D.C. Cannabis Sales Ban Removed, Cannabis Banking Protections Added by GOP Committee

Key Changes in Fiscal Year 2025 Spending Measure

A GOP House committee has introduced a large-scale spending bill that omits a longstanding rider blocking Washington, D.C. from legalizing recreational marijuana sales and adds new protections for banks working with state-legal cannabis businesses. The House Appropriations Financial Services and General Government (FSGG) Subcommittee posted its 2025 fiscal year spending measure on Tuesday, with a markup scheduled for Wednesday.

New Leadership and Notable Changes

The cannabis-related changes come under the subcommittee’s new leadership. Rep. Dave Joyce (R-OH), co-chair of the Congressional Cannabis Caucus and the lead sponsor of standalone bipartisan marijuana banking legislation, is chairing the subcommittee.

Ending the D.C. Ban on Cannabis Sales

The District of Columbia has been barred from using its local tax dollars to implement a commercial cannabis market for years under a rider from Rep. Andy Harris (R-MD). Lawmakers have repeatedly attempted to remove this prohibition without success. Now, the provision has been excluded from the base bill, meaning Harris or other supporters would need to proactively seek to add it back in via an amendment.

President Joe Biden has consistently maintained the D.C. ban in his budget proposals, making its removal in a GOP-controlled committee particularly noteworthy.

“As subcommittee chairman, I ensure the provisions in this bill only take strides to make our communities safer,” Joyce told Marijuana Moment on Tuesday. “I appreciate that a few of my colleagues have concerns with the safety of readily accessible cannabis products—I share these, but blocking their regulation only exacerbates these issues.”

Congressional Blockade and Local Workarounds

Lawmakers in the District have enacted certain workarounds, such as allowing people to self-certify as medical marijuana patients, but the congressional blockade has been a consistent source of frustration.

Protections for Cannabis Businesses and Banks

The newly introduced FSGG legislation also includes language to prevent federal regulators from penalizing financial institutions for working with state-licensed marijuana and hemp businesses.

Specific Protections

Section 134 of the bill states that none of the funds made available by the act may be used to penalize a financial institution solely because it provides financial services to entities involved in the legal cannabis or hemp industry under state law. This includes manufacturers, producers, and participants in organized activities involving hemp-derived cannabinoid products and marijuana.

The protections are less robust than the standalone Secure and Fair Enforcement (SAFE) Banking Act, as the restriction is only binding on agencies covered under FSGG and would only cover a single fiscal year unless extended.

“Forcing cannabis businesses to operate in all cash is a magnet for violent crime,” Joyce told Marijuana Moment. His legislation aims to safeguard the safe, adult use of cannabis and increase the safety of cannabis businesses and their employees.

Senate Prospects and Additional Provisions

Senate Democratic leadership has indicated their intent to advance their version of the banking bill this session, but the timeline remains unclear.

The same Appropriations subcommittee under Democratic control omitted the D.C. cannabis sales ban and included the banking section in a fiscal year 2022 spending bill, but it did not make it into the final package.

Controversial Provisions

The current version of the legislation from the panel led by Joyce includes at least one drug policy provision that advocates oppose, such as language preventing the use of D.C. local funds to manage a syringe exchange program. The bill also seeks to interfere in various other local policy matters in the District of Columbia, highlighting the importance of removing the cannabis rider specifically for Joyce, the subcommittee chair.

Veterans’ Access to Medical Cannabis and Psychedelics Research

Meanwhile, the House Rules Committee on Monday approved amendments to a separate spending bill that would authorize U.S. Department of Veterans Affairs (VA) doctors to issue medical marijuana recommendations to military veterans and support psychedelics research and access. Floor votes on these measures are expected this week. However, the panel rejected another proposal to block cannabis testing for federal job applicants in states that have enacted legalization.