California’s legal cannabis market has generated nearly $8.4 billion in tax revenue since 2018 as the state ramps up enforcement against illegal drugs and touts declines in crime, Gov. Gavin Newsom announced on Sept. 2.
The cannabis revenue includes nearly $4.5 billion in excise taxes and nearly $3.4 billion in sales taxes. In the second quarter of 2026 alone, cannabis retailers remitted $261.7 million in cannabis excise and sales tax revenue.
The state uses cannabis revenue to support programs including childcare and early childhood development, youth substance abuse prevention, medical research and environmental recovery.
“We are building a legal cannabis market that generates billions for Californians, and going after the illicit operators who undermine it,” said Newsom. “That’s public safety: protect consumers, support the businesses playing by the rules, and put the revenue to work in our communities.”
California is also targeting illegal intoxicating products outside the regulated cannabis market. State officials have removed more than 15,000 illegal hemp, kratom, and 7-hydroxymitragynine, or 7-OH, products from store shelves.
The enforcement effort resulted in the removal of 7,403 illegal hemp products and 7,888 kratom and 7-OH products. Officials reported compliance rates above 97% among Alcoholic Beverage Control licensees inspected for both categories.
The state has warned that kratom and 7-OH products have been linked to addiction, overdose and other serious health risks.
California is also using its law enforcement resources to target violent crime, drug trafficking and other criminal activity. Since 2023, CHP Crime Suppression Teams have made 15,197 arrests, recovered 7,042 stolen vehicles and seized 656 illicit firearms.
Since the teams expanded to six regions statewide in August 2025, they have also confiscated nearly 1.7 million grams of illegal drugs, including about 108 kilograms of fentanyl.
“Over the past few years, our Crime Suppression Teams have demonstrated the value of proactive, intelligence-driven enforcement,” CHP Commissioner Sean Duryee said.
The Newsom administration says the efforts are part of a broader public safety strategy that combines regulation, enforcement, prevention and partnerships with local agencies.
California has also reported declines in major crime categories since 2024, including an 18.6% drop in homicides and a 25.8% decline in motor vehicle theft.
California officials say the combination of a regulated cannabis market, targeted enforcement and state-local law enforcement partnerships is helping protect consumers, disrupt illicit drug activity and improve public safety across the state.
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