Schumer Says Marijuana Banking Bill Remains Priority for 2024

Supporters had hoped to pass the safe harbor bill this year

Although the timetable has slipped, Senate Majority Leader Charles Schumer, D-N.Y., said Wednesday that marijuana banking legislation remains a priority for enactment next year.

But in an end-of-year speech on the Senate floor, Schumer delivered a stern warning about the political climate on Capitol Hill. “Without bipartisanship, we will not get anything done,” he said. Schumer went on to blame the Republican-controlled House for blocking major legislation.

The Senate Banking Committee approved S. 2860 in September. The bill would provide credit unions and banks with a regulatory safe harbor if they provided financial services to marijuana-related businesses in states where cannabis is legal. Without the bill, since marijuana is illegal on the federal level, credit unions and banks can face regulatory sanctions for providing services to marijuana-related businesses.

Credit union and banking trade groups have supported the marijuana banking legislation for several years, but many conservative groups have charged that the banking bill is the first step toward legalization of marijuana. While the bill had bipartisan support in the committee, there were signs that the bill could have problems when it reaches the Senate floor.

Senior congressional staff and lobbyists are skeptical that marijuana banking legislation will be enacted next year. In a survey released by Punchbowl News this week, 55% of senior House and Senate staff responding said it is unlikely that marijuana banking legislation will pass, while 61% of the lobbyists responding said enactment of the bill is unlikely.

In addition to the safe harbor provisions, the bill would require that financial institutions not discriminate against people based on political or personal beliefs.

Some Democrats say that provision would make it more difficult for regulators to do their jobs, while some Republicans have said that it does not go far enough. The provision was designed to placate Republicans who were critical of an Obama Administration program known as “Operation Choke Point.” Many Republicans have said that the program allowed credit unions and banks to discriminate against firearms companies.

In discussing the marijuana banking bill on the floor, Schumer said he also wants to consider broader marijuana legislation. For instance, progressives have said they want to provide assistance to people convicted of non-violent drug offenses.

Even if the Senate passes the marijuana banking bill, it is likely to face opposition when it reaches the House. When Democrats controlled the House, marijuana banking legislation passed the House several times. It also was included in other, must-pass legislation. At the time, the marijuana banking bill never reached the Senate floor.

With Republicans controlling the House, enactment of the legislation may be difficult, especially since House Financial Services Committee Chairman Rep. Patrick McHenry, R-N.C., has said the bill is not one of his priorities.