Federal Marijuana Legalization Bill: Status, Provisions, and What Changes

Executive summary

A new bill in Congress, reported by Marijuana Moment on October 29, 2026, would legalize marijuana at the federal level and restructure how the government classifies drugs, and it enters a Congress that has never sent a cannabis legalization bill to a president. The headline framing, an overhaul of drug classification paired with legalization, signals a design that goes beyond moving marijuana between schedules.

CannIntel's reporting here rests on the Marijuana Moment headline and summary. We have not independently reviewed the full bill text, and this page does not describe provisions we cannot confirm. Check sponsor names, section numbers, tax rates, and regulatory design against the text on Congress.gov. We will append dated sections as the text is analyzed.

The context is well documented. Marijuana has sat in Schedule I of the Controlled Substances Act, 21 U.S.C. § 812, since 1970. Twenty-four states and the District of Columbia have legalized adult use, and a large majority of states allow medical use. The Department of Health and Human Services recommended Schedule III in August 2023. The DEA published a notice of proposed rulemaking (NPRM) on May 21, 2024, but the administrative process stalled before a final rule. In December 2025, President Donald Trump signed an executive order directing the Attorney General to speed up rescheduling, according to the White House.

Three questions determine whether this bill matters to operators and patients: does it deschedule or reschedule, who regulates the market afterward, and can it clear a 60-vote Senate threshold? This page covers the history, the players, the legal framework, the state map, the business consequences, and the calendar.

Why this matters

Federal legalization would end the legal contradiction at the center of a U.S. cannabis industry worth roughly $30 billion a year in state-licensed sales. Every licensed operator in America currently sells a product that remains a federal felony to distribute.

Operators and investors

Multi-state operators (MSOs) pay effective federal tax rates that can exceed 70% because Internal Revenue Code § 280E (26 U.S.C. § 280E) bars deductions for businesses trafficking in Schedule I or II substances. Moving marijuana to Schedule III removes that burden. Full descheduling does too, and also removes the Controlled Substances Act's criminal exposure.

Capital access is the second operator issue. Without safe-harbor banking, licensed businesses rely on cash-heavy operations, high-cost lenders, and sale-leasebacks. Uplisting to a major U.S. exchange is closed to plant-touching companies.

Patients and consumers

Patients face a patchwork. Medical programs in states such as Ohio and Florida operate under state law, but federal law still restricts gun ownership for marijuana users, federal housing eligibility, immigration status, and interstate travel with medicine.

Criminal justice

Federal enforcement is now light, but not zero. President Joe Biden pardoned federal simple-possession convictions in October 2022. Those pardons did not touch state convictions or non-possession offenses, and a bill that includes expungement or resentencing provisions would reach further.

Public health and opposition

Opponents, including Smart Approaches to Marijuana, argue that legalization commercializes a high-potency product. Policymakers weigh that against the existing market, where high-THC flower, concentrates, and intoxicating hemp products are already widely sold.

Background and history

Federal cannabis policy moved from a 1937 tax regime to a 1970 criminal prohibition, and has spent the last 13 years eroding in practice while holding in law. The timeline below shows why a legalization bill is now a plausible legislative vehicle rather than a purely symbolic one.

1937–1970: Taxation to prohibition

Congress passed the Marihuana Tax Act in 1937, which taxed and effectively criminalized cannabis. The Supreme Court struck down its registration scheme in Leary v. United States (1969) on Fifth Amendment self-incrimination grounds. That ruling pushed Congress to rebuild federal drug law on a different foundation.

1970: The Controlled Substances Act

Congress enacted the Controlled Substances Act (21 U.S.C. § 801 et seq.) in 1970 and placed marijuana in Schedule I, the category for drugs with a high potential for abuse, no accepted medical use, and a lack of accepted safety under medical supervision. Lawmakers reportedly planned to revisit the placement after a study commission reported.

1972: The Shafer Commission

The National Commission on Marihuana and Drug Abuse, known as the Shafer Commission, recommended in 1972 that possession for personal use be decriminalized. President Richard Nixon rejected the recommendation, and marijuana stayed in Schedule I.

1996–2012: States move first

California voters approved Proposition 215 in 1996, creating the first modern medical marijuana program. In 2012, Colorado (Amendment 64) and Washington (Initiative 502) became the first states to legalize adult use, opening the era of state-licensed markets in direct tension with federal law.

2005: Gonzales v. Raich

In Gonzales v. Raich, 545 U.S. 1 (2005), the Supreme Court held that Congress may regulate homegrown, non-commercial medical marijuana under the Commerce Clause. The ruling remains the main legal basis for federal supremacy over state-legal cannabis.

2013–2018: Cole Memo and its rescission

Deputy Attorney General James Cole issued a memo on August 29, 2013 setting enforcement priorities that deferred to state regulation. Attorney General Jeff Sessions rescinded it on January 4, 2018. The Rohrabacher–Farr appropriations rider, first enacted in 2014, has continued to bar the Justice Department from using funds to interfere with state medical programs.

2018: The Farm Bill and hemp

The Agriculture Improvement Act of 2018 removed hemp, defined as cannabis with no more than 0.3% delta-9 THC by dry weight, from the Controlled Substances Act. That definition created the market for hemp-derived CBD and later for intoxicating hemp products, including THCA flower.

2020–2023: Legislative attempts

The House passed the MORE Act on December 4, 2020, by a vote of 228–164, and again on April 1, 2022, by 220–204. Both times it died in the Senate. In July 2022, Senators Chuck Schumer, Cory Booker, and Ron Wyden released a draft Cannabis Administration and Opportunity Act. The Senate Banking Committee advanced the SAFER Banking Act in September 2023 by a 14–9 vote, but it never reached the floor.

2022–2024: The executive branch acts

Biden announced a pardon for federal simple-possession offenses on October 6, 2022, and directed HHS and the Justice Department to review marijuana's schedule. HHS recommended Schedule III in August 2023. The DEA published its NPRM on May 21, 2024, proposing to move marijuana to Schedule III. An administrative law judge (ALJ) hearing set for January 2025 was postponed amid an interlocutory appeal and the change of administration.

2025: Hemp and a presidential order

Congress changed the hemp definition in the November 2025 spending law that ended the federal shutdown. The provision sharply limits total THC in finished hemp products and takes effect one year after enactment, in mid-November 2026. In December 2025, Trump signed an executive order directing the Attorney General to expedite rescheduling to Schedule III, according to the White House.

October 2026: A bill to legalize and reclassify

The newly reported bill arrives roughly two weeks before the 2026 hemp restrictions take effect and days before the November 3 midterm elections. Its legalization-plus-classification design suggests an attempt to settle the administrative-versus-legislative debate in a single statute.

Key players

The fight involves four camps: congressional sponsors, executive-branch agencies, industry and reform advocates, and prohibitionist or public-health opponents.

Congressional sponsors and champions

Sen. Chuck Schumer (D-N.Y.), Sen. Cory Booker (D-N.J.), and Sen. Ron Wyden (D-Ore.) led the 2022 Cannabis Administration and Opportunity Act draft. Rep. Jerry Nadler (D-N.Y.) sponsored the MORE Act. Rep. Nancy Mace (R-S.C.) introduced the States Reform Act in 2023, a Republican-authored regulatory approach. Sens. Jeff Merkley (D-Ore.) and Steve Daines (R-Mont.) have been central to the banking bills. Confirm the sponsors of the newly introduced bill on Congress.gov.

The DEA and the Justice Department

The DEA controls scheduling under 21 U.S.C. § 811, and the Attorney General can initiate or complete rescheduling. The DEA published the 2024 NPRM, and the unfinished ALJ proceeding is the vehicle the 2025 executive order sought to accelerate.

FDA and HHS

The FDA performs the scientific and medical evaluation that HHS sends to the DEA, and its eight-factor analysis supported the 2023 Schedule III recommendation. Under any legalization bill, FDA authority over labeling, contaminants, and health claims is a central design question.

Industry and reform advocates

The U.S. Cannabis Council, MSO executives, NORML, and the Marijuana Policy Project have pushed for federal reform. Advocates differ on tactics. Many reform groups favor full descheduling and social equity provisions, while some large operators prioritize the tax relief that Schedule III delivers.

Opposition

Smart Approaches to Marijuana, led by Kevin Sabet, opposes legalization and rescheduling-as-commercialization, citing potency and youth use. Some law-enforcement groups and social conservatives in Congress share that view. The hemp industry is a separate bloc with its own stake in any federal definitions.

Legal and regulatory framework

Federal law treats marijuana as a Schedule I controlled substance, and any legalization bill must work through scheduling, tax, banking, commerce, and enforcement statutes at once.

Controlled Substances Act

Under 21 U.S.C. § 812, Schedule I drugs have no accepted medical use. Congress can remove marijuana by statute, which is full descheduling, or move it to a lower schedule. Schedule III, as proposed in the 2024 NPRM, would keep federal prescription and registration requirements. Descheduling would remove marijuana from the CSA entirely and shift regulation to other agencies.

Rescheduling versus descheduling

Question	Schedule III (administrative)	Descheduling (statutory)
Applies 280E?	No	No
Still a federal crime to sell outside state rules?	Yes, under CSA	Depends on replacement framework
Interstate commerce	Not authorized	Possible if statute allows
FDA role	Drug approval pathway	Set by new law
Who acts	DEA / Attorney General	Cong Frequently asked questions Is marijuana legal at the federal level? No. Marijuana remains a controlled substance under the Controlled Substances Act of 1970 and is currently listed in Schedule I. Many states have legalized medical or adult-use cannabis, but those laws do not change federal law. Federal enforcement priorities have varied by administration, and Congress has also attached appropriations riders that limit Justice Department interference with state medical marijuana programs. What does the new federal bill in Congress propose? According to Marijuana Moment's October 2026 report, the new bill would legalize marijuana while also substantially overhauling how the federal government classifies drugs. Because the full text and provisions should be verified against the bill itself on Congress.gov, readers should check the official text for specifics on scheduling, taxation, and regulatory authority. What is the difference between legalization and rescheduling? Rescheduling moves marijuana to a different schedule, such as Schedule III, but keeps it under federal control. Prescription-style rules, DEA registration, and criminal penalties for unauthorized activity would still apply. Descheduling or legalization removes cannabis from the schedules entirely, which typically requires an act of Congress and a new regulatory framework for sales, taxes, and interstate commerce. How does a federal legalization bill become law? It must be introduced in the House or Senate, pass committee review, win floor votes in both chambers in identical form, and receive the president's signature. In the Senate, most legislation needs 60 votes to overcome a filibuster, which has been the main barrier for past cannabis legalization bills. A presidential veto can be overridden by two-thirds of both chambers. Has Congress ever passed a marijuana legalization bill? The House passed the MORE Act in December 2020 and again in April 2022, but the Senate never took it up. The House has also passed standalone cannabis measures, such as the SAFER Banking Act in prior sessions, which addresses financial services rather than legalization. No full federal legalization bill has become law. Which agencies would be affected by federal legalization? The DEA would lose its primary scheduling authority over cannabis. The FDA could regulate cannabis products for safety and labeling, and the ATF and the Treasury Department's Alcohol and Tobacco Tax and Trade Bureau (TTB) are often proposed to oversee alcohol-style taxation and trade. The specific split of authority varies by bill, so the legislative text matters. Would federal legalization override state marijuana laws? Most proposals do not force states to legalize. They generally let states keep their own rules, including prohibition, and often include provisions protecting state-legal programs from federal interference. States could still set licensing, taxation, and sales rules, though the details depend on each bill's language on interstate commerce and preemption. What would change for state-licensed cannabis businesses? Legalization could end the application of IRC Section 280E, which currently bars deductions for businesses trafficking in Schedule I or II substances. It could also open access to banking, bankruptcy courts, and potentially interstate commerce. Actual changes depend on the final bill, its effective dates, and the regulations implementing it. Do legalization bills include expungement or social equity measures? Many do. Past proposals like the MORE Act included federal expungement and resentencing for marijuana offenses, along with grant programs funded by cannabis taxes for communities affected by drug enforcement. Whether the latest bill includes such measures should be confirmed in its text, as different sponsors prioritize different provisions. Will legalization change federal rules on drug testing or employment? Not automatically. Federal workplace programs, Department of Transportation testing rules, and employer drug policies are governed by separate laws and regulations. A legalization bill could address some of these, but employers and federal agencies would likely retain the ability to maintain drug-free workplace policies unless the law says otherwise. federal-legalizationcongressdeschedulingcontrolled-substances-actcannabis-policymarijuana-reform The CannIntel Daily The cannabis newsletter you forward to your team. Federal policy, market data, grower alerts, and the one story that matters today. Sent every weekday at 7am. Free. Subscribe Free No spam. Unsubscribe with one click. 21+ only.