Bipartisan Bill Aims to End Federal Cannabis Prohibition

Washington, D.C. — Bipartisan lawmakers have reintroduced a bill aimed at ending federal marijuana prohibition in states that have legalized cannabis. On Thursday, Reps. Dave Joyce (R-OH), Max Miller (R-OH), and Dina Titus (D-NV) filed the Strengthening the Tenth Amendment Through Entrusting States (STATES) 2.0 Act, which seeks to establish a federal framework regulating cannabis products while respecting state laws.

The STATES 2.0 Act would amend the Controlled Substances Act (CSA) to prohibit the federal prosecution of individuals compliant with state-managed cannabis initiatives, including those administered by Indian tribes. The introduction of the bill coincided with the release of a survey indicating that Republican voters are increasingly supportive of allowing states autonomy over cannabis laws.

“Whether a state is pro-legalization or anti-legalization, we can all agree that the current federal approach to cannabis policy is not working,” said Joyce, co-chair of the Congressional Cannabis Caucus. He pointed out that President Trump has previously acknowledged the inefficiencies of the current policy, which often diverts resources from violent crime to minor cannabis offenses.

The proposed legislation also aims to legalize interstate cannabis commerce and normalize IRS policies to better accommodate the industry. “The STATES 2.0 Act remedies this issue by bridging the gap between federal and state policy,” Joyce added. This is the third consecutive congressional session in which Joyce and his colleagues have presented such legislation, reflecting a persistent effort to align federal laws with state-level initiatives.

The bill stipulates that states and tribes can implement regulations such as location restrictions for cannabis businesses and health and safety regulations to support local economies. Nevertheless, the bill acknowledges federal responsibility in regulating interstate cannabis trade to prevent illicit activities.

“Today, 24 states have legalized recreational cannabis, and 39 states permit its use for medical purposes,” remarked Miller. “It’s time for federal lawmakers to establish commonsense guardrails that protect children, promote public safety, and uphold the rights of communities that choose to opt out of cannabis use.”

An important aspect of the legislation prevents states and tribes from prohibiting the transport of legal cannabis across state or tribal borders. While jurisdictions may set reasonable restrictions on cannabis within their areas, the bill aims to streamline regulations and foster accountability in cannabis commerce.

The bill also proposes that revenue from cannabis sales in compliant states would not be subjected to § 280E of the IRS code, which currently inhibits the cannabis industry from accessing federal tax deductions available to other businesses. This exemption addresses a significant issue for the industry, which continues to advocate for the SAFE Banking Act, which seeks to improve financial access for cannabis businesses.

Under the new bill, the attorney general would have 180 days post-enactment to finalize regulations amending the CSA to exclude states and tribes from federal marijuana laws. The legislation also clarifies that the FDA will maintain oversight of cannabis marketed as drugs or food products and emphasizes the importance of consumer safety.

The legislation has garnered support from various organizations, including the Coalition for Cannabis Policy, Education, and Regulation, and others advocating for clarity in cannabis laws. Shanita Penny, executive director of the Coalition, stated, “Congress has an opportunity to get this right for all 50 states.”

In the broader context, the White House recently commented on ongoing marijuana reforms, including rescheduling and banking access ventures. However, progress has been slow, disappointing advocates who had anticipated quicker action by the Biden administration.

The STATES 2.0 Act represents a concerted effort by lawmakers to reflect changing attitudes toward cannabis regulation while acknowledging state rights to formulate their laws. As this legislation makes its way through Congress, stakeholders are hopeful for a breakthrough in national cannabis policy.