Congressional Cannabis Caucus: Federal Reform Advocacy and Policy Impact

Executive Summary

The Congressional Cannabis Caucus is a bipartisan coalition of U.S. House and Senate members dedicated to advancing federal cannabis policy reform, operating as the primary legislative vehicle for marijuana law changes since its founding in 2017. Originally established by Representatives Earl Blumenaur, Dana Rohrabacher, Jared Polis, and Don Young, the caucus has grown to include dozens of members across both chambers and party lines. Its mission extends beyond simple rescheduling under the Controlled Substances Act to encompass comprehensive reforms including banking access, criminal justice equity, veterans' medical access, and interstate commerce frameworks. As of May 2026, caucus members are actively pushing for legislative solutions that address the disconnect between state-legal cannabis markets operating in 38 states and federal prohibition that continues to create legal uncertainty, banking barriers, and tax inequities under 26 U.S.C. § 280E. The caucus serves as the institutional hub for coordinating cannabis legislation, educating members of Congress, and building coalitions with advocacy organizations, state regulators, and industry stakeholders.

Why This Matters

The Congressional Cannabis Caucus represents the institutional framework through which $33.6 billion in annual legal cannabis sales intersects with federal policymaking, affecting 800,000 jobs, millions of medical patients, and the criminal records of hundreds of thousands of Americans arrested annually for cannabis offenses. The caucus matters to multiple stakeholder groups. For the cannabis industry, caucus advocacy directly impacts access to banking services, capital markets, and interstate commerce—issues that cost operators an estimated $1.8 billion annually in excess tax burden under 280E alone. Multi-state operators like Curaleaf, Trulieve, and Green Thumb Industries face effective tax rates exceeding 70 percent due to federal prohibition, while banking restrictions force many dispensaries to operate cash-intensive businesses vulnerable to theft and money laundering concerns. For patients, caucus members champion legislation ensuring veterans can access medical cannabis recommendations through the Department of Veterans Affairs without losing federal benefits, and they work to protect state medical programs from federal interference. An estimated 6.4 million Americans used medical cannabis in 2025 according to industry surveys. For communities disproportionately impacted by the War on Drugs, the caucus advances criminal justice reforms including expungement provisions, social equity licensing, and reinvestment programs. FBI Uniform Crime Reports show cannabis arrests still exceeded 350,000 in 2024, with Black Americans arrested at 3.64 times the rate of white Americans despite similar usage rates. For states, caucus legislation addresses the federalism crisis created when 38 states have legalized medical or adult-use programs while federal law classifies cannabis as a Schedule I controlled substance under 21 U.S.C. § 812. This creates conflicts in employment law, child custody cases, organ transplant eligibility, and federal housing programs.

Background and History

The Congressional Cannabis Caucus emerged in February 2017 as the first formal legislative body dedicated exclusively to marijuana policy reform, reflecting the growing political viability of cannabis issues following state-level legalization victories.

Origins and Founding (2017)

Representatives Earl Blumenaur (D-OR), Dana Rohrabacher (R-CA), Jared Polis (D-CO), and Don Young (R-AK) announced the caucus formation on February 16, 2017. The bipartisan structure was intentional, designed to demonstrate that cannabis reform transcended traditional partisan divisions. Blumenaur, representing Portland, had long championed drug policy reform. Rohrabacher brought libertarian-leaning Republican support from Orange County. Polis represented Colorado, which had implemented adult-use sales in 2014 under Amendment 64. Young represented Alaska, which legalized adult use via ballot measure in 2014. The founding came at a critical juncture. Twenty-nine states had legalized medical cannabis by early 2017, and eight states had approved adult-use programs. Yet Attorney General Jeff Sessions, appointed by President Trump, had signaled hostility toward state programs, creating uncertainty about federal enforcement priorities. The caucus established three initial priorities: protecting state programs from federal interference, ensuring veterans' access to medical cannabis, and addressing banking barriers through legislation like the SAFE Banking Act.

Early Legislative Efforts (2017-2018)

The caucus's first major test came in January 2018 when Sessions rescinded the Cole Memorandum, the Obama-era guidance that had deprioritized federal enforcement in states with robust regulatory frameworks. Caucus members immediately introduced the Rohrabacher-Blumenauer Amendment (previously Rohrabacher-Farr), which prohibited the Department of Justice from using appropriated funds to interfere with state medical cannabis programs. The amendment had been renewed annually since 2014 but required constant defense in appropriations negotiations. During the 115th Congress (2017-2018), caucus members introduced or co-sponsored 23 cannabis-related bills, including the STATES Act (Strengthening the Tenth Amendment Through Entrusting States), which would have amended the Controlled Substances Act to exempt state-compliant cannabis activity from federal prohibition. The bill gained 29 co-sponsors but never received a committee vote.

Expansion and Institutionalization (2019-2020)

The 116th Congress saw the caucus expand to 23 members following the 2018 midterm elections, which brought a Democratic majority to the House. Representative Barbara Lee (D-CA) joined as co-chair, bringing focus on criminal justice and racial equity issues. In November 2019, the House Judiciary Committee held the first-ever congressional hearing on ending federal cannabis prohibition, with caucus members playing central roles. This led to the historic September 2020 House passage of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which would deschedule cannabis entirely from the Controlled Substances Act, expunge federal cannabis convictions, and impose a 5 percent federal tax to fund community reinvestment. The vote was 228-164, marking the first time either chamber had voted to end federal prohibition. The bill died in the Republican-controlled Senate. The caucus also championed the SAFE Banking Act, which passed the House in September 2019 with bipartisan support (321-103) but stalled in the Senate Banking Committee under Chairman Mike Crapo (R-ID), who demanded broader reforms including impaired driving standards.

Pandemic Era and Continued Advocacy (2021-2022)

The 117th Congress brought unified Democratic control, raising expectations for cannabis reform. The caucus grew to include Senate members for the first time, with Senators Cory Booker (D-NJ), Ron Wyden (D-OR), and Jeff Merkley (D-OR) coordinating with House counterparts. The House passed the MORE Act again in April 2022 (220-204), but Senate leadership prioritized the Cannabis Administration and Opportunity Act (CAOA), introduced by Booker, Wyden, and Senate Majority Leader Chuck Schumer (D-NY) in July 2022. The CAOA went further than MORE, establishing a comprehensive federal regulatory framework and 25 percent excise tax. However, the bill never received a floor vote before Republicans retook the House in the 2022 midterms. The SAFE Banking Act passed the House six times between 2019 and 2022 but never advanced in the Senate, despite being attached to the National Defense Authorization Act in 2022 before being stripped in conference committee.

Rescheduling Era (2023-Present)

In August 2023, the Department of Health and Human Services recommended to the Drug Enforcement Administration that cannabis be rescheduled from Schedule I to Schedule III under 21 U.S.C. § 811(b), based on a scientific review finding accepted medical use and lower abuse potential than Schedule I or II substances. The DEA published a Notice of Proposed Rulemaking in May 2024, initiating a formal rulemaking process. Caucus members immediately clarified that rescheduling to Schedule III, while eliminating 280E tax penalties, would not address banking access, criminal justice reform, or state-federal conflicts. In May 2026, caucus leaders issued statements advocating for comprehensive legislative reform beyond administrative rescheduling, emphasizing that only Congress can fully resolve the federalism crisis and establish a functional regulatory framework.

Key Players

The Congressional Cannabis Caucus operates through a core leadership structure and broader membership spanning both chambers, parties, and ideological perspectives.

Current Co-Chairs (2026)

Representative Earl Blumenaur (D-OR-3) remains the longest-serving caucus leader and primary Democratic voice on cannabis policy. First elected in 1996, Blumenaur has introduced cannabis reform legislation in every Congress since 2001. He chairs the House Ways and Means Subcommittee on Trade, giving him jurisdiction over tax and international commerce issues affecting the industry. Representative Dave Joyce (R-OH-14) serves as Republican co-chair, bringing crucial cross-aisle credibility. Joyce represents a suburban Cleveland district and has framed cannabis reform as a states' rights and criminal justice issue. He co-founded the Congressional Cannabis Caucus in its current bipartisan form and co-chairs the SAFE Banking Caucus. Representative Barbara Lee (D-CA-12) co-chairs with focus on criminal justice and racial equity. Representing Oakland, Lee has championed expungement provisions and social equity programs, arguing that legalization without restorative justice perpetuates the harms of prohibition.

Senate Leadership

Senator Ron Wyden (D-OR) chairs the Senate Finance Committee, giving him jurisdiction over tax policy including 280E reform. Wyden co-authored the CAOA and has introduced standalone bills addressing tax equity and interstate commerce. Senator Cory Booker (D-NJ) serves as the primary Senate voice on criminal justice reform, insisting that any federal legalization include expungement, community reinvestment, and protections against corporate consolidation. Booker delayed Senate action on cannabis bills in 2021-2022 to ensure equity provisions were included. Senator Jeff Merkley (D-OR) focuses on banking and small business access, working closely with House members on SAFE Banking legislation.

Republican Members

Representative Nancy Mace (R-SC-1) introduced the States Reform Act in November 2021, a Republican-authored legalization framework emphasizing state autonomy and limited federal regulation. Mace represents a conservative coastal South Carolina district and frames cannabis reform as a liberty and federalism issue. Representative Matt Gaetz (R-FL-1) has been a vocal advocate for veterans' access and medical research, introducing bills to allow VA doctors to recommend medical cannabis in states where it is legal. Former Representative Dana Rohrabacher (R-CA) was a founding co-chair but lost his seat in 2018. His libertarian approach to cannabis policy influenced the caucus's emphasis on state sovereignty.

Opposition and Skeptics

The caucus faces institutional opposition from members concerned about public health, impaired driving, and youth access. Representative Andy Harris (R-MD-1), an anesthesiologist, has used his position on the House Appropriations Committee to block cannabis reforms in the District of Columbia and oppose federal legalization. Senator John Cornyn (R-TX) has blocked Senate consideration of cannabis bills, citing concerns about cartel activity and the lack of FDA-approved dosing standards. Smart Approaches to Marijuana (SAM), led by Kevin Sabet, lobbies against legalization and works with congressional opponents to highlight public health concerns in states like Colorado and Washington.

Legal and Regulatory Framework

The Congressional Cannabis Caucus operates within a complex legal landscape defined by the Controlled Substances Act, constitutional federalism principles, and the tension between state and federal law. Under 21 U.S.C. § 812, cannabis is currently classified as a Schedule I controlled substance, defined as having high potential for abuse, no currently accepted medical use, and lack of accepted safety for use under medical supervision. This classification makes cultivation, distribution, and possession federal crimes under 21 U.S.C. § 841, punishable by up to five years imprisonment for first-time possession offenses and up to life imprisonment for large-scale trafficking. The Tenth Amendment reserves to states powers not delegated to the federal government, creating the constitutional basis for state cannabis programs. However, the Supremacy Clause (Article VI, Clause 2) establishes that federal law preempts conflicting state law. In Gonzales v. Raich, 545 U.S. 1 (2005), the Supreme Court held that Congress has authority under the Commerce Clause to prohibit intrastate cannabis cultivation even in states that have legalized medical use. This creates the federalism paradox the caucus seeks to resolve: states can decline to enforce federal prohibition and establish their own regulatory frameworks, but they cannot immunize individuals from federal prosecution. In practice, federal enforcement priorities and resource constraints mean most state-legal activity proceeds without federal interference, but the legal uncertainty persists. The Rohrabacher-Blumenauer Amendment, renewed annually in appropriations bills, prohibits the Department of Justice from spending funds to prevent states from implementing medical cannabis laws. However, this is a spending restriction, not a change to underlying criminal statutes, and it does not protect adult-use programs. 26 U.S.C. § 280E prohibits businesses trafficking in Schedule I or II controlled substances from deducting ordinary business expenses for federal tax purposes. This provision, enacted in 1982 to target drug traffickers, applies to state-legal cannabis businesses, creating effective tax rates of 70 percent or higher. The Bank Secrecy Act (31 U.S.C. § 5311 et seq.) and anti-money laundering regulations create liability for financial institutions serving cannabis businesses, as deposits represent proceeds of federal drug trafficking. The Financial Crimes Enforcement Network (FinCEN) issued guidance in 2014 allowing banks to serve cannabis businesses if they file Suspicious Activity Reports, but most banks decline to accept the compliance burden and legal risk. Caucus legislation seeks to amend these statutes directly. The SAFE Banking Act would create a safe harbor under the Bank Secrecy Act for financial institutions serving state-legal cannabis businesses. The MORE Act would remove cannabis from the Controlled Substances Act entirely, eliminating federal criminal penalties and allowing states to regulate without federal interference. The CAOA would deschedule cannabis and establish a comprehensive federal regulatory framework under the Food and Drug Administration and Alcohol and Tobacco Tax and Trade Bureau.

State-by-State Landscape

As of May 2026, 38 states have legalized medical cannabis and 24 states have legalized adult-use programs, creating a patchwork regulatory landscape that drives caucus advocacy for federal reform.

Adult-Use States

California legalized adult use via Proposition 64 in November 2016, with sales beginning January 2018. The state allows possession of up to one ounce and cultivation of six plants. California generated $1.1 billion in cannabis tax revenue in 2025, though the illicit market remains significant due to high tax rates and local bans. Colorado implemented adult use in January 2014 under Amendment 64, becoming the first state with legal recreational sales alongside Washington. Possession limit is one ounce, with six-plant home cultivation allowed. Colorado collected $423 million in cannabis taxes in 2025. New York legalized adult use via the Marijuana Regulation and Taxation Act in March 2021, with retail sales beginning December 2022. Possession limit is three ounces, with home cultivation permitted starting in 2023. New York's program emphasizes social equity licensing for communities impacted by enforcement. Florida voters approved adult-use legalization via constitutional amendment in November 2024, with sales beginning July 2025. Possession limit is one ounce, with no home cultivation allowed. Florida's program is vertically integrated, with existing medical operators granted first licenses.

Medical-Only States

Ohio legalized medical cannabis via House Bill 523 in June 2016, with dispensaries opening in January 2019. The program covers 26 qualifying conditions and prohibits home cultivation. Ohio voters rejected adult-use legalization in November 2023 but approved it in November 2024, with sales beginning April 2025. Pennsylvania enacted medical cannabis via Senate Bill 3 in April 2016, with sales beginning February 2018. The program covers 23 serious medical conditions and prohibits smokable flower (later reversed by regulatory action). Pennsylvania does not allow home cultivation. Texas maintains the most restrictive medical program, limited to low-THC cannabis (0.5 percent THC or less) for specific conditions including epilepsy and terminal cancer under the Texas Compassionate Use Act. Efforts to expand the program have faced resistance in the Republican-controlled legislature.

Non-Legal States

Idaho, Kansas, Nebraska, South Carolina, and Wyoming have not legalized any form of cannabis. These states maintain full prohibition with criminal penalties for possession. Idaho's constitution was amended in 2022 to explicitly prohibit legalization without a constitutional amendment.

Market and Business Implications

The Congressional Cannabis Caucus's legislative agenda directly impacts a $33.6 billion legal market characterized by fragmented state regulations, limited access to capital, and punitive federal tax treatment. The 280E tax burden represents the most immediate financial impact of federal prohibition. Multi-state operators report effective tax rates of 70-85 percent because they cannot deduct rent, payroll, marketing, or other ordinary expenses. Curaleaf reported $1.89 billion in revenue for 2024 but paid an estimated $340 million in excess federal taxes attributable to 280E. Rescheduling to Schedule III would eliminate this burden, potentially adding $1.2-1.8 billion in annual after-tax income across the industry according to analyst estimates. Banking restrictions force approximately 60 percent of cannabis businesses to operate primarily in cash, according to a 2024 American Bankers Association survey. This creates security risks, operational inefficiencies, and barriers to growth. The SAFE Banking Act would allow banks to serve cannabis businesses without fear of federal prosecution or regulatory sanctions, unlocking access to business loans, credit card processing, and institutional capital. Interstate commerce prohibition fragments the market and creates inefficiencies. A cultivator in Oregon, where wholesale prices fell below $300 per pound in 2024 due to oversupply, cannot legally ship product to New York, where wholesale prices exceeded $2,800 per pound. Federal legalization would allow interstate commerce, likely consolidating production in low-cost states and enabling national brands. Capital markets remain largely closed to cannabis businesses. The major U.S. stock exchanges (NYSE, NASDAQ) do not list companies that touch the plant due to federal prohibition. Multi-state operators trade on the Canadian Securities Exchange or over-the-counter markets, limiting access to institutional investors. Rescheduling or descheduling would potentially open uplisting opportunities, dramatically increasing valuations and capital access. Caucus legislation also impacts ancillary businesses. Payment processors, software providers, and real estate investment trusts serving cannabis clients face regulatory uncertainty and banking challenges. The SAFE Banking Act's protections extend to these ancillary service providers. For investors, caucus activity serves as a leading indicator of policy change. Stock prices for MSOs like Green Thumb Industries, Trulieve, and Verano Holdings correlate with legislative momentum, with significant rallies following House passage of reform bills and selloffs when Senate action stalls.

What Experts Say

Policy analysts, industry leaders, and advocacy organizations view the Congressional Cannabis Caucus as essential infrastructure for reform but debate the optimal legislative strategy. According to Morgan Fox, political director at the National Organization for the Reformation of Marijuana Laws, the caucus provides crucial institutional continuity across congressional sessions, ensuring that cannabis policy remains on the legislative agenda despite leadership changes and shifting political priorities. Fox noted that the caucus's bipartisan structure has been critical to building support among Republicans who might otherwise view cannabis reform as a progressive priority. Aaron Smith, co-founder of the National Cannabis Industry Association, said the caucus has been instrumental in educating members of Congress about the practical realities of operating state-legal businesses under federal prohibition. Smith emphasized that caucus-organized briefings and site visits to licensed facilities have helped demystify the industry for skeptical lawmakers. Queen Adesuyi, policy coordinator at the Drug Policy Alliance, argued that the caucus must prioritize comprehensive reform over incremental measures like SAFE Banking. According to Adesuyi, passing banking reform without criminal justice provisions would remove pressure for broader legalization while leaving millions with cannabis convictions unremedied. Kris Krane, president of 4Front Ventures, said the caucus faces a strategic dilemma between pursuing achievable incremental reforms and holding out for comprehensive legislation that may never pass. Krane noted that SAFE Banking has repeatedly demonstrated majority support in both chambers but has been blocked by Senate leadership demanding broader reforms. Kevin Sabet, president of Smart Approaches to Marijuana, criticized the caucus for ignoring public health evidence from states like Colorado, where youth cannabis use rates and impaired driving incidents have increased since legalization. Sabet argued that the caucus operates as an industry lobbying arm rather than a policy deliberation body. Andrew Kline, former senior counsel at the National Cannabis Industry Association, said the caucus's May 2026 statements advocating for comprehensive reform beyond rescheduling reflect growing recognition that administrative action by the DEA cannot resolve banking, criminal justice, or interstate commerce issues. According to Kline, only congressional legislation can create a functional federal framework.

What's Next

The Congressional Cannabis Caucus faces critical decision points in the 119th Congress (2025-2026) as the DEA rescheduling process advances and members weigh legislative strategy. The DEA's rescheduling proceeding under 21 U.S.C. § 811 entered the public comment phase in May 2024, with an administrative law judge hearing scheduled for December 2024. The hearing was postponed to February 2025 and again to June 2025 due to the volume of public comments and requests for hearing participation. As of May 2026, the ALJ has not issued a recommended decision. Once issued, the DEA administrator must issue a final rule, which could occur in late 2026 or 2027. The rule would be subject to judicial review in federal circuit courts. If rescheduling to Schedule III occurs, caucus members will likely shift focus to legislation addressing issues rescheduling does not resolve: banking access, criminal justice reform, interstate commerce, and FDA regulatory pathways. The caucus may pursue a modular legislative strategy, advancing discrete bills on specific issues rather than comprehensive omnibus reform. The 2026 midterm elections will determine control of the House and Senate for the 120th Congress (2027-2028). Current polling suggests a competitive landscape, with control of both chambers potentially shifting. Cannabis reform has historically performed better under divided government, when neither party can claim full credit or blame, suggesting that bipartisan caucus efforts may gain traction regardless of electoral outcomes. State-level legalization momentum continues, with ballot measures expected in Idaho (constitutional amendment to allow legislative action), Nebraska (medical cannabis), and South Dakota (adult use) in November 2026. Each state victory strengthens the political case for federal reform. Industry consolidation is accelerating, with major MSOs acquiring smaller operators and expanding vertically integrated operations. This consolidation creates larger, more sophisticated lobbying operations that can support caucus advocacy efforts but also raises concerns about corporate capture of the regulatory process. The caucus will likely face pressure to address emerging issues including hemp-derived intoxicating cannabinoids (delta-8 THC, THCA, THC-P), which exist in a regulatory gray area under the 2018 Farm Bill. These products compete with state-regulated cannabis but lack quality control and age verification requirements.

Further Reading

• Congressional Cannabis Caucus official page: https://blumenauer.house.gov/cannabis-caucus
• Controlled Substances Act, 21 U.S.C. § 801 et seq.: https://www.govinfo.gov/content/pkg/USCODE-2021-title21/html/USCODE-2021-title21-chap13.htm
• DEA 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
• MORE Act (H.R. 3617, 117th Congress): https://www.congress.gov/bill/117th-congress/house-bill/3617
• SAFE Banking Act (H.R. 1996, 118th Congress): https://www.congress.gov/bill/118th-congress/house-bill/1996
• Cannabis Administration and Opportunity Act discussion draft (2022): https://www.finance.senate.gov/chairmans-news/wyden-schumer-booker-release-updated-draft-legislation-to-end-federal-cannabis-prohibition
• HHS recommendation to reschedule cannabis (August 2023): https://www.hhs.gov/about/news/2023/08/30/hhs-recommends-dea-reschedule-marijuana.html
• Gonzales v. Raich, 545 U.S. 1 (2005): https://supreme.justia.com/cases/federal/us/545/1/
• FinCEN guidance on marijuana-related businesses (2014): https://www.fincen.gov/resources/statutes-regulations/guidance/bsa-expectations-regarding-marijuana-related-businesses
• National Conference of State Legislatures cannabis policy overview: https://www.ncsl.org/health/state-medical-cannabis-laws
• NORML Congressional Scorecard: https://norml.org/congressional-scorecard/
• Marijuana Policy Project federal legislation tracker: https://www.mpp.org/issues/legislation/federal-marijuana-legislation/

Update — May 20, 2026: Co-Chair Omar Confirms Cannabis Use Among Congressional Members

Rep. Ilhan Omar, co-chair of the Congressional Cannabis Caucus, told TMZ on May 20, 2026, that "a lot of people" in Congress smoke cannabis, marking a rare public acknowledgment of cannabis consumption among federal lawmakers. Omar made the statement during a brief street interview before flashing a peace sign and ending the exchange. The Minnesota Democrat has co-chaired the caucus since its 2017 founding, advocating for federal descheduling and expungement of prior convictions.

The comment underscored the disconnect between congressional cannabis policy and personal behavior among members. Federal law prohibits cannabis possession in the District of Columbia for non-medical purposes, and members of Congress remain subject to federal jurisdiction even as 38 states have legalized medical programs and 24 have authorized adult use. Omar's statement suggested that enforcement gaps and state-level normalization have created a de facto tolerance for cannabis use among lawmakers, despite Schedule I classification under the Controlled Substances Act.

Omar also credited the Trump administration for recent momentum on cannabis reform during the TMZ interview, though she did not specify which policies. President Trump signed the 2018 Farm Bill legalizing hemp and has publicly supported state-level cannabis decisions, but his administration maintained federal prohibition and increased enforcement in some jurisdictions. The caucus has pushed for the MORE Act and SAFE Banking Act, both of which stalled in prior sessions despite bipartisan support.

The viral moment drew attention to the caucus's ongoing efforts to align federal law with state programs and public opinion. Gallup polling in 2025 showed 70% of Americans support legalization, yet Congress has not advanced comprehensive reform legislation to a floor vote in either chamber. For operators, the acknowledgment of widespread cannabis use among lawmakers reinforces the argument that federal prohibition lacks credibility and that banking, tax, and interstate commerce barriers remain politically vulnerable to reform pressure.