Pennsylvania Gov. Josh Shapiro (D) has included cannabis legalization in his 2025-2026 budget proposal. The governor’s plan would legalize cannabis for adults on July 1, with retail sales commencing on January 1, 2026.
In a press release, Shapiro estimates that the industry would yield $250 million annually in additional tax revenue for the commonwealth, and generate $1.3 billion over the first five years as the market gets up and running. The state would use some cannabis-derived revenues – $10 million, according to the governor’s office – for restorative justice initiatives and another $25 million investment to help new small and small diverse businesses enter the new marketplace.
“Letting this business operate in the shadows doesn’t make sense.” — Shapiro during his budgets address via the Pennsylvania Capital-Star
The proposal also includes expungement provisions for cannabis possession offenses.
Shapiro did include the reforms in his budget proposal last year but lawmakers did not include the reforms in the final budget bill and did not pass standalone legislation.
Almost all of Pennsylvania’s neighbors have legalized adult-use cannabis, including New York, New Jersey, Delaware, Maryland, and Ohio. The governor’s office said the state “is currently at a competitive disadvantage, losing out on critical revenue and new businesses to our neighbors.”
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