US Cannabis Lobbying Spikes on Rescheduling and Banking Reform Progress
Cannabis Industry Doubles Lobbying Efforts in Washington as Federal Legislation Hangs in the Balance.
Cannabis companies are ramping up their lobbying efforts in Washington, D.C., spending nearly $4 million in the first half of 2024—an increase from $2.4 million in the same period last year.
MJBiz Daily reports that this surge in spending reflects growing interest in pending federal cannabis legislation, including the Farm Bill, and the Biden administration’s efforts to reschedule cannabis, which could alleviate tax burdens under Section 280E of the Internal Revenue Code.
Industry experts point to a shift in perception, with cannabis increasingly seen as a bipartisan issue. This shift has attracted interest not only from core cannabis companies but also from other industries, including tobacco and alcohol giants.
Despite this, the tangible impact of these lobbying efforts remains uncertain. Key legislative goals, such as cannabis banking reform and the new Farm Bill, appear unlikely to pass in the current congressional session, leaving many industry challenges unresolved.
Among the top spenders is Chicago-based Cresco Labs, which has significantly increased its lobbying budget, spending $1.24 million so far this year. New York-based Curaleaf Holdings follows, with a steady $290,000 per quarter.
Despite these efforts, skepticism remains about whether the industry is getting enough return on its lobbying investments, especially given the slow pace of legislative progress.
Compared to other industries, the cannabis sector’s lobbying expenditures are becoming increasingly competitive. For instance, the $80,000 Cresco Labs spent on one prominent lobbying firm in a single quarter equals what major corporations like McDonald’s paid for similar services.
This comparison highlights the growing financial muscle of the cannabis industry, which must navigate complex federal laws while vying for legislative attention in a crowded and competitive lobbying environment.
