President Trump is proposing to slash funding for the White House Office of National Drug Control Policy (ONDCP) by more than 90 percent.
Under the president’s 2019 budget proposal released on Monday, ONDCP, commonly referred to as the drug czar’s office, would receive just over $29 million in funding next year, compared to more than $385 million for this year.
One of the office’s largest efforts, the High Intensity Drug Trafficking Areas (HIDTA) program, would be transferred to the Department of Justice under the proposal, which will need approval from Congress to be enacted.
Another significant ONDCP program, the Drug-Free Communities Support Program, would be transferred to the Substance Abuse and Mental Health Services Administration.
Late on Friday, the president named top White House aide Jim Carroll as acting head of ONDCP. As reported by CNN, Carroll’s departure from the White House was “sparked by [Chief of Staff John] Kelly’s dissatisfaction with his work.”
That, combined with the significant proposed budget cut, signals that the administration doesn’t see ONDCP as a key part of its anti-drug strategy.
The Trump budget document implies that the shifting of programs away from the office will “enable ONDCP to focus resources on its core mission: to reduce drug use and its consequences by leading and coordinating the development, implementation, and assessment of U.S. drug policy.”
But the move is likely to spur bipartisan pushback. Last year, a leaked White House Office of Management and Budget document floated a similar move, but the president did not end up actually proposing the ONDCP cuts after members of Congress from both parties strongly objected.
The new Trump plan would give U.S. Attorney General Jeff Sessions, an ardent opponent of marijuana legalization, greater control over the nation’s anti-drug efforts.
“To further enhance the Department [of Justice’s] efforts to concentrate law enforcement resources on drug traffickers in the most critical regions, the Budget proposes to transfer the High Intensity Drug Trafficking Areas program from the Office of National Drug Control Policy to the DEA,” the new document says. “Consolidating anti-drug law enforcement efforts in the DEA would better focus resources on the most dangerous, complex, and interjurisdictional drug trafficking organizations in the United States.”
Although drug policy activists have often clashed with ONDCP over its opposition to legalization and other reforms, a leading group called the proposed shift of HIDTA away from the office “deeply concerning.”
“This Reagan-era program incentivizes state and local law enforcement to make drug arrests and then send the bill to the federal government, increasing incarceration and allowing states to shirk fiscal responsibility for their actions,” the Drug Policy Alliance said in a press release. “HIDTA should be eliminated, not moved, or at a minimum reformed to ensure the program focuses on high-level traffickers.”
Cannabis-Related Budget Provisions
The president’s budget request proposes continuing a congressionally-approved provision that prevents the Justice Department from interfering with state industrial hemp research programs
SEC. 716. None of the funds made available by this Act or any other Act may be used—
(1) in contravention of section 7606 of the Agricultural Act of 2014 (7 U.S.C. 5940); or
(2) to prohibit the transportation, processing, sale, or use of industrial hemp that is grown or cultivated in accordance with subsection section 7606 of the Agricultural Act of 2014, within or outside the State in which the industrial hemp is grown or cultivated.
But it does not contain a broader current rider that protects state medical cannabis laws from federal interference.
However, the request seeks to revert to earlier budget language that may allow Washington, D.C. to spend some of its own money legalizing and regulating marijuana sales instead of continuing broader language that Congress enacted last year.
SEC. 809. (a) None of the Federal funds contained in this Act may be used to enact or carry out any law, rule, or regulation to legalize or otherwise reduce penalties associated with the possession, use, or distribution of any schedule I substance under the Controlled Substances Act (21 U.S.C. 801 et seq.) or any tetrahydrocannabinols derivative.
(b) None of the funds contained in this Act may be used to enact any law, rule, or regulation to legalize or otherwise reduce penalties associated with the possession, use, or distribution of any schedule I substance under the Controlled Substances Act (21 U.S.C. 801 et seq.) or any tetrahydrocannabinols derivative for recreational purposes.
Advocates have argued that the “contained in this Act” clause of part (b) allows the District of Columbia to spend some of its separate contingency reserve funds on legalization, whereas newer language enacted into law in 2017 bars the city from using money “available for obligation or expenditure by the District of Columbia government under any authority” for such purposes.
Photo courtesy of Gage Skidmore.
Senate Schedules Second Cannabis Hearing For Next Week
A key Senate committee will hold a hearing next week to discuss hemp production, featuring witnesses from the U.S. Department of Agriculture (USDA), the Food and Drug Administration (FDA) and the Environmental Protection Agency (EPA).
In the months since hemp and its derivatives were federally legalized under the 2018 Farm Bill, there’s been strong interest in developing USDA and FDA regulations for the crop and its compounds such as CBD, and lawmakers have repeatedly pressed the agencies to speed up the rulemaking process to unlock the industry’s potential.
While the hearing notice doesn’t go into detail about what will be discussed, the meeting’s title—”Hemp Production and the 2018 Farm Bill”—and list of witnesses indicate that the conversation will revolve around the development of federal guidelines for hemp businesses.
— Sen. Ag Republicans (@SenateAgGOP) July 17, 2019
USDA Marketing and Regulatory Programs Under Secretary Greg Ibach, USDA General Counsel Stephen Vaden, FDA Principal Deputy Commissioner Amy Abernethy and EPA Assistant Administrator of Chemical Safety and Pollution Prevention Alexandra Dunn will appear before the Senate Committee on Agriculture, Nutrition, and Forestry on July 25.
I am honored to be called by the Senate Committee on Agriculture, Nutrition, & Forestry to testify next week (7/25) on “Hemp Production and the 2018 Farm Bill.” As FDA, we recognize how important the topics of hemp and cannabidiol (CBD) are to Americans. https://t.co/bHMBGth1bL
— Dr. Amy Abernethy (@DrAbernethyFDA) July 18, 2019
Other invited witnesses include Kentucky farmer Brian Furnish, National Hemp Association Executive Director Erica Stark and Red Lake Band of Chippewa Indians Tribal Chairman Darrell Seki.
The Senate Agriculture Committee meeting will mark the chamber’s second cannabis-related hearing of the week. The Committee on Banking, Housing and Urban Affairs announced on Tuesday that it will meet to discuss marijuana banking issues on July 23.
FDA and USDA have both recently signaled that they were cognizant of widespread interest in creating regulatory pathways for hemp and its derivatives, with USDA stating that it planned to release an interim final rule on the products in August and FDA’s Abernethy writing that the agency is “expediting” its rulemaking process. FDA added that it hoped to release a report on its progress by early fall.
That said, heads of the departments have also tried to temper expectations. Agriculture Secretary Sonny Perdue said that USDA wouldn’t be expediting regulatory developments but that he expected them to be issued ahead of the 2020 planting seasons.
Former FDA Commissioner Scott Gottlieb, meanwhile, cited policy complications that would make it difficult for the agency to create an alternative regulatory pathway for hemp-derived CBD products to be lawfully marketed as food items or dietary supplements. He said that without congressional action, it may take FDA years to establish those rules.
Photo courtesy of Brendan Cleak.
As More States Legalize, DEA Chops Down Fewer Marijuana Plants, Federal Data Shows
The Drug Enforcement Administration (DEA) seized far fewer marijuana plants in 2018 compared to the previous year but made significantly more cannabis-related arrests, according to federal data released this month.
More than 2.8 million indoor and outdoor marijuana plants were seized last year as part of the DEA’s Domestic Cannabis Eradication/Suppression Program. That marks a 17 percent decline from 2017 levels.
NORML first noted the DEA report, which also shows that marijuana-related arrests the agency was involved with increased by about 20 percent in a year. And while the overall number of plants that were seized dropped, DEA said that the value of the assets totaled about $52 million—more than twice as much as it reported the previous year.
State-level legalization efforts appear to have played a role in the declining number of plant seizures, particularly those cultivated outdoors. In the same year that retail cannabis sales started in California, DEA confiscated almost 40 percent fewer outdoor plants in the state compared to 2017.
That data point is consistent with recent research showing that legalization is associated with a decrease in the number of illicit cannabis grows in national forests, which are often targets for DEA enforcement action.
It’s not clear why there was a significant uptick in marijuana-related arrests, but those increases generally did not occur in states where legal cannabis systems were recently implemented.
For example, arrests in Kansas, where marijuana is strictly prohibited, increased by more than 3,500 percent—from 15 to 544—from 2017 to 2018. Louisiana likewise experienced a 168 percent increase in cannabis arrests.
The data covers federal law enforcement actions and does not include those of local police agencies that did not partner with the agency.
Year-over-year decreases in cannabis seizures through DEA’s eradication program have been viewed by advocates as evidence that state-level legalization systems effectively displace the illicit market, removing the incentive to illegally cultivate cannabis.
Similarly, a separate recent report from the U.S. Sentencing Commission showed that federal prosecutions for marijuana trafficking dropped precipitously in 2018—another sign demonstrating that state-level legalization is disrupting the illicit market, advocates argue.
NORML Deputy Director Paul Armentano told Marijuana Moment that “federal eradication programs are a holdover from a bygone era.”
“At a time when roughly one-quarter of the country resides in a jurisdiction where adult marijuana use is legal, and when members of Congress are openly discussing removing cannabis from the federal Controlled Substances Act, it is time for these federal anti-marijuana efforts to be put out to pasture and for federal agencies to take positions that more closely comport with cannabis’ rapidly changing cultural status in America,” he said.
DEA has also faced criticism of its cannabis eradication efforts from a non-partisan federal watchdog agency last year for failing to adequately collect documentation from state and local law enforcement partners funded through the program.
The Government Accountability Office said in a report that DEA “has not clearly documented all of its program goals or developed performance measures to assess progress toward those goals.”
At the same time that DEA is seizing fewer plants grown illicitly, it’s also setting higher goals for federally authorized cannabis cultivation for research purposes. In 2019, the agency said it hoped to grow approximately 5,400 pounds of marijuana to meet research demand, which is more than double its quota for 2018.
Senate Schedules Hearing On Marijuana Business Banking Access
In one of the clearest signs of marijuana reform’s growing momentum on Capitol Hill, a Republican-controlled Senate committee has scheduled a hearing for next week that will examine cannabis businesses’ lack of access to banking services.
The formal discussion in the Senate Committee on Banking, Housing and Urban Affairs on Tuesday comes as legislation aimed at resolving the marijuana industry’s financial services problems is gaining momentum. A House cannabis banking bill that cleared that chamber’s Financial Services Committee with a bipartisan vote in March now has 206 cosponsors—nearly half the body—while companion Senate legislation has 32 out of 100 senators signed on.
(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)