DEA to decide if 21-year-olds can buy marijuana
Fox News correspondent Lucas Tomlinson reports on the DEA’s upcoming hearing on whether adults 21 and older can legally purchase marijuana without restrictions on ‘Fox Report.’
The marijuana legalization movement sold Americans a simple promise: legalize cannabis, regulate it, tax it, and the black market would disappear.
That promise has failed spectacularly.
Today, illegal marijuana dealers remain active across California and throughout the nation. Meanwhile, the "legal" marijuana industry — the very industry that was supposed to replace them — is struggling with declining sales, shrinking profits, surrendered licenses, and falling tax revenues and investment loses.
The problem is not that Americans have stopped using marijuana. That would be a great outcome for public health and safety. The reality is quite the opposite.
MARIJUANA IS NOT HARMLESS. THE OPPOSITE IS TRUE AND THE EVIDENCE KEEPS GROWING
National surveys show that cannabis use continues to increase. According to the Substance Abuse and Mental Health Services Administration (SAMHSA), past-month marijuana use rose from 37 million Americans in 2021 to more than 44 million in 2024, while past-year use also reached record levels. Yet during the same period, California's "legal" cannabis sales declined for three consecutive years. If demand is growing while "legal" sales are shrinking, the obvious conclusion is that consumers are increasingly obtaining marijuana from sources outside the licensed marketplace.
Three Consecutive Years of Sales Declines in California
Year — Legal Cannabis Sales:
2023 $4.4 billion
2024 $4.2 billion
2025 $3.9 billion
A cumulative decline of roughly 11% from 2023 to 2025.
This raises an uncomfortable question: What exactly has legalization accomplished?
The answer appears to be that legalization created a government-endorsed marijuana industry that now performs many of the functions once handled by the black market itself. Licensed marijuana dealers advertise cannabis products, normalize marijuana use, introduce new customers to the drug, expand public acceptance, and help grow overall demand. They operate attractive retail storefronts, develop sophisticated branding campaigns, and spend millions of dollars promoting marijuana consumption.
In doing so, they have effectively become the customer-acquisition arm of the broader marijuana economy.
Once consumers become accustomed to using marijuana, many discover that they can purchase the same product through underground channels at significantly lower prices. Illegal dealers do not pay licensing fees, testing costs, regulatory compliance expenses, labor mandates, security requirements, local taxes, state taxes, or federal tax burdens. As a result, they can often undercut "legal" sellers on price while benefiting from the increased consumer demand that legalization helped create.
In other words, licensed marijuana dealers are spending money to recruit customers who can later become customers of illegal marijuana dealers.
MILLIONS OF ILLICIT CANNABIS PACKAGES DISGUISED AS CHILDREN'S CANDY SEIZED IN CALIFORNIA
California's numbers tell the story. The state now has more than 10,000 inactive or surrendered cannabis licenses, exceeding the number of active licenses. Tax revenues that have been baked into city and state budgets are declining. In San Diego, cannabis tax collections have fallen dramatically from their post-legalization highs. Across the country, cannabis-related stocks have lost substantial value with a major cannabis-sector fund reporting a - 67.40% one-year return for the fiscal year ended June 30, 2025, while the S&P 500 was up 15.16% over the same period. Investors increasingly recognize that legalization has not produced the thriving, profitable industry that many predicted.
The industry's defenders argue that legalization has reduced criminal activity and increased consumer safety. Yet the black market remains enormous. By some estimates, over 60% marijuana consumed in California is still obtained outside the "legal" system.
The result is a policy outcome no legalization advocates anticipated but prevention specialists predicted. Rather than replacing illegal drug dealers, legalization created a second class of drug dealers — licensed, regulated, and taxed — who now compete with the original ones.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
The irony is difficult to ignore. The "legal" marijuana industry has spent years helping normalize pot use, expanding consumer demand, and increasing public acceptance of the drug. But much of that expanded demand continues to benefit the very underground market legalization was supposed to eliminate.
The black market has thrived. The "legal" market is shrinking. And taxpayers should be wondering whether the grand promises of marijuana legalization were ever realistic in the first place.
