Good morning.
Politics and cannabis go hand-in-hand. And 2026 could be another big year at the ballot box for cannabis legalization — and in some case, a backslide into prohibition. Today, Zach takes a look. 👇
Let’s get to it.
-JB, JR, ZH
Today’s newsletter is 1,021 words or about a 7-minute read.
💡 What’s the big deal?
CAMPAIGNS & ELECTIONS
🇺🇸 Where is legalization on the ballot this year?
Driving the news: After a two-year drought, this year could finally see more states legalize.
2024 broke a six-year streak of at least one state legalizing every year. And last year was also a dud for legalization, but momentum persists even as the federal government continues to stall on rescheduling.
Here is a rundown of various efforts for state-level legalization in a shrinking pool of prohibitionist holdouts.
Good shot, but no guarantees
Virginia: Virginia technically legalized cannabis in 2021, but after four years of obstruction, the Commonwealth finally has a governor that is willing to support the launch of a cannabis market. Final regulations and the start of licensing is expected before the end of the year.
North Carolina: Governor Josh Stein created the North Carolina Advisory Council on Cannabis with the intended goal of developing preliminary regulatory recommendations by March 15, 2026 with the intention of creating a framework for the legislature to legalize.
New Hampshire: New England's doughnut-hole of legalization is once again looking at cannabis legalization. The State House passed a bill at the beginning of the year that would legalize cannabis and allow existing medical operators to convert to for-profit status. It remains to be seen if, much like the last few attempts, this effort falls in the Senate.
Pennsylvania: Negotiations continue in Pennsylvania's legislature on how legalization in the Keystone State should look. There appears to be bipartisan support for legalization in both the state Senate and House, but disagreement persists in how a legal market should operate.
Florida: Voters are likely to see legalization back on the ballot this November after it failed to gain the state-mandated 60% threshold of support in 2024. A recent poll showed a slip dip to 51% in support of legalization in the Sunshine State.
Hawaii: Legislators filed a bill about two weeks ago that would allow voters to decide on legalization. The move comes after a legislative attempt from the state Senate last year failed to survive the House.
Indiana: The Hoosier State has a pair of bills in play this session. One would decriminalize possession up to 2 ounces and the other would reclassify cannabis to Schedule III in the state, potentially easing the path to legal medical.
South Carolina and Kansas have a bill that would legalize medical, while Georgia's legislature is debating an expansion to its limited medical program.
On the other side: Idaho has a good shot maintaining prohibition.
One campaign to legalize is still collecting signatures, while a separate campaign would block the state's ability to legalize any narcotic through voter approval has already qualified for the 2026 ballot.
There are also ongoing campaigns to rollback legalization in Massachusetts, Maine, and Arizona. In all three cases, the campaigns have been accused of dishonesty when gathering signatures. Further reporting shows that the campaigns in Massachusetts and Maine are bankrolled by out-of-state interests.
The bottom line: Turmoil on the federal level and rollback campaigns aside, it appears that there is still momentum for state-level legalization.
-ZH
📣 Quotable
"Florida’s Constitution is not for sale, and we will not allow a mega marijuana corporation to hijack our state’s governing document," said Florida Attorney General James Uthmeier in an announcement on X/Twitter about his intentions to file additional complaints against signatures gathered in a campaign to put legalization back on the Florida ballot in 2026.
⏩ Quick hits
Attorney General Pam Bondi appears to have missed the Jan. 16 deadline to publish interim rules for new processes for obtaining approval to study Schedule I drugs under a bill that was signed by President Donald Trump last year.
New York State Sen. Jeremy Cooney introduced the Cannabis Supply Chain Integrity and Anti-Inversion Act, which would prohibit any acts tied to illicit cannabis “inversion,” create new penalties for violations, and add whistleblower protections for employees or contractors who report suspected misconduct to regulators or law enforcement.
The Massachusetts legislature is debating a bill that would dissolve its state's Cannabis Control Commission, even as it moves forward under Chair Shannon O'Brien who regained her position after a two-year absence.
The campaign to rollback cannabis sales in Maine has largely been funded from out-of-state by organizations linked to Smart Approaches to Marijuana, according to recently-released campaign finance records.
Connecticut only has one last dispensary that exclusively serves medical patients, at least until Wesport's Bluepoint Wellness relocates later this year as a hybrid adult-use/medical retailer.
Kentucky hemp company Cornbread dropped its lawsuit against the State of Tennessee’s enacted hemp restrictions, in light of the federal hemp ban set to take effect this November.
📺 In case you missed it
On Tuesday’s Cultivated Live, Jay spoke with Michael Johnson, CEO of Metrc, about what’s actually happening behind the scenes as New York implements statewide cannabis compliance infrastructure.
🤝 Deals, launches, partnerships
Curaleaf announced it is making the strategic decision to wind down its hemp business thanks to the ban last year. The company expects to make a more formal announcement in early March. $CURLF ( ▼ 1.21% )
Beverage company Uncle Arnie announced expansion into the Texas hemp and THC market.
Canadian cannabis company Tea Party announced the launch of a new rosin-infused blueberry chamomile iced tea. Yum.
🧪 Science & research
The substitution effect is real: A recent study published by the National Institutes for Health found that increased access to cannabis beverages correlates with a decrease in alcohol consumption.
📰 What we’re reading
Michigan's cannabis market heads into a year of upheaval | Detroit Free Press
High January Was Bound to Happen | The Atlantic