Cannabis Administration and Opportunity Act (CAOA) — Federal Descheduling Bill

Executive Summary

The Cannabis Administration and Opportunity Act (CAOA) represents the most comprehensive federal cannabis descheduling legislation ever introduced in the United States Senate. First unveiled in July 2021 and reintroduced in July 2026, the bill would remove cannabis entirely from the Controlled Substances Act, establish a federal regulatory framework overseen by multiple agencies, and create pathways for restorative justice and social equity. Led by Senate Majority Leader Chuck Schumer (D-NY), Senator Cory Booker (D-NJ), and Senator Ron Wyden (D-OR), the legislation addresses taxation, interstate commerce, expungement of federal cannabis convictions, and reinvestment in communities disproportionately harmed by prohibition. The 2026 reintroduction arrived with 16 Democratic cosponsors but faces significant headwinds in a divided Congress. Unlike incremental reforms such as the SAFE Banking Act or rescheduling proposals that would move cannabis to Schedule III under 21 U.S.C. § 812, CAOA seeks complete descheduling—a fundamental restructuring of federal cannabis policy that would treat marijuana more like alcohol or tobacco than a controlled substance.

Why This Matters

The Cannabis Administration and Opportunity Act would impact 38 state-legal cannabis programs, approximately 15,000 licensed cannabis businesses, and more than 400,000 industry employees nationwide. As of July 2026, cannabis remains a Schedule I controlled substance under the Controlled Substances Act (21 U.S.C. § 812), creating a fundamental conflict between state and federal law that affects banking access, tax treatment, interstate commerce, research, and criminal justice. The financial stakes are substantial. State-legal cannabis sales reached $33.6 billion in 2025, according to industry analysts, yet businesses operating in compliance with state law cannot deduct ordinary business expenses under Internal Revenue Code Section 280E because they traffic in federally controlled substances. Multi-state operators face effective tax rates exceeding 70 percent in some cases, suppressing capital investment and favoring illicit markets. For patients, federal prohibition limits research into therapeutic applications, restricts physician prescribing under federal programs like Veterans Affairs, and creates uncertainty around medical access. Approximately 3.9 million registered medical cannabis patients across state programs face potential federal prosecution despite state authorization, though enforcement priorities have varied by administration. The criminal justice dimension remains acute. Between 1965 and 2020, more than 29 million Americans were arrested for cannabis-related offenses, according to NORML data. Federal cannabis convictions, while representing a smaller fraction than state-level arrests, carry consequences for employment, housing, education, and immigration status. CAOA's expungement and resentencing provisions would address these collateral consequences directly.

Background and History

Origins of Federal Cannabis Prohibition

Cannabis prohibition at the federal level began with the Marihuana Tax Act of 1937, which imposed prohibitive taxes and registration requirements that effectively criminalized possession and sale. The Supreme Court struck down the Tax Act in Leary v. United States (1969), finding it violated Fifth Amendment protections against self-incrimination. Congress responded by passing the Controlled Substances Act of 1970 (Public Law 91-513), which placed cannabis in Schedule I alongside heroin and LSD, designating it as having no accepted medical use and high potential for abuse. The Schedule I classification has remained unchanged for more than five decades despite evolving state policies and scientific evidence. The Drug Enforcement Administration has denied multiple petitions to reschedule cannabis, most recently in 2016, citing lack of accepted medical use under federal standards. However, in 2024, the Department of Health and Human Services recommended rescheduling cannabis to Schedule III following a comprehensive review, initiating a rulemaking process that remained ongoing as of July 2026.

State-Level Legalization Movement

California became the first state to authorize medical cannabis through Proposition 215 in 1996, creating a direct conflict with federal law. The Supreme Court ruled in Gonzales v. Raich (2005) that Congress could prohibit cultivation and possession of cannabis even for medical use under state law, citing the Commerce Clause. Despite this ruling, states continued expanding medical programs. Colorado and Washington became the first states to legalize adult-use cannabis through ballot initiatives in November 2012, with sales commencing in 2014. By July 2026, 24 states plus the District of Columbia had legalized adult-use cannabis, while 38 states authorized medical use. This state-federal conflict created operational challenges for businesses, patients, and regulators across multiple domains.

Congressional Reform Efforts Before CAOA

Prior to CAOA, Congress considered numerous incremental cannabis reform bills. The STATES Act, introduced in 2018 by Senators Cory Gardner (R-CO) and Elizabeth Warren (D-MA), would have amended the Controlled Substances Act to exempt state-compliant cannabis activity from federal prohibition but never received a floor vote. The Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which would deschedule cannabis and expunge federal convictions, passed the House of Representatives in December 2020 and again in April 2022 but stalled in the Senate. The SAFE Banking Act, addressing financial services access for cannabis businesses, passed the House seven times between 2019 and 2024 but failed to advance in the Senate despite bipartisan support. Senator Schumer repeatedly stated he would not advance banking reform without broader social equity and criminal justice provisions, setting the stage for CAOA's comprehensive approach.

CAOA Development and First Introduction (2021)

Senators Schumer, Booker, and Wyden released a discussion draft of CAOA on July 14, 2021, soliciting public comment before formal introduction. The draft outlined a framework for descheduling cannabis, establishing federal regulation, imposing excise taxes, and funding restorative justice programs. The trio held listening sessions and received more than 1,800 public comments from stakeholders including state regulators, industry groups, criminal justice advocates, and public health organizations. The formal bill was introduced on July 21, 2022, as S.4591 in the 117th Congress. The 296-page legislation proposed removing cannabis from the Controlled Substances Act entirely, transferring regulatory authority to the Food and Drug Administration for therapeutic products, the Alcohol and Tobacco Tax and Trade Bureau for adult-use regulation, and maintaining Drug Enforcement Administration authority over illegal trafficking. The bill included a federal excise tax starting at 10 percent in year one, rising to 25 percent by year five, with revenue directed toward community reinvestment, law enforcement training, and Small Business Administration programs for social equity applicants. The 2022 version attracted only three cosponsors beyond the lead sponsors and never received a committee hearing. Senate Republicans uniformly opposed the measure, while some moderate Democrats expressed concerns about public health provisions, tax rates, and political timing ahead of midterm elections.

Reintroduction in 2026

On July 16, 2026, Senators Schumer, Booker, and Wyden reintroduced CAOA with 13 additional Democratic cosponsors, bringing the total to 16 original supporters. According to NORML, the reintroduction followed renewed momentum from state-level legalization victories in 2024 and 2025, growing public support exceeding 70 percent in national polling, and continued frustration with the slow pace of the Drug Enforcement Administration's rescheduling process. The 2026 version retained the core framework of descheduling and comprehensive regulation while incorporating technical amendments based on stakeholder feedback. Key changes included modified tax implementation timelines, enhanced protections for state regulatory autonomy, and expanded provisions for veterans' access to medical cannabis through the Department of Veterans Affairs.

Key Players

Senate Leadership

Senator Chuck Schumer (D-NY), serving as Senate Majority Leader, has positioned CAOA as a legislative priority, stating federal cannabis policy must address both economic opportunity and racial justice. Schumer represents New York, which launched adult-use sales in December 2022 and has prioritized social equity licensing. His leadership role gives CAOA strategic positioning advantages, though passage requires 60 votes to overcome a filibuster. Senator Cory Booker (D-NJ) has championed criminal justice reform throughout his Senate tenure and insisted that cannabis legislation include expungement, community reinvestment, and protections against corporate consolidation. Booker previously blocked standalone banking reform efforts, arguing they would benefit large operators without addressing prohibition's harms to marginalized communities. New Jersey implemented adult-use sales in April 2022 under a program emphasizing social equity. Senator Ron Wyden (D-OR), chair of the Senate Finance Committee during periods of Democratic control, brings expertise in tax policy to CAOA's revenue provisions. Oregon legalized adult-use cannabis in 2014 and has generated more than $1.2 billion in tax revenue, providing a model for federal taxation structures. Wyden has emphasized that federal policy should enable state experimentation while ensuring consumer safety.

Federal Agencies

The Food and Drug Administration would assume regulatory authority over cannabis therapeutic products under CAOA, applying standards similar to those governing pharmaceuticals and dietary supplements. FDA has approved four cannabis-derived or synthetic cannabinoid medications—Epidiolex, Marinol, Syndros, and Cesamet—but has not established a regulatory pathway for botanical cannabis products. The agency has expressed concerns about resource constraints and scientific gaps in cannabis product regulation. The Alcohol and Tobacco Tax and Trade Bureau, housed within the Department of the Treasury, would regulate adult-use cannabis production and distribution under CAOA's framework. TTB currently oversees alcohol beverage production, labeling, and advertising under the Federal Alcohol Administration Act. The bureau has indicated it would require significant additional funding and personnel to assume cannabis regulatory responsibilities. The Drug Enforcement Administration would retain authority to investigate and prosecute illegal cannabis trafficking, including unlicensed production, interstate smuggling to prohibition states, and international importation. DEA has historically opposed cannabis rescheduling and descheduling, arguing that international treaty obligations under the Single Convention on Narcotic Drugs (1961) require maintaining cannabis controls.

Industry Organizations

The National Cannabis Industry Association, representing more than 1,500 businesses, has endorsed CAOA while advocating for modifications to tax rates and implementation timelines. NCIA has emphasized that federal descheduling would resolve banking access issues, enable interstate commerce, and reduce compliance costs associated with state-by-state regulatory fragmentation. The U.S. Cannabis Council, formed in 2020 and representing large multi-state operators, has supported comprehensive federal reform while expressing concerns about CAOA's social equity provisions potentially disadvantaging existing licensed businesses. The organization has called for tax structures that prevent illicit market competition while generating federal revenue.

Advocacy and Reform Organizations

NORML, the nation's oldest cannabis policy reform organization founded in 1970, has advocated for CAOA's passage while recommending amendments to strengthen home cultivation protections and limit federal regulatory overreach into state programs. NORML has mobilized grassroots lobbying efforts targeting swing-vote senators. The Drug Policy Alliance has endorsed CAOA's criminal justice provisions, particularly automatic expungement of federal cannabis convictions and resentencing for individuals currently incarcerated. DPA has emphasized that descheduling alone is insufficient without addressing prohibition's legacy harms.

Opposition

Smart Approaches to Marijuana, the leading organization opposing legalization, has criticized CAOA as prioritizing commercial interests over public health. SAM has argued that descheduling would increase youth access, impaired driving, and cannabis use disorder rates. The organization has called for maintaining prohibition while expanding access to FDA-approved cannabis medications. The National Sheriffs' Association and Major County Sheriffs of America have opposed descheduling, expressing concerns about impaired driving enforcement, workplace safety, and cross-border trafficking. Law enforcement organizations have advocated for continued Schedule I status or, at minimum, rescheduling rather than descheduling.

Legal and Regulatory Framework

Descheduling Mechanism

CAOA would amend the Controlled Substances Act by removing cannabis and tetrahydrocannabinols from Schedule I of 21 U.S.C. § 812, the definitive list of controlled substances. This differs fundamentally from rescheduling proposals that would move cannabis to Schedule III or lower schedules, which would maintain federal controls while reducing criminal penalties and research restrictions. Descheduling would eliminate federal criminal penalties for possession, cultivation, and distribution of cannabis in compliance with state law. However, the bill would establish new federal civil and criminal violations for unlicensed production, sales to minors, and interstate trafficking to prohibition states. Maximum penalties for unlicensed commercial cultivation would reach five years imprisonment and $250,000 in fines.

Regulatory Authority Distribution

The legislation would divide regulatory authority among multiple agencies based on product type and intended use. FDA would regulate cannabis products marketed with therapeutic claims, requiring premarket approval similar to pharmaceuticals or over-the-counter drugs. Products marketed for general wellness without disease claims would fall under dietary supplement regulations in 21 U.S.C. § 321. TTB would regulate adult-use cannabis products, establishing permit requirements for cultivators, manufacturers, and distributors. The bureau would enforce labeling standards, advertising restrictions, and product testing requirements. States could impose additional requirements but could not prohibit interstate commerce in federally compliant products. The Department of Agriculture would oversee hemp production, continuing its role under the 2018 Farm Bill (Public Law 115-334), which legalized hemp defined as cannabis containing less than 0.3 percent delta-9 tetrahydrocannabinol. CAOA would maintain this distinction while clarifying that states cannot prohibit interstate hemp commerce.

Federal Taxation Structure

CAOA would impose a federal excise tax on cannabis products calculated as a percentage of price, starting at 10 percent in year one and increasing by 5 percentage points annually until reaching 25 percent in year five. The tax would apply at the point of sale from producer to retailer, similar to federal alcohol excise taxes under 26 U.S.C. § 5001. Revenue would flow to a newly created Opportunity Trust Fund, with allocations directed toward community reinvestment grants (40 percent), Small Business Administration equity licensing programs (30 percent), law enforcement training (20 percent), and public health research (10 percent). The Congressional Budget Office has not released official revenue estimates for CAOA, but independent analysts project federal cannabis taxes could generate $8 to $12 billion annually at full implementation. The legislation would eliminate the application of Internal Revenue Code Section 280E to state-compliant cannabis businesses, allowing normal business expense deductions for federal income tax purposes. This change alone could reduce effective tax rates for cannabis businesses by 30 to 50 percentage points, according to industry financial analyses.

Criminal Justice Provisions

CAOA mandates automatic expungement of federal convictions for cannabis offenses that would be legal under the bill, without requiring individual petitions. The Administrative Office of the U.S. Courts would identify qualifying convictions and notify individuals of expungement within one year of enactment. Individuals currently incarcerated for federal cannabis offenses could petition for resentencing, with courts required to apply CAOA's standards retroactively. The legislation would prohibit federal agencies from denying security clearances, federal employment, immigration benefits, or federal contracts based solely on past state-legal cannabis activity. However, agencies could maintain drug-free workplace policies and restrict cannabis use by employees in safety-sensitive positions.

Interstate Commerce and State Authority

CAOA would preempt state laws that prohibit interstate transportation or sale of cannabis products that comply with federal regulations. This provision aims to prevent state-by-state market fragmentation that characterizes alcohol regulation under the Twenty-First Amendment. However, states could impose additional testing, labeling, or licensing requirements on products sold within their borders. States could maintain prohibition of cannabis production and sales within their territory, but could not prohibit transit of federally compliant products through their jurisdiction or possession by individuals traveling from legal states. This creates a framework similar to firearm transportation under the Firearm Owners Protection Act (18 U.S.C. § 926A).

State-by-State Breakdown

California

California operates the nation's largest legal cannabis market, with $5.3 billion in licensed sales during 2025. The state legalized medical use in 1996 and adult use in 2016, implementing commercial regulations in 2018. CAOA would eliminate conflicts between California's comprehensive track-and-trace system and federal prohibition, potentially enabling California producers to export to other legal states. The state imposes a 15 percent excise tax plus local taxes reaching 10 percent in some jurisdictions, raising concerns that adding a 25 percent federal tax could price legal products above illicit alternatives.

New York

New York legalized adult-use cannabis in March 2021 through the Marijuana Regulation and Taxation Act, with retail sales launching in December 2022. The state has prioritized social equity licensing, reserving initial retail licenses for justice-involved individuals and communities disproportionately impacted by prohibition. CAOA's community reinvestment provisions align with New York's policy approach. The state collected $150 million in cannabis tax revenue during 2025, with funds allocated to education, drug treatment, and community grants.

Colorado

Colorado launched adult-use sales in January 2014 following voter approval of Amendment 64 in 2012. The state has generated more than $2.7 billion in cumulative tax revenue through 2025, funding school construction, drug treatment, and law enforcement training. Colorado's mature regulatory framework includes seed-to-sale tracking, potency limits on edibles (10 milligrams THC per serving, 100 milligrams per package), and child-resistant packaging requirements. CAOA would enable Colorado producers to compete in interstate markets while potentially subjecting them to federal taxes on top of the state's 15 percent excise tax.

Texas

Texas maintains cannabis prohibition for adult use while authorizing a limited medical program restricted to low-THC products for specific conditions. Possession of any amount remains a criminal offense, with penalties ranging from Class B misdemeanor (up to 180 days jail) for under two ounces to felony charges for larger amounts. CAOA would not compel Texas to legalize cannabis sales but would prevent the state from prohibiting possession by individuals traveling from legal states or blocking interstate commerce in federally compliant products. Texas law enforcement arrested more than 43,000 individuals for cannabis possession in 2024, according to state data.

Florida

Florida authorized medical cannabis in 2016 and operates one of the nation's largest medical programs, with more than 850,000 registered patients as of July 2026. Adult-use legalization appeared on the November 2024 ballot as Amendment 3, requiring 60 percent approval, but fell short with 58 percent support. CAOA would enable Florida's vertically integrated medical operators to expand into interstate commerce while maintaining the state's prohibition on adult use unless voters approve future legalization.

Illinois

Illinois legalized adult-use cannabis through legislation in 2019, becoming the first state to do so via the legislature rather than ballot initiative. The Cannabis Regulation and Tax Act included automatic expungement of more than 700,000 cannabis convictions, a model for CAOA's federal expungement provisions. Illinois collected $445 million in cannabis tax revenue during 2025, with 25 percent allocated to the Restore, Reinvest, and Renew Program supporting communities harmed by prohibition. The state's social equity licensing program has faced legal challenges and implementation delays, highlighting complexities CAOA would encounter at the federal level.

Ohio

Ohio voters approved adult-use legalization through Issue 2 in November 2023, with sales commencing in August 2024. The state's Division of Cannabis Control regulates both medical and adult-use programs under unified rules. Ohio imposes a 10 percent excise tax on adult-use sales, generating $87 million in the first ten months of sales. CAOA would enable Ohio's approximately 125 licensed dispensaries to source products from out-of-state suppliers, potentially reducing prices through interstate competition.

Massachusetts

Massachusetts legalized adult use in 2016 and launched sales in November 2018. The state operates a competitive licensing system with more than 400 active retail licenses as of July 2026. Massachusetts requires host community agreements between cannabis businesses and municipalities, allowing local governments to negotiate impact fees up to 3 percent of gross sales. The Cannabis Control Commission has prioritized social equity applicants through technical assistance, priority licensing, and a $10 million equity fund. CAOA's federal equity provisions would complement Massachusetts' state-level programs.

Market and Business Implications

Multi-State Operator Impact

CAOA would fundamentally transform the business model for multi-state operators, which currently operate as holding companies with separate state subsidiaries due to federal prohibition on interstate commerce. Companies like Curaleaf, Green Thumb Industries, Trulieve, and Verano Holdings maintain cultivation and processing facilities in each state where they operate, duplicating infrastructure and preventing economies of scale. Interstate commerce would enable MSOs to consolidate production in states with favorable growing conditions and lower costs, then distribute nationally similar to alcohol beverage companies. This could reduce wholesale cannabis prices by 30 to 50 percent according to industry analysts, benefiting consumers but potentially pressuring smaller operators unable to compete on scale. Elimination of 280E tax burdens would improve MSO profitability substantially. Curaleaf reported $1.5 billion in revenue for 2025 but paid effective federal tax rates exceeding 65 percent due to 280E restrictions. Normal business deductions would reduce tax liability by an estimated $200 to $300 million annually for the largest operators.

Banking and Capital Access

Federal descheduling would resolve the conflict that prevents most banks from serving cannabis businesses due to money laundering concerns under the Bank Secrecy Act (31 U.S.C. § 5311). As of July 2026, fewer than 800 of the nation's 4,800 federally insured banks and credit unions provided accounts to cannabis businesses, according to Financial Crimes Enforcement Network data. CAOA would enable cannabis companies to access traditional banking services, business loans, and payment processing without fear of federal prosecution for aiding and abetting violations of the Controlled Substances Act. This would reduce reliance on cash operations, improve tax compliance, and enhance public safety by reducing cash-related robberies. Public capital markets would open to cannabis companies under CAOA. Currently, U.S. exchanges including NASDAQ and NYSE prohibit listing companies that violate federal law. Canadian exchanges and over-the-counter markets serve U.S. cannabis companies, but with limited liquidity and institutional investor participation. Federal legalization would enable major exchange listings, institutional investment, and potentially inclusion in index funds.

Wholesale Pricing Dynamics

Wholesale cannabis prices have declined substantially in mature state markets due to oversupply, falling from $3,000 to $4,000 per pound in early years to $500 to $800 per pound in Colorado, Oregon, and Washington by 2025. Interstate commerce under CAOA would likely accelerate price compression as production concentrates in low-cost regions. However, federal excise taxes reaching 25 percent would partially offset wholesale price declines at the retail level. Combined state and federal taxes could reach 40 to 50 percent in high-tax states, maintaining price differentials between legal and illicit markets. Industry groups have advocated for lower federal tax rates or weight-based rather than price-based taxation to avoid incentivizing illicit sales.

Ancillary Business Opportunities

CAOA would create substantial opportunities for ancillary businesses including testing laboratories, compliance software providers, packaging manufacturers, and professional services firms. The legislation's testing requirements for potency, pesticides, heavy metals, and microbial contaminants would expand demand for analytical laboratories, currently operating in individual states without interstate recognition of test results. Insurance markets would develop for cannabis businesses currently unable to obtain general liability, product liability, or crop insurance due to federal prohibition. Actuarial data from state markets suggests cannabis businesses face higher liability risks than comparable industries, potentially supporting premium pricing for specialized coverage.

What Experts Say

Policy analysts have characterized CAOA as the most comprehensive federal cannabis reform proposal ever introduced, but have questioned its political viability in a divided Congress. According to John Hudak, a senior fellow at the Brookings Institution who studies cannabis policy, the bill represents an ambitious vision for federal regulation but faces significant obstacles including Republican opposition, concerns from public health advocates about commercialization, and competition from incremental reform approaches. Mason Tvert, a cannabis policy consultant who led Colorado's legalization campaign, has stated that CAOA's taxation structure risks pricing legal products above illicit alternatives, particularly in the early years of implementation. Tvert has recommended phased tax increases tied to market development and illicit market displacement rather than fixed timelines. Maritza Perez, director of the Drug Policy Alliance's Office of National Affairs, has praised CAOA's criminal justice provisions as essential for addressing prohibition's harms, but has expressed concerns that the bill's regulatory framework could enable corporate consolidation at the expense of small businesses and communities of color. Perez has advocated for stronger anti-monopoly provisions and mandatory social equity licensing. Rosalie Liccardo Pacula, a senior economist at the RAND Corporation specializing in cannabis policy, has noted that CAOA's approach of complete descheduling differs significantly from regulatory models in other countries including Canada and Uruguay. Pacula has emphasized the need for robust public health surveillance and research funding to understand cannabis legalization's impacts on youth use, impaired driving, and cannabis use disorder. Sam Kamin, a professor at the University of Denver Sturm College of Law who studies federalism and drug policy, has analyzed CAOA's preemption provisions as creating tension between federal commerce authority and state sovereignty. Kamin has suggested that the bill's prohibition on state barriers to interstate commerce could face legal challenges under the anti-commandeering doctrine established in cases like Murphy v. NCAA (2018).

What's Next

CAOA faces a challenging legislative path requiring 60 votes to overcome a Senate filibuster, a threshold that would require significant Republican support unlikely to materialize in the current political environment. The bill has been referred to the Senate Finance Committee, which would need to hold hearings, markup sessions, and a committee vote before floor consideration. Senate Republicans have shown limited appetite for comprehensive cannabis reform, with most supporting incremental measures like SAFE Banking or rescheduling rather than descheduling. Senator Mitch McConnell (R-KY), who championed hemp legalization in the 2018 Farm Bill, has opposed adult-use cannabis legalization and is unlikely to support CAOA. The ongoing Drug Enforcement Administration rulemaking process to reschedule cannabis to Schedule III under the Controlled Substances Act represents an alternative pathway that could reduce pressure for legislative action. The DEA published a Notice of Proposed Rulemaking in May 2024 following the Department of Health and Human Services recommendation, with a final rule expected in late 2026 or early 2027. Rescheduling would eliminate 280E tax burdens and facilitate research but would maintain federal prohibition and criminal penalties. Key decision points include:

• Senate Finance Committee hearings (anticipated September-October 2026)
• DEA final rule on rescheduling (expected Q4 2026 or Q1 2027)
• November 2026 midterm elections, which could shift Senate control
• Potential compromise negotiations on SAFE Banking Plus legislation combining financial services access with limited criminal justice reforms
• State ballot initiatives in 2026 and 2028 that could expand legal markets and increase pressure for federal action

Industry observers anticipate that CAOA in its current form will not advance to a floor vote in 2026, but could serve as a negotiating position for compromise legislation. Possible scenarios include a scaled-back bill that reschedules rather than deschedules cannabis, combines SAFE Banking with expungement provisions, or defers to states while removing federal barriers to banking and research. The 2028 presidential election will significantly influence federal cannabis policy trajectory, with Democratic candidates likely to support legalization and Republican positions varying from continued prohibition to state-rights approaches. Administrative actions including rescheduling or enforcement deprioritization could proceed regardless of legislative outcomes.

Further Reading

• Full text of Cannabis Administration and Opportunity Act (S.4591, 117th Congress): https://www.congress.gov/bill/117th-congress/senate-bill/4591
• Controlled Substances Act, 21 U.S.C. § 801 et seq.: https://www.govinfo.gov/content/pkg/USCODE-2021-title21/pdf/USCODE-2021-title21-chap13.pdf
• Internal Revenue Code Section 280E, 26 U.S.C. § 280E: https://www.law.cornell.edu/uscode/text/26/280E
• Department of Health and Human Services recommendation to reschedule cannabis (August 2023): https://www.hhs.gov/about/news/2023/08/30/hhs-recommends-moving-marijuana-schedule-iii.html
• Drug Enforcement Administration Notice of Proposed Rulemaking on rescheduling (May 2024): https://www.federalregister.gov/documents/2024/05/21/2024-11137/schedules-of-controlled-substances-rescheduling-of-marijuana
• NORML fact sheet on CAOA: https://norml.org/act/cannabis-administration-and-opportunity-act/
• Congressional Research Service report on federal cannabis policy options: https://crsreports.congress.gov/product/pdf/R/R46881
• Brookings Institution analysis of cannabis federalism: https://www.brookings.edu/articles/the-cannabis-question-federalism/
• RAND Corporation research on cannabis legalization outcomes: https://www.rand.org/topics/cannabis.html
• State-by-state cannabis policy tracker: https://www.mpp.org/states/

Update — July 19, 2026: UFCW Endorses CAOA, Citing Worker Protections

The United Food and Commercial Workers International Union (UFCW) formally endorsed the Cannabis Administration and Opportunity Act on July 19, 2026, according to a statement released by the union. The UFCW represents more than 32,000 cannabis workers across dispensaries, cultivation facilities, and processing centers in state-legal markets. The endorsement marks the first major labor union backing for the federal descheduling legislation since its reintroduction in the current congressional session.

UFCW officials said the bill's provisions for expungement of prior cannabis convictions and community reinvestment align with the union's priorities for social equity in the industry. The union specifically highlighted language in the CAOA that would require federal labor protections to apply immediately upon descheduling, ensuring National Labor Relations Board jurisdiction over cannabis workplaces currently excluded due to Schedule I status. This matters operationally because cannabis employees in 23 states currently lack federal recourse for unfair labor practices or organizing interference.

The endorsement follows 18 months of lobbying by UFCW's Cannabis Workers Rising division, which submitted testimony to the Senate Finance Committee in February 2025 urging federal workplace safety standards for the industry. Union representatives said the CAOA's proposed Cannabis Justice Office within the Department of Justice could enforce labor compliance as a condition for federal licensing or interstate commerce permits. The union committed to mobilizing members for direct constituent outreach in swing districts where House sponsors face competitive reelection races.

Industry analysts noted the endorsement adds organized labor's political capital to the CAOA coalition, which previously centered on criminal justice reform groups and state-licensed operators. The UFCW's political action committee contributed $4.2 million to federal candidates in the 2024 cycle, with cannabis worker organizing identified as a top strategic priority through 2028.