Pennsylvania "ripe" to legalize weed, advocates say

• Delaware is poised to open its first dispensaries this year.

Why now? Pennsylvania is facing a looming budget crisis, and legalization advocates are pushing recreational cannabis revenues as a way to fill state coffers.

• Plus, there's growing interest from the public and lawmakers, as well as concern over lost tax revenue to nearby states that have legalized weed.

What they're saying: "It's not a matter of if, it's when," says State Rep. Rick Krajewski (D-Philly), who's planning to co-sponsor a legalization proposal this year.

• "You can only see people crossing state lines for so long to purchase cannabis before it's nonsense for us to not legalize cannabis," Krajewski tells Axios.
• Meredith Buettner, executive director of industry trade group Pennsylvania Cannabis Coalition, tells Axios: "From an industry perspective, the groundwork we've laid over the last legislative cycles is ripe to be acted upon."

What we're hearing: Interest in recreational marijuana legalization has recently spiked among some Democratic and Republican lawmakers — even if they're not saying so publicly yet.

• Democrats in the state House, where they hold a majority, are likely to take the lead. Democratic Gov. Josh Shapiro has backed legalization for years.
• House Speaker Joanna McClinton (D-Philly) supports it too, her spokesperson Nicole Reigelman tells Axios.

Yes, but: The GOP majority in the Senate has stymied past attempts at legalization over concerns about the federal ban.

• A Senate GOP spokesperson declined to say whether the caucus will block a legalization effort this year: "Strengthening communities and ensuring public safety continue to be of paramount importance to our Caucus."

State of play: Pennsylvania's budget last year ran a structural deficit and was balanced by using the state's surplus.

• But that surplus is on track to run dry in 2025 without spending cuts or new revenues, per the state Independent Fiscal Office.

By the numbers: Legal recreational weed could bring in $250 million in annual revenue in Pennsylvania, per estimates from Shapiro's budget proposal.

• In New Jersey, recreational cannabis sales topped $42 million in 2024 as the industry continues to grow.

What we're watching: Krajewski says his forthcoming bill, which he's working on with Rep. Dan Frankel (D-Allegheny), proposes selling cannabis through a state-run store system — similar to liquor sales.

• The proposal would include private licenses for growers, processors and small retail, like cafes.
• They're also seeking to prioritize the expungement of most marijuana-related arrests and convictions.