House Democrats Move to Federally Legalize Cannabis, Again

Much like the entire cannabis community and beyond, CannaCon is very interested in federal cannabis legalization. Last noted in April 2025, there is now a new reason to consider the possibility of federal legalization. New York Rep. Jerry Nadler reintroduced Aug. 29 the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act.

This MORE Act bill aims to decriminalize cannabis at the federal level by removing it entirely from the Controlled Substances Act (CSA) and setting up a 5% federal sales tax on cannabis and cannabis products for the first two years of implementation, then gradually increasing to 8% by the fifth year.

“It is long past time to decriminalize marijuana at the federal level, expunge marijuana convictions and facilitate resentencing, while reinvesting in the communities most adversely impacted by the War on Drugs,” Nadler said. This legislation is now in its fourth rendition.

Marijuana Opportunity, Reinvestment and Expungement

Considered the most broad-minded of federal marijuana legalization bills to appear in Congress, the MORE Act would:

• Remove cannabis from the CSA, which would allow plant-touching cannabis companies tax relief opportunities from Internal Revenue Service Code 280E and eliminate the need for the President to reschedule cannabis.
• Permit the Small Business Administration (SBA) to fund “legitimate cannabis-related businesses and service providers,” opening up ways for reinvestment.
• Require federal courts to expunge federal cannabis crimes for individuals with certain cannabis-related offenses.

The MORE Act has 46 co-sponsors, including Rep. Dina Titus and Rep. Nydia Velázquez, the ranking member of the House Committee on Small Business.

“It’s time to modernize our laws to reflect the reality of cannabis use in the United States, recognize the legitimate industry that has emerged, and fully embrace the medical benefits of the plant,” Titus said. “The federal government must catch up to the states, and this bill provides a framework to end the failed war on drugs while supporting communities and businesses nationwide.”

More on the MORE Act

• The MORE Act would not require states to legalize cannabis and would maintain a level of regulatory discretion up to states.
• Federal public benefits could not be denied solely based on the use or possession of marijuana or past juvenile conviction for a cannabis offense. Federal agencies couldn’t use “past or present cannabis or marijuana use as criteria for granting, denying, or rescinding a security clearance.”
• No penalizations under federal immigration laws for any cannabis-related activity or conviction, whether it occurred before or after the enactment of the federal marijuana legalization legislation.
• Tax revenue from cannabis sales would be placed in a new “Opportunity Trust Fund.”
• The Community Reinvestment Grant Program would “fund eligible non-profit community organizations to provide a variety of services for individuals adversely impacted by the War on Drugs…to include job training, reentry services, legal aid for civil and criminal cases (including for expungement of cannabis convictions), among others.”
• The program would further support funding for substance misuse treatment for people from communities disproportionately impacted by drug criminalization for any drug.
• While the MORE Act wouldn’t force states to adopt legalization, it would create incentives to promote equity.
• The departments of treasury, justice and the SBA would need to “issue or amend any rules, standard operating procedures, and other legal or policy guidance necessary to carry out implementation of the MORE Act” within one year of its enactment.
• Marijuana producers and importers would also need to obtain a federal permit. And would be subject to a $1,000 per year federal tax as well for each premise they operate.
• The bill would impose certain packaging and labeling requirements.
• It prescribes penalties for unlawful conduct such as illegal, unlicensed production or importation of cannabis products.
• The Treasury Secretary would be required to carry out a study “on the characteristics of the cannabis industry, with recommendations to improve the regulation of the industry and related taxes.”
• Workers in “safety sensitive” positions could continue to be drug tested for THC and face penalties for unauthorized use. Federal workers would also continue to be subject to drug testing policies that existed before weed legalization.

MORE Act Hearing Chances

Although weed legalization is sweeping the country on a state-by-state level, federal legalization has had a trying go. Previous MORE Acts never received hearings in the Senate. As the current Republican-controlled Congress and House Speaker Mike Johnson have opposed marijuana reform in the past, Nadler’s legislation seems unlikely to receive a hearing, which must occur before the bill could advance to a floor vote for passage.

Further, several Republican-sponsored cannabis reform bills that were introduced earlier in 2025 have yet to receive a hearing. Currently, HR 5068 was referred to review under the Committee on the Judiciary.

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