Virginia: The State That Legalized Adult-Use Cannabis—but Still Has No Legal Sales

Virginia stands out among U.S. states for a distinct paradox: since July 1, 2021, it has legalized adult use of cannabis—possession, limited cultivation, sharing—but still hasn’t established a legal, regulated retail sales market. Thanks largely to Governor Glenn Youngkin’s repeated vetoes, Virginians may legally own and use cannabis in certain quantities, but can’t legally buy tested, taxed cannabis from stores. Here’s a detailed look at how this came to be, what’s happening now, and what the future may hold.

Legalization without sales: what is (and isn’t) allowed

In 2021, Virginia became the first Southern state to legalize adult‐use cannabis—allowing adults 21+ to possess up to one ounce, cultivate up to four plants per household, and “gift” cannabis under certain conditions. There’s no legal retail market yet. READ MORE: MPP

The enabling law included a re-enactment clause for retail sales. That means Virginia’s legislature must pass legislation explicitly authorizing legal, regulated sales and a framework (licenses, testing, taxation). Because that didn’t happen in the first session after legalization, Virginia never set up the retail system by the original target dates.

Youngkin’s role: vetoes and policy opposition

Since taking office in January 2022, GOP Governor Glenn Youngkin has consistently opposed efforts to establish a regulated market for adult‐use cannabis sales. Legislation passed by the Democratic‐controlled General Assembly in successive sessions (2023, 2024, 2025) aimed to allow retail cannabis sales starting in 2025 or 2026, but Youngkin has vetoed or threatened to veto them. READ MORE: VPM

For example, in March 2025, Youngkin vetoed a bill (HB 2485 / SB 970) that would have allowed regulated and taxed retail cannabis sales beginning May 1, 2026. He reiterated concerns around public safety, youth access, impairment, and health risks.

Why Virginia remains the only such state

Several factors combine to explain why Virginia legalized adult use but still has no legal sales:

  1. Re-enactment requirement: Because the law required subsequent legislative approval for retail, once control of the House of Delegates flipped (in 2021) and political dynamics shifted, no consensus was reached. READ MORE: Wikipedia
  2. Governor’s veto power and persistent opposition: Youngkin has vetoed multiple bills each year seeking to establish retail sales. His vetoes are often bipartisan targets (from Democratic‐led legislation). READ MORE: Virginia Mercury
  3. Legislative priorities & political strategy: Lawmakers supporting legalization argue there is strong public support; opponents cite concerns about health, safety, youth exposure, and law enforcement. The revenue projections are tempting ($300 million+ in some estimates), but Youngkin and others argue that risks may outweigh benefits.

What has been attempted—and what would the bills do

  • HB 2485 / SB 970 (2025): A bill passed by the General Assembly to create a regulated adult‐use sales market, license issuance beginning September 1, 2025, and retail sales starting May 1, 2026. Intended tax rate around 8–11.625%, revenues to go to equity, public health, and substance abuse programs. READ MORE: Virginia Legislative Information System
  • Earlier bills (2024 session) had similar timelines and tax proposals. Each time, Youngkin issued vetoes.

What is at stake: benefits & projected revenue

Supporters argue that regulated sales would:

  • Provide tax revenue. Projections suggest $7.3 million in the first year, and up to $300 million annually after several years, depending on tax rates and scale. READ MORE: Axios
  • Create safer, tested products, reducing reliance on illicit/unregulated markets.
  • Support equity initiatives—expungements, community reinvestment, public health resources. Several bills include such provisions.

Opponents (including the governor) counter that legal sales risk increased youth exposure, traffic safety issues, health concerns, and that regulation may not completely displace illegal markets.

Where things stand now in mid-2025

  • As of July 2025, Virginia does not have legal, regulated adult‐use cannabis sales. Possession, gifting, and limited cultivation are legal; consumer purchase from stores is not.
  • The two chambers (House and Senate) continue to pass bills to establish a retail market, but Youngkin has vetoed the most recent ones.
  • SB 970 (2025) is among the key bills passed, which if not vetoed would allow licensing from Sept 1, 2025, and retail sales from May 1, 2026. But as of now, Youngkin has vetoed that too.

Future outlook: what might change?

Several dynamics suggest the possibility that Virginia could eventually establish legal sales, though the timing is uncertain.

  1. Upcoming election in Virginia (2025)
    • The gubernatorial election (November 2025) may change who occupies the governor’s mansion. If a pro-retail-sales candidate wins, that could shift the policy landscape significantly. For example, the Democratic nominee Abigail Spanberger has pledged to make legal sales a priority. READ MORE: MJBizDaily
    • If Youngkin runs or supports anti-retail positions, vetoes may continue and bills may stall again.
  2. Growing public pressure and revenue desire
    • Reports show that legal sales would generate significant revenue, which becomes attractive during budget shortfalls or competing demands for education, healthcare, infrastructure.
    • Advocates emphasize that leaving the market unregulated allows illicit operations to flourish, with associated public safety, product quality, and equity issues.
  3. Legislative majorities & momentum
    • Democrats control the state legislature as of 2025 and have passed several bills toward retail legalization. They have framed bills with regulatory safeguards, local opt-outs, and conservative tax rates to try to address concerns from moderates.
    • Legislative roadmaps are being examined. Virginia’s Joint Commission is hearing proposals for rollout and implementation structure.
  4. Policy compromises
    • Potential future bills may include more compromises: stricter age controls, product testing, child safety and packaging, local referendum or local opt-out clauses, limits on types of products (for example, edibles, potency caps), strong equity reinvestment. These may make legislation more palatable to veto-prone governors.

Key obstacles & what needs to happen

  • Governor’s approval or change of governor: Unless the sitting governor signs off, retail legalization will continue being blocked by veto, regardless of legislative passage.
  • Overriding vetoes: The General Assembly rarely has sufficient margin to override a veto; in Virginia’s political structure, that’s a high bar.
  • Implementation logistics: Establishing license frameworks, regulatory agencies (like Virginia’s Cannabis Control Authority), seed-to-sale tracking, testing laboratories, local zoning, and taxation infrastructure all take time and political will. Delay in administrative or regulatory readiness can stall bill effectiveness.

If Virginia legalizes retail sales, here’s what might result:

  • Licensed dispensaries throughout the state, particularly in urban/suburban areas, with local jurisdictions allowed to regulate or opt out.
  • Taxes on sales (projected 8–11.625%) could generate tens to hundreds of millions of dollars annually. Revenue likely earmarked for: public health, substance abuse treatment, pre-K education, equity programs.
  • Regulation of product safety: lab testing, packaging, potency limits, possibly restrictions on certain product forms.
  • Enhanced criminal justice reforms: expungements or re-sentencing for low-level offenses, protections for employment or custody for legal users. Some bills include those.

Conclusion

Virginia is in a unique position among U.S. states: legal adult possession and home cultivation of cannabis have been in place for several years without legal retail sales. The repeated vetoes by Governor Youngkin, despite legislative efforts, have kept the state in limbo. The pendulum may swing after the 2025 gubernatorial election, especially if a pro-sales candidate wins. For now, Virginians can consume and grow (within limits), but must still rely on unregulated sources or medical dispensaries if eligible. The question for 2026: will legal sales finally become reality—or will veto and delay continue to define Virginia’s cannabis policy?