Smoke Filled Room Negotiations!
This past Tuesday, Governor Abigail Spanberger held a joint press conference with Senator Lashrecse Aird (D–Petersburg) and Delegate Paul Krizek (D–Fairfax) to announce a proposal to establish a retail market for recreational marijuana directly through the House version of the biennium budget.
This maneuver would funnel revenue from a statewide cannabis marketplace into the General Assembly’s proposed biennium budget that stalled in a conference committee back in March, a budget that already would have increased General Fund spending by $2–3 billion. The House and Senate still remain locked in a stalemate over whether to maintain special tax incentives for data-center businesses.
Key elements of the cannabis proposal include:
Establishing a statewide commercial retail market
Capping licenses at 350 retail locations
Imposing a 6% cannabis tax, rising to 8% by 2029
Replacing criminal penalties with civil penalties for cannabis-related offenses
Launching implementation on July 1, 2027, pending approval
100 Microbusiness Licenses may be issued by May 1, 2027
75% of first year license will be put into the Cannabis Equity Business Loan und to assist prior criminals harmed by former state laws
This is a dramatic break from Virginia’s long-standing legislative norms. Embedding a major policy overhaul such as this inside the budget sidesteps the normal committee process and public scrutiny. Even supporters of commercialization should be troubled by the precedent.
And because this language is tied to the budget, it will expire in two years, meaning the General Assembly will be forced to revisit and reenact it, or pass a standalone law, in the next biennium.
What This Means for Virginia Families
If this proposal is agreed to, Virginians will face serious and lasting consequences:
Higher rates of drug addiction
Increased mental-health risks for youth and young adults
Weakened enforcement mechanisms and higher public-safety costs
Foul odors and secondhand exposure in neighborhoods and public spaces
Rising healthcare costs and cannabis-related illnesses
Make no mistake: if this House proposal is adopted by the General Assembly, many urban areas in Virginia will look, feel and smell differently beginning July 1, 2027.
What Happens Next
The House was supposed to convene a Special Session on June 18 but has cancelled that special session because there is no budget compromise yet. The Senate was scheduled to meet on June 22, but it is unlikely that will happen as well.
Thank you for standing with us in this critical moment.