As neighboring states reap substantial tax revenues from legalized marijuana sales, Indiana remains steadfast in its prohibition, foregoing potential economic benefits amid a significant budget shortfall.
Neighboring States’ Cannabis Revenues
- Illinois reported over $147 million in adult-use cannabis sales in March 2025 alone, with $31 million attributed to out-of-state consumers, including Indiana residents .
- Michigan saw more than $276 million in adult-use cannabis sales in March 2025, marking a $35 million increase from February .
- Ohio, since initiating adult-use sales in August 2024, has generated over $465 million, contributing to a cumulative $2.6 billion in cannabis sales since 2019 .
Indiana’s Legislative Position
Despite facing a projected $2 billion budget deficit, Indiana lawmakers have dismissed marijuana legalization as a viable fiscal solution. Legislative leaders, including House Speaker Todd Huston, have indicated that cannabis legalization is not under consideration for budgetary relief, citing its limited impact on addressing the financial gap .
Recent legislative sessions have seen the rejection of multiple cannabis-related bills, including proposals for medical marijuana legalization and decriminalization of small-scale possession. The only cannabis-related measure enacted was a ban on marijuana advertising, incorporated into unrelated legislation concerning Bureau of Motor Vehicle records.
