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California seizes $476 Million in illegal cannabis, but enforcement alone may not fix the market

Jacob Shelton July 10, 2025

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WASHINGTON, DC- DECEMBER 19 Metropolitan Police Departments narcotics unit and federal authorities seized approximately 80 pounds of methamphetamine, 9.6. kilograms of cocaine, 1.25 gallons of PCP. 23.5 pounds of marijuana, heroin and MDMA/ecstasy. The drugs were purchased and seized by the detectives in the investigation and were on display for a press conference at the Metropolitan Police Headquarters in Washington, D.C. on December 19, 2011. Metropolitan Police Department Chief Cathy L.Lanier and members from the Bureau of Alcohol, Tobacco, Firearms and Explosives announced today the arrests of 70 suspects for the possession and distribution of firearms and narcotics with a street value of more than $7.1 million. (Photo by Marvin Joseph/The Washington Post via Getty Images)

Sacramento, California – California officials say they’ve seized nearly half a billion dollars’ worth of illegal cannabis in just the past three months — a sweeping enforcement effort aimed at propping up the state’s legal cannabis market, which continues to struggle in the face of widespread unlicensed competition.

Between April and June, the state’s Unified Cannabis Enforcement Task Force (UCETF) confiscated 185,873 pounds of illicit marijuana and eradicated over 400,000 illegal plants. In total, authorities estimate the street value of the seized cannabis at $476 million. It’s the latest show of force from a task force launched by Governor Gavin Newsom in 2022, which includes agencies ranging from the Department of Cannabis Control (DCC) and Department of Fish and Wildlife (CDFW) to the Employment Development Department and Department of Tax and Fee Administration.

“This is about protecting California’s legal cannabis market,” Newsom said in a statement. “We’re going after the illegal growers and sellers who undercut our economy, evade taxes, and put consumers at risk.”

The enforcement push reached a new peak in May, when more than 200 officers swept across 4,600 square miles of the Central Valley, serving 71 search warrants and seizing cannabis plants, firearms, and millions in processed product. Officials described it as the task force’s largest coordinated action to date.

In total, 93 people were arrested statewide during the second quarter of 2025, and 77 firearms were confiscated. Since 2019, California has destroyed more than 950 tons of illegal cannabis valued at roughly $3.6 billion.

But as the size and scope of raids grow, so too do questions about whether enforcement can solve what many insiders see as a structural crisis in California’s cannabis industry.

Despite legalization in 2016 and the creation of a regulated market in 2018, many growers and sellers have found it more viable to stay underground. Steep taxes, high licensing fees, and a fragmented local permitting system have led to a situation where unlicensed cannabis often sells for significantly less than its legal counterpart.

While the state continues to pour resources into raids and shutdowns, critics note that the black market isn’t just surviving — it’s thriving. According to industry analysts, the unregulated market still accounts for more than half of all cannabis sales in California.

DCC Director Nicole Elliott defended the state’s strategy, saying her agency remains “laser-focused” on dismantling illegal operations. Yet as enforcement ramps up, the underlying challenge remains: without reforms that make legal cannabis more competitive, the illicit market may simply keep coming back — no matter how many plants are pulled from the ground.

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