SAFER Banking Act Remains Stalled in Lame Duck Session

The year is quickly coming to a close. It is nearly time to say goodbye to the old administration, meaning work has stalled in Congress as everyone takes a “wait and see” approach to legislation in the wake of a new administration and what’s sure to be monumental changes in government. A wait-until-next-year mentality means there is little chance that the highly anticipated SAFER Banking Act will get real traction this year.

Technically, it may also get little traction the following year. Republicans, set to take over the White House, House of Representatives, and Senate, have an abysmal record of advancing marijuana reform measures, so there is little hope that significant progress will be made today or soon. Priorities are shifting within the ranks of the federal government, and those in the cannabis industry are bracing themselves for what’s to come, good or bad.

Where Does the SAFER Banking Act Stand?

The SAFER Banking Act is one of the most highly sought-after pieces of legislation for the legal cannabis industry. The legislation would give legal marijuana businesses access to much-needed financial services, removing the challenges and safety concerns of running a “cash-only” business model. It would repeal federal penalties assessed to banking and financial institutions that conduct business with legitimate cannabis businesses and offer other benefits and protections that would benefit both the banking and legal cannabis industries.

Some version of the SAFE Banking Act has been floating around Congress for years. However, all attempts to pass the legislation have failed thus far. It seems the cannabis industry may have to wait even longer for any real progress by the federal government.

Lobbyists, marijuana advocates, and those in the marijuana industry see little hope in the Senate advancing the current version of the SAFER Banking Act. The last significant movement came in September 2023 when Senate Majority Leader Chuck Schumer (D-NY) called for a committee hearing to attach the bill to other must-pass legislation. Since then, there has been little progress, and now that Congress enters its lame-duck session, there is little incentive to work on passing the bill as a stand-alone measure.

More Challenges on the Horizon

There are additional challenges as Republicans in the Senate attempt to “slow walk” anything of significance in a further attempt to stall Democrats from enacting significant legislation before President-Elect Donald Trump takes office in January. Some democrats also claim that despite members in the Senate claiming there is bipartisan support for the SAFER Banking Act, some Republicans may be overstating their support and, when push comes to shove, will refuse to vote in favor of the measure for fear of running afoul of Republican leadership and the new administration.

Even if the Senate could rally and advance the measure, it would likely die in the Republican-controlled House. Current House Speaker Rep. Mike Johnson (R-LA) has vigorously opposed any bills focusing on marijuana reform. He has also previously refused to allow the House to vote on pro-marijuana legislation while President Joe Biden has been in office.

Now or Never?

While advancing the SAFER Banking Act may be a long shot, it is one worth taking. The future of the measure would be uncertain in a Republican-controlled Senate. Sen. John Thune (R-SD) will take control of the Senate as the new Senate Majority Leader when Donald Trump takes office. He has opposed the SAFER Banking Act and has been one of the most significant Republican players who derailed efforts to attach the act to other unrelated or must-pass legislation. He has also made comments signaling that he believes allowing cannabis businesses to have access to banking services is “irresponsible.”

However, there is more than the SAFER Banking Act at stake. Sen. Thune has also voiced his concerns over the federal reclassification of marijuana from a Schedule I controlled substance down to a Schedule II substance. He was one of 26 GOP lawmakers who signed a letter challenging the Biden administration’s proposal to reclassify marijuana.

The letter, in part, states, “It is irresponsible for HHS to make this determination when emerging research shows that there are significant health concerns associated with marijuana use. It remains the case that marijuana has no currently accepted medical use. We urge you to withdraw this proposal and maintain marijuana as a Schedule I drug.”

In 2014, the Senator also mentioned that he did not support legalizing the use of marijuana and claimed the benefits of marijuana are inconclusive. With Sen. Thune and Rep. Johnson heading the Senate and House, two staunch anti-cannabis lawmakers, the chances seem slim that any form of cannabis reform, from banking reform to legalization, is off the table.

What’s to Come in the New Administration?

While in recent months, President-Elect Donald Trump has indicated his position on marijuana may be softening, his previous actions in the White House demonstrate that he is no friend to the cannabis community. Trump’s former Attorney General pick Jeff Sessions, lifted an Obama-era policy that prevented federal authorities from tackling marijuana trade in states where the drug is legal. Additionally, Trump’s 2021 fiscal budget proposal included language that would have removed protections for state medical marijuana programs.

There is speculation his “pro-marijuana: stance was a tactic to attract voters and does not reflect his genuine intention to advance the marijuana agenda while in office. There is little hope that the SAFER Banking Act can pass during a lame-duck session. Worse, there is little reason to think that its passage is likely to happen in the current climate. It may be up to states, like New York, to find workarounds, bypassing the need for federal action. The solution may be less than ideal but could offer hope to cannabis businesses in the meantime.

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