Josh Turek, the Democratic nominee in a U.S. Senate race in Iowa this year, says it’s time to federally legalize, regulate and tax marijuana.

The candidate, currently a state representative, told voters at an Iowa State University football tailgate that he thinks cannabis’s longtime restrictive Schedule I status is “ridiculous.”

Turek told one man that he liked a cannabis leaf hat he was wearing. That prompted a woman to tell the Senate candidate that he should “fix” federal marijuana laws, adding that she has “so much pain” and “would like to be able to take gummies at night.”

Turek, who was born with spina bifida and is in a wheelchair, said he has “dealt with so many individuals with disabilities” and that cannabis is “one of the few ways that they see relief from their spasms.”

He suggested that marijuana isn’t harmful enough to be prohibited “in the grand scheme of things, when you’re looking at the health implications from tobacco or from alcohol.”

“Or opioids,” the woman voter chimed in. “I do not want to take opioids.”

“Absolutely,” Turek replied. Policymakers will “always reach out for Big Pharma,” he said, but not for “anything natural.”

“I would love to be able to address that federal level,” the candidate said. “I think it should be legalized and regulated, and let’s tax it. You’ve seen it with other states.”

In 2023, Turek cosponsored a bill in the Iowa House of Representatives to legalize adult-use marijuana and expand the state’s current medical cannabis program by allowing doctors to recommend it for any medical condition they see fit.

Turek’s opponent for the Senate seat, U.S. Rep. Ashley Hinson (R), voted against a bill to federally legalize marijuana on the House floor in 2022. She did, however, support separate legislation in 2021 to ease the cannabis industry’s access to banking services.

Meanwhile in Iowa, Democratic gubernatorial candidate Rob Sand recently explained why he thinks marijuana should be legalized and treated like alcohol, even if he thinks it’s “dangerous.”

“Marijuana is a dangerous drug,” he said. “You shouldn’t abuse it, but we also shouldn’t throw people in prison just for using it. We should treat it the way we treat alcohol. Alcohol is a dangerous drug. You shouldn’t abuse it, but we don’t throw you in prison just for having a beer when you get home.”

Separately, Iowa regulators are circulating proposed rules changes to remove the residency requirement for patients in the state’s medical cannabis program while also ensuring that military veterans qualify for reduced registration fees.

The residency-focused part of the regulatory change from the state Department of Health and Human Services is meant to comply with provisions of a bill that Gov. Kim Reynolds (R) signed into law in June.

In addition to allowing out-of-state residents to register in the medical cannabis program if they have a certification from an Iowa healthcare provider legislation, that legislation also doubles the number of medical cannabis dispensaries that are allowed to operate in the state.

Also this session, Iowa lawmakers considered a bill to create a state-regulated therapeutic psilocybin program for patients with post-traumatic stress disorder (PTSD).

Last year, the governor vetoed earlier legislation that would have allowed doctors in the state to immediately prescribe a synthetic form of psilocybin in the event of federal approval of the psychedelic substance by the U.S. Food and Drug Administration (FDA), arguing that it “surrenders state authority to make an informed determination about classification to federal officials.”

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Federally legalizing marijuana would generate $57.9 billion in new tax revenue over a decade, according to a new Yale University analysis—and additional states also moving to legalize cannabis would nearly double that haul.

The report, from the university’s Budget Lab, notes that the “cannabis market has grown into a substantial economic sector” but caveats that there is an “unusual degree of uncertainty” about the fiscal projections, however, given the “complicated legal context” of marijuana.

“Marijuana presents an appealing target for taxation,” the Yale analysis says, noting that it is considered by many policymakers to be “socially undesirable”—as is the case with alcohol and cigarettes.

“A tax levied specifically on marijuana could serve the dual purposes of discouraging use and raising revenue, thereby funding new public spending or replacing taxes on socially desirable activities like work or savings,” it says.

Researchers projected that if cannabis were federally rescheduled and an excise tax of $0.00625 per mg of THC were applied, a gram of marijuana would be taxed at $1.31. “At an average price of $8.59 per gram of marijuana, this tax would amount to about a 15% increase in the tax-inclusive price,” the report says.

The tax would result in $57.9 billion in new revenue over the course of ten years, the researchers project, If all remaining states were to also legalize marijuana in their jurisdictions, the total haul would be $111.3 billion over a decade.

The Yale report bases its estimates on existing state tax revenue to determine that the recreational marijuana market was about $25 billion in 2024

“We project that, if the market continues to grow without federal legalization or any new states legalizing, the market will reach nearly $40 billion in 2035,” it says. “The medical segment, while more established, represents the smaller share of total activity at only about 20 percent. As such, the medical marijuana segment accounts for between $5 and $8 billion in sales each year from 2024-2035.”

Uncertainties underlying the revenue estimates include how much illicit activity would convert to the regulated market under legalization, as well as the effect of taxes on consumer purchases.

Legalization would also cause some cannabis workers who are not currently paying income and/or payroll taxes to begin doing so.

“Federal legalization would likely generate income and payroll tax revenue beyond that collected through the excise tax. Workers in the illicit cannabis economy—cultivators, trimmers, distributors, and retail-facing sellers—currently earn income that is neither reported to the IRS nor subject to FICA withholding, because their employers have no lawful basis for establishing formal employment relationships at the federal level. Federal legalization would bifurcate this formerly invisible workforce into two distinct categories for tax purposes. Employees absorbed into licensed, formally structured cannabis firms—the multistate operators, vertically integrated cultivators, and dispensary chains that already operate in the state-legal market—would receive W-2 wages, generating both the employer and employee shares of FICA taxes as well as federal income tax withholding.”

People who own cannabis businesses would also enter into the tax system and be subject to self-employment taxes or federal income tax on net profit—”income streams that are currently entirely outside the federal tax base,” the report says.

“Federal legalization could result in a large-scale transfer of economic activity from the untaxed underground economy into the tax-compliant legal market,” the analysis says. “This shift holds implications for income and payroll tax revenue that is analytically distinct from, and additive to, the excise tax revenues. The scale of the illicit market that would be subject to this transition is substantial.”

Another piece of uncertainty that researchers did not attempt to account for in their calculations stems from the fact that federally legal marijuana businesses would be able to take advantage of tax deductions and credits that they are not eligible for in light of cannabis’s Schedule I status under the law known as 280E.

Despite the uncertainty, the report says, federal legalization would undoubtedly lead to new revenue.

“Federal legalization, by eliminating federal restrictions on banking access, interstate commerce, and formal employment relationships for many illicit operators, would reduce the structural advantages that sustain the black market and pull a meaningful share of that activity into the regulated economy,” the analysis says.

A separately recently published federal report from the U.S. Census Bureau shows that states where marijuana is legal have generated nearly $15 billion in tax revenue from legal cannabis sales since late 2021.

Another report from the advocacy group the Marijuana Policy Project found that states have generated more than $28.4 billion in tax revenue from recreational marijuana sales since the first markets launched over a decade ago.

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Several major alcohol industry participants are backing a new bill in Congress that would exempt hemp beverages from a currently scheduled ban on THC products derived from the plant while enacting new provisions to tax and regulate the cannabis drinks like alcohol.

“Appropriately dosed hemp-derived beverages belong in a regulated adult beverage marketplace, not in a legal gray area,” Dawson Hobbs, executive vice president of government affairs for Wine & Spirits Wholesalers of America (WSWA), said in a press release supporting the new Beverage Regulatory Parity Act, introduced on Monday by Reps. Beth Van Duyne (R-TX) and Greg Landsman (D-OH).

“We thank Congresswoman Van Duyne and Congressman Landsman for their leadership advancing a framework that treats these products differently from other hemp products and builds on the alcohol regulatory system’s long record of consumer protection,” he said.

“The conversation has evolved beyond whether hemp-derived beverages should be regulated to how they should be regulated,” Dobbs said. “This legislation moves that conversation forward by following the long record of success in regulating alcohol through a federal and state partnership.”

Hemp derivatives with less than 0.3 percent delta-9 THC on a dry-weight basis were federally legalized under the 2018 Farm Bill that President Donald Trump signed during his first term in office. But late last year, the president signed new legislation containing provisions that will redefine hemp to make it so only products with 0.4 milligrams of total THC per container will remain legal after November 12.

The Senate over the weekend, however, approved a funding bill that includes a provision to delay the effective date of the hemp product ban until December 11, with the support of the White House. Sen. Ted Budd (R-NC) had filed an amendment to strip that language and keep the prohibition on track as scheduled, but the body approved a motion to table the proposal in a vote of 61-32.

Hemp industry supporters believe the delay, if approved by the House and enacted into law, will give them more time to convince Congress to enact regulations for THC products as an alternative to prohibition.

Separately, the Beverage Alcohol Merchants Coalition (BAMCO)—a coalition of alcohol retailers—also endorsed the new hemp THC drinks bill.

“We applaud Representatives Van Duyne and Landsman for putting forward a regulatory framework for low-dose hemp beverages that aligns interests and addresses consumer demand,” Jonathan Grella, a spokesman for BAMCO, said in a press release.

“Their bill provides a path to a safe, regulated marketplace for low-dose hemp beverages while supporting Congress and the Administration in removing synthetic and inhalable products,” he said. “We look forward to working with Representatives Van Duyne and Landsman to build on the proven safeguards of the beverage alcohol system and get the regulation right.”

BAMCO’s members include Total Wine & More, BevMo! by Gopuff, ABC Fine Wine & Spirits, Spec’s Wine and Spirits & Finer Foods, as well as a group of hemp product wholesalers.

“This is exactly the kind of serious, bipartisan work needed to move the conversation from prohibition to responsible regulation,” Grella said. “Consumers deserve safe products, parents deserve strong protections for children, and responsible businesses deserve clear, enforceable rules. Our members are ready to be part of the solution.”

Under the new bill, adults over 21 could purchase and consume hemp THC beverages with up to 5 milligrams of total intoxicating THC per serving.

There would be a new federal tax on hemp drinks of 8 cents per milligram of intoxicating THC.

Hemp drinks would be regulated by the Treasury Department’s Tax and Trade Bureau (TTB), the Department of Health and Human Services (HHS) and the U.S. Department of Agriculture (USDA), with requirements for testing, packaging, labeling and serving and container sizes.

Legal beverages could only contain naturally-occurring cannabinoids that are cultivated and processed within the U.S.

Manufacturers, wholesales and sellers of hemp drinks would be required to obtain federal permits.

Companies could not sell multi-serving containers larger than 750 milliliters under the legislation.

The legislation further clarifies that states, Indian tribes and localities could set regulations that are “more stringent” than federal rules, but says that they could not prohibit the shipment or transportation of hemp beverages through their borders on the way to other jurisdictions.

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A bipartisan duo of lawmakers have filed a new bill in Congress that would exempt hemp beverages from a currently scheduled ban on THC products derived from the plant.

The legislation’s introductions comes days after the Senate voted to delay the planned recriminalization of hemp, which is intended to give lawmakers more time to craft regulations as an alternative to prohibition.

The Beverage Regulatory Parity Act, from Reps. Beth Van Duyne (R-TX) and Greg Landsman (D-OH), introduced on Monday, would establish a three-tier system for distribution of hemp drinks, similar to the model currently used for alcohol. It would allow adults over 21 to purchase and consume hemp THC beverages with up to 5 milligrams of total intoxicating THC per serving.

A draft version of the hemp drinks legislation obtained earlier this year by Marijuana Moment would have used a more permissive limit that measured delta-9 THC specifically.

Under the bill as introduced, there would be a new federal tax on hemp drinks of 8 cents per milligram of intoxicating THC—a reduction from the 10 cents contemplated in the earlier draft measure.

Hemp drinks would be regulated by the Treasury Department’s Tax and Trade Bureau (TTB), the Department of Health and Human Services (HHS) and the U.S. Department of Agriculture (USDA), with requirements for testing, packaging, labeling and serving and container sizes.

“I’ve heard directly from people across North Texas who consume hemp-derived beverages, and businesses who sell them, that they need clarity, not a ban that pushes this market underground,” Van Duyne said in a press release. “The Beverage Regulatory Parity Act brings long-overdue certainty to the industry by regulating these beverages with the same proven structure that has successfully governed alcohol for decades.”

“I am glad to introduce this bipartisan legislation alongside Rep. Greg Landsman, because American families and responsible businesses deserve structure and sensible regulations that protect children while allowing adults to choose beverages they prefer,” she said.

Landsman, for his part, said that “there are people all over Southwest Ohio who have invested significantly in these products, and they’ve done so safely.”

“Now the federal government is telling them they can’t sell these products anymore,” he said. “Our bill is bipartisan and very straightforward. It will keep people safe and let these folks stay in business.”

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Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

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Under the new bill, legal beverages could only contain naturally-occurring cannabinoids that are cultivated and processed within the U.S.

Manufactures, wholesales and sellers of hemp drinks would be required to obtain federal permits.

Companies could not sell multi-serving containers larger than 750 milliliters under the legislation.

The legislation further clarifies that states, Indian tribes and localities could set regulations that are “more stringent” than federal rules, but says that they could not prohibit the shipment or transportation of hemp beverages through their borders on the way to other jurisdictions.

Hemp derivatives with less than 0.3 percent delta-9 THC on a dry-weight basis were federally legalized under the 2018 Farm Bill that President Donald Trump signed during his first term in office. But late last year, the president signed new legislation containing provisions that will redefine hemp to make it so only products with 0.4 milligrams of total THC per container will remain legal after November 12.

The Senate over the weekend, however, approved a funding bill that includes a provision to delay the effective date of the ban until December 11. Sen. Ted Budd (R-NC) had filed an amendment to strip that language and keep the prohibition on track as scheduled, but the body approved a motion to table the proposal from Sen. Amy Klobuchar (D-MN) in a vote of 61-32.

The House of Representatives, which previously passed a separate funding bill that does not include language to extend the hemp ban’s effective date, is scheduled to return from its recess on August 31.

The new hemp drinks bill is being supported by some members of the alcohol industry.

“For nearly a century, the alcohol regulatory system has kept consumers safe while giving legitimate businesses clear rules to operate under. Rep. Van Duyne’s bill extends that same proven framework to hemp-derived beverages,” Dawson Hobbs, executive vice president of government affairs forWine & Spirits Wholesalers of America (WSWA), said. “WSWA is proud to support this legislation and thanks the congresswoman for her leadership in addressing products that have grown in popularity and are already on store shelves. We urge Congress to act before the November 12 deadline eliminates responsible options from the marketplace entirely.”

Total Wine & More said the bill “brings low-dose hemp-infused beverages into the same three-tier system that has safely regulated beer, wine and spirits for decades.”

“This framework, with licensed manufacturers, distributors and retailers, along with age verification, testing and labeling standards, is a smart way to protect consumers while giving responsible businesses certainty,” the company said.

John Bodnovich, executive director of American Beverage Licensees, said the legislation is a “thoughtful and serious approach to regulating hemp beverages in the United States.”

“Licensed beverage retailers have been consistent in calling for a safe, well-regulated, and accountable marketplace for hemp beverages, just as they have supported the effective system of state-based alcohol regulation that promotes public safety and responsibility while meeting consumer needs,” he said.

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The Hawaii Senate has passed a pair of resolutions calling on Congress to federally legalize marijuana, support state efforts to clear people’s conviction records and take steps to facilitate access to banking services for companies in the cannabis industry.

“Even though states have made significant policy changes with respect to cannabis, the federal Controlled Substances Act still classifies cannabis as a Schedule I substance,” the measures that were approved in 20-5 votes by the Senate on Thursday say, “which means that medical cannabis dispensaries and other cannabis-related businesses continue to face the prospect of federal seizures, forfeitures, arrests, and other enforcement and prosecution actions.”

The legal recreational cannabis industry could generate more than $1 billion in sales in Hawaii by its fifth year of operation, according to a recent state-commissioned study, the resolutions point out.

Current medical marijuana businesses in the state “are hampered by their inability to obtain the full spectrum of private banking services under federal law,” the measures sponsored by Sen. Joy San Buenaventura (D) say, adding that “arrests and convictions for cannabis possession remain on record and often impact the ability of a person to obtain housing and employment.”

SR58 and SCR64 call on Congress to:

(1) Remove cannabis from the federal Controlled Substances Act;

(2) Provide support to states that are in the process of clearing defendants’ records of cannabis offenses; and

(3) Facilitate access to the full spectrum of banking services for cannabis-related businesses.

The resolutions were approved last week by the Senate Judiciary Committee, which had amended them from their originally introduced form to remove provisions that had noted that alcohol and tobacco don’t fall under the Controlled Substances Act, “even though the regular use of those substances often leads to physical injuries, psychological and social harm, the onset of chronic and fatal illnesses, and other negative impacts on individual and public health.”

Sen. Karl Rhoads (D), the chair of the committee, said that the arguments about other substances “seem irrelevant” to the marijuana resolutions.

The concurrent resolution now heads to the House of Representatives for consideration. The separate Senate resolution simply expresses the sense of that body and requires no further action. It will now be transmitted to President Donald Trump and Vice President JD Vance, as well as the top Democratic and Republican leaders in the U.S. House of Representatives and Senate and each member of Hawaii’s congressional delegation. The concurrent resolution will take the same path if approved by the House.

Last week, the Senate Health and Human Services Committee adopted separate resolutions calling on the state attorney general and health department to request an exemption from the Drug Enforcement Administration (DEA) stipulating that Hawaii is permitted to run its medical cannabis program without federal interference.

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Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
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Although Hawaii senators recently approved a bill to legalize low-dose and low-potency marijuana, the legislation didn’t advance through required steps before a key deadline, and so it is dead for the year.

A separate marijuana legalization bill that contained provisions making the reform contingent on changes to federal law or the state Constitution, SB 2421, was deferred for action. Both Senate and House panels additionally deferred action on a measure to allow for the sale of certain hemp-derived cannabinoid products.

Those actions comes after key House lawmakers signaled that cannabis legalization proposals would not be advancing in the 2026 session, citing a lack of sufficient support in their chamber.

Last month, a Hawaii Senate committee separately passed legislation to allow patients to immediately access medical cannabis once their registrations are submitted, instead of having to wait until their cards are delivered as is the case under current law.

Meanwhile, another Hawaii House committee last week approved a Senate-passed bill that would create a psychedelics task force responsible for studying and making policy recommendations on providing access to breakthrough therapies such as psilocybin and MDMA.

Legislation to allow qualifying patients to access medical marijuana at health facilities also advanced this session.

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