Drug use is on the rise as U.S. spend on the War on Drugs tops $1 trillion and cartel leaders drive violent eruptions in Mexico

Fortune

by Tristan Bove

February 23, 2026

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The U.S. has spent over $1 trillion on its decades-long War on Drugs, yet despite unprecedented resources and efforts, drug availability and use remain alarmingly high. The recent death of El Mencho, the leader of Mexico's powerful Jalisco New Generation Cartel, underscores the ongoing challenges as cartels adapt and expand their operations. Even with significant U.S.-backed initiatives targeting these groups, violence and drug trafficking persist, driven by lucrative markets and shifting supply chains. Since President Nixon declared drugs "public enemy number one" in 1971, successive administrations have allocated billions to policing, interdiction, and foreign counternarcotics campaigns. However, global drug consumption has surged, with cocaine production hitting record highs and fentanyl becoming a major threat. In the U.S., demand for drugs like cocaine is rising, rivaling levels seen in the 1970s and '80s. The economic stakes are high: the drug trade generates massive profits, fueling cartels' expansion into new markets and refining techniques. While Colombia remains a key producer, Mexico's role as a transit hub for drugs like methamphetamine and fentanyl has grown significantly under El Mencho's leadership. The fragmentation of older trafficking groups targeted by U.S. efforts created opportunities for new players, allowing cartels to evolve and dominate. For businesses, the drug war's failure highlights a misallocation of resources. Between 2015 and 2024, $13 billion was spent on international counternarcotics, exceeding funding for education and water access in some years. This spending has done little to curb the multi-billion-dollar illegal drug industry, which continues to thrive on staggering profits. The situation underscores the need for a rethink in strategy. Without addressing systemic issues like demand reduction and market dynamics, the cycle of violence and drug proliferation will likely continue, leaving policymakers grappling with a complex and costly problem.

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Originally published on Fortune on 2/23/2026