Politics
16 Governors From Across The U.S. Push Congress To Pass Marijuana Banking Bill
A coalition of 16 governors from across the U.S. is calling on Congress to pass legislation to increase marijuana businesses’ access to banks, saying it will “protect public safety, increase revenues, and improve transparency in our states.”
Citing the Trump administration’s move to federally reschedule marijuana, the governors wrote in a letter to House and Senate leaders on Monday that passing the Secure and Fair Enforcement Banking (SAFE) Act would “enable state-sanctioned cannabis businesses to access core banking services and transition their cash-based operations into regulated institutions that support accountable oversight and enable lawful commerce.”
The letter, led by Maryland Gov. Wes Moore (D), notes that “nearly every U.S. state has now legalized cannabis in some form,” arguing that there are public safety and other challenges caused by the “disconnect between state cannabis laws and federal law.”
The governors, all Democrats, wrote that states have collected billions of dollars in marijuana tax revenues, pointing out “difficulties associated with state regulatory agencies depositing those tax payments, processing licensing fees, and obtaining similar services given cannabis proceeds remain federally illegal.”
The SAFE Banking Act, which would protect banks from being punished for providing financial services to marijuana businesses, “provides a pragmatic solution that respects state sovereignty while addressing critical public safety and governance challenges,” the letter says.
“State-sanctioned cannabis businesses largely operate in cash. This cash-intensive model denies legitimate businesses access to basic financial services—including business loans, payroll systems, and credit processing—that other lawful businesses routinely rely upon. Additionally, operating predominantly in cash can make these businesses targets for robbery and violent crime, with employees transporting cash, businesses storing large amounts on-site, and customers carrying cash to make purchases all facing elevated safety risks. These conditions prevent states from administering the laws they have enacted, efficiently collecting revenues, and conducting meaningful oversight, all while creating unnecessary risks for employees, customers, and surrounding businesses in our communities.”
In addition to Moore, the letter was also signed by Colorado Gov. Jared Polis (D), Connecticut Gov. Ned Lamont (D), Delaware Gov. Matt Meyer (D), Illinois Gov. JB Pritzker (D), Kentucky Gov. Andy Beshear (D), Maine Gov. Janet Mills (D), Massachusetts Gov. Maura Healey (D), Michigan Gov. Gretchen Whitmer (D), Minnesota Gov. Tim Walz (D), New Mexico Gov. Michelle Lujan Grisham (D), New York Gov. Kathy Hochul (D), Oregon Gov. Tina Kotek (D), Virginia Gov. Abigail Spanberger (D), Washington Gov. Bob Ferguson (D), Wisconsin Gov. Tony Evers (D).
Moore, who chairs the National Governors Association, said in a post on X that “legal cannabis businesses in states like Maryland still run mostly on cash,” which “makes them targets for robbery and puts workers, customers, and the surrounding community at risk.”
“This bipartisan legislation would let them use the same banking system as every other legal business,” he said.
In a separate Facebook post, Moore said that “almost every state has made cannabis legal in some way, but federal law still treats the money from legal cannabis businesses as illegal.”
“That forces them to run largely on cash, and stops them from easily getting loans and accepting credit cards,” the governor said. “It’s another ridiculous federal issue our entrepreneurs face, and it actually makes communities less safe by making those businesses targets for robbery.”
On Instagram, Moore said that “it’s our job as governors to keep people safe, grow our economies, and make sure government works for everyone.”
The SAFE Banking Act is a practical, bipartisan fix that would help us do all three,” he said.
Bipartisan groups of House and Senate members in June filed versions of the SAFE Banking Act in Congress.
Earlier iterations of the banking legislation have been introduced in past sessions of Congress, and while versions have been approved by the House of Representatives on several occasions, the reform has never been enacted into law.
The Senate Banking Committee approved a cannabis banking measure in 2023 but it was not subsequently taken up on the floor and died at the end of the 118th Congress.
Last year, a bipartisan coalition of 32 state and territory attorneys general sent a letter urging Congress to pass the SAFE Banking Act, arguing that it would be “crucial to public safety and to ensuring that lawful businesses in our states have access to regulated banking services.”
In September, the Government Accountability Office (GAO) published a report indicating that many banks are still reluctant to provide services to state-licensed marijuana businesses.
The watchdog agency conducted a series of focus groups and interviews with cannabis industry operators, financial services providers, advocacy groups and federal agencies to study the issue—concluding that while there is “no indication” any bank has ever been penalized solely for working with the marijuana industry, an ongoing perception of regulatory risks means that “obtaining and maintaining financial services remain difficult” for cannabis-related businesses.
The American Bankers Association (ABA) sent a letter in July urging congressional leaders to support marijuana banking legislation, saying it would “provide important legal and regulatory clarity” and “address a significant challenge facing American businesses, our communities, and the banks that serve them.”
Read the full marijuana banking letter from the governors below:
