Nadia Lathan / CalMatters

California’s legal weed industry is still overshadowed by the larger black market. A new state law gives businesses a break by delaying a tax increase.

The two most populous U.S. states — California and Texas — are grappling for political advantage ahead of the 2026 elections, setting up a national proxy war as Democrats and Republicans vie for control of Congress in the latter half of Donald Trump's second presidency.