Virginia officials and lawmakers are moving closer to an agreement that could revive plans for legal recreational cannabis sales after Governor Abigail Spanberger vetoed legalization legislation earlier this year.
Recent discussions between the governor’s administration and legislative sponsors of the measure have focused on incorporating key provisions into the state budget, which lawmakers must approve before July 1. According to multiple people familiar with the talks, negotiations have made significant progress, and both sides appear interested in finding common ground.
Delegate Paul Krizek, who led the House effort on the proposal, described conversations with the governor’s office as productive. He noted that recent exchanges have resulted in substantial movement toward a possible compromise.
Spanberger’s office echoed that message, emphasizing the governor’s support for creating a regulated cannabis marketplace. A spokesperson said the administration remains committed to a system that prioritizes public safety, consumer protection, community interests, and effective oversight.
The legislation cleared the General Assembly in March but later encountered resistance from Spanberger, who sought several revisions. Among her proposed changes were a delayed launch date for retail sales, higher tax rates, and tougher penalties for certain marijuana-related offenses. Lawmakers declined to adopt those recommendations during a reconvened session, leading to the governor’s veto.
While details of a potential deal remain under negotiation, sources indicated that any final agreement would likely push back the start of legal sales from the date outlined in the original bill. However, the stricter criminal penalties previously proposed by the governor are not expected to remain in their earlier form.
Several issues still require resolution, including taxes, the number of retail licenses that would be issued, and limits on how much cannabis adults could legally possess.
Following the veto, legislative leaders openly discussed keeping the proposal alive through budget legislation. The topic was also addressed during a recent meeting of the Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market.
Spanberger has defended her decision by arguing that a slower rollout would allow Virginia to establish a stronger regulatory framework. She has repeatedly said that taking additional time is preferable to implementing a system too quickly.
Public opinion, however, appears to favor faster action. A recent poll found bipartisan support for the legislation and opposition to delaying legal sales. The governor has acknowledged public frustration with her decision, noting that criticism has come from supporters as well as personal acquaintances.
Virginia legalized possession of marijuana and home cultivation in 2021, but residents still lack a legal retail system for purchasing recreational cannabis. Supporters of legalization argue that regulation would replace the existing illicit market with licensed businesses subject to safety standards, age verification requirements, and government oversight.
Once a system is established to enable adult-use marijuana products to be sold within the state, opportunities are likely to open up not just in cannabis retail alone but also in other segments of the state economy linked to the industry, such as in real estate where companies like Innovative Industrial Properties Inc. (NYSE: IIPR) have found success serving clients in the marijuana space.
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