Efforts to pass the SAFE or SAFER Banking Act during the lame duck session of Congress are gaining momentum, though time is running out.
The Secure and Fair Enforcement (SAFE) Banking Act currently has 131 sponsors in the U.S. House of Representatives, more than any other marijuana-related bill in Congress. The updated Secure and Fair Enforcement Regulation (SAFER) Banking Act in the Senate has 36 sponsors and was approved late last year by the Senate Banking Committee with bipartisan support.
Both measures would establish explicit federal protections for banks and credit unions that work with marijuana businesses operating legally under state law. They would also allow state-legal marijuana businesses to take standard IRS tax deductions. With the measures set to expire at the end of the year and a new Congress convening in January, proponents are racing against the clock to secure passage.
Congressmember David Joyce (R-OH), the primary sponsor of SAFE Banking, plans to refile the measure in January. However, his team believes there is still a chance for its approval during the lame duck session. In addition, a staffer for Senate Majority Leader Chuck Schumer says he is continuing efforts to push the measure through the Senate, something he has promised since its passage by the Banking Committee in September of last year. Schumer is specifically attempting to attach the proposal to “one of the year-end packages expected next month”, according to Brendan Pedersen of Punchbowl News.
In September, Senator Elizabeth Warren (D-MA) expressed optimism that SAFER could still pass the Senate this year, suggesting a vote could occur before the end of the lame duck session.
If the measure passes the Senate, it appears to have enough support in the House to pass, including having the support of nearly every Democrat and dozens of Republicans. Staffers for two members of the House reported growing support for SAFE Banking, with one telling us that House Speaker Mike Johnson has signaled to colleagues that he will not oppose its inclusion in a larger funding bill, and will consider giving it a House vote as a standalone bill if it passes the Senate. Although Johnson has previously opposed SAFE Banking, President-elect Trump’s recent endorsement appears to be influencing his stance.
If Congress is to approve the SAFE or SAFER Banking Act during the lame-duck session, significant movement will need to happen soon, as the new Congress convenes on January 3, and Congress is likely to go into recess in mid-December.
Polling shows that 63% of U.S. adults support legislation providing marijuana businesses access to essential financial services in states where marijuana is legal, with just 17% opposed, indicating strong public backing for the move.
Under current law, most marijuana businesses are forced to operate as cash-only entities, making them prime targets for criminals. They are also barred from taking IRS tax deductions available to other state-licensed businesses, resulting in unnecessary financial losses.
