Update: DC Legalization Could Stand, But Sales May Be Banned

What’s the right revenue per square foot? What’s a realistic business outlook for cultivators? Get realistic market forecasts, state-by-state insights and benchmarks. Get the 2023 Factbook.

Congress will reportedly let Washington DC’s marijuana legalization initiative stand as passed by voters, but it will prohibit the city council from approving marijuana sales and taxation until at least next October, sources close to the situation told The National Journal.

The move would largely eliminate the possibility of near-term business opportunities tied to recreational marijuana in the nation’s capital, beyond home cultivation equipment, paraphernalia sales and other consumer-facing products.

The National Journal said Congress will write into a key spending bill language that bars the city from using money to regulate marijuana sales.

In November, voters passed Initiative 71, which permits adults 21 and over to possess up to two ounces of cannabis, grow up to six plants at home and give marijuana to friends. The DC city council has been mulling passing an ordinance to allow for the sale and taxation of marijuana if the new law stands.

Earlier in the day, reports emerged that Congress could nullify all or parts of the marijuana victory last month in Washington DC that legalized personal possession and use of cannabis.

Congress is likely to vote on the spending bill later this week to keep the government open.