Cannabis Administration and Opportunity Act
Sponsored By: Senator Booker, Cory A. [D-NJ]
Introduced
Summary
This bill's central aim is federal descheduling of cannabis and building a national system to regulate, tax, research, and repair harms from the War on Drugs. It pairs removal of cannabis from the Controlled Substances Act with a new federal regulatory structure, a cannabis excise tax, broad research investments, and retroactive relief for past federal cannabis convictions.
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- Families and public safety: Funds underage‑use prevention grants and a national media campaign and backs impaired‑driving research and prevention grants, including a supplemental $30 million per year for impaired‑driving programs through FY2026–FY2030. These provisions aim to expand education, testing capacity, and crash data collection.
- Justice‑impacted people and communities: Requires district courts to review and expunge federal cannabis convictions dating back to May 1, 1971, and creates community reinvestment and restorative opportunity programs, including a Community Reinvestment Grant of $1.65 billion for FY2026 to support reentry, legal aid, job training, and related services.
- Businesses, workers, and research: Establishes a federal cannabis excise tax that phases in from 10% up to 25% and creates an Opportunity Trust Fund. It also funds major research and infrastructure lines including $200 million to NIH research and $275 million per year to expand research‑grade product availability, updates banking and SBA access, and creates a federal permit and FDA regulatory regime for cannabis products.
*Creates a new federal cannabis excise tax and many specified multi‑year appropriations routed to an Opportunity Trust Fund; the text lists detailed revenue and spending lines but does not provide a single net deficit estimate.*
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Bill Overview
Analyzed Economic Effects
19 provisions identified: 13 benefits, 0 costs, 6 mixed.
Immigration relief for cannabis
If enacted, cannabis would no longer be treated as a controlled substance under U.S. immigration laws. An immigrant could not be denied immigration benefits because of cannabis events, even if they happened before enactment. People with removal orders based wholly or partly on cannabis offenses could file a motion at any time to have the order reconsidered.
Housing help for harmed communities
If enacted, the bill would give HUD $300 million each year for FY2026–FY2030 for housing and community development projects that help people and neighborhoods harmed by the War on Drugs. HUD could use up to 10% of each yearly amount for administration, evaluation, and technical assistance. HUD must set award rules that show need, capacity, and commitment.
Big small‑business and licensing aid
If enacted, the bill would fund multiple programs to help small cannabis businesses. It would create a 10-year SBA lending pilot that lets the SBA lend to intermediaries for on‑lending, with per-borrower caps of $200,000 and FY2026 funding ($90 million and $41 million available through Sept 30, 2030). It would create a Cannabis Restorative Opportunity Program with $17 million for FY2026 and a 5% tribal set‑aside. It would fund an Equitable Licensing Grant Program with $550 million for FY2026 to lower licensing barriers and require the SBA not to refuse services solely because an applicant is a legal cannabis business. The CDFI Fund and an Emergency Capital Fund would get $200 million each year for FY2026–FY2030.
Relief and reinvestment for affected people
If enacted, federal courts would automatically review and expunge many old federal cannabis convictions and juvenile records from May 1, 1971 through the day before enactment within one year. The Justice Department would create a Cannabis Justice Office to run grants and programs and hire staff, and Congress would fund a Community Reinvestment Grant Program with $1.65 billion for FY2026 to help people harmed by the War on Drugs. The GAO must also study and report on state legalization impacts within two years.
Big federal cannabis research push
If enacted, HHS and NIH would get major funding to study cannabis health effects and increase research supply. The bill would fund research-grade product supply ($275 million per year) and give NIH $200 million per year for biomedical studies for FY2026–2030. HHS would award grants ($200 million per year) to study health effects and $200 million per year for research infrastructure at colleges. The law would create interagency coordination, an NIH consortium, expedited review for qualifying small firms, and VA clinical trials with required reports.
More funding for substance and public health
If enacted, the bill would broaden a federal substance use grant program to cover opioid, stimulant, and other substance use disorders and fund it with $200 million each year for FY2026–FY2030. It would also expand public‑health surveillance to track cannabis and polysubstance harms, raise the baseline surveillance funding to $596 million per year for FY2026–FY2030, and add $100 million per year for those years.
New federal cannabis tax and rules
If enacted, producers and importers would pay a new federal excise tax on cannabis. For the first five years the tax would be 10%, 10%, 15%, 20%, then 25% of removal price; after year five the tax would be computed as 25% of the Secretary's 12-month average sales price per ounce (flower) or per gram (THC) times quantity. The bill would let qualified domestic manufacturers claim a 50% credit (subject to phase-in limits, $2,000,000 in the initial years) and allow a 90% drawback when taxed cannabis is used to make approved drugs or qualifying extracts. It would also set payment timing (mostly semimonthly, with quarterly or annual options under $100K or $10K), require permits to operate, add recordkeeping and inspection rules, and create an Opportunity Trust Fund to receive net cannabis-tax revenues.
FDA safety rules and funding
If enacted, the bill would make the FDA set national safety, testing, labeling, and packaging rules for cannabis products. The FDA would create a Center for Cannabis Products within 90 days and get $425 million each year for FY2026–FY2030 to run the program. Makers would register and list products yearly (by December 31) and FDA must publish the lists within 10 days. The bill would give FDA recall powers, require child-resistant packaging and clear THC labeling, ban flavored vaping liquids except cannabis flavor, and bar sales to people under 21.
New hemp total-THC test and limits
If enacted, the hemp definition would switch from a delta-9 test to a 'total tetrahydrocannabinol equivalent' test that counts delta-8, delta-9, delta-10, THCA, and similar substances unless excluded by HHS. The general allowable total THC equivalent would be 1 milligram per 100 grams dry weight, with specified plant products allowed up to 0.7% total THC equivalent. HHS, Agriculture, and Treasury could change allowable amounts and issue rules for over‑limit hemp deliveries.
Ban on financial discrimination
If enacted, the bill would make it unlawful for financial institutions to deny goods or services based on race, color, religion, national origin, or sex, including sexual orientation and gender identity. It would create a private right to seek injunctions and related relief in federal court without first going to an agency. Courts could award reasonable attorney's fees to prevailing private parties (not the United States).
Protections for benefits, clearances, banking
If enacted, Federal agencies could not deny public benefits because of cannabis use, possession, or cannabis convictions. Agencies could not grant, deny, or rescind a security clearance solely for cannabis use. Financial institutions could not refuse financial services only because of a prior nonviolent cannabis conviction.
Worker safety, data, and grants
If enacted, the bill would require OSHA rules to apply to cannabis employers and have OSHA and NIOSH issue recommended safety guidance within 60 days. NIOSH would research workplace effects of state recreational legalization and provide employer best practices within 2 years, with $2 million per year for FY2026–FY2028. The Bureau of Labor Statistics would publish regular data on cannabis owners and workers. The bill would also fund grants (up to $300,000 each) to educate low‑wage cannabis workers and employers, with $15 million per year for FY2026–FY2030.
Prevent cannabis-impaired driving
If enacted, the Department of Transportation would run a national program to prevent cannabis-impaired driving. The Secretary would publish best practices within 1 year and set national campaigns within 2 years. States could get grants—Congress would set aside $45 million per year for FY2026–2030 for related grant and prevention programs, and $30 million per year for FY2026–2030 for State grants and national surveys and studies. Grants would require States to boost toxicology lab capacity and the program would evaluate and stop ineffective activities.
Banking guidance for cannabis businesses
If enacted, FinCEN would have 180 days to update its 2014 marijuana-related banking guidance to match this law and address cash held by cannabis businesses at enactment. The law would add definitions and require uniform FFIEC examination procedures for banks serving cannabis businesses. FinCEN must also clarify anti-money-laundering and customer-due-diligence rules for these accounts.
Enforcement, penalties, and local authority
If enacted, the bill would strengthen federal enforcement tools while preserving state, tribal, and local authority to make stricter cannabis rules. It would set criminal penalties for knowingly handling large amounts (10 pounds or more can bring up to 1 year and fines up to $50,000; 20 pounds or more up to 5 years and fines up to $100,000) and create penalty‑recovery and injunction authority for Treasury and the Attorney General. The bill would also fund competitive grants for small law enforcement agencies ($15 million per year for FY2026–2030) and shift some enforcement duties from the DEA to HHS and Treasury.
Product safety, labels, and transitions
If enacted, the Treasury would issue tracking and tracing rules within one year for everyone who makes, moves, or handles cannabis products. The rules may require label codes and recordkeeping but must not force retailers to keep records of individual purchasers. The bill would create a 22-member Cannabis Products Advisory Committee to advise on safety, equity, and guidance and to publish annual reports. It would also allow many state‑legal products to keep selling for limited transition periods (18 months for general products; up to 3 years for state medical drugs if a new drug application is filed within 18 months).
New federal cannabis tax rules
If enacted, the bill would create new tax rules and enforcement for cannabis. The original producer or importer would be liable for the tax, and transferees can become liable when products move tax-free. The tax would attach when cannabis exists in its cannabis form and be a first lien until paid. The Treasury must study the industry (first report within 2 years and every 5 years) and publish its rate-methodology 6 months before each year. The Alcohol, Tobacco, and Cannabis Tax and Trade Bureau would get $100 million a year for FY2026–FY2030 to carry out tax and regulatory work.
Home grow rules and key definitions
If enacted, the bill would add many official definitions for 'cannabis', 'producer', and related terms. It would create a personal‑use exception so an individual who grows cannabis only at their home (or yard/shed) and stays within quantity limits the Secretary sets would not be treated as a producer. Some tax‑chapter definitions and rules would take effect 180 days after enactment.
Grants and campaign to stop youth use
If enacted, HHS would fund grants to states, tribes, and community groups to prevent underage cannabis use. Grants would pay for prevention, early intervention, education, and data collection and must supplement other funds. The bill would also fund a national multimedia prevention campaign. Congress would appropriate $15 million per year for grants and $5 million per year for the campaign for FY2026–2030.
Sponsors & CoSponsors
Sponsor
Booker, Cory A. [D-NJ]
NJ • D
Cosponsors
Sen. Schumer, Charles E. [D-NY]
NY • D
Sponsored 7/16/2026
Sen. Wyden, Ron [D-OR]
OR • D
Sponsored 7/16/2026
Sen. Bennet, Michael F. [D-CO]
CO • D
Sponsored 7/16/2026
Sen. Fetterman, John [D-PA]
PA • D
Sponsored 7/16/2026
Sen. Gillibrand, Kirsten E. [D-NY]
NY • D
Sponsored 7/16/2026
Sen. Hickenlooper, John W. [D-CO]
CO • D
Sponsored 7/16/2026
Sen. Luján, Ben Ray [D-NM]
NM • D
Sponsored 7/16/2026
Sen. Padilla, Alex [D-CA]
CA • D
Sponsored 7/16/2026
Sen. Peters, Gary C. [D-MI]
MI • D
Sponsored 7/16/2026
Sen. Smith, Tina [D-MN]
MN • D
Sponsored 7/16/2026
Sen. Warnock, Raphael G. [D-GA]
GA • D
Sponsored 7/16/2026
Sen. Markey, Edward J. [D-MA]
MA • D
Sponsored 7/16/2026
Sen. Merkley, Jeff [D-OR]
OR • D
Sponsored 7/16/2026
Sen. Murray, Patty [D-WA]
WA • D
Sponsored 7/16/2026
Sen. Warren, Elizabeth [D-MA]
MA • D
Sponsored 7/16/2026
Sen. Welch, Peter [D-VT]
VT • D
Sponsored 7/16/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov