Pennsylvania’s governor and the state’s divided Legislature remain at an impasse on a path forward to legalize adult-use cannabis amid ongoing budget negotiations that must be hashed out by the end of the month.

While Democratic Gov. Josh Shapiro has called for cannabis reform for those 21 and older in his past two budget addresses, and while House Democrats rammed a partisan legalization bill through their chamber last month, Senate Republicans appear unwilling to take up a proposal that doesn’t originate under their leadership.

Under Shapiro’s vision, the commonwealth would legalize adult-use cannabis by July 1, 2025, and launch taxed dispensary sales by Jan. 1, 2026. This would provide roughly $1.3 billion in state revenue during the first five years of a commercial market, including $250 million upfront to bolster the governor’s current budget plan.

However, Pennsylvania Senate Majority Leader Joe Pittman, R-Indiana, said cannabis legalization is a nonstarter as the budget talks loom, especially after House Democrats passed a controversial bill that would have established a state-run dispensary model through licensed liquor establishments. The Senate Law and Justice Committee killed that bill on arrival.

Shapiro was asked about Pittman’s refusal to entertain cannabis legalization in budget negotiations during the governor’s visit on June 18 to the c.

“We’re going to continue to work through this,” Shapiro said about cannabis reform. “I think this is an issue of competitiveness. Every state around us, with the exception of West Virginia, has legalized [adult-use cannabis], and Pennsylvanians are driving into those states in order to purchase cannabis legally and pay taxes to those states, so those schoolkids get more money for their schools; their parks and roads and bridges get repaired; their mass-transit systems get funded; their housing stock gets replenished.

“I’m not sure why we want to do that for the good people of Ohio, or New York, or Maryland, or New Jersey, when we should be doing it for people here in Pennsylvania.”

Shapiro’s comments came as Pittman told reporters that same day that he doesn’t anticipate a budget deal to be struck before the state’s statutory deadline on June 30. The new fiscal year starts on July 1.

“I see no practical way that a budget will be completed on June 30,” the Senate majority leader said. “We are engaged in conversations, but those conversations have not gone as quickly as we would prefer.”

Pennsylvania—along with Michigan and Minnesota—is one of three states in the nation where the same party doesn’t control both chambers of the Legislature, making it more difficult to agree upon a budget.

In the commonwealth, Republicans and Democrats are sparring over how to balance a roughly $1.6 billion deficit. In addition to cannabis, the political divide extends to disagreements over Medicaid spending, public transit and school funding, infrastructure improvements and energy investments.

Although Senate Republicans killed House-passed legislation to legalize adult-use cannabis via liquor store dispensaries last month, a bipartisan legalization proposal is brewing in the upper chamber.

Sens. Dan Laughlin, R-Erie, and Sharif Street, D-Philadelphia, who worked together on legalization bills in previous legislative sessions, have yet to officially file their 2025 adult-use legislation; however, they circulated a sponsorship memo in February.

Although Laughlin shares the common goal of more permissive cannabis laws with Shapiro, the GOP senator has been critical of the governor’s call for reform.

“I believe that if there’s a path to getting adult-use cannabis passed, the governor himself is going to have to roll his sleeves up and help do some of the work,” Laughlin said during a committee hearing last month. “I have not seen that yet, but hopefully we can get there, and I know it’s going to be a vigorously discussed process.”

Laughlin had also knocked the 26% effective tax rate on cannabis sales that Shapiro proposed in his budget.

Beyond Pennsylvania’s forthcoming legalization specifics, Shapiro has continued his “keeping up with the Joneses” stance on why the commonwealth should join its neighbors and become the 25th state to allow adult-use cannabis.

“Its time has come,” the governor said. “I’ve spoken openly about how I’ve grappled with this issue as a father, as a former chief law enforcement officer of the commonwealth of Pennsylvania. But I am where I am on it. I think it’s a competitiveness issue, and I hope we’re able to find a way to get that done.”

Congressional hemp ban report; MD marijuana pardons; OH legalization amendment dispute; NH psilocybin reform advances; NY & CA cannabis grants

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/ TOP THINGS TO KNOW

The Congressional Research Service said a bill advancing through the House would “effectively” ban hemp-derived cannabinoid products, including CBD—despite an Appropriations Committee report saying it “does not intend” to prohibit “non-intoxicating…products with trace or insignificant amounts of THC.”

Maryland Gov. Wes Moore (D) marked Juneteenth with a new round of pardons for nearly 7,000 marijuana possession convictions that were inadvertently left out of an earlier mass cannabis clemency action because they were coded incorrectly in criminal records.

Pennsylvania Gov. Josh Shapiro (D) is continuing to push for marijuana legalization—saying residents are sending tax money to neighboring states with legal cannabis—even as the GOP Senate majority leader says there’s no way the reform can be included in the budget due this month.

An apparent agreement between Ohio House and Senate lawmakers on how to amend the voter-approved marijuana legalization law fell apart at the last minute, with key negotiators now saying that passing anything ahead of the summer recess is unlikely.

A New Hampshire House-Senate conference committee agreed to lower penalties for first-time possession of psilocybin, while a separate panel decided to remove provisions to legalize medical cannabis home cultivation from another bill.

The New York Office of Cannabis Management awarded the first 52 grants under a program to aid businesses run by people harmed by prior marijuana criminalization through reimbursements for expenses such as rent, renovations, inventory tracking and security systems.

The California Department of Cannabis Control is using $30 million in marijuana revenue to support research projects—prioritizing key focus areas like consumer preferences, crop yields, environmental sustainability and enforcement strategies.

FundCanna CEO Adam Stettner argues in a new Marijuana Moment op-ed that it’s “hypocritical” and “illogical” for Texas lawmakers to spend $50 million to support research on the psychedelic ibogaine while continuing to criminalize cannabis.

/ FEDERAL

Former Department of Government Efficiency head Elon Musk posted what appears to be a report from a second drug test showing negative results for various substances.

Rep. Andy Harris (R-MD) tweeted that a new study purporting to link cannabis use with heart attacks and stroke is “yet another reason to be very cautious about recreational marijuana and inflated claims about medical marijuana.”

/ STATES

Nebraska Gov. Jim Pillen (R) appointed another member to the Liquor Control Commission who will jointly serve on the Medical Cannabis Commission.

Ultra Health Cannabis CEO Duke Rodriguez is considering running for New Mexico governor.

Texas’s lieutenant governor is continuing to agitate in favor of a bill to ban consumable hemp products with any amount of THC, including by pushing back against polling showing that it is unpopular with voters.

A Missouri senator authored an op-ed about the benefits of federal marijuana rescheduling.

A Washington State representative is urging Lynnwood City Council members not to allow retail marijuana businesses to operate.

Former staffers for a Massachusetts psychedelics legalization ballot initiative campaign are alleging that it violated campaign finance laws.

Utah regulators posted information about the availability of new medical cannabis pharmacy licenses.

New York regulators are accepting applications to speak at the Medical Cannabis Symposium they are hosting in November.

California regulators will hold a public hearing about proposed cannabis tax rules on Monday.

—
Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
—

/ INTERNATIONAL

Jamaican officials dropped a case against a Rastafari man after recognizing his right to grow cannabis as a sacrament.

/ SCIENCE & HEALTH

A study found that “medical cannabis pharmacies can provide an effective adjuvant intervention for pediatric cancer symptoms” and that most patients “reported that medical cannabis helped ease some distressing symptoms with minimal side effects, but not all experienced benefits.”

A review concluded that “assisted psilocybin use may have benefits in [traumatic brain injury] by reducing inflammation, promoting neuroplasticity and neuroregeneration, and alleviating associated mood disorders.”

/ ADVOCACY, OPINION & ANALYSIS

Law enforcement and anti-drug groups sent a letter urging Texas Gov. Greg Abbott (R) to sign a bill banning consumable hemp products with any amount of THC.

/ BUSINESS

Aurora Cannabis Inc. denied reports that it is acquiring MedLeaf Therapeutics and that it entered into a strategic partnership with MediPharm GmbH for distribution of medical cannabis in Germany and other EU markets.

LeadiX GmbH is attempting to patent quantitative drug testing methods over the objections of harm reduction advocates who say that home use of the technology can prevent overdoses and save lives.

/ CULTURE

Former football player Ricky Williams is calling on Texas Gov. Greg Abbott (R) to veto a bill to ban consumable hemp products with any amount of THC.

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New York officials have announced the first round of grants under a $5 million program to help retail marijuana businesses owned by justice-involved people cover startup costs.

About three months after opening up applications for the Conditional Adult-Use Retail Dispensary (CAURD) Grant Program, the Office of Cannabis Management (OCM) and Empire State Development (ESD) announced on Wednesday that they have awarded 52 licensed dispensaries up to $30,000 each in funds meant for startup and operational costs such as rent, renovations, inventory tracking and security systems.

To qualify for the program, applicants need to have been “justice involved”—in other words, impacted by a marijuana-related conviction—and have some experience running a profitable business.

“These grants are about more than dollars and cents, they are about investing in the people and communities who are helping to build New York’s cannabis market the right way,” Felicia A.B. Reid, acting executive director of OCM, said in a press release.

“OCM is proud to support the development of cannabusinesses led by formerly justice-involved entrepreneurs,” she said. “Their work speaks to the incredible promise of business inclusivity and demonstrates what’s possible when equity is more than just a word—it’s a foundation.”

Applicants needed to submit at least $10,000 in eligible expenses in order to qualify for a grant, which could include costs starting from the date they received their final license notice from OCM.

“This funding is giving people entering the cannabis industry a bit of a leg up as they navigate an industry that is still very much in its infancy,” Assembly Majority Leader Crystal Peoples-Stokes (D) said. “This is also about social equity and reinvesting in communities, and I am very happy to see this funding going to communities across the state, and especially in my hometown of Buffalo.”

Sen. Jeremy Cooney (D), chair of the Senate Subcommittee on Cannabis, said that “throughout our efforts to build a thriving cannabis market in New York, we have never lost sight of the equity commitments we made when the MRTA was first passed.”

“The CAURD Grant program is an important step in this process, putting money directly in the hands of local dispensary owners to help grow their businesses and set them up for sustained success,” he said. “I want to congratulate the first round of awardees, and I look forward to our ongoing work to support these entrepreneurs.”

Meanwhile, OCM recently launched a new online map that’s meant to help adults locate licensed marijuana retailers—one of their latest efforts to encourage consumers to buy their cannabis from the regulated market.

After a rocky rollout of the state’s legalization law opened the door to a proliferation of illicit marijuana shops, the governor and regulators have prioritized educating the public about the need to purchase their products from licensed dispensaries as a health and safety imperative.

The broader New York campaign has also involved digital ads and educational resources, including a guide on safe consumption practices, as well as graphics and videos featuring licensed cannabis business owners and messaging about the benefits of participating in the regulated market.

OCM also advises that “continued enforcement against the illicit market is critical to building a health regulated market,” pointing to what it describes as successful enforcement efforts in 2024. Last spring, for example, officials in New York City launched Operation Padlock, an enforcement initiative meant to shutter illegal storefronts. Within months, licensed shops that were open before the operation began saw sales climb 105 percent, according to an OCM survey.

—
Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
—

Meanwhile, in New York, regulators are moving forward with new proposed regulations around the state’s so-called “cannabis showcase” program, which allows licensed businesses to sell to consumers at pop-up, farmers market-like events.

As originally authorized, the showcase events were largely in response to the slow rollout of New York’s adult-use marijuana program, which faced multiple delays in implementation amid litigation and other matters.

But the state’s industry has gradually expanded, with officials in January touting $1 billion in total sales since the market launched.

Separately in New York, Gov. Kathy Hochul (D) signed state budget legislation that did not include a controversial earlier provision that would have allowed police to use the smell of marijuana as probable cause that a driver is impaired and then force them to take a drug test.

Amendments made in the legislature removed the provision, which a coalition of 60 reform groups had argued in a letter to Hochul and top lawmakers would “repeat some of the worst harms of the War on Drugs” and allow law enforcement to “restart unconstitutional racial profiling of drivers.”

Meanwhile, a recent OCM report said the number of licensed marijuana retailers in the state grew by nearly threefold last year, fueling total sales in 2024 of nearly $870 million.

Including sales so far in 2025, New York’s legal cannabis market is now close to reaching $1.5 billion worth of purchases, OCM said in April.

Also that month, New York cannabis regulators and labor officials announced the launch of a workforce training program aimed at “providing comprehensive safety education to workers” in the state’s legal marijuana industry.

Separately, OCM’s press secretary recently indicated the office is working on plans to expand permitting and licensing rules that could allow adults to buy and consume marijuana at movie theaters. Authorizing sales of cannabis products at theaters would set New York apart as it continues to build upon the state’s legalization law.

Also, earlier this year, a collective of businesses licensed under the CAURD program called on Hochul to forgive tens of millions of dollars in high-cost loans issued under a governor-created social equity loan fund.

Peoples-Stokes said in December that there’s a need to extend financial aid to CAURD license holders, many of whom are struggling under the high-cost loans.

Critics—including the NAACP New York State Conference, Black Cannabis Industry Association, Minority Cannabis Business Association, Service Disabled Veterans in Cannabis Association, Drug Policy Alliance, NYC NORML and VOCAL-NY—wrote to the governor earlier that month to express dismay at what they described as marijuana regulators’ “efforts in service of big corporations at the expense of small business and equity outcomes.”

Colorado Governor Grants Mass Psilocybin Pardon Following Voters’ Approval Of Psychedelics Legalization At The Ballot

Photo courtesy of Chris Wallis // Side Pocket Images.