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U.S. House Approves Marijuana Banking Reform As Part Of Defense Spending Bill

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The U.S. House of Representatives on Tuesday approved an amendment to protect banks that service state-legal marijuana businesses from being penalized by federal regulators. It passed on a voice vote, and no member requested a roll call. The measure is now attached to large-scale defense spending legislation.

This action comes hours after the House Rules Committee made in order the amendment from Rep. Ed Perlmutter (D-CO) for floor consideration. It was one of numerous drug policy proposals that lawmakers had hoped to attach to the National Defense Authorization Act (NDAA).

“This will strengthen the security of our financial system in our country by keeping bad actors like foreign cartels out of the cannabis industry. But most importantly, this amendment will reduce the risk of violent crime in our communities,” Perlmutter said on the floor ahead of the vote. “By dealing in all cash, these businesses and their employees become targets for robberies, assaults, burglaries and more.”

“This is a public safety and a national security matter—very germane to the issues at hand, dealing with foreign cartels and particularly the cash that is developed by this business that leads to crime,” he added.

Rep. Mike Rogers (R-AL) said he considers the proposal to be a “fine piece of legislation,” but argued that it’s more appropriate as standalone legislation, rather than as an add-on to NDAA.

“I think what [Perlmutter is] trying to accomplish is admirable and should be accomplished, but not in the National Defense Authorization Act,” he said.

But Rep. Warren Davidson (R-OH) made the case for including the cannabis reform in the national security bill.

“I think the reason it was ruled germane by the parliamentarian is the cartels control the drug trade in the United States. And while most states have made some legal form for marijuana, the cartels still dominate the market,” he said. “And part of the reason is the cash is in the black market. Legal operations in many states cannot be banked… This is preventing us from stopping the cartels.”

Rep. Lou Correa (D-CA) also rose in support of the amendment, saying that “cannabis customers and businesses are law-abiding citizens and entities, yet they have to pay their employees, their bills and their federal taxes with cash. It just does not make sense.”

This marks the fifth time in recent years that the the House has passed the cannabis banking reform, which has enjoyed broad support both as standalone legislation and while being tucked in as provisions of broader legislation. But while advocates support the proposal, some have made clear that they want to see more comprehensive changes to marijuana laws advance first, complicating the process.

Some lawmakers—particularly on the Senate side where a legalization bill from Senate Majority Leader Chuck Schumer (D-NY) is being finalized—have insisted the banking issue should be tackled by holistically ending marijuana prohibition. They argue that it is inappropriate to pass what is seen as an industry-focused reform that helps businesses and investors while leaving unaddressed the harms of decades of racially disparate prohibition enforcement that should be addressed with equity-focused legalization.

Sen. Cory Booker (D-NJ), who is helping Schumer alongside Senate Finance Committee Chairman Ron Wyden (D-OR) to produce a final legalization bill has said he would proactively work to block any senators who attempt to get marijuana banking reform passed before enacting social justice-focused legalization legislation.

Additionally, Schumer argued in an interview with Marijuana Moment that passing the Secure and Fair Enforcement (SAFE) Banking Act first could jeopardize support for broader reform. The thinking is that Republicans and moderate Democrats who are on the fence about a bolder policy change might be less inclined to vote for it if they have an opportunity to pass the more modest financial services fix instead.


Marijuana Moment is already tracking more than 1,200 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

Meanwhile, although the cannabis banking legislation is not directly connected to defense-related issues, it’s likely Perlmutter and other supporters see the must-pass NDAA as a potential vehicle for the reform that could make its way through the Senate, whereas all prior House-passed cannabis banking legislation has stalled to date.

At an initial meeting of the Rules Committee about NDAA on Monday, House Armed Services Committee Chairman Adam Smith (D-WA), who is managing the bill, acknowledged that while some members might consider certain amendments “superfluous” to defense spending matters, the annual legislation has been used as a vehicle to advance non-germane legislation in the past. He added, though, that doing so has historically required the issues at hand to have broad bipartisan support in order to survive the House-Senate conference committee process.

He didn’t specifically cite the cannabis banking proposal, but Perlmutter himself said earlier in the hearing that “whether something is superfluous is always in the eyes of the beholder,” signaling that he feels his measure’s germaneness in this context is up for interpretation.

Smith said that “whatever superfluous items the Rules Committee decides to put in order and get attached to this bill, we go to conference, and in conference, we work in a bipartisan fashion.”

“We’re not going to pull one over on anybody here. We’re going to have to work with committees of jurisdiction—not just the chairs, but the ranking members as well—to come to some agreement on those before we go forward,” he said. “So if you see an item that you consider to be superfluous being added to the bill, don’t freak out.”

The chair’s comments about needing support from leaders of committees of jurisdiction raise questions about whether the amendment stands a chance in conference with the Senate following House approval. Not only did House Financial Services Committee Ranking Member Patrick McHenry (R-NC) vote against the standalone SAFE Banking Act this year and in 2019, but on the Senate side, even Banking Committee Chairman Sherrod Brown (D-OH) has been generally unenthusiastic about advancing the reform.

On the flip side, House Finance Services Committee Chairwoman Maxine Waters (D-CA) is a supporter of the banking reform and brought it through her panel last Congress. Senate Banking Committee Ranking Member Pat Toomey (R-PA), for his part, has previously voiced support for advancing the SAFE Banking Act.

It’s been four months since the House last approved the bipartisan marijuana banking bill—but because companion legislation has stalled in the Senate, Perlmutter is getting impatient.

The congressman said that he appreciates that Senate leadership is pushing for a more comprehensive end to federal marijuana prohibition—and he agrees with Booker that promoting social equity is an important objective—but he feels the SAFE Banking Act is urgently needed to address public safety issues resulting from the industry’s lack of access to traditional financial institutions.

Some of the strongest proponents for broad reform like Rep. Earl Blumenauer (D-OR) voted in favor of the SAFE Banking Act in April despite the body yet having taken up a legalization measure this session.

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Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

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Psychedelics Group Issues First Round Of Grants For Community-Based Entheogenic Education In DC

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A Washington, D.C.-based psychedelics organization has issued about $50,000 in its first round of grants for various community groups to support efforts to educate and organize people around plant medicine.

The Plant Medicine Coalition (PMC)—founded by the head of the D.C. campaign that got psychedelics decriminalization passed locally in last November’s election—dolled out grants to about a dozen groups as part of its Community Grants Program. Funding for the grants was provided by Dr. Bronner’s, a wellness company that’s been involved in a number of marijuana and psychedelics reform efforts across the country.

This is just one part of PMC’s mission to promote psychedelics reform as the movement continues to spread at the local, state and federal levels.

Arts collectives, mental health organizations and entheogenic education groups are among the new grant recipients.

Melissa Lavasani, PMC co-founder, told Marijuana Moment that the organization is hopeful about the impact of these grants—but it’s also using this opportunity to explore how to most effectively provide funding in the years to come.

“I wanted to do something really impactful that had a quick turnaround,” Lavasani said. “There are a lot of things that our organization is working on right now that are really long term, especially on the federal level.”

“We’re trying to shift a really entrenched culture and government,” she added. “It just takes a lot of grinding—meeting after meeting—and I wanted to do something important with these funds here locally because I do feel like there were a lot of loose ends” after D.C. decriminalized psychedelics.

Overall, the money from PMC will support a diversity of initiatives. There will be workshops on community building within the psychedelics movement, courses on cultivating entheogenic substances, lecture series on scientific developments related to the substances and more.

Here are some quotes from recipients on what they aim to do with the funding: 

The Madison House: “Founded by Master Life Coach H. Alejaibra Badu, The Madison House is a International Spiritual Health & Wellness Movement that stands to heal people from things that bind them mentally and emotionally. Finding freedom from the self-inflicted prison of the mind when it’s over consumed by thought. Freeing yourself from the voice inside your mind that promotes fear, self-doubt, low self-esteem, anxiety, stress, anger, and pain. Freeing yourself from the perceptions of others that leave you in bondage. Freeing your whole self and authentic being. The Madison House belief is that if you are able to be freed from the things that bind you mentally and emotionally, then you can live your life on purpose.”

Delicious Mushroom Growing: “Delicious Mushroom Growing is a project that educates DC residents about how to grow mushrooms from manure and compost substrates – Oyster, Cremini/Portabello/Button/Agaricus, and Shaggy Mane. It’s a way to teach people about how to grow fungi medicine and get themselves on a the path towards healing.”

Plant Medicine Lecture Series: “This lecture series will bring exciting speakers to D.C. to discuss the scientific, medical, and social aspects of psychedelics. The lectures will be offered in public venues, COVID permitting, and webcast as well. The events will also be excellent opportunities to meet other people in D.C. who are interested in psychedelics.”

There are additional recipients who requested not to be publicly listed but are providing “critical education of the community, integration services, as well as providing stewardship of ethical plant medicine community building,” Lavasani said.

Others are involved in “addressing abuse and predatory behaviors in plant medicine circles (a problem that’s become super prevalent lately) to provide a restorative process for healing,” she said.

While based in D.C., PMC is a national organization that hopes to build upon reform efforts that have already been accomplished and bring the issue to Capitol Hill, in part by pushing lawmakers to approve federal funding for research into the therapeutic potential of substances like psilocybin mushrooms and ayahuasca.

The group is also working to ensure the effective implementation of the city-level policy change while supporting other local activists as they push to change laws governing natural or synthetic psychedelics.

Both inside and outside of the nation’s capitol, activists are hard at work pushing for psychedelics reform.

Just last week, for example, lawmakers in a fourth Massachusetts city voted in favor of a resolution urging the decriminalization of certain entheogenic substances and other drugs.

The action comes months after the neighboring Northampton City Council passed a resolution stipulating that no government or police funds should be used to enforce laws criminalizing people for using or possessing entheogenic plants and fungi. Elsewhere in Massachusetts, Somerville and Cambridge have also moved to effectively decriminalize psychedelics.

The local measures also express support for two bills introduced in the Massachusetts state legislature this year. One would remove criminal penalties for possession of all currently illicit drugs and the other would establish a task force to study entheogenic substances with the eventual goal of legalizing and regulating the them.

Separately, Seattle’s City Council approved a resolution earlier this month to decriminalize noncommercial activity around a wide range of psychedelic substances, including the cultivation and sharing of psilocybin mushrooms, ayahuasca, ibogaine and non-peyote-derived mescaline.

In Michigan, the Grand Rapids City Council approved a resolution last month calling for decriminalization of a wide range of psychedelics.

Elsewhere in Michigan, the Ann Arbor City Council has already elected to make enforcement of laws prohibition psychedelics like psilocybin, ayahuasca and DMT among the city’s lowest priorities—and lawmakers recently followed up by declaring September Entheogenic Plants and Fungi Awareness Month.

After Ann Arbor legislators passed that decriminalization resolution last year, the Washtenaw County prosecutor announced that his office will not be pursuing charges over possessing entheogenic plants and fungi, “regardless of the amount at issue.”

A local proposal to decriminalize various psychedelics will also appear on Detroit’s November ballot.

At the same time that local activists are pursuing decriminalization, a pair of Michigan senators introduced a bill last month to legalize the possession, cultivation and delivery of an array of plant- and fungi-derived psychedelics like psilocybin and mescaline.


Marijuana Moment is already tracking more than 1,200 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

A bill to legalize psychedelics in California advanced through the Senate and two Assembly committees this year before being pulled by the sponsor to buy more time to generate support among lawmakers. The plan is to take up the reform during next year’s second half of the legislative session, and the senator behind the measure says he’s confident it will pass.

California activists were separately cleared to begin collecting signatures for a historic initiative to legalize psilocybin mushrooms in the state. Oakland and Santa Cruz have already enacted psychedelics decriminalization.

The top Democrat in the Florida Senate filed a bill last month that would require the state to research the medical benefits of psychedelics such as psilocybin and MDMA.

Earlier this year, Texas enacted a law directing state officials to study psychedelics’ medical value.

The governor of Connecticut signed a bill in June that includes language requiring the state to carry out a study into the therapeutic potential of psilocybin mushrooms.

Oregon voters passed a pair of initiatives last November to legalize psilocybin therapy and decriminalize possession of all drugs. On the local level, activists in Portland are mounting a push to have local lawmakers pass a resolution decriminalizing the cultivation, gifting and ceremonial use of a wide range of psychedelics.

A New York lawmaker introduced a bill in June that would require the state to establish an institute to similarly research the medical value of psychedelics.

The Maine House of Representatives passed a drug decriminalization bill this year, but it later died in the Senate.

In Oakland, the first city where a city council voted to broadly deprioritize criminalization of entheogenic substances, lawmakers approved a follow-up resolution in December that calls for the policy change to be adopted statewide and for local jurisdictions to be allowed to permit healing ceremonies where people could use psychedelics. Activists in the city are also hoping to expand upon the local decriminalization ordinance by creating a community-based model through which people could legally purchase entheogenic substances from local producers.

Meanwhile, Denver activists who successfully led the 2019 campaign to make the city the first in the U.S. to decriminalize psilocybin possession have set their eyes on broader reform, with plans in the works to end the criminalization of noncommercial gifting and communal use of the psychedelic.

In a setback for advocates, the U.S. House of Representatives recently voted against a proposal from Rep. Alexandria Ocasio-Cortez (D-NY) that would have removed a spending bill rider that advocates say has restricted federal funds for research into Schedule I drugs, including psychedelics such as psilocybin, MDMA and ibogaine. However, it picked up considerably more votes this round than when the congresswoman first introduced it in 2019.

Report provisions of separate, House-passed spending legislation also touch on the need to expand cannabis and psychedelics research. The panel urged NIDA to support expanded marijuana studies, for example. It further says that federal health agencies should pursue research into the therapeutic potential of psychedelics for military veterans suffering from a host of mental health conditions.

There was an attempt by a Republican congressman to attach language into a defense spending bill that would promote research into psychedelics therapy for active duty military members, but it was not made in order in the House Rules Committee last month.

NIDA also recently announced it’s funding a study into whether psilocybin can help people quit smoking cigarettes.

An official with the U.S. Department of Veterans Affairs also said at a recent congressional hearing that the agency is “very closely” following research into the potential therapeutic benefits of psychedelics like MDMA for military veterans.

For what it’s worth, Rep. Earl Blumenauer (D-OR), a longstanding champion of marijuana reform in Congress, said this month that he intends to help bring the psychedelics reform movement to Capitol Hill “this year.”

In May, lawmakers in Congress filed the first-ever legislation to federally decriminalize possession of illicit substances.

Top Federal Drug Agency Tells Congress About Marijuana Research Barriers Caused By Restrictive Scheduling

Photo elements courtesy of carlosemmaskype and Apollo.

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Feds Must Legalize Marijuana, Top Nevada Lawmaker Says (Op-Ed)

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“In Nevada, we’ve shown that it is possible to create an equitable and business friendly framework that benefits both cannabis business owners and consumers. With federal action, we can take this work to the next level.”

By Rep. Steve Yeager for Nevada Current

With gridlock at the federal level, states have truly become the laboratories of democracy—often leading on legislative policy when Congress is unable. When it comes to cannabis, these laboratories of democracy operate at breakneck speed, with 18 U.S. states legalizing it for both medical and adult “recreational” use and at least some legal use in 37 states and the District of Columbia. In a nation where even a small amount of the substance could and often did (and sometimes still does) lead to serious legal consequences, more than 100 million Americans now live in states with legalized, adult-use cannabis markets.

Nevada, of course, has been a trailblazer in legalizing cannabis and as a result, has reaped significant economic and social benefits. When the Legislature established the Cannabis Compliance Board in 2019 with a strong bipartisan majority, Nevada solidified its place as the gold standard for a well-regulated cannabis industry.

In 2021, the Legislature once again demonstrated its ability to create a more equitable and inclusive cannabis industry, securing a bipartisan 2/3 vote in each legislative chamber to pass a bill establishing cannabis consumption lounges. The lounges, set to open in 2022, will bring new jobs and enhanced tax revenue that will allow Nevada to invest more in K-12 education. In addition, Nevada’s tens of millions of tourists will finally have a place to legally consume cannabis. It is clear that Las Vegas is quickly becoming a global cannabis destination.

But despite these immense possibilities, state legalization—without change in federal law—still presents serious challenges. For instance, the lack of contemporary cannabis legislation on the federal level has made any form of traditional banking for the industry next to impossible. Cannabis business owners cannot take advantage of favorable tax provisions that help other businesses keep more of the money they make, often leading to additional investment. Even if cannabis is legal in a particular state, carrying that cannabis on to federal property or on to an airplane opens a person to arrest and prosecution by federal authorities.

Furthermore, federal employees or state employees paid through federal funding cannot partake in cannabis, medical or otherwise. Nevadans who live in federally subsidized housing cannot consume in the comfort of their homes, a prohibition that undoubtedly disproportionately impacts vulnerable communities. And business owners in the industry can never feel completely comfortable because the federal government could choose to use its police power to crack down on state level cannabis businesses.

With polls showing that two-thirds of Americans support legalization of cannabis, it is time for the federal government to legalize it. Such action will pave the way for states that have been hesitant to step out on this issue and will eliminate the current conflicts between federal and state law. Federal legalization will enable more in-depth study of cannabis by both state and federal agencies to develop a scientific standard of impairment for driving and will enable the federal government to help states with efforts to curb youth cannabis use.

Nevada has also led the way in pardoning and sealing criminal records for those convicted of low-level cannabis crimes. Those with federal cannabis convictions have no similar remedy, often preventing them from entering the job market at a time when employees have never been in higher demand. Federal cannabis legalization would open the door to cleaning the slate for criminal convictions stemming from conduct the majority of Americans now agree should not have been illegal in the first place. For both moral and economic reasons, erasing records of low level cannabis convictions is simply the right thing to do. For that to happen, cannabis must be legalized on the federal level.

In Nevada, we’ve shown that it is possible to create an equitable and business friendly framework that benefits both cannabis business owners and consumers. With federal action, we can take this work to the next level.

Steve Yeager is a Democratic state assemblyman representing District 9 in Clark County, and speaker pro tempore of the Nevada State Assembly.

This op-ed was first published by Nevada Current.

Top Federal Drug Agency Tells Congress About Marijuana Research Barriers Caused By Restrictive Scheduling

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Texas Judge Upholds Delta-8 THC Ban In Initial Ruling, But The Fight Isn’t Over

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A Texas judge has ruled that the state’s ban on hemp products containing more than 0.3 percent delta-8 THC can remain in effect as a legal challenge moves through the process.

The cannabis company Hometown Hero filed a suit against the Texas Department of State Health Services (DSHS) last week, arguing that it improperly revised its hemp policy this month to specifically prohibit products with more than trace amounts of forms of THC other than delta-9, the most commonly known psychoactive compound in cannabis.

In a ruling dated Friday and announced on Monday, the court decided against the plaintiffs’ request to have a temporary restraining order imposed on the state. Subsequently, the hemp business said it will halt sales of certain products as it prepares for a November 5 hearing on a more consequential temporary injunction against the state.

These are just the first steps in yet another legal battle over hemp in the state following the plant’s legalization.

Delta-8 THC has surged in popularity, particularly in states with more restrictive marijuana laws. It produces intoxicating effects similar to delta-9 THC, but it can be synthetically produced by converting CBD derived from hemp. The novelty of delta-8 products has left legal loopholes, which is likely why DSHS moved to broadly prohibit products with more than 0.3 percent of any type of THC.

DSHS appears to have responded to this increased market demand and questions from hemp businesses by updating its policy with the broader interpretation of THC. Here’s what the department’s site now says:

“Texas Health and Safety Code Chapter 443 (HSC 443), established by House Bill 1325 (86th Legislature), allows Consumable Hemp Products in Texas that do not exceed 0.3% Delta-9 tetrahydrocannabinol (THC). All other forms of THC, including Delta-8 in any concentration and Delta-9 exceeding 0.3%, are considered Schedule I controlled substances.”

Hometown Hero had hoped to get a temporary restraining order against DSHS to prevent it from taking action against hemp businesses that sell delta-8 THC, but now it must wait to see what comes out of next month’s follow-up hearing.

“The DSHS stance flips the hemp definition on its head,” an attorney for the plaintiffs said in court on Friday, according to Texas Cannabis Collective.

The department, for its part, says it has not made any policy change and that delta-8 THC has been statutorily classified the same as delta-9 since hemp was legalized in 2019. A spokesperson said it simply “posted the clarification below on our website in response to recent requests from hemp growers who said that there was confusion in the industry about what was allowed in consumable hemp products.”

Activists have criticized DSHS for making hemp policy decisions without affording the public a real chance to participate.

“We expect the Department of State Health Services to always operate with full transparency,” Heather Fazio, director of Texans for Responsible Marijuana Policy, told Marijuana Moment. “It has been made abundantly clear that, by posting meeting notices in obscure locations, DSHS denied the public an opportunity to weigh in on proposed changes to the Controlled Substances Act.”

At the federal level, delta-8 THC has also captured the attention of agencies like the Food and Drug Administration (FDA) and Centers for Disease Control and Prevention. Regulators at those departments recently issued warnings about products containing the cannabinoid, saying they’ve seen a significant uptick in reported adverse health effects.

FDA also announced a plan this month to us “novel” data sources like Reddit to gain a better understanding of public health issues surrounding use of delta-8 THC and other cannabinoids such as CBD.

Back in Texas, the hemp industry has become familiarized with the court system as businesses have navigated the new law.

In the same district court where this new delta-8 THC lawsuit has been filed, a judge ruled in August that Texas’s ban on the production and sale of smokable hemp products is unconstitutional.

Judge Lora Livingston ruled in favor of plaintiffs—a group of hemp businesses who sued the DSHS over a ban on the manufacturing and selling of smokable cannabis products it imposed after the crop was legalized.

An appeals court had previously modified a prior injunction and determined that regulators couldn’t enforce a ban on the sales component of the smokable hemp market. But following the August ruling, there’s a permanent injunction that bars the state from prohibiting the full range of hemp activity.

Meanwhile, Texas activists are working to enact local reforms on marijuana.

Advocates in San Marcos, Texas recently launched a campaign to put marijuana decriminalization on the local ballot in 2022.

Just to the north of San Marcos, a separate campaign attempted to put cannabis decriminalization on Austin’s ballot this November, but activists have since shifted their strategy toward putting the measure in front of voters on the May 2022 ballot. They will also target additional cities next November.

There is no statewide, citizen-led initiative process that would enable advocates to put an issue like decriminalization or legalization on the Texas ballot. But at the local level, there are limited cases where activists can leverage home rule laws that allow for policy changes.

A strong majority of Texans back even broader reform, according to recent polling. Sixty percent of voters in the state support making cannabis legal “for any use,” signaling that local initiatives for more modest proposals like decriminalization will likely prevail where they qualify for local ballots.

This year’s legislative session in Texas saw numerous drug policy proposals advance, with bills to expand the state’s medical cannabis program and require a study into the therapeutic potential of certain psychedelics for military veterans having been enacted.

Advocates remain disappointed, however, that lawmakers were unable to pass more expansive cannabis bills—including a decriminalization proposal that cleared the House but saw no action in the Senate.

The House approved a cannabis decriminalization bill in 2019, but it did not advance in the Senate that session.

Top Federal Drug Agency Tells Congress About Marijuana Research Barriers Caused By Restrictive Scheduling

Photo courtesy of Brendan Cleak.

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