Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Gov. Gavin Newsom (D-Calif) said the state’s regulated cannabis industry has generated nearly $8.4 billion in tax revenue since legal sales began in 2018, supporting programs across the state.
California Cannabis Market Generates $8.4 Billion
On Wednesday, Newsom said that California’s regulated cannabis market has produced a “whopping $8.4B” in tax revenue for childcare, youth substance abuse prevention, medical research and environmental recovery.
“California’s regulated cannabis market has generated a whopping $8.4B in tax revenue for childcare, youth substance abuse prevention, medical research, and environmental recovery,” Newsom said.
Don’t Miss:
The governor added that the state would “keep strengthening our legal market and go after bad actors trying to undermine it.”
California’s regulated cannabis market has generated a whopping $8.4B in tax revenue for childcare, youth substance abuse prevention, medical research, and environmental recovery.
We’ll keep strengthening our legal market and go after bad actors trying to undermine it. pic.twitter.com/s1iQjJxx0b
— Governor Gavin Newsom (@CAgovernor) September 2, 2026
California Cannabis Crackdown
According to the Newsom administration, in the second quarter of 2026 alone, cannabis retailers remitted $261.7 million in cannabis excise and sales taxes.
California also highlighted a recent seizure of approximately $13.3 million in illicit cannabis and tobacco products from a Los Angeles County warehouse.
Trending: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time
The haul included 280,072 illegally labeled cannabis packages, 107,441 edible packages and 84,463 THC vape pens.
“Taking illicit cannabis off the streets protects California’s law-abiding licensed businesses,” California Department of Tax and Fee Administration Director Trista Gonzalez said.
California Wealth Tax Concerns
Earlier, former White House economic adviser Tomas Philipson argued that California’s proposed one-time 5% wealth tax could ultimately reduce overall state tax revenue if it drives wealthy residents and investment out of the state.
He argued the loss of existing tax revenue could have outweighed the revenue generated by the new tax.
Billionaire entrepreneur Mark Cuban warned that the tax could discourage investment and push startup founders and companies out of California.
See Also: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier.
He said the measure could have hurt founders who were “cash poor, stock rich,” adding, “Ideology is not a strategy.”
Steve Hilton warned that the tax could have driven Silicon Valley’s top talent, entrepreneurs and investment out of the state.
He called it an “asset-seizure tax” and “economic suicide,” arguing it could have damaged California’s technology and innovation economy.
Photo courtesy: Shutterstock
Read Next: Think you’re saving enough for your kids? You might be dangerously off — see why
Building Wealth Across More Than Just the Market
Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.
Arrived
Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.
Qnetic
As electricity demand rises alongside AI, data centers, and renewable energy, long-duration energy storage is becoming increasingly important. Qnetic is developing a kinetic energy storage system designed to provide long-lasting, chemical-free electricity storage, offering investors exposure to the infrastructure supporting a more resilient and reliable power grid.
EquityMultiple
For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.
FarmTogether
Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.
Fundrise
Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
