Federal Cannabis Legalization Faces Crossroads Amid State Bans and Congressional Gridlock

Federal Cannabis Reform Faces Crossroads: Progress, Pushback, and State-Level Shifts

The future of cannabis reform in the United States is hitting a critical juncture. A growing coalition of advocacy groups, lawmakers, and civil rights organizations is pushing for sweeping changes to federal marijuana laws—even as state-level crackdowns and Congressional resistance threaten to stall progress.

ACLU and Allies Urge Support for Federal Legalization

In a strongly worded public letter, the ACLU joined a coalition of civil liberties and social justice organizations calling on Congress to pass comprehensive federal marijuana legislation. The letter stresses that cannabis criminalization has disproportionately harmed communities of color and that rescheduling or legalizing marijuana federally is essential to repairing decades of harm.

Their appeal comes as new federal reform proposals gain momentum in the wake of President Biden’s rescheduling review. The ACLU noted that piecemeal reform, such as simply reclassifying cannabis under the Controlled Substances Act, won’t be enough—Congress must go further and embrace full legalization.

“Now more than ever, Congress needs to pass legislation that ensures justice, equity, and economic opportunity for all,” the letter states.

California Cracks Down on Intoxicating Hemp and Synthetic THC

While federal reform efforts unfold, California is moving in the opposite direction—at least when it comes to unregulated hemp products. A new bill passed by the California Legislature, and now on Governor Gavin Newsom’s desk, would ban the sale of all intoxicating hemp-derived products—including synthetic THC—outside the state’s regulated cannabis market.

This means popular items like Delta-8 and THC-O gummies could soon be illegal unless sold through licensed cannabis dispensaries. Supporters argue the measure will protect consumers from poorly labeled or chemically synthesized cannabinoids, but hemp industry groups warn the ban could devastate small producers.

Republican Lawmakers Oppose Rescheduling

Adding to the complexity, nine Republican members of Congress sent a letter in late August to Attorney General Merrick Garland, expressing their opposition to rescheduling cannabis. They argue that cannabis remains a “gateway drug” and that loosening its classification would increase public health risks.

This pushback follows the Department of Health and Human Services' recommendation earlier this year to move cannabis from Schedule I to Schedule III—a move that would still keep marijuana federally controlled, but recognize medical use.

FY26 Budget Bill Seeks to Block Rescheduling

In another blow to reform, the House Appropriations Committee recently advanced the FY26 Commerce, Justice, and Science (CJS) spending bill. Buried within the legislation is Section 607, a provision that would explicitly prohibit the Department of Justice from using federal funds to reschedule cannabis.

Advocates fear this language could delay or derail pending efforts to reclassify marijuana—even if the DEA or HHS support the move.

What's Next?

With multiple states expanding access and the public increasingly supportive of reform, the national conversation around cannabis legalization is accelerating—but also fracturing. Whether federal lawmakers can overcome internal divisions and outside lobbying pressure remains to be seen.

For cannabis consumers, small businesses, and patients, the message is clear: stay informed, stay legal, and watch closely—because the rules are still changing.

Frequently Asked Questions About Federal Cannabis Reform

**The beliefs and opinions expressed in this blog are not those of Waterbeds 'n' Stuff.