PA And VA Consider Adult-Use Sales To Offset Budget Shortfalls
September 2, 2025The state governments of the commonwealths of Pennsylvania and Virginia are considering adult-use cannabis sales as a measure to counter funding gaps created by President Trump’s effort to rein in federal government spending.
In Virginia, Democratic Senate President Pro Tem Louise Lucas has called for adult-use sales with tax dollars going to protect state programs threatened by federal welfare rollbacks. While possession and consumption of cannabis have been legal in Virginia since 2022, Governor Glenn Youngkin has twice vetoed bills to create a regulated adult-use market.
Despite the governor’s opposition, the state legislature is considering what Virginia’s adult-use market could look like. State Senator Paul Krizek, chair of the state’s commission for making adult-use sales recommendations, said the commission’s goal is to create regulations that will allow cannabis companies to thrive while establishing strong oversight and limited expansion.
The challenge of creating an adult-use market in Pennsylvania, by contrast, sits firmly within the state legislature, with Governor Josh Shapiro advocating for legalization with the support of the Democratic minority in the state’s government. Shapiro continues to implore the legislature to create a state budget that includes adult-use sales, with the impasse delaying the state’s budget by eight weeks.
Taxes on adult-use sales, as well as on skill games in the state, are a keystone of Shapiro’s plan to address Pennsylvania’s budget deficit. Democrats in the Pennsylvania Senate and House have put forth numerous proposals to establish adult-use sales, with all of them blocked by the GOP-controlled legislature.—Shane English
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