In a major blow to Virginia’s hemp industry, a federal judge in Roanoke rejected a last-minute attempt by seven hemp businesses to block the state’s sweeping new restrictions on hemp-derived THC products.
U.S. District Judge Robert S. Ballou on Friday denied a motion for a temporary restraining order and preliminary injunction in Northern Virginia Hemp & Agriculture, LLC v. Governor Abigail Spanberger, clearing the way for the strict new rules to take effect Saturday, August 15, 2026.
The lawsuit, filed on July 31, targeted House Bill 30—a budget package signed into law by Gov. Abigail Spanberger on June 29. The legislation abruptly eliminates the state’s “25:1 ratio” exception, which previously allowed consumable hemp products to exceed two milligrams of total THC per package if they contained at least 25 milligrams of CBD for every milligram of THC.
Starting August 15, any hemp product containing more than two milligrams of total THC per package is effectively banned from retail sale, reclassifying non-compliant hemp items as cannabis under state law.
“Rushed Legislation” and Economic Fallout
The plaintiffs—consisting of Virginia hemp processors, manufacturers, and retailers—argued that the sudden shift gives businesses virtually no time to clear existing inventory, threatening financial ruin and potential criminal prosecution if non-compliant inventory is retained.
While Judge Ballou acknowledged the harsh economic impact on local businesses, noting that “many of Plaintiffs’ claims relate to the attendant complications and unintended consequences that rushed legislation creates,” he ruled that the court lacks grounds to override the General Assembly’s legislative deadline.
“It is not the role of this Court to second-guess the Virginia legislature in setting an effective date for the new law,” Ballou wrote in an 18-page memorandum opinion. “The Court is limited to determining whether the law violates Plaintiffs’ constitutional rights and whether Plaintiffs are entitled to the extraordinary remedy of enjoining its effective date.”
Constitutional Claims Rejected
In evaluating the plaintiffs’ claims under the Takings, Due Process, and Equal Protection Clauses of the Constitution, the court found the businesses failed to demonstrate a likelihood of success on the merits:
- Regulatory Taking: Judge Ballou ruled that HB 30 does not constitute a physical or total taking of property, as the state is acting within its police powers to regulate public health and safety. Furthermore, the court noted that businesses entering the rapidly changing hemp market cannot reasonably expect regulations to remain unchanged indefinitely.
- Due Process: The court rejected arguments that the legislative process lacked proper public input, ruling that legislative enactments of general applicability do not require individual hearings for impacted business owners.
- Equal Protection: Addressing the plaintiffs’ claim that it is discriminatory to allow licensed marijuana retailers to sell products over two milligrams while banning hemp stores from doing so, the court noted that hemp and marijuana operate under separate statutory regimes. The state, Ballou noted, has a rational interest in restricting high-THC products to a more heavily regulated framework.
On the question of irreparable harm, Judge Ballou stated that the plaintiffs’ projected losses—while substantial—are purely economic and could theoretically be compensated with money damages if they ultimately win at trial. Addressing fears of criminal prosecution, the judge noted that businesses could avoid liability by disposing of non-compliant inventory, adding that no actual threat of prosecution had yet been initiated by state officials.
The Broader Market Transition
The decision leaves Virginia’s hemp retailers facing immediate compliance hurdles just as the state begins transitioning toward an adult-use commercial cannabis framework.
Under HB 30, regulatory authority over hemp products will transfer from the Department of Agriculture and Consumer Services to the Virginia Cannabis Control Authority (CCA) on July 1, 2027. The law also establishes the timeline for Virginia’s long-awaited adult-use marijuana market:
- Feb. 1, 2027: CCA may begin accepting cannabis business applications.
- May 1, 2027: CCA may begin issuing commercial licenses.
- July 1, 2027: Regulated adult-use retail stores can officially open.
Until those licensed adult-use doors open in 2027, however, Virginia hemp operators who relied on the 25:1 CBD-to-THC ratio find themselves stripped of their highest-selling products overnight, with federal courts refusing to step in.
