Bipartisan Congressional Lawmakers File Bill To End Federal Marijuana Prohibition In Legal States In Line With Trump’s Stance
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Bipartisan congressional lawmakers have reintroduced a bill that would end federal marijuana prohibition in states that have legalized it, while providing for a basic federal regulatory framework for cannabis products.
Reps. Dave Joyce (R-OH), Max Miller (R-OH) and Dina Titus (D-NV) announced on Thursday that they’ve filed the Strengthening the Tenth Amendment Through Entrusting States (STATES) 2.0 Act.
The legislation would amend the Controlled Substances Act (CSA) in a way that would prohibit federal criminalization of people acting in compliance with state cannabis programs, as well as those operated by Indian tribes.
The measure’s introduction comes amid the release of a new survey from a GOP pollster affiliated with President Donald Trump that found that a majority of Republicans back a variety of cannabis reforms—and, notably, they’re even more supportive of allowing states to legalize marijuana without federal interference compared to the average voter.
The STATES 2.0 Act would additionally legalize interstate cannabis commerce, normalize Internal Revenue Service (IRS) policy for the industry and contemplate a federal tax-and-regulate framework for the industry.
“Whether a state is pro-legalization or anti-legalization, we can all agree that the current federal approach to cannabis policy is not working,” Joyce, co-chair of the Congressional Cannabis Caucus, said. “As President Trump has acknowledged, the existing policy has caused unnecessary harm and squandered taxpayer dollars by diverting law enforcement resources from combatting violent crimes to making needless arrests and facilitating incarcerations for small possessions of state legal marijuana.”
“The STATES 2.0 Act remedies this issue by bridging the gap between federal and state policy to create a more logical approach to cannabis regulation that allows each state to put the policies in place that work best for their communities and unique needs,” he said. “I look forward to continuing to work with my colleagues and the Administration to protect states’ rights and make our communities a safer place.”
To the congressman’s point, Trump has previously voiced support for taking a states’ rights approach to marijuana—and he went so far as to endorse a Florida legalization initiative that ultimately fell short at the ballot last year.
This is the third session that Joyce and other bipartisan lawmakers have introduced a version of the STATES Act. The newly filed bill is identical to the one put forward last session.
The text of the bill says that states and tribes should be able to “enact time, place, and manner restrictions that help to aid small and craft businesses, impose regulations for health and safety, keep cannabis businesses away from schools, and generally fit with the character and values of the community.”
“While States have the power to determine what happens within their own borders, they cannot make laws permitting or restricting interstate commerce unilaterally,” the legislation says. “In the absence of Federal movement, the illicit interstate trade in cannabis has persisted even in the face of significant State policy changes. The Federal Government should be responsible for regulating and tracking this interstate trade to ensure cannabis does not end up where it does not belong.”
To that end, the feds should “require a framework that supports critical components such as proper administration and oversight, consumer safety protections, and enforcement,” which the bill says should be supported by a modest federal excise tax on cannabis and overseen by the Alcohol and Tobacco Tax and Trade Bureau (TTB).
The legislation does not include provisions mandating such a tax, though its findings section says the rate should “be low enough to not exacerbate the level of taxation set by States, thereby avoiding the pyramid effect of adding Federal taxes on top of high State taxes.”
The tax should also “offset the costs of executing the administrative functions of a Federal regulatory framework for marijuana, including requirements for testing, enforcement and policing, youth prevention, and substance abuse prevention and education,” the bill says.
“Today, 24 states have legalized recreational cannabis, and 39 states permit its use for medical purposes. The STATES 2.0 Act offers a balanced framework to bridge the gap between federal and state cannabis laws,” Miller said.
“It’s time for federal lawmakers to establish commonsense guardrails that protect children, promote public safety, support scientific research, address addiction and mental health concerns, and uphold the rights of communities that choose to opt out of cannabis use. This legislation empowers each state to adopt policies that reflect the needs and values of their residents without fear of federal interference.”
Importantly, the revised bill would prevent states and tribes from prohibiting the transportation of cannabis through their borders from a legal jurisdiction to another legal jurisdiction. Origin and destination jurisdictions, meanwhile, could “impose reasonable restrictions” within their borders “on the manufacture, production, possession, distribution dispensation, administration, or delivery of marijuana,” according to the bill.
Additionally, the STATES 2.0 Act would make it so revenue from marijuana sales in regulated state markets “shall not be subject to section 280E” of the IRS code, which currently prevents the industry from claiming federal tax deductions available to other traditional markets.
That represents a key issue for the industry, which has also been pushing Congress for years to advance a different bipartisan bill—the Secure and Fair Enforcement (SAFE) Banking Act that Joyce has previously led.
The new STATES Act legislation stipulates that the attorney general would have 180 days from enactment to finalize a rule amending the CSA to exempt states and tribes from federal marijuana prohibition.
It would further maintain Food and Drug Administration’s (FDA) role in regulating cannabis that’s marketed as a drug, food item, dietary supplement or cosmetic, and it would prohibit marijuana from being combined with “adulterated” products, including alcohol and tobacco. The Health and Human Services secretary would have 180 days to issue a rule on cannabis product regulation, including requirements for contaminant testing, manufacturing and marketing.
The bill also specifies that anyone who ” knowingly or intentionally manufactures, produces, possesses, distributes, dispenses, administers, or delivers any marijuana in violation of the laws of the State or tribe in which such manufacture, production, possession, distribution, dispensation, administration, or delivery occurs” or who employs a minor to handle cannabis would still be subject to federal prosecution.
The Government Accountability Office (GAO) would be required to carry out a study looking into the effects of cannabis legalization on traffic safety and submit a report to Congress with its findings within one year of enactment.
The findings section of the bill additionally expresses the sense of Congress that FDA support “tribal self-determination and self-government with respect to marijuana regulation.”
Titus, another co-chair of the Cannabis Caucus, said the bill “ensures the federal government does not interfere with states or tribes that have chosen to legalize cannabis.”
“This common-sense proposal is exactly the type of legislation I hope to advance as Co-Chair of the Cannabis Caucus,” she said. “It’s time for national policy to catch up with the states or at least get out of the way.”
The legislation is also being backed by organizations such as the Coalition for Cannabis Policy, Education, and Regulation (CPEAR), R Street Institute, Americans for Prosperity (AFP), U.S. Cannabis Roundtable (USCR) and Reason Foundation.
“Congress has an opportunity to get this right for all 50 states by helping each to succeed in the policies they choose,” Shanita Penny, executive director of CPEAR, said. “Currently, a confusing patchwork of state and federal cannabis laws is undermining public safety, stifling economic growth, and leaving patients, veterans, small business owners, and law enforcement in legal limbo. The STATES 2.0 Act changes that—bringing clarity, consistency, and accountability.”
Meanwhile, a White House spokesperson recently told CNN that the administration currently has “no action” planned on marijuana reform proposals, including those like rescheduling and industry banking access that Trump also endorsed on the campaign trail last year.
The White House has also said that marijuana rescheduling is not a part of Trump’s drug policy priorities for the first year of his second term—a disappointment for advocates and stakeholders who hoped to see him take speedier action.
Former officials with the Drug Enforcement Administration (DEA) and the U.S. Department of Health and Human Services (HHS) also recently said that, without proactive advocacy for marijuana rescheduling from Trump personally, the process could stall indefinitely.
Read the text of the STATES 2.0 Act below:
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