What’s Next for Cannabis Policy in New Jersey?

New Jersey became the 14th state to legalize cannabis for adults 21 and older on February 22, 2021, when Gov. Phil Murphy signed three bills into law. This marked the end of cannabis prohibition in the Garden State and the beginning of a regulated marketplace.

Lawmakers are considering new legislation in the 2025 session — both good and bad — that could impact consumers and the industry. Senate President Nicholas Scutari (D) has introduced S4154, which would make purchasing cannabis from an unlicensed source a disorderly persons offense. If passed, consumers could face up to six months in jail and a $1,000 fine simply for obtaining cannabis from an unregulated source. No other legalization state criminalizes consumers based on where they obtain cannabis. 

In contrast, other lawmakers are pushing for increased consumer freedoms. New Jersey remains one of the few states with legal cannabis that still prohibits home cultivation. A3867 and S1985 would change that by allowing adults to grow up to six plants for personal use and medical patients to grow up to 10. Another pair of bills, A846 and S1393, focus specifically on home cultivation for medical cannabis patients, permitting them to cultivate up to four mature plants and four immature plants. These bills remain in committee and await further action.

Ask your lawmakers to expand consumer rights, not restrict them, by signing our prewritten letter here.

Legalization, Licensing, and Community Reinvestment

In November 2020, more than two-thirds of New Jersey voters approved a legislatively-referred ballot referendum supporting cannabis legalization. The following month, the legislature responded with the passage of S.21 and S.2535 to implement legalization. However, both measures stalled due to concerns surrounding penalties for underage use.

On February 19, 2021, the Senate Judiciary Committee advanced A.5342, which addresses penalties for underage use. On February 22, 2021, both chambers voted to approve it, and Gov. Murphy immediately signed all three bills into law. You can check out a summary of the bills here. The first retail sales officially began in April 2022, selling nearly $2 million in cannabis products on opening day.

Social equity has been a major focus of New Jersey’s legalization framework. The law prioritizes licensing for businesses owned by individuals from economically disadvantaged areas or those with past cannabis convictions. At least 25% of licenses are set aside for social equity applicants and businesses committed to hiring employees from impact zones.

Additionally, 70% of cannabis tax revenue is directed toward community reinvestment programs in areas most impacted by past prohibition. Funds support social services, economic development, and public health initiatives.

Since legalization, the number of dispensaries has expanded rapidly. As of 2025, nearly 200 licensed dispensaries operate across New Jersey. Consumers can legally purchase up to one ounce of cannabis per transaction, while medical patients are allowed up to three ounces every 30 days.

For a list of licensed dispensaries, visit the New Jersey CRC Dispensary Locator.

By December 2024, combined medical and recreational cannabis sales in New Jersey surpassed $2 billion, with over $1 billion generated in 2024 alone. This marks a nearly 25% increase from the previous year's total of approximately $800 million. 

A Guide to New Jersey’s Medical Cannabis Program

New Jersey’s Medical Cannabis Program (MCP) was first established in 2010. It has evolved over the years and is now overseen by the Cannabis Regulatory Commission (CRC) after Gov. Phil Murphy signed “Jake’s Law,” named after Jake Honig, a pediatric patient who used medical cannabis during his battle with cancer. 

Patients receive priority access, lower taxes, and higher purchase limits compared to adult-use consumers.

To qualify, patients must have a physician-certified medical condition such as chronic pain, PTSD, cancer, epilepsy, or multiple sclerosis. Medical cannabis patients can purchase up to three ounces per month and may designate a caregiver to assist with obtaining their medicine. They can also choose to have it delivered.

The medical program has grown significantly in recent years, with over 50 licensed Alternative Treatment Centers (ATCs) providing access across the state. Medical patients are protected from discrimination in employment, housing, and education under New Jersey law.

To learn more or register for the program, visit the New Jersey CRC Medical Cannabis Program.

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