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Legal Cannabis Is Powering the US Economy; Washington Needs to Catch Up
The question is no longer whether the United States should move toward legalization, but why federal law still treats a mainstream industry as a crime.
Nov 26, 2025
This fall, the Drug Enforcement Administration is anticipated to decide whether to reclassify cannabis at the federal level. Nearly 90% of Americans support cannabis legalization, 47 states have legalized it for medical use, and over 20 allow for recreational use. The question is no longer whether the United States should move toward legalization, but why federal law still treats a mainstream industry as a crime.
In 2024, Americans spent just as much on cannabis as they did on beer. The US legal cannabis market is worth more than $35 billion and expanding quickly. Yet, under federal law, cannabis is still a Schedule I drug, grouped alongside heroin and considered to have “no medical use.” It’s a Nixon-era relic that has remained unchanged since 1971—by those outdated standards, cocaine and crystal meth are classified as less harmful Schedule II substances. That classification is not only outdated, but it also creates an untenable mismatch between federal policy and economic reality.
Today, cannabis is one of the fastest-growing industries in America, employing nearly 500,000 people—more than the beverage and tobacco manufacturing industries combined—and generating billions in annual tax revenue. Federal legalization would strengthen an already significant engine of economic growth. The cannabis industry added roughly $115 billion to the US economy in 2024 alone and is expected to reach $45 billion in legal sales by 2025. It is one of the few sectors that is both labor-intensive and domestically produced—every gram sold is grown, tested, packaged, and distributed in the US.
All of this growth has happened without access to the basic tools every other sector relies on: banking, capital markets, credit cards, and institutional investment. Because cannabis remains federally illegal, businesses can’t take out conventional bank loans, list on US stock exchanges, or process credit card payments. Dispensaries operate as cash-only businesses, creating daily security risks for employees and customers. Entrepreneurs cannot access Small Business Administration loans or standard insurance. Even employees, founders and executives in the cannabis industry often struggle to qualify for personal mortgage loans due to the industry they work in.
Rescheduling would not be radical. It would be a recognition of the obvious: Cannabis is already part of American life and the American economy.
The result is a thriving yet hobbled industry, competing on an uneven playing field. Legal operators are forced to navigate a different set of regulations, packaging requirements, and facilities for every state where they conduct business, while the illicit market still accounts for an estimated $50 billion in unregulated sales each year and has no problem selling cannabis to the American youth. The DEA’s forthcoming decision offers an opportunity to modernize this system before it calcifies further.
The cultural and economic shifts are here to stay. Cannabis is mainstream. It’s integral to how Americans relax, socialize, and take care of themselves. It’s in our music, our fashion, our film, and our homes. What’s missing is a legal, regulatory, and financial framework at the federal level that reflects reality.
The public health case is equally clear. Consistent national standards would strengthen consumer safety and transparency, closing the gap between legal and illicit markets. Rescheduling would also remove barriers to research and innovation. The current classification makes it nearly impossible for US scientists to study cannabis at scale, leaving critical medical discoveries to foreign and underfunded research programs.
In a country where millions of adults use cannabis for anxiety, pain, and sleep, and where opioid dependency remains a public health crisis, the restriction is not just outdated, but negligent.
A recent study published by the American Journal of Health Economics found that states with legal cannabis programs reduced opioid prescriptions by up to 22%. The American Medical Association also found that cannabis helps cancer patients reduce opioid use throughout their treatments.
Legalization would also improve public safety. With access to banking, dispensaries could move away from cash-heavy operations that make them frequent targets for robbery. National standards for labeling, potency, and contaminants would protect consumers and build trust. And as we’ve already seen in legal states, underage use declines when cannabis is regulated.
Rescheduling would not be radical. It would be a recognition of the obvious: Cannabis is already part of American life and the American economy. In 2023, the Department of Health and Human Services formally recommended to the DEA that cannabis be rescheduled—a historic acknowledgment that federal law is out of step with science, public opinion, and economic reality. Even the Supreme Court has noted the “contradictory and unstable” relationship between federal and state cannabis laws.
This is one of the few policy issues with broad bipartisan support. Former President Joe Biden campaigned on rescheduling cannabis in 2020. So did President Donald Trump in 2024. With the DEA’s decision imminent, the window for meaningful modernization has never been clearer.
The cultural reality is undeniable. The economic opportunity is massive. The public mandate is clear. The question is no longer whether cannabis belongs in American life—it already does. The question is when federal law will finally catch up.
It’s time for Washington to finish what the majority of states have already started: Bring cannabis policy into alignment with science, economics, and public consensus.
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'Pretty Much Put Us Out of Business': Uproar After Shutdown Bill Targets Hemp Industry
"Recriminalizing hemp will force American farms and businesses to close and disrupt the well-being of countless Americans who depend on hemp," warned one critic.
Nov 13, 2025
Advocates for hemp on Wednesday decried a provision of the Republican government funding law signed by President Donald Trump that tightens restrictions on the versatile plant—a move critics say will devastate a $30 billion industry.
The new restrictions set a stricter limit on the amount of tetrahydrocannabinol (THC)—the psychoactive chemical in cannabis—in order to close a loophole that allowed for the sale of unregulated food and beverages containing intoxicating hemp-derived compounds.
Twenty-two Democratic senators—including advocates for legal recreational or medical marijuana—joined almost all Republicans in voting against an amendment introduced by Sen. Rand Paul (R-Ky.) to strip out the restrictions from the final bill. Sen. Ted Cruz of Texas was the only other Republican to back Paul's effort.
"Our industry is being used as a pawn as leaders work to reopen the government," Jonathan Miller, general counsel for the US Hemp Roundtable, an industry group, warned ahead of the vote. "Recriminalizing hemp will force American farms and businesses to close and disrupt the well-being of countless Americans who depend on hemp."
Hemp—which is used in a wide range of products from clothing to construction materials to fuel, food, and biodegradable plastics—was legalized under the 2018 farm bill signed by President Donald Trump during his first term.
But lawmakers including Sen. Mitch McConnell (R-Ky.)—who backed the 2018 legislation—argued that cannabis companies are exploiting a loophole in the farm bill to legally manufacture products with enough THC to get consumers high.
Paul, however, ripped the provision, arguing in a Thursday Courier Journal opinion piece that it "destroys the livelihood of hemp farmers."
"This could not come at a worse time for our farmers," Paul wrote. "Costs have increased while prices for crops have declined. Farm bankruptcies are rising."
"For many farmers, planting hemp offered them a lifeline," he continued. "Hemp can be used for textiles, rope, insulation, composite wood, paper, grain, and in CBD products, and growing hemp helped farmers to mitigate the loses they’ve endured during this season of hardship."
Paul noted that "the provision that was inserted into the government funding bill makes illegal any hemp product that contains more than 0.4 milligrams of THC per container."
"That would be nearly 100% of hemp products currently sold," he said. "This is so low that it takes away any of the benefit of the current products intended to manage pain or other conditions."
Charles and Linda Gill have grown hemp on their family farm in Bowdoinham, Maine since the plant was legalized in 2018.
“We are not in the business of these intoxicating hemp products on the market, which are the ones that are screwing it up for everybody,” Charles Gill told Maine Morning Star's Emma Davis on Wednesday. “They’re abusing the system.”
“All our current products would be banned,” Gill said of the new restrictions. “It would pretty much put us out of business.”
Hemp defenders vowed to contest the new law.
"The fight isn't over," Hemp Industry & Farmers of America executive director Brian Swensen said on X after the law's passage.
"In 2018, President Trump and Congress legalized hemp, delivering more jobs and opportunities to American farmers and small businesses," Swensen said, adding that the restrictions "will devastate American farmers, business owners, veterans, and seniors."
"The hemp ban will also open up dangerous black markets for hemp and allow China to take over the entire hemp market," he added, claiming "it kills over 325,000 American jobs and destroys the industry."
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Federal Agents Spray Tear Gas at Protesters, Children During ICE Raids at California Farms
"ICE was conducting a raid using disproportionate displays of force against local farmworkers and our agricultural community," said U.S. Rep. Salud Carbajal, who was denied entry to one farm where he was attempting to provide oversight.
Jul 11, 2025
Federal immigration agents were met with a strong show of resistance Thursday when they raided two farms in Southern California—with hundreds of community members protesting the arrests of migrants at the facilities growing cannabis and vegetables.
Los Angeles-based independent journalist Mel Buer reported that hundreds of community members gathered to protest the raid by Immigration and Customs Enforcement (ICE) at Glass House Farms' facility in Camarillo, Ventura County, and supporters dropped "hundreds of pounds of water, food, and masks."
Local news outlet KTLA reported that "dozens of farmworkers were detained" in the raids at Glass House Farms' properties in Camarillo and Carpinteria.
Federal law enforcement first arrived in Camarillo at about 11:00 am, and the situation escalated as a crowd of community members gathered.
The federal agents first deployed tear gas into the crowd early Thursday afternoon.
Ventura County District 5 Supervisor Vianey Lopez told KTLA that as the federal agents used force on the protesters, she saw two government vans, each carrying about 15 people, leaving the farm.
"It is an ongoing situation that is very concerning for the safety of those showing up with anger and disappointment at what is happening to hardworking people in our community," Lopez said.
The immigration enforcement agents were joined by National Guard troops in military vehicles later that afternoon in Camarillo, according to The Guardian, as other federal agents carried out a simultaneous raid in Carpinteria, about 50 miles northwest in Santa Barbara County.
Carpinteria City Council members Julia Mayer and Mónica Solórzano were among a large crowd of community members who gathered to protest the raid, and they told the Santa Barbara Independent that federal officers "pushed us as a group into the ground" and threw at least one smoke grenade, causing Solórzano to injure her arm.
U.S. Rep. Salud Carbajal (D-Calif.), who represents Santa Barbara County and part of Ventura County, released a statement condemning the ICE raid and saying he had been "denied entry and not allowed to pass" when he attempted to "conduct oversight" over the raid targeting his constituents in Carpinteria.
"ICE was conducting a raid using disproportionate displays of force against local farmworkers and our agricultural community," said Carbajal. "There's been a troubling lack of transparency from ICE since the Trump administration started, and I won't stop asking questions on behalf of my constituents."
Carbajal is now one of several Democratic elected officials who have been denied the ability to oversee ICE operations. Rep. LaMonica McIver (D-N.J.) pleaded not guilty last month to forcibly interfering with federal officers—charges that stemmed from her attempt to conduct congressional oversight at an ICE detention center in Newark, New Jersey.
"These militarized ICE raids are not how you keep our communities safe. This kind of chaos only traumatizes families and tears communities apart. They are also a gross misuse of limited resources and a betrayal of the values that define us as Americans," said Carbajal, who noted that the identities of those detained in the raids had not been made clear.
In Camarillo, a resident named Judith Ramos told The Guardian that she had learned from her father, who worked in Glass House Farms' tomato fields, that "immigration was outside his job" on Thursday morning.
Ramos, a 22-year-old certified nurse assistant with two younger siblings, said her father told her "to take care of everything" if he was detained by ICE.
She was sprayed with a chemical substance when she arrived at the farm and joined the crowd of protesters, and told The Guardian that she did not know where her father was.
Gov. Gavin Newsom, a Democrat who has clashed with President Donald Trump and filed a lawsuit against the administration last month over its federalization of the California National Guard to respond to protests against immigration raids in Los Angeles, posted a video showing children running from the federal agents.
"Trump calls me 'Newscum,'" said the governor, "but he's the real scum."
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Democrats Call On Biden to Limit Marijuana Prosecutions Before End of Term
"Rescheduling marijuana and the prior round of pardons must not be the end of this administration's historic work," wrote the lawmakers.
Nov 26, 2024
Democratic lawmakers on Monday urged U.S. President Joe Biden to ensure that his administration's "historic work... to undo the damage of federal marijuana policy" would not end with the steps already taken over the past three years, calling on the president to "deprioritize" marijuana prosecutions before his term ends in January.
Led by Rep. Barbara Lee (D-Calif.) and Sen. Elizabeth Warren (D-Mass.), 14 members of the Democratic caucus applauded Biden for issuing a directive earlier this year that led health regulators to recommend marijuana be classified as a Schedule III substance under the Controlled Substances Act. For decades it has been classified as a Schedule I drug, considered to have no medical use and high potential for abuse.
The lawmakers urged the Drug Enforcement Administration (DEA) "to complete that process as soon as possible," but stressed that doing so would "not end federal criminalization, resolve its harms, or meaningfully address the gap between federal and state cannabis policy. Possession and use of recreational marijuana—and much state-legal medical marijuana—will continue to be a violation of federal law."
What would help to end criminalization at the federal level, said the lawmakers, is "a memorandum that would deprioritize seizing marijuana and prosecuting individuals and businesses for state-legal marijuana activity."
The DEA persists in carrying out major raids and seizures of marijuana plants and businesses, wrote the lawmakers—including Sen. Bernie Sanders (I-Vt.) and Reps. Ilhan Omar (D-Minn.) and Earl Blumenauer (D-Ore.). They pointed to raids carried out this year in New Mexico in which state police destroyed tens of thousands of pounds of "state-legal" marijuana plants.
"The Biden administration has the opportunity to further reduce the harms of marijuana's criminalization before the end of this administration."
"We urge you to issue a memorandum that would deprioritize seizing marijuana and prosecuting individuals and businesses for state-legal marijuana activity," reads the letter. "Today, federal sentences for marijuana possession are rare, with only 13 individuals sentenced for simple marijuana possession in 2023, compared to over 2,000 in 2015. Still, the threat of a federal conviction persists."
A memorandum from the Biden administration should also direct federal law enforcement to "deprioritize prosecutions of any future marijuana offenses that have been the basis of prior federal pardons, and deprioritize prosecutions of personal cannabis activities and cannabis activities that comply with state or tribal law," the lawmakers wrote.
Biden has been applauded for issuing pardons and commutations for people convicted of marijuana-related offenses, but the lawmakers noted that at least 3,000 people remain in federal prisons for such convictions.
"The Biden administration has the opportunity to further reduce the harms of marijuana's criminalization before the end of this administration by issuing another round of clemency and an updated memorandum on prosecutorial discretion for marijuana offenses," said the lawmakers.
President-elect Donald Trump's nominations for top government positions indicate potential mixed stances on marijuana policy in the incoming administration. His attorney general nominee, former Florida Attorney General Pam Bondi, opposed an amendment to legalize medical marijuana in the state, and Food and Drug Administration commissioner nominee Marty Makary has called marijuana a "gateway drug."
Robert F. Kennedy Jr., whom Trump has nominated to lead the Health and Human Services Department, has expressed support for medical marijuana legalization.
The lawmakers on Monday urged Biden not to leave major decision-making on cannabis policy up to Trump.
"Rescheduling marijuana and the prior round of pardons must not be the end of this administration's historic work to use its executive authority to undo the damage of federal marijuana policy," they wrote. "As we continue to work toward legislation to end the federal criminalization of marijuana and to regulate it responsibly and equitably, we urge prompt administrative action to tackle the harms of criminalization—particularly for the benefit of communities most harmed by the War on Drugs."
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To End 'Failed Approach,' Biden DOJ Formally Moves to Reclassify Marijuana
The decision "validates the experiences of tens of millions of Americans, as well as tens of thousands of physicians, who have long recognized that cannabis possesses legitimate medical utility," said one advocate.
May 16, 2024
As Democratic lawmakers push for the federal decriminalization of marijuana, U.S. President Joe Biden on Thursday announced the Department of Justice was formalizing a proposal to remove the substance from Schedule I—the legal classification which for decades has placed marijuana in the same category as heroin.
The Drug Enforcement Administration's (DEA) proposal to reschedule marijuana under Schedule III—which would place it alongside substances like testosterone and steroids—was submitted as a Notice of Formal Rulemaking in the Federal Register, commencing a 60-day public comment period.
After the comment period and any public hearings that are requested by interested parties, the DEA is expected to issue a final order on reclassifying marijuana.
In a video message posted to social media, Biden called the step his administration has taken "monumental" and said marijuana's current classification suggests it is more dangerous than "fentanyl and methamphetamine—the two drugs driving America's overdose epidemic."
"That just doesn't add up," said the president. "Today's announcement builds on the work we've done to pardon a record number of federal offenses for simple possession of marijuana, and it adds to the action we've taken to lift barriers to housing, employment, small business loans, and so much more for tens of thousands of Americans."
"Far too many lives have been upended because of a failed approach to marijuana and I'm committed to righting those wrongs," added Biden.
With marijuana classified under Schedule III, the federal government would for the first time officially acknowledge the medical benefits of the substance, which is approved for medical use in 43 U.S. states and territories as well as the District of Columbia.
Federal scientists will be able to research the medical benefits of the drug for the first time since 1971, when the Controlled Substances Act placed marijuana under Schedule I.
The new classification could also eliminate tax burdens for legal cannabis businesses.
Paul Armentano, deputy director of the National Organization for the Reform of Marijuana Laws (NORML), said Biden's decision "validates the experiences of tens of millions of Americans, as well as tens of thousands of physicians, who have long recognized that cannabis possesses legitimate medical utility."
"As a first step forward, this policy change dramatically shifts the political debate surrounding cannabis," Armentano added. "Specifically, it delegitimizes many of the tropes historically exploited by opponents of marijuana policy reform. Claims that cannabis poses unique harms to health, or that it's not useful for treating chronic pain and other ailments, have now been rejected by the very federal agencies that formerly perpetuated them. Going forward, these specious allegations should be absent from any serious conversations surrounding cannabis and how to best regulate its use."
Biden's announcement came a week after Senate Majority Leader Chuck Schumer (D-N.Y.) was joined by 17 other Democratic senators in reintroducing S. 4226, the Cannabis Administration and Opportunity Act (CAOA), which would remove marijuana from the Controlled Substances Act and allow states to regulate the substance.
Schumer applauded the White House for "recognizing that draconian cannabis laws need to change to catch up to science and the majority of Americans," but said marijuana must now be decriminalized at the federal level.
"The proposed change fails to harmonize federal marijuana policy with the cannabis laws of most U.S. states," said Armentano, "particularly the 24 states that have legalized its use and sale to adults."
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Democratic Senators Push DEA to 'Swiftly Deschedule' Marijuana
The lawmakers asserted that the continued listing of cannabis under the Controlled Substances Act has a "devastating impact on our communities and is increasingly out of step with state law and public opinion."
Jan 30, 2024
A dozen U.S. senators on Tuesday urged the Biden administration to "swiftly deschedule" marijuana, which remains in the most restrictive federal criminalization category despite being legal for recreational or medicinal use in a majority of states.
In a letter to U.S. Attorney General Merrick Garland and Drug Enforcement Agency (DEA) Administrator Anne Milgram led by Sens. Elizabeth Warren (D-Mass.) and John Fetterman (D-Pa.), the lawmakers reject the Department of Health and Human Services' August 2023 recommendation to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA).
According to the DEA, Schedule I drugs—which in addition to marijuana include heroin, MDMA, LSD, and peyote—have "no currently accepted medical use and a high potential for abuse." Schedule III drugs include Tylenol with codeine, ketamine, and anabolic steroids.
"While rescheduling to Schedule III would mark a significant step forward, it would not resolve the worst harms of the current system. Thus, the DEA should deschedule marijuana altogether," the senators wrote. "Marijuana's placement in the CSA has had a devastating impact on our communities and is increasingly out of step with state law and public opinion."
A record 7 in 10 voting-age Americans believe marijuana should be legal, according to Gallup polling published last November, a day after voters made Ohio the 24th state to legalize adult recreational use of the plant.
While thousands of people—exclusively U.S. citizens and permanent residents—have been pardoned for simple federal marijuana possession convictions following presidential proclamations issued in 2022 and last month, Biden has been criticized for refusing to take more meaningful steps to legalize a plant used by half of Americans at least once in their lives.
"The Biden administration has a window of opportunity to deschedule marijuana that has not existed in decades and should reach the right conclusion—consistent with the clear scientific and public health rationale for removing marijuana from Schedule I, and with the imperative to relieve the burden of current federal marijuana policy on ordinary people and small businesses," the senators wrote.
Last September, the U.S. Senate Banking Committee voted 14-9 for the Secure and Fair Enforcement Regulation Banking Act, which would legally protect banks and credit unions that serve cannabis businesses and bar federal regulators from ordering financial institutions to close their accounts.
In addition to Warren and Fetterman, the senators who signed Tuesday's letter are: Majority Leader Chuck Schumer (D-N.Y.), Cory Booker (D-N.J.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), Kirsten Gillibrand (D-N.Y.), Ron Wyden (D-Ore.), John Hickenlooper (D-Colo.), Peter Welch (D-Vt.), Chris Van Hollen (D-Md.), and Alex Padilla (D-Calif.).
"Classifying marijuana as a Schedule I drug—something more dangerous than cocaine or fentanyl—has harmed communities and denied critical relief to vulnerable patients," Gillibrand said on social media Sunday. "It's time to legalize and deschedule marijuana altogether."
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Marijuana Industry Banking Bill Passes Key Senate Panel
"We've got momentum on our side," said Sen. Jeff Merkley. "Let's get this done to protect our legal cannabis businesses!"
Sep 27, 2023
The U.S. Senate Banking Committee on Wednesday brought major federal marijuana banking legislation closer to becoming law than ever, approving a bipartisan bill that advocates say is essential to the safety of legal recreational and medical marijuana businesses across the United States.
The committee voted 14-9 in favor of passing the Secure and Fair Enforcement Regulation (SAFER) Banking Act, which would legally protect banks and credit unions that provide services to cannabis operations and prohibit federal regulators from ordering financial institutions to close a business' account based on "reputational risk."
An earlier version of the bill passed in the U.S. House numerous times but was never advanced in the Senate under either Democratic or Republican control.
"We've got momentum on our side to finally pass the SAFER Banking Act," said Sen. Jeff Merkley (D-Ore.), who is sponsoring the legislation along with Senate Majority Leader Chuck Schumer (D-N.Y.) and Sens. Steve Daines (R-Mont.), Cynthia Lummis (R-Wyo.), and Kyrsten Sinema (I-Ariz.). "Let's get this done to protect our legal cannabis businesses!"
Although 39 states have passed laws legalizing the sale of marijuana for recreational or medical use, advocates say dispensaries are put at risk by a lack of federal protections for financial institutions that might otherwise work with them.
Only 12% of all U.S. banks and 5% of credit unions provide banking services to marijuana-related businesses, according to the U.S. Department of Treasury.
As Common Dreams reported, Mastercard announced in July that it would no longer offer services in the cannabis industry because marijuana is still criminalized at the federal level—even though annual national sales in the sector are projected to reach $57 billion by 2030 in states where cannabis is currently legalized.
NORML, which has advocated for marijuana decriminalization since 1970, noted on Wednesday that more than 70% of cannabis businesses report that a "lack of access to banking or investment capital" is their top challenge.
Without access to banking services, businesses are forced to make sales only in cash, which Merkley said is "an open invitation to robberies, muggings, money laundering, and organized crime."
"Forcing legal businesses to operate in all-cash is dangerous for our communities," said the senator.
NORML political director Morgan Fox called the newly advanced legislation "an improved version of the SAFE Banking Act."
"It allows state-licensed cannabis businesses to more easily access financial services, such as opening a simple bank account, and it provides entrepreneurs with greater access to lending and other services that are available to other legal businesses," said Fox.
Schumer called the passage of the bill out of the committee "a huge step," and said he is also working to include amendments to expunge people's marijuana-related criminal offenses in the final bill.
"Now is the time," said the senator.
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Senators Unveil Bipartisan SAFER Banking Act for Legal Marijuana Industry
Co-sponsors said it "will help make our communities and small businesses safer by giving legal cannabis businesses access to traditional financial institutions, including bank accounts and small business loans."
Sep 20, 2023
A bipartisan group of senators, including Senate Majority Leader Chuck Schumer, on Wednesday unveiled a revised bill that aims to "ensure that all businesses—including state-sanctioned cannabis businesses—have access to deposit accounts, insurance, and other financial services."
The bill is now called the Secure and Fair Enforcement Regulation (SAFER) Banking Act, as a few journalists revealed late Tuesday.
In addition to Schumer (D-N.Y.), the legislation is led by Sens. Jeff Merkley (D-Ore), Steve Daines (R-Mt.), Kyrsten Sinema (I-Ariz.), Cynthia Lummis (R-Wy.), Kevin Cramer (R-N.D.), Cory Booker (D-N.J.), Dan Sullivan (R-Alaska), and Bob Menendez (D-N.J.). Merkley and Daines put out a previous version of the bill earlier this year.
"This legislation will help make our communities and small businesses safer by giving legal cannabis businesses access to traditional financial institutions, including bank accounts and small business loans," some of the co-sponsors said in a statement. "It also prevents federal bank regulators from ordering a bank or credit union to close an account based on reputational risk. We look forward to the markup of this bill in the Senate Committee on Banking, Housing, and Urban Affairs on September 27th."
Separately, Schumer, a supporter of legalization, said that "for too long, the federal government has continued to punish marijuana users and business owners—even when doing so is actively harmful to our country. This 'war on drugs' has turned into a war on people and communities—specifically people and communities of color—and a war on business."
"This agreement allows cannabis businesses that have traditionally operated in cash to finally have the opportunity to accept credit and debit cards, allowing them to grow their businesses, pay their employees, protect their customers, and ensure public safety," he continued. "I intend to bring the SAFER Banking Act to the Senate floor with all due speed."
The majority leader added that he is "committed to including" the Harnessing Opportunities by Pursuing Expungement (HOPE) Act and Gun Rights and Marijuana (GRAM) Act. The former would provide federal grants to help states with expunging cannabis offenses while the latter would end the ban of gun sales to cannabis users in states that allow medical or recreational use.
Marijuana Moment reported that "the newly released bill reveals the types of compromises senators made over recent weeks. Most of the new provisions are described under Section 10—a component of the reform that Republicans have strongly favored and certain Democrats opposed over concerns it could undermine broader banking regulations."
The legislation's introduction answers demands for federal action by drug policy reform groups and unions as well as banking, cannabis, and insurance trade associations. One joint letter sent to Congress on Tuesday argued that "it is a moral imperative" to pass some version of the bill this year, "in order to progress our country toward a safe environment for the workers, owners, customers, and other visitors of state-legal cannabis retail stores."
Medicinal use of marijuana is permitted by 38 states, three U.S. territories, and the District of Columbia, and recreational adult use is allowed in 23 states, two territories, and D.C., according to the National Conference of State Legislatures.
Cannabis not only remains illegal at the federal level but is a Schedule I drug, the most restricted category under the Controlled Substance Act. However, following a review requested by President Joe Biden, a Department of Health and Human Services official last month urged the Drug Enforcement Administration chief to reclassifying it as Schedule III.
While welcoming "the historic nature" of that move, Cat Packer at the Drug Policy Alliance stressed at the time that "rescheduling falls woefully short of President Biden's promise and the relief our communities need," and urged the administration to "actively work with Congress to pass comprehensive legislation such as the Cannabis Administration and Opportunity Act," which would federally decriminalize marijuana and begin to address decades of harm caused by criminalization.
The new Senate proposal was introduced as the Republican-controlled U.S. House Oversight and Accountability Committee on Wednesday voted 30-14 in favor of the bipartisan Cannabis Users' Restoration of Eligibility (CURE) Act, which would allow past marijuana users to serve as federal employees and qualify for security clearances.
NORML political director Morgan Fox said in a statement that "while it is disappointing that the committee did not see fit to stop federal agencies from discriminating against responsible adults and patients who are current consumers of cannabis, this legislation will nonetheless open up new opportunities to millions of Americans, increase the talent pool available to federal employers, and ultimately make our country safer."
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'Rescheduling Is Not Enough,' Advocates Say of HHS Cannabis Recommendation
"The goal of any federal cannabis policy reform ought to be to address the existing, untenable chasm between federal marijuana policy and the cannabis laws of the majority of U.S. states," said NORML's deputy director.
Aug 30, 2023
Cannabis reform advocates and industry representatives on Wednesday renewed demands for legalizing marijuana at the federal level as U.S. Health and Human Services Secretary Xavier Becerra confirmed his department's rescheduling recommendation.
Marijuana is currently a Schedule I drug—the most restricted category under the Controlled Substance Act (CSA)—but President Joe Biden ordered Becerra and Attorney General Merrick Garland to initiate a review last October, when he issued a mass pardon for simple federal cannabis possession.
Bloomberg initially reported Wednesday that a Department of Health and Human Services (HHS) official on Tuesday wrote to Drug Enforcement Administration (DEA) chief Anne Milgram to recommend reclassifying cannabis Schedule III, a development Becerra confirmed on social media at 4:20 pm ET.
"Following the data and science, HHS has expeditiously responded to President Biden's directive to HHS Secretary Becerra and provided its scheduling recommendation for marijuana to the DEA on August 29, 2023," an HHS spokesperson told Marijuana Moment. "This administrative process was completed in less than 11 months, reflecting this department's collaboration and leadership to ensure that a comprehensive scientific evaluation be completed and shared expeditiously."
A DEA spokesperson confirmed to the outlet that it received the HHS letter and said: "DEA has the final authority to schedule or reschedule a drug under the Controlled Substances Act. DEA will now initiate its review."
Asked about Bloomberg's reporting on Wednesday, White House Press Secretary Karine Jean-Pierre stressed to reporters that Biden requested the scheduling review, "it's going to be an independent process," and "it's going to be guided by evidence." She declined to comment regarding Biden's position on decriminalization.
NORML declared in an email that "rescheduling is not enough," and in response to the letter, deputy director Paul Armentano said that "it will be very interesting to see how DEA responds to this recommendation, given the agency's historic opposition to any potential change in cannabis' categorization under federal law. Further, for decades, the agency has utilized its own five-factor criteria for assessing cannabis' placement in the CSA—criteria that as recently as 2016, the agency claimed that cannabis failed to meet. Since the agency has final say over any rescheduling decision, it is safe to say that this process still remains far from over."
Armentano argued that "the goal of any federal cannabis policy reform ought to be to address the existing, untenable chasm between federal marijuana policy and the cannabis laws of the majority of U.S. states," and rescheduling "fails to adequately address this conflict."
"Just as it is intellectually dishonest to categorize cannabis in the same placement as heroin, it is equally disingenuous to treat cannabis in the same manner as anabolic steroids," he added. "The majority of Americans believe that cannabis ought to be legal and that its hazards to health are less significant than those associated with federally descheduled substances like alcohol and tobacco. Like those latter substances, we have long argued the cannabis plant should be removed from the Controlled Substances Act altogether, thereby proving state governments—rather than the federal government—the ability to regulate marijuana in the manner they see fit without violating federal law."
Medicinal use of cannabis is allowed by 38 states, three U.S. territories, and the District of Columbia while recreational adult use is permitted in 23 states, two territories, and D.C., according to the National Conference of State Legislatures.
Under the HHS plan, "state medical and adult-use marijuana programs will still remain federally illegal, meaning patients, consumers, and workers would remain subject to federal arrest; noncitizens would remain subject to deportation simply for possessing marijuana or working in the industry; and federal marijuana arrests and prosecutions will continue, previous arrests will not be expunged, and thousands will remain incarcerated in federal prison for marijuana violations," emphasized Cat Packer, director of drug markets and legal regulation at the Drug Policy Alliance.
"It also means that federal benefits, such as housing and nutritional assistance, will still be denied to certain people with previous marijuana convictions and the federal government will continue to be unable to foster a fair business environment that allows small and minority-owned marijuana businesses to compete with large corporate marijuana operators," noted Packer, urging the president to "limit the harms of marijuana criminalization" and work with Congress to pass the Cannabis Administration and Opportunity Act (CAOA).
U.S. Senate Majority Leader Chuck Schumer (D-N.Y.)—an advocate of federally legalizing cannabis and an original CAOA co-sponsor—said in a statement that "HHS has done the right thing and DEA should now quickly follow through on this important step to greatly reduce the harm caused by draconian marijuana laws."
"While this is a step forward, there is still much more that needs to be done legislatively to end the federal prohibition on cannabis and roll back the War on Drugs," Schumer added. "I am committed to continuing to work in Congress to pass important marijuana legislation and criminal justice reform."
U.S. Cannabis Council "enthusiastically" welcomed the HHS recommendation, saying on social media: "We believe that rescheduling to Schedule III will mark the most significant federal cannabis reform in modern history. President Biden is effectively declaring an end to [former President Richard] Nixon's failed war on cannabis and placing the nation on a trajectory to end prohibition."
While recognizing the range of benefits from the potential rescheduling—from making research easier to tax deductions for businesses—the industry group also emphasized its commitment to full cannabis legalization at the federal level.
National Cannabis Industry Association CEO Aaron Smith said that "moving cannabis to schedule III could have some limited benefit but does nothing to align federal law with the 38 U.S. states which have already effectively regulated cannabis for medical or adult use. The only way to fully resolve the myriad of issues stemming from the federal conflict with state law is to remove cannabis from the Controlled Substances Act and regulate the product in a manner similar to alcohol."
This post has been updated with comment from the Drug Policy Alliance.
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Mastercard Move at Cannabis Shops Intensifies Call for US Decriminalization
"An industry that employs hundreds of thousands of people, provides billions in economic benefits, and promotes safer alternatives to pharmaceuticals and commonplace vices continues to be treated like a pariah," said one cannabis entrepreneur.
Jul 28, 2023
Cannabis reform advocates on Friday said a new decision by credit card company Mastercard illustrates why the substance must be decriminalized at the federal level to ensure that legal U.S. dispensaries are able to operate safely and securely.
The company announced this week that it has instructed U.S. financial institutions to stop allowing customers to use its debit cards to purchase marijuana products at cannabis stores, which now operate legally in 38 states for medicinal use and 23 states for recreational use, as well as in the District of Columbia.
Mastercard said it made the decision because marijuana remains criminalized at the federal level, despite major progress in recent years as the Marijuana Opportunity Reinvestment and Expungement (MORE) Act was passed by the U.S. House last year.
Darren Weiss, president of multistate cannabis operator Verano Holdings, said Mastercard's decision shows how the industry is still treated as a "pariah" despite its annual national sales projected to reach $57 billion by 2030, or as much as $72 billion including several states where cannabis is expected to be legalized.
A number of advocates including Sen. Jeff Merkley (D-Ore.) said Mastercard's move demonstrates the need for the Secure and Fair Enforcement (SAFE) Banking Act, which would protect banks and credit unions for being penalized by federal regulators for working with legal cannabis stores.
"I will not stop pushing to get SAFE Banking passed so legal cannabis businesses can access necessary financial services," said Merkley. "Cannabis businesses are still in dire need, and the majority of the country with state-legalized recreational cannabis can't wait."
While expressing appreciation for the SAFE Banking Act and its advocates in Congress, Weiss pointed out that the legislation would not address the fact that marijuana is criminalized at the federal level, which was the objection Mastercard said it has to working with cannabis dispensaries.
"SAFE Banking as drafted won't fix the credit card issue, and Mastercard's position won't change as a result," said Weiss. "We need comprehensive cannabis reform, and we need it yesterday."
The "awful news," said Columbia University fellow Raúl Carrillo, "shows the pitfalls of trying to reform cannabis finance without decriminalizing and legalizing weed on the federal level."
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