California Governor’s Revised 2025-26 Budget Prioritizes Illicit Cannabis Enforcement, Avoids Increased Costs for Licensees

This change will enable DCC to uphold California’s commitment to protecting public safety and a well-regulated legal cannabis market without increasing licensing fees, according to a press release from the governor’s office.

The revised budget also includes proposals to:

Several interrelated issues inform this proposal:

The Governor’s proposal addresses these issues by utilizing the Cannabis Tax Fund, an existing industry-generated revenue source, for funding enforcement activities that benefits all Californians. Redirecting these costs would reduce unnecessary financial pressure on compliant businesses while maintaining critical enforcement efforts against illegal activity.

If the proposal is approved, DCC would join other state agencies in receiving illicit cannabis enforcement funding from the Cannabis Tax Fund.

Additionally, the proposed changes to the BSCC grant program will expand funding opportunities for local law enforcement to support enforcement against the illicit cannabis market.

More information is available on the Department of Finance’s website.