D.C. industry rallies to squash 70% tax increase
D.C. cannabis operators may have secured a major win. Following a lobbying day at the Wilson Building, industry sources say the proposed increase in the District’s medical cannabis tax has been removed from the budget set for a Council vote today. The change comes after weeks of industry warnings that the tax hike could destabilize an already struggling market. Operators argued last week in the Washington City Paper that the tax would be “catastrophic” to the industry.
- The next ABC Board meeting is June 10: watch, agenda.
- Catch up on the June 3 disposition.
- Note that the first conditional manufacturing licenses will begin to expire at the end of June. The proposed extension being voted on in July is to codify the already implemented extension from two years to three years. There is no additional extension as this article made it seem.
Virginia cannabis regulators spent part of their June board meeting reviewing recent legislative changes, discussing federal medical cannabis policy developments, and addressing uncertainty surrounding the state’s delayed budget process. The board voted to continue agency operations under its current budget authority until a new budget is approved.
Virginia lawmakers explore budget path to recreational cannabis market
Virginia lawmakers and Gov. Abigail Spanberger appear to be moving toward a compromise on creating a legal recreational cannabis market after the governor vetoed legislation that would have launched retail sales in 2027. Legislators are now exploring whether adult-use market provisions can be included in the state budget, while cannabis industry advocates continue to criticize the veto, arguing it delays consumer protections, product testing requirements, and tax revenue. Spanberger has said she supports a regulated cannabis market but believes additional safeguards are needed before retail sales begin.
- The next CCA meeting is July 22, 2026. Sign up for public comment.
- Catch up on the June 2, 2026 meeting here.
Maryland intensifies crackdown on illegal cannabis sales at smoke shops
Maryland officials have intensified enforcement against smoke shops accused of illegally selling cannabis and tobacco products, seizing more than 73 pounds of cannabis and nearly 18,000 tobacco products during a series of operations in Baltimore. The crackdown, led by the Baltimore City Sheriff’s Office and the Maryland Alcohol, Tobacco, and Cannabis Commission, has resulted in multiple arrests and more than $370,000 worth of untaxed cannabis being recovered.
- Vireo Growth has completed its acquisition of agricultural supplier Bridgewell Agribusiness and announced plans to expand its cannabis footprint through pending dispensary acquisitions in Nevada and Maryland.
- Former pastor Craig Gross has become a prominent cannabis advocate, using his platform to challenge longstanding stigmas surrounding cannabis and encourage discussions about cannabis, faith, and wellness.
ICYMI: D.C. medical dispensary wins license fight over daycare buffer loophole
East Coast Roundup
New Jersey Governor Mikie Sherrill signed a bill allowing established medical dispensaries to expand into the adult-use market without needing local municipal approval.
Unionized cannabis growers at the Insa facility in Easthampton, Massachusetts, are ramping up pressure on management after working without a labor contract since October.
A retail cannabis store in Turner, Maine, was burglarized for the third time in just six weeks, drawing calls from the owner for stricter juvenile penalties.
Culture & More
Commercial indoor cultivators are increasingly deploying autonomous, AI–driven robotic sensors to maximize yields, spot crop anomalies, and predict exact THC levels.
Advocates warn that emerging legal psychedelic initiatives risk falling into the same complex regulatory traps, high taxes, and illicit-market struggles that have hindered commercial cannabis.
OPINION: Economist Tyler Cowen argues that while commercial cannabis legalization has brought visible societal downsides, it was a necessary and inevitable policy evolution for the country.
The WNBA’s collective bargaining agreement officially removes cannabis from its banned substances list while introducing explicit new bans on psychedelics and synthetic delta-8 THC.
Around the Country
Washington State’s legal cannabis market continues to face immense structural pressures from chronic oversupply alongside shifting federal policies.
Legacy cultivators in Santa Cruz, California are struggling to survive rising local regulatory fees and sharp price drops caused by massive regional oversupply.
Idaho lawmakers approved ballot language for a constitutional amendment designed to permanently block voters from using citizen initiatives to legalize cannabis.
Louisiana Governor Jeff Landry allowed a bill to take effect without his signature that permits hospitalized patients with terminal illness to access medical cannabis.
From the swamp
The D.C. Circuit Court of Appeals is preparing to weigh whether the federal push to reclassify cannabis to Schedule III constitutes historical progress or a severe administrative failure.
Opponents of restrictive state hemp policies are taking their fight to the D.C. Circuit Court to establish legal standing and protect hemp-derived cannabinoid markets.
Reflecting a nationwide shift in enforcement priorities, federal cannabis prosecutions have dropped to a new historic low as state-level legalization continues to expand.
