Pennsylvania's recent budget approval excludes the legalization of recreational cannabis, marking a significant setback for cannabis companies likeJushi Holdings(OTC:JUSHF) andTILT Holdings(OTC:TILT).

Governor Josh Shapiro, who had championed the cause, faced opposition from a divided legislature. The state House, controlled by Democrats, struggled to reach a consensus on regulation, while the GOP-majority Senate remained opposed to legalization.

The new budget focuses on broad economic and social investments but omits provisions for recreational cannabis. Key investments include $1.11 billion for K-12 public education, $500 million for site development to attract businesses, and $354.8 million for home and...