Robust Cannabis has a 75,000-square-foot greenhouse in Missouri, one of the states Iowans visit to buy cannabis products that are illegal in their home state. (Photo by Rebecca Rivas/The Missouri Independent)
Most Americans continue to support the legalization of cannabis, as the medical use of cannabis is legal in 40 states and the District of Columbia and recreational cannabis is legal in 24 states and the District of Columbia.
Early indications are the second Trump administration will continue the cannabis legalization policies of the Biden administration, including the rescheduling of cannabis at the federal level. Although three of four state ballot measures for recreational legalization failed in the November 2024 election (Florida, North Dakota and South Dakota), as many as five states are projected to legalize it in 2025. Iowa is increasingly becoming the exception.
Like most public policy issues, expanding the availability of medicinal cannabis products and legalizing recreational cannabis sales in Iowa is complex. Social justice, health, law enforcement, employment, agriculture and many other elements are part of the legalization movement and countermovement.
Ultimately, some observers say, it’s about the money: the potential tax revenues that the state coffers may eventually need after cutting the income tax rate and administration spending to the bone and then spending significantly more on the private school tuition voucher program.
Mike Tramontina, former state deputy treasurer and former director of the Iowa Department of Management, says the Republican-controlled state Legislature and administration have “walked into a fiscal trap.”
“The state has a strong financial balance now, primarily because of federal money and the strong economy. Public education, natural resources, regulation of nursing homes and every form of regulation have been cut much further than they should. The overspending for private school vouchers will continue to escalate rapidly,” Tramontina said.
Estimated to cost $106.9 million during the first year (2023–24), private school voucher spending totaled $128 million. The projected cost for the 2024–25 school year was $132.3 million, but the Legislature approved $179.2 million. Critics of the program say most of that money subsidizes affluent households with children already attending private schools.
“When it becomes apparent the state will experience shortfalls, it will need new revenue. The Legislature, as in most Republican-dominated states, dare not go for more income and sales tax. The taxes on cigarette and alcohol sales are already quite high. They will need a new sin tax and, I predict, it will be the legalization of cannabis,” Tramontina added.
He estimates the state will need $40 million to $50 million in new revenues and the current and very limited Medical Cannabidiol Program will never generate those amounts.
Iowans buy over the border
Although statistics are difficult to find, Iowans who want to purchase either medicinal or recreational cannabis can drive a few hours or even minutes across the borders into Illinois, Minnesota and Missouri, boosting the economies and tax revenues of those states.
In March 2023, the Illinois Department of Financial and Professional Regulation estimated citizens of Wisconsin, where cannabis is illegal, crossed the border and spent about $36.1 million or 7.8% of all cannabis sales in Illinois in 2022. The tax rate on cannabis varies by state, but the average is generally 10% or more, so Illinois generated about $3.6 million from those Wisconsin residents.
Another example is Missouri, where buying cannabis for recreational use became legal in February 2023. The state reported $1.4 billion in total sales during just the first year of legalization and more than $65 million in tax revenues – and it has the lowest cannabis tax rate in the country at 6%.
Legalization bills given no chance
“Dead on arrival.” That is how Brad Knott, a longtime political consultant from Carroll, Iowa, characterizes how the Republican majority in the state Legislature reacts to any legalization bills introduced by Democrats.
“Polling in Iowa supports cannabis. From a political perspective, it’s one issue that breaks the MAGA coalition. Whether it’s Libertarians or young people, there is overwhelming support. Iowans have pride in their common sense. The problem is the Legislature is much more conservative than the people. They don’t care what people want on this issue,” Knott said.
Last fall, Iowa House Democrats listed the legalization of cannabis for adult use as one of their primary legislative initiatives for 2025. During a news conference in September, House Minority Leader Jennifer Konfrst predicted Gov. Kim Reynolds would likely oppose any cannabis legislation from Democrats during 2025, although about 60% of Iowans support legalization.
Rep. Adam Zabner is a Democrat representing eastern Iowa City in Iowa House District 90. He was the co-sponsor of House File 442 introduced during 2023. It had the support of about 30 other Democratic legislators and was based on the “common-sense” approach of many Iowans, he said.
“Our bill expunges records for Iowans with convictions for marijuana possession, decriminalizes possession of marijuana and establishes reasonable limits, such as having to be 21 to purchase and use cannabis and limiting possession to smaller amounts. Republicans have refused to give our bill a subcommittee hearing,” Zabner said.
Key House Republican opposes recreational marijuana legalization
Rep. Ann Meyer, R-Fort Dodge is an RN, chairs the Health and Human Services Committee and is a member of the Appropriations and Judiciary committees. She opposes any legalization of recreational cannabis.
“While we are working hard to address brain health issues in Iowa, I cannot in good conscience support pouring gasoline on the fire by making recreational marijuana available to those before their brains are fully developed. Access to recreational marijuana would increase access to those younger, just like alcohol is available,” Meyer said.
Rep. John Forbes, D-Urbandale, has represented House District 44 in Urbandale since 2013 but did not seek reelection this year. He is also a pharmacist and as a health care professional is not a big advocate of recreational cannabis but is of medical marijuana.
“In my pharmacy practice, I’ve talked to patients who want to stop using opioids for pain and I have accompanied a few patients to medical dispensaries to help them determine what would be the best treatment. I think it’s a good alternative for some people to explore the use of medical marijuana for pain control. I’ve had some patient successes with that option during my career as a pharmacist,” Forbes said.
Meyer agrees with Forbes that medical marijuana, which is legal in Iowa, has benefits for many Iowans, including her nephew.
“Medical cannabis I support completely. I do believe there are medical benefits. Anecdotally, my nephew (with autism and epilepsy) takes cannabis oil to control seizures. It has been very effective. I know PTSD can be effectively treated. The medical program seems to be working; if revisions need to be made, then I am open to that,” Meyer said.
As is the case in many other states, the legalization of recreational cannabis and the expansion of the current legal medical cannabis program in Iowa will continue to be a hot issue. Internal and external forces will determine whether and when the majority of Iowans who support the legalization of recreational cannabis and a majority of Iowa legislators, who don’t, will agree the time has come.
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