Rob Sand unveils cannabis legalization plan, a potential solution to Iowa’s $1.4 billion budget hole

Iowa faces a serious budget challenge. This 4/20, Democratic candidate for governor Rob Sand wants the state to stop sending cannabis tax dollars to Illinois and Minnesota—and instead put it to use for Iowans.

Democratic gubernatorial candidate Rob Sand announced a plan Monday to legalize, tax, and regulate adult-use cannabis in Iowa. Sand framed the proposal around the state’s mounting budget crisis and lost tax revenue flowing to neighboring states.

“Right now, Iowans are driving across state lines — and taking their tax dollars with them — to make these purchases,” Sand said. “That’s revenue we’re losing that should be staying right here in Iowa.”

Sand, the current Iowa State Auditor and sole Democrat in statewide office, said Iowa is facing a nearly $1.4 billion budget shortfall and that legalizing cannabis represents a “common-sense” tool to help close the gap. His plan would regulate cannabis similarly to alcohol, placing oversight under the existing Alcoholic Beverages Division with the addition of cannabis-specific experts.

Illinois, Missouri, and Minnesota have all legalized recreational cannabis, and Sand argues Iowa is effectively subsidizing those states’ economies while its own budget bleeds.

The plan includes several components aimed at responsible rollout. It would prioritize grow licenses for small and mid-size family farms, a nod to Iowa’s agricultural base and an attempt to distinguish the policy from large corporate cannabis operations. Sand also wants to reverse a 2024 law signed by Gov. Kim Reynolds that banned the sale of consumable hemp products, which he says caused confusion and harm to small businesses.

On the regulatory side, the plan calls for THC limits of 10mg per serving and 100mg per package, age restrictions limiting sales to adults 21 and older, child-resistant packaging requirements, and a ban on public consumption.

Sand estimated the plan would create approximately 7,000 jobs and new entrepreneurship opportunities for Iowans.

The announcement lands on April 20—a date with obvious cultural significance for cannabis fans—and comes as Sand works to build his profile ahead of the 2026 primary on June 2. Republicans have held the Iowa governorship since 2011, and Gov. Reynolds announced last year she will not seek reelection.