Virginia Democrats Propose Sweeping Changes to Marijuana Regulations in Latest Budget Push

Richmond, VA – December 8, 2025 – Virginia Democrats have introduced proposed changes to the state’s cannabis framework as part of ongoing budget considerations, aiming to enhance the retail marijuana market through a focus on equity and statewide uniformity. The proposals include allocating funds for licensing support, eliminating local veto options on dispensaries, and mandating labor agreements for industry participants.

Under the proposed amendments, $3 million from the Cannabis Equity Reinvestment Fund would be directed to support the initial round of retail marijuana licenses. This funding is intended to promote the safe sale of marijuana while prioritizing applicants from historically disadvantaged communities.

The changes would also remove existing cross-references allowing local governments to hold referendums prohibiting retail marijuana establishments. This move would prevent localities from opting out of hosting dispensaries, effectively centralizing control over zoning and operations at the state level and overriding community-specific decisions.A new statement of purpose would be added to the Commonwealth’s retail cannabis regulations, declaring that the market’s goal is to generate resources dedicated to community prosperity, a vital agriculture sector, economic equity, and public health. These objectives are rooted in principles of restorative justice, with the aim of benefiting all citizens of the Commonwealth.

Additionally, the proposals include a requirement for all marijuana establishments to enter into labor peace agreements with bona fide labor organizations. This provision, listed as item number 41 in the amendments, seeks to ensure stable labor relations within the industry as the market expands.

The push comes amid Virginia’s ongoing rollout of its retail marijuana market, which began sales in May 2025 following years of legislative debates and vetoes. Proponents argue that these measures will foster inclusive economic opportunities, particularly in underserved areas.

However, the proposals have raised concerns about potential health impacts. Peer-reviewed studies, including a 2023 Danish cohort analysis published in a major medical journal, have linked heavy cannabis use among adolescents to a 3-5 times increased risk of developing schizophrenia. Critics highlight these findings as underscoring the need for cautious expansion of access to the substance.