Pennsylvania’s governor is ramping up pressure on state lawmakers to pass legislation legalizing marijuana, arguing that such a move would provide significant new revenue for critical programs. In a social media statement, Governor Josh Shapiro (D) emphasized that legalizing and regulating adult-use cannabis could generate $1.3 billion for the Commonwealth over the first five years.
“While some in Harrisburg claim we can’t afford to make bigger investments in our kids, public safety, and our economy, know this: If we legalized and regulated adult-use cannabis, we’d bring in $1.3 BILLION in revenue for our Commonwealth over the first five years,” Shapiro said. “Those are dollars that can be invested back into our people and our communities. Stop with the excuses. Let’s get this done.”
Earlier this year, Shapiro reiterated his request for marijuana legalization in his budget plan, but the legislature has yet to take action on the proposal. The Democratic-controlled House of Representatives previously passed a bill to legalize marijuana and establish state-run dispensaries, but the Republican-majority Senate has criticized the approach without proposing an alternative legalization framework.
Revenue Potential of Marijuana Legalization
The state’s Independent Fiscal Office (IFO) indicated in February that legalizing cannabis could yield nearly $500 million annually by 2028, offering a more optimistic revenue forecast than that from Shapiro’s office. The IFO estimates that implementing a 20 percent wholesale cannabis excise tax, along with a 6 percent state sales tax and licensing fees, would produce $140 million in the first year (2027-2028) and increase to $432 million by 2030-2031.
In contrast, Governor Shapiro’s office projects approximately $36.9 million in tax revenue from the first year of legalization, eventually rising to $223.8 million by 2030-2031.
Recent polling, including a Quinnipiac University survey, shows that a majority of Pennsylvania voters support adult-use marijuana legalization. Additionally, in February, a coalition of drug policy and civil liberties groups urged Shapiro to lead discussions with legislative leaders to facilitate cannabis legalization this session.
In a recent development, the Senate Law and Justice Committee has amended and approved a bill to establish a Cannabis Control Board (CCB) to oversee the state’s medical marijuana program and hemp products. This board could later regulate adult-use cannabis, should legalization proceed in Pennsylvania.
