Progress Towards Cannabis Legalization

Cannabis is currently illegal in Indiana, both for medical and recreational use. However, several attempts have been made to legalize cannabis in the state.

House Bill 1311, introduced in 2022, proposed legalization of recreational cannabis similar to Michigan’s model. In 2023, House Bill 1039 was introduced. It proposed to allow cannabis access to adults aged 21 and over as well as to patients who have a doctor’s recommendation once cannabis is no longer classified as a federal schedule I controlled substance. However, both bills did not progress further than the first reading.

In January 2025, House Bill 1630 was introduced, proposing to legalize the possession and consumption of recreational cannabis for individuals aged 21 and over. A Cannabis Commission would be created to regulate the industry and establish fees for retail, cultivation, processing, transportation and safety compliance licenses. According to the bill’s text, license application period would start on July 1, 2025. There would be a maximum of 300 retail licenses available.

If this bill passes, Indiana would become the first state to legalize recreational cannabis without first legalizing medical cannabis. Some are optimistic about the approval of the bill, one of the reasons being the new Governor Mike Braun’s openness to medical cannabis legalization. Regarding the legalization of adult-use cannabis, he has stated that there is a “need for further discussion”. However, top Republicans in the legislature are opposed to cannabis legalization which makes the approval of the bill uncertain.

Several other bills were introduced in the beginning of 2025: HB 1332 proposing adult-use legalization, HB 1145 proposing the decriminalization of personal possession and cultivation of cannabis, HB 1178 proposing the establishment of a medical cannabis program for people with “serious medical conditions as determined by their physician” and SB 113 proposing full cannabis legalization. All four bills have died in committee.

Potential of a Cannabis Market in Indiana

According to Ball State University’s 2024 Hoosier Survey the majority of the public supports the legalization of both recreational and medical cannabis with 62% being in favor of full cannabis legalization. An additional 25% favor medical cannabis legalization only. The support for adult-use cannabis legalization has strengthened as the 2023 Hoosier Survey revealed that 54.2% favored legalization of cannabis for personal use.

Safe and Regulated Indiana, a coalition advocating for the legalization of cannabis, carried out its own survey in November 2025. Results revealed that 70% of registered voters surveyed support full cannabis legalization.

With strong support from the public, it seems that Indiana is moving closer and closer towards cannabis legalization.

A pro-legalization group Indiana Cann has stated that studies show Indiana could generate $171 million in tax revenue from cannabis sales if it adopted Colorado’s tax model.

One of the proposals for recreational cannabis legalization (HB 1332) estimates that it could bring $41.9-$82.1 million in tax revenue and $60.4-$118.5 million in revenue from cannabis excise tax and permit fees. A different proposal (SB 113) suggests that revenue from Sales and Excise Taxes and permit fees could be worth $46.6-$92.6 million in the 2026 fiscal year and $50.8-$101.7 million in the 2027 fiscal year.

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