GOP Pennsylvania Senator Calls For Legalizing Marijuana And Using Tax Revenue To Create State ‘Legacy Fund’ For Long-Term Investments

A Republican Pennsylvania senator is calling for the creation of a state “legacy” fund, using tax revenue from adult-use marijuana sales and gaming to make long-term investments in the Commonwealth’s economy.

In an op-ed published in The Pittsburgh Post-Gazette on Tuesday, Sen. Dan Laughlin (R) said “we must ensure that today’s tax revenue is not just spent in the moment but invested wisely to benefit future generations.” And he’s proposing the “Pennsylvania Legacy Fund” as a means of achieving that.

As the legislature once again debates various cannabis legalization proposals, the senator is making the case that, beyond using any resulting tax revenue to fund day-to-day projects and public services, the state should earmark a portion of those tax dollars for a fund to “provide a sustainable source of prosperity that lasts for generations.”

“Legalization isn’t a matter of if anymore—it’s when,” the senator, who has sponsored bipartisan reform proposals, said. “Ohio took the step in 2023, and every year we wait, we lose tax revenue to neighboring states. A well-regulated cannabis market in Pennsylvania could generate hundreds of millions of dollars annually through sales taxes and licensing fees.”

“These funds could be directed into the Legacy Fund, ensuring that revenue from this emerging industry contributes to long-term investments in education, infrastructure, and other critical needs. Additionally, legalization would create jobs, support local businesses, and reduce the prevalence of the illegal and unregulated market. It is imperative that Pennsylvania takes action now to stay competitive and reap the benefits of this inevitable shift.”

Laughlin said his proposal would work by having cannabis and gaming tax revenue deposited into a “carefully managed investment fund,” which would include a “diversified portfolio of stocks, bonds, and real estate.”

Pennsylvania is missing out on millions in revenue from skill games, gaming, and cannabis — money that could be used to create a Legacy Fund to benefit generations to come.

Give my latest op-ed in the Pittsburgh Post-Gazette it a read: https://t.co/19s5XQzZZm

— Senator Dan Laughlin (@senatorlaughlin) April 8, 2025

There would be a “limit on withdrawals to a sustainable percentage, allowing the principal to continue growing,” so it “guarantees that the fund remains a lasting resource, benefiting not only our generation but also our grandchildren’s and their grandchildren’s.”

“Some concerns will be raised,” the senator said. “Will legal cannabis create public safety issues? States like Colorado and Washington have demonstrated that crime rates remain stable and that tax revenues can help fund law enforcement and addiction treatment programs.”

“Timing is crucial. As Pennsylvania considers the legalization of cannabis and further expansion of gaming, we must act now to harness these revenues at their peak,” he said. “A bipartisan effort could establish the fund with initial investments from early cannabis tax revenue and gaming expansion proceeds.”

“Pennsylvania’s motto is ‘Virtue, Liberty, and Independence,’ and that means thinking beyond just today. A Pennsylvania Legacy Fund is our chance to take the wealth we generate now and make it work for generations. Let’s not just collect revenue—let’s invest it, protect it, and build a future where Pennsylvania thrives long after we’re gone. The opportunity is here. Let’s seize it.”

While the senator echoed a common sentiment within Pennsylvania—that is, legalization is inevitable—the prospects of reform this session remain uncertain, with leadership giving mixed signals about whether there’s enough support within the legislature to advance it. Gov. Josh Shapiro (D) also included the policy change in his latest budget request.

Last week, Pennsylvania House Speaker Joanna McClinton (D) said that Democrats are ready to pass a marijuana legalization bill this session, but that the party “will need Republican support” to get the job done—adding that it will be a “heavy lift.”

Polls have shown bipartisan support for legalization among voters, but the reform has consistently stalled in the legislature, owing in large part to GOP opposition. But not all Republican members are against the policy change—and one recently said she felt her party should seize the “opportunity to snatch” the issue from Democrats.

Rep. Rick Krajewski (D)—who announced in December his intent to file a legalization measure alongside House Health Committee Chair Dan Frankel (D)—also recently said the policy would provide for “more responsible usage” of cannabis, compared to the status quo that’s left adults either buying from the illicit market or traveling across state lines to get regulated products.

Separately last month, the Pennsylvania House approved a bill sponsored by Frankel that’s meant to strengthen safety standards and oversight of the state’s medical marijuana program as lawmakers work to advance adult-use legalization.

While Pennsylvania’s medical cannabis program was enacted nearly a decade ago, lawmakers say the measure, which now heads to the Senate, is necessary to improve testing compliance, product audits and lab inspections, among other aspects of the industry.

Meanwhile, Pennsylvania Democratic lawmakers recently introduced a bill that would allow farmers and other small agriculture operators to sell marijuana they cultivate to existing growers and and processors if the state moves to legalize adult-use cannabis.

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Also, in a video interview released last month, the governor emphasized that the state is “losing out” to others that have already enacted adult-use legalization, while maintaining a policy that’s enriched the illicit market.

“I think it’s an issue of freedom and liberty. I mean, if folks want to smoke, they should be able to do so in a safe and legal way,” he said. “We should shut down the black market—and, by the way, every state around us is doing it. Pennsylvanians are driving to those other states and paying taxes in those other states.”

Pennsylvania’s Republican attorney general recently said he wants to be a “voice for potential public safety risks” of enacting the governor’s proposal—though he said his office would be ready to enforce the new law if lawmakers did vote to pass it.

The state’s agriculture secretary separately told lawmakers that he’s fully confident that his department is in a “really good” position to oversee an adult-use marijuana program if lawmakers act.

Meanwhile, in February, top Pennsylvania police and health officials told lawmakers they are prepared to implement marijuana legalization if the legislature moves forward with the reform—and that they stand ready to work together as the details of legislation to achieve it are crafted.

Amid the growing calls for marijuana legalization in Pennsylvania, a GOP state senator said prohibition has been a “disaster,” and a regulated sales model for cannabis—similar to how alcohol and tobacco are handled—could serve as an effective alternative.

A Republican Pennsylvania senator also recently defended the push to legalize and regulate marijuana, calling it “the most conservative stance” on the issue.

Meanwhile, a new poll shows that Pennsylvania voters say they favor a model where cannabis is sold by licensed private businesses, rather than through a system of state-run stores as some legislators have promoted.

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Photo courtesy of Brian Shamblen.