Adam JacksonA key House committee on Thursday removed provisions from an annual appropriations bill that would have shielded banks working with state-legal marijuana businesses from federal penalties.
The Financial Services and General Government bill, which funds various agencies for the coming fiscal year, initially included provisions preventing regulators from penalizing financial institutions solely for serving cannabis companies operating legally under state law.
But after some GOP lawmakers, including North Carolina Republican Rep. Chuck Edwards raised concerns during earlier markups, arguing that the language amounted to an “affirmative authorization disguised as a limitation,” the Republican-led House Appropriations Committee this week nixed those protections, The Hill reported.
Ohio Republican Rep. Dave Joyce, who chairs the subcommittee that drafted the bill and championed the provisions, said he was disappointed but pledged to press the banking language.
“With over 40 states enacting some degree of cannabis reform, it is past time that the federal government respect the will of these states,” he said in a statement, while noting his colleagues’ concerns.
“Unfortunately, some of my colleagues have taken issue with these public safety measures,” Joyce added.
The move is a setback for supporters of marijuana banking reform, who say the industry’s lack of access to financial services, stemming from the federal ban on cannabis, creates public safety risks and regulatory headaches. The House has previously passed standalone legislation, the SAFE Banking Act, to address the issue with bipartisan backing.
But the bill has faced roadblocks in the Senate, where Democratic leaders have prioritized more sweeping cannabis reforms. The banking language’s removal from the spending bill comes as more states legalize cannabis in some form, with industry advocates arguing the banking hurdles hamper the legal market’s growth and transparency.
The funding bill keeps some marijuana-related provisions, like allowing Washington D.C. to launch a recreational cannabis market, Marijuna Moment reported, but banking protections ultimately proved too divisive for the GOP-controlled committee.
“While the provisions maintain strong bipartisan support, as Chairman, I will work to alleviate their concerns but will not delay my responsibility to fund the government and therefore my legislation in the meantime,” Joyce said Thursday. “However, let me be clear, I will not abandon this effort in Congress and will continue to work with my colleagues in good faith to ensure they become law.”
