the failed war on drugs imposed real consequences on individuals, families and communities, while doing little to create lasting public safety,” Delegate Krizek added in a statement of his own. 

“As Virginia moves forward, we have a responsibility to build a marketplace that is not only legal, but fair, safe and workable,” he added.