Congressional Committee Calls for Aggressive Crackdown on Illegal Cannabis Grows and Chinese Linked Cannabis Money Laundering

In a newly released set of reports tied to fiscal year 2025 spending bills, a powerful House congressional committee is calling for an expanded federal crackdown on illegal marijuana grows and related criminal activity, with a sharp focus on illicit operations connected to Chinese nationals and the Chinese Communist Party (CCP). The reports, attached to appropriations bills that fund multiple federal agencies, outline strategies and directives for dismantling unauthorized cannabis cultivation and targeting international money laundering networks tied to the illegal cannabis trade.

Illegal Cannabis Grows on Public Lands in California Highlighted as an Ongoing Environmental and Public Safety Threat

One key section of the report from the House Appropriations Committee focuses on the continued problem of illegal marijuana cultivation on federal public lands—particularly in California. These illicit grows are described as “trespass” operations, often run by criminal organizations, which bypass state or tribal licensing systems and instead exploit remote forests to cultivate marijuana in secret.

The committee cites the numerous environmental hazards posed by such operations, including the pollution of water systems, destruction of wildlife habitats, and contamination of soil through unregulated pesticide use. These concerns are compounded by the physical dangers to hikers, hunters, and government officials who might stumble across booby traps or armed individuals guarding grow sites.

To combat this, the committee is directing the U.S. Forest Service and Bureau of Land Management (BLM) to ramp up their efforts to detect and dismantle these grows. Specifically, the agencies are being encouraged to expand their use of remote sensing tools—such as aerial imaging and satellite surveillance—to locate illegal cultivation sites. The directive also calls for a cost estimate to reclaim the damaged lands, and mandates greater coordination with state, local, and tribal governments to ensure that eradication efforts do not simply push criminal operations into less-regulated private or tribal lands.

Federal Agencies Ordered to Collaborate on National Strategy to Dismantle Unauthorized Grow Operations

Beyond technological detection and environmental reclamation, the committee is also calling for a coordinated law enforcement response. The report instructs the Forest Service and BLM to work closely with the U.S. Department of Justice (DOJ) and Department of Homeland Security (DHS) to create a unified strategy for eliminating marijuana cultivation sites not approved by state or tribal authorities. This interagency plan must be developed and reported back to the committee within 180 days after the bill’s enactment.

Additionally, Forest Service law enforcement units are encouraged to explore innovative models for detecting and investigating illegal grow sites. These models could include predictive analytics, pattern recognition through satellite imagery, or new partnerships with local law enforcement.

Commerce and Justice Funding Bill Targets Chinese-Linked Cannabis Businesses in Anti-Money Laundering Effort

A second major report tied to the Commerce, Justice, Science, and Related Agencies (CJS) appropriations bill focuses on the financial underpinnings of illegal cannabis operations—particularly those with suspected ties to China and the CCP. The report directs DOJ and affiliated agencies to allocate anti-money laundering funds specifically toward investigating cannabis businesses with suspected Chinese ownership or financial backing.

These directives signal growing concern in Washington about how international actors may be using cannabis enterprises—both legal and illegal—as fronts for laundering money. Lawmakers believe that CCP-connected entities are exploiting gaps in the cannabis regulatory system to move illicit funds across borders or into the broader U.S. financial system.

The Justice Department is ordered to provide a report to Congress within 120 days of the bill’s enactment, outlining its investigative efforts, findings, and plans to mitigate future risks.

Broader DOJ Cannabis Policy at Stake in Contentious Spending Bill Debate

While these targeted directives reflect a bipartisan desire to combat criminal activity and environmental damage, the broader CJS appropriations bill is shaping up to be a contentious battleground over national cannabis policy. Included in the House version is a provision that would block the DOJ from using federal funds to implement a proposed rescheduling of marijuana from Schedule I to Schedule III under the Controlled Substances Act—a reform effort currently under review by the DEA.

This proposed blockade has drawn criticism from some lawmakers and advocates who view it as an attempt to interfere with a science-based review process. However, others argue it is a necessary safeguard against premature legalization measures.

Still, the House bill does maintain long-standing protections for state-level medical marijuana programs, preventing the DOJ from targeting individuals or businesses operating in compliance with those laws. It also includes a rider that protects state-run hemp research programs from federal interference. New language in the bill proposes heightened penalties for marijuana sales near schools and public parks, raising additional concerns about potential overreach.

Senate Takes a Different Approach with Medical Cannabis Protections and Veterans Access Provisions

Across the Capitol, the Senate Appropriations Committee has passed its own version of the CJS funding bill. While it maintains protections for state medical cannabis laws, it notably does not include the House provision that would prevent DOJ from implementing marijuana rescheduling.

The Senate’s version also includes several marijuana and psychedelics-related measures in its reports. These include proposals to allow U.S. Department of Veterans Affairs (VA) physicians to recommend medical marijuana to veterans if the federal government ultimately reschedules cannabis. There is also language promoting further research into how cannabis could help reduce opioid use among veterans, along with additional efforts to identify and eliminate illegal grow operations.

The Senate version of the veterans funding bill also contains an amendment—previously approved by the committee—that would explicitly authorize VA doctors to recommend medical marijuana in legal states, marking a major potential shift in veteran healthcare policy if enacted.

Spending Bill Debate Postponed as Lawmakers Begin August Recess, Leaving Unresolved Questions for Fall

The House Appropriations Committee was scheduled to debate and vote on the CJS bill and its associated report on Thursday. However, those plans were postponed as lawmakers departed Washington, D.C. for the traditional August recess. This means that key provisions on marijuana enforcement, rescheduling, and money laundering will remain in limbo until Congress reconvenes in the fall.

In the meantime, pressure continues to mount from both sides of the cannabis policy debate. Reform advocates are urging Congress to allow the DEA’s rescheduling review to proceed without interference. Law enforcement officials and national security hawks, on the other hand, are calling for tougher action against illegal cultivation and foreign influence in the marijuana industry.

Congressional Action Signals Tougher Federal Stance on Cannabis Crime Despite Ongoing Debate Over Reform

The House Appropriations Committee’s recent actions suggest that, even as federal cannabis reform continues to be debated, lawmakers are increasingly unified in their desire to crack down on illegal marijuana operations—particularly those that damage public lands or involve transnational criminal elements.

By calling for enhanced surveillance, environmental reclamation, law enforcement coordination, and financial investigations, the committee is laying the groundwork for a more aggressive federal approach to the illicit side of the marijuana industry. Whether this will ultimately coexist with broader cannabis reform remains a question for future legislative sessions.