How might the ‘Big Beautiful Bill’ affect the cannabis industry?
Last updated on Jul 23, 2025
Created on Jul 23, 2025
Article written by
Zach LevinIn-House Counsel
The One Big Beautiful Bill Act, also known as the Big Beautiful Bill, is a federal budget package that was signed into law on July 4, 2025.
The bill, at nearly 1,000 pages, affects a huge range of areas, from tax rates to national security. Some sections of the bill may impact the cannabis industry.
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Will the Big Beautiful Bill affect the cannabis industry?
The Big Beautiful Bill affects how federal spending is allocated across different government-funded programs and services. It also changes some tax rates for individuals and businesses.
It’s not uncommon for federal budget packages to contain legislation that directly or indirectly impacts certain industries through the passing of new policies and regulations.
That said, at no point does the Big Beautiful Bill directly mention cannabis. But some parts of the bill may affect certain aspects of the cannabis industry, including state medical programs.
Does the bill make cannabis illegal?
There has been a misconception that the Big Beautiful Bill outlaws cannabis in states where it’s already legal. This is not true, and there are no federal efforts underway to reverse existing state-level cannabis legalization.
Does the bill affect state medical cannabis programs?
The most notable cannabis-related change is the omission of the Rohrabacher-Blumenauer Amendment. This amendment has prohibited the Department of Justice (DOJ) from interfering with state medical cannabis laws, and has been included in every federal spending bill since 2014.
This omission potentially exposes state-compliant medical cannabis providers and patients to federal enforcement. However, the DOJ has not announced any intentions of using said federal enforcement.
Does the bill address cannabis banking reform?
The Big Beautiful Bill does not directly address cannabis banking, but congressional leaders are somewhat optimistic that its passage will create space for cannabis banking reform by removing legislative gridlock.
Because cannabis is federally illegal, financial institutions are often hesitant to provide certain services to cannabis businesses, including:
- Loans
- Credit card processing
- Traditional banking
As a result, many cannabis businesses in legal states operate on a cash-only basis. This can create challenges related to tax compliance, business growth, and more.
These obstacles have led to the introduction of the Secure and Fair Enforcement Regulation (SAFER) Banking Act, which would provide federal protections to banks that offer financial services to cannabis businesses operating legally within their states.
Some congressional leaders have stated that they are ready to move forward with the SAFER Banking Act now that the Big Beautiful Bill has passed.
Will the bill affect cannabis costs?
The Big Beautiful Bill does not contain any legislation that directly affects the costs of cannabis. However, it’s possible that the omission of the Rohrabacher-Blumenauer Amendment could affect medical cannabis costs indirectly.
Without pre-existing federal protections for medical cannabis programs, medical cannabis businesses may have a harder time finding investors who are willing to take the risk. This could potentially impact business costs, leading to higher prices for products.
Does the bill impact the hemp industry?
There’s a lot of confusion around how the Big Beautiful Bill affects the hemp industry. In its current form, the bill does not affect hemp in any way.
However, another piece of legislation could. The 2025 Agriculture Appropriations Bill contains language that, if enacted, would close loopholes exploited under the 2018 Farm Bill by banning:
- Hemp-derived intoxicating cannabinoids, including delta-8 tetrahydrocannabinol (THC), delta-9 tetrahydrocannabiphoral (THCP), and others
- Hemp-derived tetrahydrocannabinolic acid (THCA) products, such as THCA flower and vapes, which can produce intoxicating effects
While this bill could drastically affect the hemp industry throughout the country, it has yet to be passed.
The bottom line: The Big Beautiful Bill may impact the cannabis industry
The Big Beautiful Bill does not contain any legislation that directly mentions cannabis. However, it may still indirectly affect the cannabis industry, mainly through the omission of federal protections for state-level medical cannabis programs.
That said, many congressional and industry leaders are hopeful that the passing of the bill opens the door for cannabis banking reform, which would allow state-legal cannabis businesses to access financial services more easily.
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Larger purchase limits Access to higher potency strains Save up to 40% on product taxes Enhanced legal protection
Resources
- Agriculture, Rural Development, Food And Drug Administration, And Related Agencies Appropriations Bill, 2026. https://appropriations.house.gov/sites/evo-subsites/republicans-appropriations.house.gov/files/evo-media-document/fy26-ag-bill-summary-final.pdf
- H.Amdt.332 to H.R.2578. https://www.congress.gov/amendment/114th-congress/house-amendment/332
- Hemp production and the 2018 Farm Bill. https://www.fda.gov/news-events/congressional-testimony/hemp-production-and-2018-farm-bill-07252019
- S.2860 – SAFER Banking Act. https://www.congress.gov/bill/118th-congress/senate-bill/2860