Tennessee Democrats are dusting off their Pot for Potholes campaign, pitching a plan to legalize adult-use marijuana and pour most of the new tax money into fixing the state’s battered roads and bridges. Supporters say it would finally create a licensed and regulated cannabis market in Tennessee while steering fresh cash into a chronically underfunded highway system. To crank up interest this month, sponsors have launched infomercials and a public petition aimed at nudging skeptical lawmakers and undecided voters.
What the bill would do
The latest version of the Pot for Potholes Act circulating in Nashville would allow adults 21 and older to possess and grow limited amounts of marijuana. It would also create licenses for growers, processors, dispensaries, testing labs, and research facilities. The draft bill, posted by the Legislature, lays out packaging standards, testing requirements, and child-safety rules, and designates the Department of Agriculture as the licensing agency. The measure sets the basic regulatory framework for a state market, according to the bill text on the Tennessee General Assembly website.
How the money would flow
The proposal would tack on a 15 percent state marijuana tax at retail and let local governments add a local option tax of up to 5 percent. The Legislature’s Fiscal Review Committee estimates that the new tax would send about $14.7 million to the Highway Fund in FY26-27 and roughly $29.3 million in FY27-28. Under the plan, 75 percent of marijuana tax revenue would go to the Highway Fund, 20 percent to counties, and 5 percent to the Department of Revenue for administration. Those assumptions and dollar figures are laid out in the Fiscal Review Committee's analysis.
Where it stalled last year
The Pot for Potholes package first surfaced in early 2025, but its debut was short-lived. A House Criminal Justice subcommittee killed the bill 5-2 on March 26, 2025, during its first hearing, a setback that stopped the measure from moving forward that session, according to local reporting.
Supporters point to other states
Backers keep pointing to other states as a proof of concept, noting that Massachusetts reported more than $289 million in cannabis tax revenue in fiscal year 2025. Senator Heidi Campbell and Representative Aftyn Behn have argued that fully tackling Tennessee’s backlog of highway and bridge maintenance would cost roughly $58 billion, and they say that eye-popping figure is why cannabis tax revenue should be dedicated to transportation.
Arguments from backers
Supporters contend that the plan would help Tennessee farmers, cut into black-market profits and reduce incarceration for nonviolent marijuana offenses. "Tennesseans are sick of dodging potholes and sitting in traffic jams," Rep. Aftyn Behn told ActionNews5, while Sen. Heidi Campbell has urged lawmakers to keep revenue in-state instead of watching it flow to neighboring markets. Those themes are front and center in the relaunch.
The political reality
Even with fresh ads and a petition drive, the bill faces a steep climb in a Republican-controlled legislature that has repeatedly brushed aside similar proposals. Sponsors have refiled versions of the measure and are leaning on public pressure as committee calendars approach. The bill’s sponsorship and current status are listed on legislative trackers such as LegiScan, which details the Pot for Potholes filings and sponsors.
Legal implications
If passed, the Pot for Potholes Act would rewrite marijuana possession and sale offenses, create licensing and regulatory penalties for businesses in the new market and require the Department of Corrections to review records of people incarcerated for marijuana offenses. The department would have to submit that list to the governor and legislative clerks by December 31, 2025. The fiscal note explains that some rule-making powers could kick in as soon as the bill is enacted, while most provisions would take effect January 1, 2026. Those legal and timing details are spelled out in the Fiscal Review Committee’s analysis.
What’s next
Backers say the new infomercials and petition drive are designed to change the political math in committee rooms, though it is far from clear whether that will move enough lawmakers. For now, the relaunch puts the pot-for-potholes debate back in Nashville, where sponsors will try to translate public frustration with crumbling roads into votes in the coming months, as reported by WSMV.
