SAFE Banking Act of 2026
Sponsored By: Representative Joyce, David P. [R-OH-14]
In Committee
Summary
Creates a federal safe harbor so banks and other financial firms can serve state‑legal marijuana and hemp businesses without facing federal liability. The bill also standardizes Treasury and banking‑examiner guidance and treats lawful cannabis income as valid mortgage income when lenders follow new agency rules.
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- State‑sanctioned marijuana and hemp businesses would gain protection from criminal, civil, or forfeiture actions solely for engaging with financial institutions when they follow applicable State or Tribal law. This makes proceeds from compliant activity not automatically subject to federal money‑laundering treatment.
- Depository institutions and ancillary service providers like money transmitters and armored‑car operators would get a clear safe harbor and a legacy‑deposit pathway, including a 90‑day window to establish accounts and documentation requirements to show deposit sources.
- Homebuyers and lenders would see income from compliant marijuana businesses treated as lawful for qualifying for FHA, VA, USDA, Fannie Mae, and Freddie Mac 1–4 unit mortgages, and regulators must issue implementation guidance within 180 days. The bill also requires annual diversity reporting and GAO studies on barriers and suspicious‑activity reporting.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Mortgage access for marijuana income
If enacted, this bill would let federally backed mortgage programs treat income from state‑sanctioned marijuana businesses as lawful income when qualifying borrowers for 1‑ to 4‑unit principal residence loans. It would bar forfeiture of mortgage collateral solely because loan underwriting or payments relied on that marijuana income, so long as the collateral is not marijuana or a marijuana product. FHA, VA, USDA, Fannie Mae, and Freddie Mac would have to adopt rules within 180 days to implement these changes.
Bank safe harbor for cannabis and hemp
If enacted, this bill would protect banks, insurers, Federal Reserve Banks, Federal Home Loan Banks, and other covered institutions from federal liability solely for providing financial services to state‑sanctioned marijuana businesses and, in most respects, to hemp‑related legitimate businesses. It would say that proceeds from compliant state‑legal marijuana activity are not automatically 'unlawful proceeds' under federal money‑laundering statutes. The bill sets definitions for covered businesses and makes the protections effective upon enactment, but protections apply only where the business follows applicable State, Tribal, or local law.
Regulatory guidance and reporting for banks
If enacted, the bill would require the FFIEC to issue uniform exam guidance within 180 days and federal regulators to update hemp banking guidance within 90 days. It would create a legacy‑deposit pathway letting banks accept certain cash deposits from state‑legal marijuana businesses if the deposits are documented and reasonable, and it would require Treasury to update FinCEN SAR guidance within 180 days so SARs tied to state‑legal marijuana follow that guidance. The bill would also limit agencies from forcing account closures for reputational reasons, require written justification and customer notice in most cases, mandate annual reports to Congress on account terminations, and order GAO studies and regulator reports on access and SAR effectiveness (GAO report due within two years).
Sponsors & CoSponsors
Sponsor
Joyce, David P. [R-OH-14]
OH • R
Cosponsors
Rep. Himes, James A. [D-CT-4]
CT • D
Sponsored 6/25/2026
Rep. Davidson, Warren [R-OH-8]
OH • R
Sponsored 6/25/2026
Rep. Correa, J. Luis [D-CA-46]
CA • D
Sponsored 6/25/2026
Reschenthaler
PA • R
Sponsored 6/25/2026
Rep. Titus, Dina [D-NV-1]
NV • D
Sponsored 6/25/2026
Rep. Velázquez, Nydia M. [D-NY-7]
NY • D
Sponsored 6/25/2026
Rep. Mast, Brian J. [R-FL-21]
FL • R
Sponsored 6/25/2026
Rep. Rogers, Mike D. [R-AL-3]
AL • R
Sponsored 8/20/2026
Rep. Carter, Troy A. [D-LA-2]
LA • D
Sponsored 8/20/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov