Pennsylvania Omits Cannabis From Budget, Misses $420 Million Annual Tax Revenue Opportunity
Following passage of Pennsylvania’s state budget agreement by Senate and House leadership, ResponsiblePA called on lawmakers to make comprehensive cannabis regulation a top fiscal and policy priority for 2026 to avoid the months-long impasse of 2025.
Under this budget, transit and state universities get zero additional dollars. Pennsylvanians are losing out on what is projected to be $420 million in annual tax revenue that can come from a regulated adult-use cannabis marketplace.
Lawmakers once again left millions of dollars on the table by failing to advance a comprehensive cannabis regulatory model – a step which would generate billions in new economic activity, create tens of thousands of jobs, and bring in hundreds of millions in recurring tax revenue without raising taxes.
Said ResponsiblePA:
“Pennsylvania’s budget crisis isn’t going away, as this deal simply kicks the can down the road when full cannabis regulation is a ready-made solution. Instead of raising taxes or cutting vital programs, lawmakers could choose a path that supports small businesses, creates family-sustaining jobs, and addresses public safety concerns through a regulated marketplace. Our neighbors have done it successfully – Pennsylvania can too.”
The budget comes after a 134-day impasse during which negotiations and discussions frequently pointed back to comprehensive cannabis regulation as a means to provide more revenue for the state without raising taxes. Various lawmakers pointed to a cannabis regulatory model as the solution to the state’s budget crisis.
The commonwealth budget challenges are just beginning as a result of federal funding cuts to crucial programs, like SNAP, health insurance subsidies and higher education affordability programs. Under this budget, crucial state programs, such as money for rape crisis programs, will be inadequately funded, anti-hunger programs will feel the impact of budgets slashed, and funding for child care worker retention programs and intellectual disabilities caregivers will impact real Pennsylvanians in addition to the millions in funding left unfunded for state public defenders.
Comprehensive cannabis regulation is not just a matter of economic sense, but of public safety and consumer protection. As an unregulated, intoxicating, synthetic THC hemp market expands, Pennsylvanians are increasingly exposed to untested products sold in gas stations and convenience stores – without age restrictions or oversight.
The reality is that cannabis is already here – Pennsylvanians are just accessing it in an unregulated, synthetic THC hemp market.
