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6/29/2025, 9:03:22 PM
The new budget bill they're trying to pass is bad news for the cannabis industry. Here’s how it negatively impacts us.
Section 623 – Blocks Cannabis Rescheduling This section bans the use of federal funds to review or change cannabis’s Schedule I status. In other words, even if Congress or federal health agencies recommend reclassification, the DOJ and DEA are legally blocked from doing anything about it.
Removal of Rohrabacher-Farr / Joyce-Blumenauer Protections This long-standing amendment stopped the Department of Justice from interfering with state medical cannabis laws. The new bill removes that protection, which could open the door to federal enforcement—even in states where medical cannabis is legal and regulated.
No SAFE Banking Language The bill leaves out the SAFE Banking Act entirely. Cannabis businesses are still shut out of the federal banking system, with no access to secure payment processing, credit lines, or loans.
No Reform for 280E Section 280E of the IRS Code is still in place, which means cannabis businesses still can’t deduct normal business expenses like rent, salaries, or marketing. This bill does nothing to fix that, leaving legal cannabis operators with an unfair tax burden.
Section 623 – Blocks Cannabis Rescheduling This section bans the use of federal funds to review or change cannabis’s Schedule I status. In other words, even if Congress or federal health agencies recommend reclassification, the DOJ and DEA are legally blocked from doing anything about it.
Removal of Rohrabacher-Farr / Joyce-Blumenauer Protections This long-standing amendment stopped the Department of Justice from interfering with state medical cannabis laws. The new bill removes that protection, which could open the door to federal enforcement—even in states where medical cannabis is legal and regulated.
No SAFE Banking Language The bill leaves out the SAFE Banking Act entirely. Cannabis businesses are still shut out of the federal banking system, with no access to secure payment processing, credit lines, or loans.
No Reform for 280E Section 280E of the IRS Code is still in place, which means cannabis businesses still can’t deduct normal business expenses like rent, salaries, or marketing. This bill does nothing to fix that, leaving legal cannabis operators with an unfair tax burden.
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