In recent years, there has been significant momentum behind the movement to legalize cannabis in the United States. A shift in public opinion, growing support from policymakers, and the potential for substantial tax revenue have all contributed to this trend. With the increasing acceptance of cannabis for both medical and recreational use, the cannabis industry is projected to grow exponentially. Here, we examine the history and implications of changing marijuana laws in the United States, and what the future may hold for this burgeoning industry.
Marijuana has a long and complex history in the United States. Despite its legal status for most of the 20th century, cannabis has been used for medicinal, spiritual, and recreational purposes since ancient times by various societies and cultures around the world. The first recorded marijuana law in the United States was enacted in 1619 when the Virginia Assembly compelled every farmer to grow hemp for industrial purposes.
For much of U.S. history, the possession and cultivation of cannabis were legal; it wasn’t until 1937, with the passing of the Marihuana Tax Act, that the substance was effectively criminalized. However, this changed in 1996 when California passed Proposition 215, becoming the first state to legalize medical cannabis. Since that landmark decision, more states have implemented similar medical cannabis laws, recognizing the therapeutic potential of the plant.
Today, 36 states and Washington D.C. have legalized medical cannabis use, while 15 states and Washington D.C. have also legalized it for recreational use. These changes have encouraged further debate around federal marijuana laws and fueled the growth of the cannabis industry, which is projected to reach $73.6 billion by 2027.
One of the most notable benefits of cannabis legalization is the generation of increased tax revenue. Since Colorado became the first state to legalize recreational use in 2012, the state has collected over $1 billion in taxes from the cannabis industry. Other states that have followed suit, such as California, Nevada, and Washington, have also reaped substantial tax revenue, which can be directed towards funding education, healthcare, and infrastructure projects.
As more and more states legalize cannabis, the need for a cohesive federal policy becomes increasingly apparent. Currently, marijuana remains a Schedule I drug under the Federal Controlled Substances Act, meaning that it is considered to have no medical use and a high potential for abuse. This classification has made it difficult for researchers to access funding and conduct studies to determine cannabis’s therapeutic potential fully. However, with mounting evidence of its medical benefits, a push for federal rescheduling or de-scheduling of the drug is gaining traction.
In 2020, the discussion around federal marijuana reform saw some progress with the House passing the MORE (Marijuana Opportunity Reinvestment and Expungement) Act. This landmark legislation would remove cannabis from the Controlled Substances Act and eliminate criminal penalties for those who manufacture, distribute, or possess marijuana. It would also create pathways for expungement and reinvestment in communities most affected by the war on drugs. Although the MORE Act has yet to pass the Senate, its approval in the House is an important step towards federal cannabis reform.
Another significant development is the rise of cannabis legalization at the ballot box. In the 2020 election, voters in four states—Arizona, Montana, New Jersey, and South Dakota—approved initiatives to legalize marijuana for recreational use. Mississippi also passed a measure to legalize medical cannabis, demonstrating that the momentum behind cannabis reform continues to gain public support. As more states legalize cannabis, pressure will grow for the federal government to adapt its stance on marijuana laws.
The journey towards full cannabis legalization in the United States remains ongoing, with a multitude of intersecting factors to consider. As states continue to embrace marijuana reform for both medical and recreational use, the cannabis industry will continue to grow, generating increased tax revenue and creating new opportunities. With public support for marijuana legalization on the rise and evidence of its potential therapeutic benefits, the United States may be inching closer to a future with cohesive, progressive cannabis policies at the federal level.
