Wisconsin Governor Puts Marijuana Legalization In Budget Request, Along With Provisions To Regulate Hemp-Derived THC

The governor of Wisconsin has once again included a proposal to legalize marijuana in his biennial budget request.

“Legalize, regulate, and tax the sale of marijuana for recreational use, much like Wisconsin already does with alcohol,” a budget brief that the office of Gov. Tony Evers (D) released on Tuesday says, adding that it will result in “$58.1 million in revenue in fiscal year 2026-27 and growing amounts in future years.”

Under current Wisconsin law, cannabis is illegal for both recreational and medical purposes.

The governor’s proposal would additionally “create a process for individuals serving sentences or previously convicted of marijuana-related crimes to have an opportunity to repeal or reduce their sentences for nonviolent minor offenses.”

“The Governor further recommends the imposition of a 15 percent wholesale excise tax and a 10 percent retail excise tax on the sale of marijuana for recreational use by department-issued permit holders,” it says.

Identical bills to facilitate the budget requests have been filed in both the Senate and Assembly.

In addition to legalizing cannabis for adult use, Evers is proposing to include delta-8, delta-10 THC and other intoxicating hemp-derived cannabinoids in the definition of marijuana to “ensure their production, processing and sale is regulated and not available to individuals under 21.”

Further, the governor is calling for the the Department of Revenue the enter into agreements with tribal territories “for the refund to tribes of marijuana excise taxes estimated to be collected from sales on tribal lands,” similar to current policy with tobacco products.

The companion bills that were filed in tandem with the governor’s budget request stipulate that all revenue collected from the proposed cannabis taxes will be deposited into the state general fund.

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RFK Jr. Says Marijuana Can Have ‘Catastrophic Impacts’ On Consumers, But State-Level Legalization Can Spur Research On Its Harms And Benefits

Fresh off his Senate confirmation vote to become the secretary of the U.S. Department of Health and Human Services, Robert F. Kennedy Jr. said on Thursday that he is “worried about” the normalization of high-potency marijuana and that he feels its use can have “really catastrophic impacts” on people, but that state-level legalization can facilitate research into its harms and benefits.

Kennedy, who was vocal about his support for marijuana legalization when he was running for president—as well as during his time on the Trump transition team—has been notably silent on cannabis policy issues over recent months as he worked to win over senators to secure confirmation for the country’s top health role.

Now, during his first major media interview since receiving that final vote to secure the cabinet position earlier in the day, Kennedy told Fox News’s Laura Ingraham that he believes cannabis does hold serious harm potential.

The HHS secretary, who personally struggled with drug addiction during his youth, was asked about his cannabis policy position and noted that he’s been in recovery for over 40 years and attends daily 12-step meetings.

“I hear stories all the time of the impacts of marijuana on people—and the really catastrophic impacts on them,” he said.

However, Kennedy said “that worry also has to be balanced [with] the impacts that we’ve had before” as it relates to criminalization.

“Twenty-five states [have] now legalized marijuana, but we had about a third of our prison population that was in jail because of marijuana offenses,” he said. “That’s something we don’t want either.”

“Because of the legalization of recreational marijuana in 25 states, we have now a capacity to really study it and to compare it to states,” he said. “We need to do studies. We need to figure it out, and then we need to we need to implement policies to address” any health concerns.

Of course, HHS has already completed a comprehensive scientific study into cannabis that led the agency under the Biden administration to recommend moving marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA).

The new comments come on the same day that Sen. Pete Ricketts (R-NE) said he received a commitment from Kennedy to “follow the science on the harms of marijuana.”

Ricketts had already disclosed last week that he spoke to Kennedy about the the “importance” of “preventing the expansion of marijuana.” Now he says “RFK committed to me that he would follow the science on the harms of marijuana.”

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Montana GOP Senator’s Bill Would Require People To Register And Pay A $200 Annual Fee To Use Recreational Marijuana

Marijuana reform advocates are sounding the alarm after a Montana GOP senator filed a bill that would require adult-use cannabis consumers to register and pay a $200 annual fee to participate in the legal program that voters approved in 2020.

Sen. Greg Hertz (R) introduced the legislation, SB 255, last week. It would create a registration system similar to what’s in place for medical cannabis in many states—except that this would be for adults in a recreational market, with a significantly higher annual fee.

Adults would need to pay the $200 fee to obtain a cannabis card from the state Cannabis Control Division (CCD). Participants would need to pay that fee each year for renewal under the proposal.

Upon applying for the card, there would be a 60-day period where adults could access marijuana from licensed retailers. But if they don’t pay the fee by the end of that window, the division “shall cancel the temporary marijuana identification card.”

“This is an outrageous attempt to gut the will of the people and re-criminalize cannabis for most Montanans. Voters legalized cannabis for all adults 21 and older,” Karen O’Keefe, director of state policies at the Marijuana Policy Project (MPP), told Marijuana Moment on Thursday.

“No other adult-use state forces cannabis consumers to enroll in a state registry, and the people’s initiative explicitly prohibits this surveillance and government overreach,” she said. “Re-criminalizing cannabis for anyone who does not pay $200 per year to register with the state is an affront to Montana voters who made their voices clear when they passed Initiative I-190.”

The text of the bill states that a “marijuana cardholder shall keep the individual’s marijuana identification card in the individual’s immediate possession at all times. The marijuana identification card and a valid photo identification must be displayed on demand of a law enforcement officer, justice of the peace, or city or municipal judge.”

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New GOP Bill Would Block Marijuana Industry Tax Deductions, Even After Federal Rescheduling

Two GOP senators have introduced a bill that would continue to block marijuana businesses from taking federal tax deductions under Internal Revenue Service (IRS) code 280E—even if it’s ultimately rescheduled.

Sens. James Lankford (R-OK) and Pete Ricketts (R-NE) filed the “No Deductions for Marijuana Businesses Act” on Thursday to maintain the tax barrier for the industry, which has been eagerly following the ongoing administrative process of moving cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA) in large part because it would address their 280E challenges under current law.

While rescheduling isn’t a guarantee, and Drug Enforcement Administration (DEA) hearings on the proposal have been delayed, the senators are aiming to preemptively take the wind out of the industry’s sails.

The bill would amend the IRS code to say that, in addition to all Schedule I and Schedule II drugs, businesses that work with marijuana specifically would be barred from taking tax deductions that are available to other industries.

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Texas Lt. Gov. Touts Poll Result Backing Hemp Crackdown While Ignoring Support For Marijuana Legalization In Same Survey

Texas Lt. Gov. Dan Patrick (R) this week emphasized a survey result showing that more than half (55 percent) of Texans want the state to rein its largely unregulated market for hemp-derived THC. At the same time, however, he seemed to ignore the survey’s other findings: that even more Texans want the state to legalize and regulate marijuana for both medical and adult use.

“This is a huge polling number on the issue of banning THC,” Patrick said Tuesday on social media, zeroing in on hemp-derived THC products that are widely available across the state. “Texans see these stores everywhere: in their neighborhoods and especially around schools where children have easy access. People simply don’t want them around.”

“Once the facts are out in the open,” he continued, “there is no doubt these public polling numbers will rise as more Texans demand a ban on these dangerous products.”

Rather than an outright ban on THC, however, the broader results of the University of Houston’s Hobby School of Public Affairs survey actually show that Texans want regulation of the psychoactive cannabinoid.

The polling found that nearly 4 in 5 (79 percent) support legalizing the sale and use of medical marijuana with a doctor’s recommendation, while more than 3 in 5 (62 percent) support legalizing and regulating an adult-use cannabis market.

Almost 7 in 10 (69 percent), meanwhile, said they think the state should decriminalize marijuana for personal use.

There is bipartisan support in the survey for each of the reforms.

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DEA Judge Cancels Marijuana Rescheduling Hearings Amid Legal Challenges, Pushing Back Reform For At Least Three Months

The first hearings on the Biden administration’s marijuana rescheduling proposal that were set for next week have now been canceled following a legal challenge from pro-reform witnesses, a Drug Enforcement Administration (DEA) judge has ruled.

While DEA Administrative Law Judge (ALJ) John Mulrooney rejected key arguments from rescheduling proponents about how alleged improper communications and witness selection decisions by DEA Administrator Anne Milgram warranted the agency’s removal from the process altogether, he ultimately granted a request for leave to file an interlocutory appeal—canceling the scheduled January 21 merit-based hearing and staying the proceedings for at least three months.

And although Mulrooney cited statutory restrictions on his office’s ability to take actions such as removing DEA as the “proponent” of the proposal to move marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA), he sharply criticized the agency over various procedural missteps that he argued contributed to a delay of the rulemaking, potentially indefinitely as a new administration is set to come into office next week.

Central to the movants’ motion to remove DEA are allegations that certain agency officials conspired with anti-rescheduling witnesses who were selected for the hearing. The judge didn’t outright deny those claims and, in fact, noted a “disturbing and embarrassing revelation” about such communications. However, he said even if those claims were substantiated, they wouldn’t on their own constitute an “‘irrevocable taint’” that will affect the ultimate outcome of the proceedings.” Therefore, he said, it wouldn’t affect his office’s authority to relegate DEA in the hearings.

“I can no more remove or re-designate the Administrator than I can hold parties in contempt and fine them,” Mulrooney said. “The strangeness of this unsupported approach is amplified by the fact that the appointment of a new DEA Administrator by a different political party is imminent.”

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DEA Judge Blasts Agency For ‘Unprecedented And Astonishing’ Defiance Of Ruling On Marijuana Rescheduling Evidence Procedures

A Drug Enforcement Administration (DEA) judge is condemning the agency over its “unprecedented and astonishing” defiance of a key directive related to evidence it is seeking to use in upcoming hearings on the Biden administration’s marijuana rescheduling proposal.

At issue is DEA’s insistence on digitally submitting tens of thousands of public comments it received in response to the proposed rule to move cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA) as evidence in the hearings.

At multiple points, DEA Administrative Law Judge (ALJ) John Mulrooney advised the agency that hard copies of all evidence needed to be entered by January 3, and he rejected DEA’s request for an exception to the rule. Nevertheless, DEA moved to submit the comments in compact disc form despite the “clear (and repeated) directives,” the judge said in an order on Monday.

“The Government has not supplied the tribunal with a hard copy of the lengthy proposed exhibit… which it represents as containing the Comments,” Mulrooney said. “In view of the fact that Government’s request for leave for an exception to the rules applicable to the rest of the Designated Participants was specifically denied, this action is clearly not a mistake borne of misunderstanding or inadvertence, but an action taken in deliberate defiance of specific direction.”

“Even among the numerous extraordinary and puzzling actions taken thus far by the Government during the course of this litigation, this disobedience of an unequivocal directive from the tribunal is unprecedented and astonishing,” he said.

To that end, he rejected the evidentiary exhibit and further noted that, in light of DEA’s “deliberate failure to comply with the unequivocal and repeated directive of the tribunal, the issue of sanction is herein RESERVED for a determination to be made at such time during the hearing on the merits that the proposed exhibit is offered into the record.”

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Virginia GOP Governor Claims Legalizing Marijuana Sales Would Harm Children And Increase Crime

Virginia Gov. Glenn Youngkin (R) emphasized during his State of the Commonwealth address that he’s not interested in cooperating with lawmakers to legalize marijuana sales in the state, claiming that doing so would hurt children, worsen mental health and increase violent crime.

“Strong communities work to prevent harmful drug use,” the governor said during the speech on Monday.

Use, possession and limited cultivation of cannabis by adults are already legal in Virginia, the result of a Democrat-led proposal approved by lawmakers in 2021. But Republicans, after winning control of the House and governor’s office later that year, subsequently blocked the required reenactment of a regulatory framework for retail sales. Since then, illicit stores have sprung up to meet consumer demand.

Supporters of regulating commercial sales in the state say the move would not create a cannabis market in Virginia but instead regulate the state’s existing illicit market, which some estimates value at nearly $3 billion. But Youngkin has rejected the idea, issuing a veto of a legal sales measure passed by lawmakers after Democrats retook control of the legislature last year.

“Everyone knows where I stand on establishing a retail marijuana market,” Youngkin said in his speech. “Let’s work together on other issues where we can find common ground.”

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Indiana Lawmakers File Bills To Legalize Marijuana And Fund Psilocybin Research In 2025

Indiana lawmakers are already making moves to enact drug policy reform in the 2025 session—with newly filed bills to legalize marijuana, allow medical cannabis and fund psilocybin research.

While the prospects of the cannabis measures are unclear given the Republican-controlled legislature’s historic resistance to reform, the psychedelics legislation would simply provide the necessary funding for an already-enacted law promoting psilocybin research.

Senate Bill 113

Sen. Rodney Pol (D) has introduced legislation that would legalize marijuana for recreational and medical purposes in the state.

The bill would establish a regulatory framework and excise tax for cannabis, while creating an Indiana Cannabis Commission (ICC) and Advisory Committee to oversee the program.

It would also facilitate research into marijuana and provide for the expungement of criminal records for offenses made legal under the reform.

According to a fiscal note from the Legislative Services Agency (LSA), enacting the bill would generate “between $46.6 million and $92.6 million in FY 2026 and $50.8 million and $101.7 million in FY 2027 from Sales and Excise Taxes and permit fees.”

Despite the GOP-controlled legislature’s history on marijuana policy reform, some suspect the tides might change in 2025. Part of that enthusiasm comes from the fact that Gov.-elect Mike Braun (R) recently said that “it’s probably time” to allow access to therapeutic cannabis.

However—despite a recent survey showing nearly 9 in 10 Indiana adults support legalizing medical marijuana—Republican leaders in the legislature are pushing back on the idea.

“It’s no secret that I am not for this,” Senate President Pro Tem Rodric Bray (R) said last month. “I don’t have people coming to me with really compelling medical cases as to why it’s so beneficial. And any state that I’ve seen pass medical marijuana is essentially passing recreational marijuana.”

House Speaker Todd Huston (R), meanwhile, doubted any medical benefits associated with marijuana, calling the substance “a deterrent to mental health.” He and others suggested that lawmakers supportive of the reform merely want to boost state revenue.

Meanwhile in Indiana, an organization led by the former head of the state’s Republican Party is pushing lawmakers to adopt what it’s calling “safe and regulated” policies on marijuana.

An interim study group had heard testimony around the possibility of decriminalizing simple cannabis possession last November, but the group did not make any specific recommendations.

House Bill 1332

The legislation, sponsored by Rep. Blake Johnson (D), would also establish a regulatory framework for adult-use marijuana, with a Cannabis Commission charged with overseeing the program.

Marijuana would be subject to a 10 percent excise tax, in addition to the state’s 7 percent sales tax.

“Revenue to the state General Fund is estimated to increase between $41.9 M and $82.1 M per year from Sales Taxes” on marijuana, according to a fiscal note. “Also, the bill establishes the nonreverting Cannabis Regulation Fund which could receive between $60.4 M and $118.5 M per year from the Cannabis Excise Tax and permit fee revenue.”

It would also impose new penalties for mislabeling hemp products and selling or transporting cannabis to minors.

House Bill 1145

Under a newly filed bill from Rep. Heath VanNatter (R), it would no longer be a crime to possess up to two ounces of cannabis or grow plants with more than two ounces.

The proposal would also increase the felony threshold for possession, raising it from 30 grams to four ounces.

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Legalizing Medical Marijuana Leads To ‘Significant Decrease’ In Opioid Companies’ Payments To Pain Doctors, Study Shows

Legalizing medical cannabis appears to significantly lessen monetary payments from opioid manufacturers to doctors who specialize in pain, according to recently published research, with authors finding “evidence that this decrease is due to medical marijuana becoming available as a substitute” for prescription painkillers.

“We find MML [medical marijuana legalization] leads opioid manufacturers to decrease direct payments to physicians prescribing opioids,” wrote authors, from the University of Florida, University of Southern California and the State University of New York (SUNY) at Buffalo. “Our analyses suggest this shift is due to increased adoption of marijuana for pain management, indicating that opioid manufacturers perceive marijuana as a superior substitute and respond by reducing these payments.”

The study was published late last year in the Journal of the American Statistical Association and was partially funded through a grant from the National Science Foundation. It looked at various financial incentives that opioid drugmakers provide to prescribing doctors—such as consulting fees and travel to conferences—and used a novel method of analysis meant to estimate causal effects from observational data.

“Our analysis finds a significant decrease in direct payments from opioid manufacturers to pain medication physicians as an effect of MML passage,” the report says.

Wreetabrata Kar, an assistant professor of marketing in the SUNY Buffalo’s school of management, co-authored the new study.

“Our findings indicate that medical marijuana is increasingly viewed as a substitute for opioids in chronic pain treatment, with the potential to transform pain management practices and help mitigate the opioid crisis that has profoundly affected communities across the U.S.,” the researcher explained in a press release. “The availability of new pain management options can change the financial dynamics between drug companies and health care providers.”

The team’s analysis found that decreases in direct payments from opioid makers to physicians was higher among physicians “practicing in localities with higher white populations, lower affluence, and a larger proportion of working-age residents.”

“Lower income regions tend to have higher rates of chronic pain and opioid misuse, making them key areas for potential substitution with medical marijuana,” Kar said. “Black patients are also less likely to be prescribed opioids for pain, and younger populations may be more open to alternative treatments, which could explain the different impacts of marijuana legalization in these communities.”

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