Cannabis Reform Battles Continue in Congress: State Medical Cannabis Protection and D.C. Marijuana Sales Remain Key Points in Spending Bills
Amidst the ongoing struggles for cannabis reform in Congress, the battle rages on as House and Senate appropriators approve large-scale annual spending bills. These bills, once again, incorporate crucial language to safeguard state medical cannabis programs and a contentious rider to block Washington, D.C. from implementing regulated marijuana sales.
Both the Senate and House Appropriations Committee recently conducted markups of the Fiscal Year 2024 spending legislation for Financial Services and General Government (FSGG). Notably, the Senate panel, along with a House subcommittee, advanced their appropriations measures for Commerce, Justice, Science, and Related Agencies (CJS).
Despite consistent efforts to utilize appropriations measures as a means for cannabis reform, the outcomes have been mixed. Even during the previous session, with Democrats in control of both chambers, endeavors to expand marijuana protections to all legal states and to introduce limited cannabis banking reform came to a halt after bicameral negotiations.
However, a glimmer of hope remains as a rider aimed at protecting state medical cannabis programs from federal intervention has been renewed annually since 2014. This Congress, appropriators from both chambers have once again agreed to retain that language in their respective base bills as they move forward.
The Senate Appropriations Committee’s summary inaccurately describes the scope of the provision, stating that it ensures “the prescribing and dispensing of medical marijuana in those states is both legal and regulated.” In truth, the provision does not change cannabis’s legal status but rather restricts the ability of federal officials to enforce the law (and also does not allow for the “prescription” of what remains a Schedule I drug).
Emphasizing the importance of the provision, the Senate panel asserted, “Patients and doctors in states that have approved medical marijuana need to know that they are safe from arrest and prosecution by the federal government.
Disappointingly for cannabis reform advocates, both the Democratic-controlled Senate and the GOP House have maintained a rider in their respective bills, blocking the District of Columbia from utilizing local tax dollars to establish a system for regulated adult-use marijuana sales. This is despite voters in the District approving legalization of possession and home cultivation through a ballot measure in 2014.
President Joe Biden’s Fiscal Year 2024 budget request, released in March, also retained the D.C. rider for the third consecutive year.
While the House, under Democratic control, previously included language in CJS spending bills to expand protections against Justice Department interference in all state and tribal adult-use marijuana programs, the provision did not appear in the current base bill, as Republicans now hold the majority. The reform also did not feature in the Democratic Senate’s version that advanced on Thursday, and no members proposed amendments on the matter.
Surprisingly, neither side attempted to add language to the FSGG bill to shield financial institutions from being penalized by federal regulators for collaborating with state-legal marijuana businesses. The House has passed limited appropriations legislation aiming to prevent the use of Treasury Department funds to penalize banks servicing the industry, but it has never been included in the final package. Meanwhile, the more comprehensive standalone Secure and Fair Enforcement (SAFE) Banking Act remains in legislative limbo as Senate Democrats and Republicans continue to clash over a single section on banking industry regulations.
Both House and Senate appropriators have also retained a longstanding rider in their new CJS base bills, safeguarding state hemp programs from federal interference.
The Senate CJS report contains language directing the Drug Enforcement Administration (DEA) to continue collaborating with state and local law enforcement to distribute field-testing kits that can distinguish federally legal hemp from marijuana. The passage reads, “The Committee is aware that DEA has developed field-testing kits that can distinguish between hemp and marijuana on the spot. The Committee directs the DEA to continue to work to ensure State and local law enforcement have access to this field test technology so they can more efficiently conduct their drug interdiction efforts at the local level.
Moreover, Congressional Cannabis Caucus co-chair, Rep. Dave Joyce (R-OH), submitted a novel cannabis amendment to the House CJS report. The amendment called on the White House to collaborate with relevant agencies to “coordinate an assessment of the adequacy of these states’ cannabis regulatory frameworks, including commonalities and novel approaches to enforcement and oversight.” This mirrors the objectives of a standalone bill, the Preparing Regulators Effectively for a Post-Prohibition Adult-Use Regulated Environment Act (PREPARE) Act, filed by Joyce and House Minority Leader Hakeem Jeffries (D-NY) in April. The legislation would require the attorney general to establish a commission comprising representatives from various agencies to prepare the federal government for eventual legalization.
During Thursday’s markup, Joyce expressed, “We as lawmakers will be better equipped to consider policies that align tax frameworks and improve public health and safety...We should have one similar regulatory framework that we need to develop, and that’s what I’m asking is to at least gather the information from these other states so we have the ability to look at it should cannabis ever become legal nationwide.
Despite supportive comments from fellow Republicans, including Rep. Tom Cole (R-OK), the amendment failed on a voice vote, lacking sufficient support for a roll call.
The amendment’s proposed text acknowledged that over 20 states and territories now permit adult-use cannabis, while over 35 states and territories allow cannabis for medicinal purposes. It urged the Executive Office of the President, in consultation with relevant agencies, to coordinate an assessment of these states’ cannabis regulatory frameworks, including commonalities and novel approaches to enforcement and oversight.
Another noteworthy provision in the House CJS bill prevents limitations on overtime reimbursements to law enforcement involved in a federal program to eradicate illegally grown marijuana in states with legalization.
On a separate note, the Senate Appropriations Committee released the report for a spending bill covering Military Construction, Veterans Affairs, and Related Agencies (MilCon). The report calls on the U.S. Department of Veterans Affairs (VA) to facilitate medical marijuana access for veterans and explore the therapeutic potential of psychedelics.
However, it is important to mention that Republican leadership in the House Rules Committee blocked numerous cannabis and psychedelics amendments from floor consideration as part of the National Defense Authorization Act (NDAA) in the early hours of Thursday morning.
