Democrats Move to Decriminalize Cannabis; DOJ Seeks to Reschedule
May 7, 2024
In separate efforts last week, key Senate Democrats reintroduced legislation to federally decriminalize marijuana while the Department of Justice started the process of loosening federal restrictions on the drug.
Why it matters: Federal law prohibits any use of cannabis even though 38 states allow medical use and 24 states have legalized some recreational use. The federal moves are two potential paths to removing the federal and state law mismatch.
Go deeper: The legislation introduced is similar to a 2022 bill that would legalize cannabis at the federal level and set up a system to tax and regulate its production and use. Senate Majority Leader Chuck Schumer (D-NY), Sen. Cory Booker (D-NJ), and Sen. Ron Wyden (D-OR) are the lead sponsors of the bill along with 15 Democratic co-sponsors.
- While Schumer’s support is key, the path to federal legalization will be challenging in an election year and with many key Republican senators still skeptical of full legalization.
- Schumer is still pursuing incremental steps, including the SAFER Banking Act that would create a safe harbor for financial institutions to serve state-authorized cannabis businesses.
- Last week, Politico reported that Schumer hoped to add SAFER Banking to the Federal Aviation Administration reauthorization bill.
- Minority Leader Mitch McConnell (R-KY) remains opposed to the cannabis banking bill, which makes it unlikely it will hitch a ride on the FAA reauthorization.
Yes, but: The post-election lame duck session could be another opportunity to pass cannabis banking along with a variety of year end packages. McConnell is on his way out as GOP Senate Leader and may defer to his successor on those negotiations.
Meanwhile, news outlets reported last week that the Department of Justice began a lengthy process to reduce federal restrictions on cannabis through regulation.
- The move to reclassify or “reschedule” marijuana from the most restrictive Schedule I to Schedule III under the Controlled Substances Act would ease many restrictions on it and possibly pave the way for some broader legal use.
- Even if cannabis is reclassified as Schedule III, the Food and Drug Administration would need to approve cannabis for medical use to receive federal blessing.
- The reclassification alone would not make marijuana legal at the federal level, as discussed in a Congressional Research Services report: