Over half of Americans live in states with legalized cannabis

In 2024, 74% of Americans live in a state where cannabis is legal for either recreational or medical use. 38 states and Washington, D.C., have established some form of legal cannabis market:

  • 24 states and the District of Columbia have legalized adult-use cannabis
  • 38 states and the District of Columbia have legalized medical cannabis
Source

The STATES Act offers a practical federal solution that supports the choices of all 50 states. Regardless of your stance on legalization, we can all agree that the current federal inaction is unsustainable. This bill introduces common-sense regulations to protect our youth, ensure safer roads, reduce addiction risks, and keep cannabis out of communities that do not want it.

Key Goals of the STATES Act:

  • Build a regulated market that allows licensed operators to access capital and engage in interstate commerce, weakening illicit markets
  • Address banking, financial access, and the burden of 280E taxes on legal businesses
  • Equip state law enforcement with the resources to enforce their cannabis laws effectively
  • Support real-time research on the cannabis being used across the country
What the STATES Act does not do:
  • It does NOT create new cannabis markets. Instead, it aligns federal policy with state decisions, ensuring safer existing markets and allowing federal resources to focus on keeping cannabis out of states where it remains illegal.


STATES Act: A Section-by-Section Deep Dive

Section 1: Short Title
  • The bill is entitled, “Strengthening the Tenth Amendment Through Entrusting States Act” (STATES Act)

Section 2: Rule Regarding Application to Cannabis
  • The STATES Act removes state-compliant cannabis from the Controlled Substances Act (CSA), aligning federal policy with state law.
  • Interstate commerce laws remain federal, ensuring cannabis flow if both origination and destination states agree.
  • Individuals can transport cannabis between compliant areas but cannot involve minors or transport other CSA-covered products.

Section 3: Transportation Safety Offenses
  • The STATES Act mandates restrictions on certain transport hubs for entities transporting cannabis.

Section 4: Distribution to Person Under Age 21
  • Permits individuals under 18 to dispense medical cannabis to those under 21 in accordance with State law.
  • Generally prohibits the sale of cannabis to individuals under 21.

Section 5: Regulation by the Food and Drug Administration (FDA)
  • Directs the FDA to treat cannabis as per the Food and Drug Cosmetic Act.
  • Sets standards for contaminant testing, manufacturing, and marketing practices.
  • No premarket approval authority for the FDA.

Section 6: Study on Effects of Cannabis Legalization on Traffic Safety
  • The Comptroller General to submit a report on how cannabis legalization impacts traffic safety within a year.

Section 7: Rule of Construction
  • Conduct in compliance with the STATES Act does not constitute trafficking or serve as a basis for forfeiture.
  • Not subject to section 280E of the Internal Revenue Code related to expenditures and revenue.