Senate Leaves Cannabis Reform Out of New Bill, Again

As of June 29, 2025, federal cannabis reform efforts have hit yet another wall. The U.S. Senate advanced a major tax and spending bill this week, with a flurry of high-stakes negotiations touching on everything from defense spending and tax adjustments to border security and Medicaid cuts. One glaring omission? Weed.

Despite overwhelming public support, booming state-level legal markets, and repeated promises of reform from both sides of the aisle, cannabis was left completely out of the conversation. Again.

What’s in the Senate’s 2025 Tax and Spending Package?

Let’s get clear on what did make it into the bill:

• Tax Adjustments: Reworking elements of corporate tax rates and closing some loopholes.

• Defense Spending: A fresh injection of hundreds of billions into the Pentagon’s budget.

• Border Security Funding: Billions allocated for enforcement, surveillance tech, and personnel.

• Medicaid Cuts: Quiet rollbacks in federal healthcare funding, especially around Medicaid expansions.

The legislation is sweeping and high-impact, but it’s also a signal of priorities. Cannabis reform? It’s nowhere to be found.

Weed Remains Off the Federal Radar — Again

With 38 states having legalized cannabis in some form, public support for federal legalization hovering at around 70%, and the cannabis industry contributing billions in tax revenue and job creation, one might assume federal leaders would finally act.

But no. Despite early optimism in 2024 for movement on the SAFE Banking Act, descheduling, and expungement reforms, cannabis remains stalled in the same holding pattern it’s been in for years.

This time around, even with a Republican-controlled White House and a narrowly divided Congress, weed simply didn’t make the cut. Not in the budget, not in the negotiations, not even in the subtext.

Industry Reaction: Frustration and Fatigue

Industry insiders and advocates aren’t surprised — but they are fed up.

“We’ve been banging on the door for a decade,” says one multi-state operator CEO. “And they’re still pretending we don’t exist — even while cash from legal cannabis is funding community programs, schools, and infrastructure across the country.”

Small business owners, especially those in legacy and social equity markets, have also expressed growing concern. Without access to traditional banking, financing, and fair tax treatment (thanks to outdated laws like 280E), it’s getting harder to compete with corporate-backed entities or navigate compliance-heavy systems.

“It’s survival of the fittest,” one New York dispensary owner said. “And without federal reform, small businesses and craft growers are getting boxed out.”

Why Weed Keeps Getting Sidelined

There’s no single reason cannabis keeps getting ignored in major federal bills — it’s a tangled mix of politics, lobbying, stigma, and strategic priorities.

But here are a few core reasons:

• Federal vs State Disconnect: Washington continues to move slower than the states. Over 150 million Americans live in places where weed is legal in some form — yet it remains a Schedule I substance federally.

• Political Calculation: Cannabis reform polls well, but it’s rarely a top voting issue. Lawmakers often prioritize immigration, inflation, defense, or healthcare to rally their bases.

• Bureaucratic Gridlock: Between Senate filibusters, committee inaction, and executive branch hesitancy, even popular ideas like SAFE Banking get trapped in procedural purgatory.

• Lack of Pressure from Leadership: Both Democratic and Republican leaders have, at different times, failed to push cannabis legislation as a must-have. It’s always “we’ll get to it later.”

Well, later never comes.

What Happened to SAFE Banking?

One of the most talked-about cannabis proposals — the SAFE Banking Act — has been circling Congress for years. Its goal? To allow licensed cannabis businesses access to traditional banking and financial services.

Support has long been bipartisan. Even former President Biden gave lukewarm nods toward it. But the bill keeps getting stripped from final packages — or deprioritized during budget battles.

In this latest round of negotiations, SAFE Banking wasn’t even floated as an add-on. Advocates saw that as a bad sign.

“Banking should be the low-hanging fruit,” said a senior lobbyist for a national cannabis coalition. “If they can’t even get that through, what hope do we have for descheduling or full legalization?”

Trump’s Second Term: A Fork in the Road?

Now that President Trump is back in office, many in the cannabis world are watching closely.

Historically, Trump’s position on cannabis has been… ambivalent. During his first term, he floated the idea of states’ rights but did little to advance reform. His Justice Department, under Jeff Sessions, actively rolled back Obama-era guidance meant to shield legal markets from federal interference.

But this time may be different. The cannabis industry is larger, more vocal, and far more mainstream. Polls show that a growing number of Republican voters support legalization. There’s now a business case to be made, not just a social justice one.

And for a president focused on economic wins and small business growth, weed could be a sleeper opportunity.

That is, if he decides to lead.

The Stakes for 2025 and Beyond

Here’s why this matters — not just for the cannabis industry, but for anyone paying attention to American economic policy:

• Billions in Lost Revenue: Federal prohibition means the IRS collects less, while states foot the bill for compliance headaches.

• Public Safety Issues: Forcing legal businesses to run on cash increases risks of robbery and makes financial transparency harder.

• Unequal Access: Black and Brown communities — disproportionately criminalized under the War on Drugs — continue to face barriers to entering the legal market.

• State-Federal Conflict: Without a clear national framework, companies face wildly different rules across state lines, stifling growth and innovation.

And yet, as the Senate votes to funnel billions toward tanks, surveillance drones, and border walls, it still can’t find space to support one of the fastest-growing industries in America.

Advocates Won’t Wait Forever

Cannabis advocates aren’t naïve. They’ve learned that patience — without pressure — gets nothing done. So expect to see more action at the state level, more lawsuits challenging federal overreach, and more grassroots organizing heading into the 2026 midterms.

“We’re not begging anymore,” said one advocate. “We’re organizing.”

And while political parties keep using weed as a talking point, the people who grow it, sell it, and rely on it for medicine or livelihood are demanding more than lip service.

A Message to President Trump

Let’s call it what it is.

The Senate found room for border walls.
They found room for Medicaid cuts.
They found room for more war machines.

But they couldn’t find room for weed reform?

That’s not about budget constraints. That’s about political will.

So, President Trump — here’s your shot. The last guy didn’t move. You said you’re different. Prove it.

Legalizing cannabis, descheduling it, or at the very least passing common-sense reforms like SAFE Banking — these aren’t radical ideas anymore. They’re overdue. And the American people, especially those in the legal weed industry, are watching.

Don’t let this opportunity pass like your predecessor did. Make history — not more headlines.

Want to support legal weed reform?
Call your Senator. Show up at local hearings.