Pennsylvania passes $50.8B budget, omits marijuana legalization

Budget excludes cannabis revenue stream

The final $50.8 billion spending plan contains no provisions for adult-use marijuana sales or taxation. Pennsylvania's General Assembly approved the budget after weeks of closed-door negotiations between Democratic Governor Josh Shapiro's administration and Republican legislative leaders. The package funds education, infrastructure, and public safety programs through existing revenue sources—primarily income and sales taxes.

Legalization advocates had projected that adult-use cannabis could generate $250 million to $400 million annually in tax revenue once markets mature, based on per-capita sales data from neighboring New Jersey and New York. Those estimates didn't appear in budget reconciliation documents.

Third year without legalization language

Pennsylvania lawmakers have now passed three consecutive budgets without adult-use cannabis provisions despite polling showing 60% voter support. House Bill 2500, introduced in March 2025, would have established a regulatory framework modeled on the state's existing medical marijuana program, which serves approximately 450,000 registered patients. The bill stalled in the Senate Law and Justice Committee. No floor vote.

Senate Majority Leader Joe Pittman told reporters in June that legalization "lacks the votes" in his caucus, citing concerns over impaired-driving enforcement and federal Schedule I classification. No revised bill has been introduced for the 2026-2027 session.

Medical program continues without expansion

The budget maintains funding for Pennsylvania's medical cannabis program at current levels, with no new dispensary licenses authorized. The Department of Health oversees 208 active dispensary locations operated by 17 grower-processor permit holders. During fiscal year 2025, the program generated $3.2 million in state fees, according to departmental filings.

Patient advocates had requested language expanding qualifying conditions to include anxiety disorders and chronic pain without additional physician certification. The final budget doesn't address those changes. For full background on this story, see the CannIntel topic hub on Pennsylvania legalization.

What to watch

Legalization proponents are targeting the 2027 gubernatorial race as the next legislative window. Governor Shapiro, who publicly supported adult-use legalization during his 2022 campaign, hasn't reintroduced the issue since budget talks began in April. His office declined to comment on whether cannabis will be part of the 2027 budget proposal.

The next budget cycle begins with the governor's February 2027 address. No legalization bills are currently pending in either chamber.