Cannabis Policy Faces Major Overhaul in July 2025
A comprehensive July 2025 cannabis news and policy update paints a dynamic picture of the evolving legal landscape surrounding marijuana in the United States. From tax hikes to new market entries and legislative battles, the industry is undergoing significant changes that will impact businesses and consumers alike. The report, provided by Holland & Hart LLP, details the latest developments, highlighting both opportunities and challenges for the cannabis sector.
Delaware and Beyond: New Markets Emerge
One of the most significant developments is the impending launch of adult-use cannabis sales in Delaware. This expansion signifies a growing acceptance of cannabis across the country and opens a new market for businesses. Further expansion could be on the horizon as proposals are currently under consideration in Pennsylvania and Virginia, indicating a potential domino effect as more states explore the economic and social benefits of legalization.
In Delaware, the state Department of Public Safety is preparing to issue nine new vertically integrated medical cannabis licenses by December 1, 2025. Another three licenses are slated to be issued by April 1, 2026. This influx of new licensees is expected to increase competition and expand patient access within the state’s medical cannabis program.
Tax Increases and Revenue Projections
As the cannabis industry matures, states are increasingly looking to it as a source of revenue. Several states are implementing tax increases on cannabis products, including California, Maine, and Minnesota. These increases are expected to bolster state budgets, but could also impact consumer prices and potentially affect sales volumes.
California is leading the charge with an increase in its cannabis excise tax, rising from 15% to 19%. This adjustment reflects a growing trend of states fine-tuning their tax structures to maximize revenue generation from the legal cannabis market.
Cracking Down on Hemp: The ‘Hemp Loophole’ Targeted
Simultaneously, efforts to regulate and potentially restrict the hemp industry are gaining momentum. The so-called “hemp loophole” is under scrutiny, with various legislative efforts underway to clarify the legal distinctions between hemp and marijuana. Proposed legislation in Congress and Texas, alongside recent court decisions upholding state bans on certain hemp products, underscore the growing push for greater regulatory clarity and enforcement.
This trend reflects concerns about the potential for unregulated hemp products to undermine the market for regulated cannabis and to potentially expose consumers to products that do not meet the same safety and quality standards.
Federal Stance on Cannabis
On the federal front, the U.S. House Appropriations subcommittee recently approved an FY2026 Commerce, Justice, Science, and Related Agencies spending bill that reinforces the existing stance on cannabis. The bill includes a provision that would block the Department of Justice (DOJ) from using federal funds to reschedule or deschedule marijuana. This maintains the status quo, preventing the DOJ from interfering in state medical cannabis programs.
This ongoing federal position underscores the complexities of cannabis legalization in the United States. While individual states continue to move forward with their own laws and regulations, federal-level reforms remain stalled, creating a patchwork of legal frameworks across the country.
Looking Ahead
The developments outlined in the July 2025 update from Holland & Hart LLP underscore the rapid evolution of the cannabis industry. Businesses operating in this space must remain vigilant, closely monitoring changes in state and federal laws, tax regulations, and enforcement actions. The decisions made by lawmakers and regulators in the coming months will continue to shape the future of the cannabis industry and the access consumers have to these products.
