Vermont Republican Gov. Phil Scott approved legislation on June 18 to reform the state’s adult-use cannabis laws, including increasing purchase and possession limits, reducing licensing fees and allowing cannabis events.
The legislation, sponsored by Sen. Kesha Ram Hinsdale, D-Montpelier, doubles the amount of cannabis licensed retailers can sell to those 21 and older, including up to 2 ounces of flower or the equivalent in other cannabis products. Adults of legal age can now also possess up to 2 ounces of cannabis or 10 grams of hashish in public, although those who grow their own plants at home can continue to possess what they harvest.
Vermont’s new cannabis law follows a 2026 trend, with Massachusetts doubling its possession limit to 2 ounces in April, and with Illinois doubling its limit to 60 grams earlier this month.
“These changes reflect the reality that lawmakers in adult-use states are growing more comfortable with legalization day by day,” NORML Deputy Director Paul Armentano said. “As their comfort level grows, these policies continue to evolve in ways that result in expanded freedoms for consumers.”
The law also loosens restrictions for residents with rental agreements, allowing tenants to possess cannabis within their dwelling units; however, rental agreements can still prohibit the use of lighted cannabis or cannabis products intended for inhalation.
Scott’s signature also establishes a commercial cannabis compact of intent policy that authorizes him (or a future Vermont governor) to enter into agreements with other states for interstate cannabis commerce.
However, such an agreement cannot take effect unless the federal government amends its laws to allow interstate trade; Congress enacts laws preventing enforcement against interstate transfers; or the Department of Justice or U.S. attorney general issues a written opinion or memorandum tolerating such actions.
“The General Assembly finds that the medical and commercial cannabis industry has grown significantly throughout the United States since Vermont transitioned to a recreational cannabis market in 2022,” the Vermont bill states. “The General Assembly further finds that recent statements from federal officials, including provisions of Executive Order 14370, 90 F.R. 60541, ‘Increasing Medical Marijuana and Cannabidiol Research,’ indicate a shifting federal posture on regulated cannabis markets.
“Accordingly, it is the intent of the General Assembly to prepare for the possibility of regional or interstate cannabis markets by authorizing the governor to form agreements with other states that have commercial cannabis markets.”
The legislative text was referring to President Donald Trump’s signed order from December 2025, when he directed his administration to loosen restrictions on cannabis by reclassifying the plant to Schedule III under the Controlled Substances Act “in the most expeditious manner in accordance with federal law.”
Since then, U.S. Acting Attorney General Todd Blanche signed an order in April that immediately rescheduled state-licensed medical cannabis, while the Drug Enforcement Administration is scheduled to conduct an administrative law judge hearing June 29-July 15 to allow those “adversely affected or aggrieved” to testify on a proposed rule to move nonmedical cannabis to Schedule III.
The Vermont legislation also creates a cannabis events pilot program, authorizing the state’s Cannabis Control Board to permit up to 10 events annually, allowing licensed retailers “in good standing” to sell products. Under the program, public consumption would be prohibited, events could not exceed 24 hours, and they must be held at a single, controlled-access location where alcoholic beverages are not sold or furnished for on-premises consumption, according to the legislation.
The new law also eliminates Vermont’s integrated license type, allows cannabis cultivator cooperatives, and reduces licensing fees by half for outdoor cultivators, including the following fee schedule:
- Tier 1: Up to 1,000 square feet of plant canopy or fewer than 125 cannabis plants in an outdoor cultivation space shall be assessed an annual licensing fee of $375.
- Tier 2: Up to 2,500 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $925.
- Tier 3: Up to 5,000 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $2,000.
- Tier 4: Up to 10,000 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $4,000.
- Tier 5: Up to 20,000 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $9,000.
Vermont was the first state in the nation to legalize adult-use cannabis legislatively – and remains the only state to do so under a Republican governor – when Scott signed House Bill 511 in 2018.
Follow-up legislation in 2020, which he allowed to become law without his signature, paved the way for adult-use dispensary sales to launch in late 2022.
