House GOP drops language intended to protect banks from cannabis crackdown

House Republicans rejected language aimed at protecting banks from cannabis crackdowns in a government funding bill after backlash from other Republican lawmakers.

The measure was included in the party’s initial version of its annual financial services and general government bill, one of 12 annual funding bills that Republicans hope to pass before the fall. The bill covers annual funding for the Treasury Department and federal payments to the District of Columbia and the Securities and Exchange Commission, among other offices.

The provision would have prevented the funding from being used to “penalize a financial institution solely because the institution provides financial services” to entities – such as manufacturers and producers – that participate in businesses legally involved in handling hemp and marijuana products.

But the language was removed after Rep. David Joyce (R-Ohio), chairman of the subcommittee drafting the funding bill, noted that some of his colleagues had “questioned” the legislation.

“With more than 40 states enacting some degree of cannabis reform, it is past time for the federal government to respect the wishes of these states. This issue is especially pertinent because cannabis regulations have been proven to increase public safety and quality of life for Americans,” said Joyce.

“My Financial Services and General Government bill included provisions to do just that and ensure that the rights of states to make the best choices for their unique constituents are protected.”

His comments came after his subcommittee held a marking in the financing bill earlier this month.

During the markup, Rep. Chuck Edwards (RN.C.) specifically took aim at the banking language, describing it as an “affirmative authorization disguised as a limitation” and noting the federal prohibition of marijuana.

“Our country has never allowed a federally illegal activity to be carried out, and it is important to note that despite some states trying to legalize marijuana, which is still a Schedule I drug, marijuana is still illegal,” he argued. “And I believe it should remain illegal. It is dangerous, and evidence is increasingly being found that it causes irreparable harm, especially to younger minds.”

There is still a lot of opposition to the idea of ​​legalizing recreational marijuana in Congress, especially on the Republican side.

But many more have warmed to the idea of ​​cannabis banking reforms in recent years as more states have legalized recreational marijuana. This gave unprecedented momentum to the Safe and Fair Execution Banking Act of 2023, which Joyce introduced with other members last year to help improve banking access for legal cannabis businesses.

“While the provisions maintain strong bipartisan support, as president I will work to alleviate your concerns but will not delay my responsibility to fund the government and therefore my legislation in the meantime,” he 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.”

This story originally appeared on thehill.com read the full story