Cannabis Administration and Opportunity Act

This section removes cannabis and tetrahydrocannabinols in cannabis from Schedule I of the Controlled Substances Act. It mandates the Attorney General to finalize this descheduling within 180 days and makes the amendments retroactive. This retroactivity applies to all offenses, pending cases, and convictions, requiring the government to drop relevant charges, dismiss pending cases, and release individuals serving sentences for federal cannabis offenses. It also allows for reduced sentences for those serving multiple sentences or whose sentencing was elevated due to prior cannabis convictions.

This section transfers federal cannabis enforcement functions from the Drug Enforcement Administration (DEA) to the Department of Health and Human Services (HHS) and the Department of the Treasury. It also renames the Alcohol and Tobacco Tax and Trade Bureau (TTB) to the Alcohol, Tobacco, and Cannabis Tax and Trade Bureau (ATCTTB). HHS (through FDA) and Treasury (through ATCTTB) are mandated to enter into a memorandum of understanding to coordinate their regulatory responsibilities, aiming to reduce compliance burdens and administrative duplication.

This section clarifies that cannabis transported into a state or territory will be subject to that state's or territory's laws upon arrival, regardless of its origin or packaging. It prohibits the shipment of cannabis into states where it is intended to be used or sold in violation of state law. However, it explicitly states that no state or Indian Tribe may prohibit the transportation or shipment of cannabis or cannabis products through its territory.

This section mandates the Secretary of Health and Human Services, in consultation with the NIH Director, to conduct or support research on the impacts of cannabis. Research topics include effects on the human brain, efficacy for specific diseases (e.g., chronic pain, PTSD), impacts on pulmonary function, cardiovascular events, cancer, mental health conditions, and the identification of additional medical benefits and harms. It also specifies considering varying forms and delivery methods of cannabis. The section appropriates $200,000,000 annually for fiscal years 2026-2030 for this research.

This section requires the Secretary of Veterans Affairs to conduct clinical trials on medical-grade cannabis for veterans with chronic pain and post-traumatic stress disorder (PTSD). For chronic pain, it evaluates impacts on pain intensity, opioid/benzodiazepine/alcohol use, inflammation, sleep, agitation, and quality of life. For PTSD, it assesses symptoms, benzodiazepine/alcohol use, mood, anxiety, social functioning, agitation, suicidal ideation, and sleep quality. The trials must study various cannabis forms and at least seven unique plant cultivars with different THC:CBD ratios. It also includes provisions for a long-term observational study and data preservation.

This section establishes a grant program for states to implement programs preventing impaired driving due to cannabis use. Eligible activities include training public safety personnel to detect impairment, increasing toxicology testing capacity, developing assessment programs for recidivism risk, implementing high-visibility enforcement, and educating the public. States must agree to provide data for evaluation. The federal share for grants is 80% for the first three years, decreasing thereafter unless the state implements an open container law for cannabis products. It appropriates $45,000,000 annually for fiscal years 2026-2030.

This section establishes three key programs funded by the Opportunity Trust Fund: the Community Reinvestment Grant Program (administered by a new Cannabis Justice Office within the Office of Justice Programs) for services like job training, reentry, and legal aid for individuals adversely impacted by the War on Drugs; the Cannabis Restorative Opportunity Program (SBA) providing loans and technical assistance to small businesses owned by socially and economically disadvantaged individuals in eligible states/tribes; and the Equitable Licensing Grant Program (SBA) for states/tribes to develop equitable cannabis licensing programs that minimize barriers for individuals adversely impacted by the War on Drugs. It appropriates significant funds for each program for fiscal years 2026-2030.

This section amends the Small Business Act to ensure that cannabis-related legitimate businesses and cannabis-related service providers are eligible for various SBA programs and services. This includes access to Small Business Development Centers, Women's Business Centers, SCORE, Veteran Business Outreach Centers, Community Navigators Pilot Program, 7(a) loans, Disaster Loans, Microloans, Small Business Investment Company Debentures, and State or Local Development Company Loans. It explicitly prohibits the SBA or lenders from denying services or loans solely because a business is cannabis-related.

This section mandates each judicial district to conduct a comprehensive review within one year to expunge federal cannabis offense convictions and juvenile delinquency adjudications entered between May 1, 1971, and the bill's enactment date. It also requires expungement of associated arrests and notification to affected individuals. Individuals not serving a criminal sentence can petition for expungement at any time, with appointed counsel for indigent petitioners. Expunged records are sealed, and individuals can treat the offense as if it never occurred, with immunity from perjury for non-disclosure and no loss of federal benefits. An exception exists for those who received an aggravating role adjustment, unless mitigating factors warrant expungement.

This section prohibits the denial of any federal public benefit (as defined in 8 U.S.C. 1611(c)) based on cannabis use, possession, or a cannabis offense conviction/adjudication. It also states that a federal agency may not grant, deny, or rescind a security clearance solely based on past or present cannabis use.

This section specifies that for immigration purposes, cannabis will not be considered a controlled substance, and an alien cannot be denied any immigration benefit or protection based on any cannabis-related event (conduct, finding, admission, addiction, arrest, juvenile adjudication, or conviction), regardless of when it occurred. It also makes conforming amendments to the Immigration and Nationality Act, including allowing reconsideration of removal orders based on cannabis offenses and removing cannabis-related grounds for inadmissibility or deportability.

This section establishes a new Chapter 56 in the Internal Revenue Code, imposing a federal excise tax on cannabis products. For the first five years, the tax is a percentage of the removal price (starting at 10% for the first two years, increasing to 25% by the fifth year). After five years, it transitions to an equivalent amount based on a rate per ounce for cannabis flower and a rate per gram for THC products, determined by the Secretary of the Treasury. The section also creates the 'Opportunity Trust Fund' in the Treasury, into which net revenues from these taxes are appropriated, and from which amounts equivalent to appropriations under the Cannabis Administration and Opportunity Act are paid to the general fund. A credit for qualified domestic manufacturers is also established, phasing in up to $5,000,000.

This section establishes a new Chapter XI in the Federal Food, Drug, and Cosmetic Act (FD&C Act) to regulate cannabis products. It creates a Center for Cannabis Products within the FDA, responsible for implementing this chapter. It defines adulterated and misbranded cannabis products, sets annual registration requirements for manufacturers, and outlines general provisions for control, including restrictions on remote sales and advertising to minors, and good manufacturing practice requirements. It also mandates the FDA to adopt cannabis product standards covering ingredients, testing, labeling, and harmful constituents. A recall authority is also granted to the FDA.

This section amends the Federal Food, Drug, and Cosmetic Act to allow cannabidiol (CBD) derived from hemp to be treated as a dietary supplement. However, it introduces new adulteration criteria for CBD dietary supplements, requiring them to contain no more than a Secretary-established amount of CBD per daily serving, be subject to new dietary ingredient notifications, and conform to specific labeling/packaging requirements. The Secretary of HHS is mandated to issue draft guidance on evaluating CBD safety as a food additive and to convene an advisory committee before doing so.

This section amends the Federal Alcohol Administration Act to create a new Title III for cannabis, establishing a federal permit system for importing, manufacturing, packaging, warehousing, and wholesale resale of cannabis. Permits are issued by the Secretary of the Treasury (through ATCTTB) unless the applicant has a disqualifying felony conviction (post-enactment, within 3 years of application), violates state law, or is unlikely to conform to federal law. A waiver process for disqualifying offenses is included, with review by the Cannabis Products Advisory Committee. Permits are conditioned on compliance with federal and state laws, a permit fee (waivable for low-income first-time applicants), and compliance with specified labor laws (Fair Labor Standards Act, OSHA, National Labor Relations Act).

This section authorizes the Secretary of Labor to award competitive grants to eligible non-profit entities (or partnerships thereof) to educate workers in the cannabis industry about their rights under federal, state, and local civil rights, labor, and employment laws. The grants also support educating employers on their obligations and connecting workers to additional services. Priority is given to low-wage workers. Grants are for up to 3 years and $300,000 each. It appropriates $15,000,000 annually for fiscal years 2026-2030.

This section appropriates significant funds for community investment. It provides $200,000,000 annually for fiscal years 2026-2030 to the Community Development Financial Institutions (CDFI) Fund to expand lending and investment in low- or moderate-income areas, especially those affected by the War on Drugs. Another $200,000,000 annually for the same period is appropriated to the Emergency Capital Investment Fund to support Minority Depository Institutions (MDIs) in providing loans and grants to small businesses, minority-owned businesses, and consumers in underserved communities. Additionally, $300,000,000 annually for the same period is appropriated to HUD for grants to eligible grantees for housing and community development activities addressing the needs of individuals and census tracts adversely impacted by the War on Drugs.

This section establishes a 22-member Cannabis Products Advisory Committee within HHS to advise relevant federal regulatory bodies on the administration of the Act. The committee's membership includes industry stakeholders (with a focus on underrepresented communities), equity advocates, state regulators, consumers, public health/science experts, public safety officials, and representatives from various federal agencies (ONDCP, VA, ATCTTB, DOT, HHS agencies) and labor unions, and Indian Tribes. The committee will consider matters submitted by the Secretary, recommend guidelines, review public health surveillance, identify research gaps, and make recommendations on permit waiver requests for disqualifying offenses. It will also publish annual reports.

This section amends the Agricultural Marketing Act of 1946 to redefine 'hemp.' It changes the definition from 'not more than 0.3 percent delta-9 tetrahydrocannabinol on a dry weight basis' to 'not more than the allowable tetrahydrocannabinol equivalent amount' (1 milligram of total tetrahydrocannabinol per 100 grams on a dry weight basis, or 0.7 percent total tetrahydrocannabinol equivalent on a dry weight basis for specified plant products). 'Total tetrahydrocannabinol equivalent' includes delta-8, delta-9, delta-10 THC, and tetrahydrocannabinolic acid, with HHS, Treasury, and AG having authority to exclude isomers or modify amounts. This significantly tightens the definition of legal hemp, particularly impacting products with high concentrations of other THC isomers.