In 2023, historic strides were made in the efforts to pass federal legislation to protect financial institutions that do business with the cannabis industry. The SAFE Banking Act is a bill that aims to protect banks that serve legal cannabis businesses from federal penalties. The bill was first introduced in 2019 and passed the House of Representatives numerous times but stalled in the Senate during each session. That was, until this year. The Senate Banking Committee, by a notable bipartisan majority of 14-9, on September 27, passed their version of the bill (The SAFER Act) out of committee. The bill, SB. 2860 now goes to the Senate floor sometime for consideration, but roadblocks remain on its future in that chamber.

Despite the uncertainty in the Senate, a bipartisan group of lawmakers is engaged in ongoing negotiations, fueling optimism for potential passage in the new year. However, tensions are high among House Republicans, particularly those dissatisfied with alterations made by the Senate to a bill that the lower chamber had passed seven times. Additionally, the replacement of House Speaker Kevin McCarthy, who had previously supported the cannabis banking bill, with a new speaker who opposes it adds another layer of complexity to the legislative landscape.

The bill’s primary hurdles stem from inter-chamber disagreements rather than strict partisan divides. While the initial bill received substantial bipartisan support in the House, the Senate introduced changes to address concerns raised by key Democrats regarding potential limitations on regulators in combating fraud. The Senate version of the bill enjoys bipartisan support, with backing from both conservative and Democratic lawmakers. However, House Republicans remain divided on the acceptability of the changes made by the Senate, which has complicated the negotiation process.

Despite ongoing policy disagreements, lawmakers remain cautiously optimistic about the bill’s prospects. Nevertheless, challenges persist as Majority Leader Chuck Schumer has not scheduled the bill for floor consideration, with little room for non-essential issues given the ongoing immigration talks and disputes over funding for Ukraine and Israel. Looking ahead, the passage of the cannabis banking bill in early 2024 appears contingent on overcoming legislative challenges and finding a suitable window in the Senate’s agenda.

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Photo of James Brandell James Brandell

James Brandell is the leader of Dykema’s federal government relations team. With more than 20 years of government relations experience on state, federal and international levels, Mr. Brandell has extensive experience crafting and implementing legislative and political strategy; attracting, managing and retaining talented…

James Brandell is the leader of Dykema’s federal government relations team. With more than 20 years of government relations experience on state, federal and international levels, Mr. Brandell has extensive experience crafting and implementing legislative and political strategy; attracting, managing and retaining talented staff; and developing and managing multimillion dollar budgets.

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Photo of Andrew J. Buczek Andrew J. Buczek

Andrew Buczek is a government policy advisor in Dykema’s Government Policy Practice Group. He has over 10 years of federal public policy and political experience assisting clients in developing effective legislative, regulatory and political strategies. His practice focuses on building successful partnerships between…

Andrew Buczek is a government policy advisor in Dykema’s Government Policy Practice Group. He has over 10 years of federal public policy and political experience assisting clients in developing effective legislative, regulatory and political strategies. His practice focuses on building successful partnerships between the federal government and nonprofit organizations, higher education institutions, local governments and private industry, with an emphasis in the areas of housing, manufacturing, transportation, science and technology, as well as a wide array of local government and economic development projects.

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Photo of Mary Beth McGowan Mary Beth McGowan

Mary Beth McGowan works with local governments, nonprofit organizations, and corporations to understand their goals and help them navigate both Congress and federal agencies. Mary Beth also helps her clients identify funding opportunities and make key contacts throughout the federal government.

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