Time to End the Failed War on Drugs

Floor Speech

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Mr. BLUMENAUER. Mr. Speaker, I will enter in the Record my comments that I would have made today.

Mr. Speaker, I am sad and I am angry.

I have been working for 50 years leading the effort to end the failed, unfair, cynical, dangerous war on drugs that targeted Black people, that discouraged the legal use of a therapeutic good, something that could have enriched our economy, but instead criminalized behavior, had unintended consequences, and continues to fail us today.

You have been reading comments lately about the problems we have in terms of the use of cannabis for some pregnant women who are unaware of the impact that that can have on a developing fetus. We are looking at impacts on our children from a cannabis that is much more potent than it used to be.

We don't have a system that regulates it, that taxes it, that keeps it out of the hands of children. No neighborhood drug dealer looks for identification, and they are perfectly happy to sell kids other, more dangerous and potent drugs. We don't have to do this.

The House of Representatives has passed a number of items that would remedy this situation. We passed the comprehensive MORE Act that would put it on equal footing. Frankly, we have legislation that would stop the unfair practice of taxing State-legal cannabis businesses two or three times higher than regular businesses. No wonder they can't compete with the black market.

We have a situation now where the State-legal cannabis companies have to pay their taxes with shopping bags full of $20 bills, because we still deny them access to banking services. That is not just unfair; it is insane. It promotes money laundering, and it inhibits the opportunity of enterprises that are legal now for most Americans for either medical or adult use.

It is time that the Federal Government get its act together and stop making these problems worse. The Biden administration has taken some halting, positive steps, pardoning people who didn't need to be caught up in this in the first place, and they are looking at rescheduling cannabis to make it easier to do the research, and it would overnight end the unfair taxing situation. They would be able to deduct their business expenses. How novel. It is time for Congress to stop making this problem worse.

The Federal Government created the situation with the failed war on drugs, unfair to millions of Americans, and denied an opportunity for something that the American public has demonstrated time after time they want to happen by their State votes legalizing it.

It is not too late for this Congress to take the legislation that we have in the process to solve this problem, to be fair in the failed war on drugs, be able to allow State-legal businesses to not be at a disadvantage to the cartels and the cheaters, and get this right.

After 50 years, it is time to finally end the failed war on drugs and be fair to the American people.

Let's reflect for a moment on the cost of our failure to act on the critical cannabis reform proposals before this Congress.

Tens of millions of Americans have been trapped by the deplorable failed war on drugs and archaic prohibition of marijuana.

While this prohibition has harmed Americans across the board, it has not been enforced equally.

In every single state, Black people are more likely to be arrested for marijuana possession than their white neighbors.

Black people are more than three times as likely than whites to be arrested for marijuana possession, despite comparable usage rates.

The public finally recognizes this injustice.

Ending to this failed policy is more popular than ever before.

Seventy percent of Americans support legalizing marijuana, including majorities of Republicans and Independents as well as Democrats.

It is states, led by my home state of Oregon, that have led the way to end this prohibition.

Twenty-four states and multiple territories having legalized adult- use marijuana.

Many of these states have worked valiantly to make these markets accessible to those directly impacted, especially communities harmed in the weaponization of marijuana prohibition.

They have invested in equity licensing structures, tax relief, and more.

However, it is clear, that without a comprehensive federal framework for legalization, these programs will continue to fall woefully short.

A state-by-state patchwork of legalization doesn't work.

To meaningfully address the harms facing our communities-- particularly Black and Brown Americans targeted in federal cannabis prohibition--we must act on the critical proposals before this Congress.

Obviously the MORE Act is the gold standard for comprehensive reform. This critical legislation:

Deschedules marijuana;

Expunges prior convictions;

Implements a real federal tax structure for these products;

Makes SBA funds available to these small businesses; and

Invests in programs that minimize barriers to marijuana licensing and employment for the individuals most adversely impacted by the failed war on drugs.

The House has twice passed this legislation with bipartisan support. It is devastating that the Senate has failed to act.

The SAFE Banking Act makes banking services available to regulated marijuana businesses--denying the benefits that keep employees safe and lower costs for vulnerable small businesses by getting cash off the streets.

The Veterans Equal Access Act allows veterans to work with their preferred providers to decide if medical marijuana is the right treatment option for them instead of denying them their preferred provider for care.

And, finally, perhaps most important for struggling cannabis businesses is tax reform.

Under Section 280E of the federal tax code, marijuana businesses are not able to deduct any business expenses from their federal taxes.

This exponentially increases their tax burden compared to other regulated businesses.

My Small Business Tax Equity Act would end this inequity, making it far more accessible for small businesses to enter the legal marijuana markets and fairly compete with the illicit market.

While Congress considers these critical pieces of legislation, President Biden has taken some action to address the ongoing harms of criminalization.

In 2022, he issued thousands of pardons for simple federal marijuana possession convictions and challenged governors across the country to do the same for state convictions.

This past December, he expanded this relief to convictions in D.C. and to those with federal convictions for attempted possession of marijuana.

For the people eligible, these pardons are tremendously impactful-- restoring their rights to education and housing and so much more.

The Drug Enforcement Administration has also confirmed their authority to deschedule marijuana.

Descheduling marijuana will allow full deduction of costs of marijuana business.

Allowing these businesses to deduct their expenses as the tax code was intended will help level the playing field for those who do not have the benefit of existing dominance in the industry.

Descheduling is a vital, common-sense leap forward that will make the federal government the partner our states and communities need to address the ongoing harms of our failed cannabis policies.

Congress must act on the common-sense reforms to meaningfully end the failed war on drugs and repair the harms caused by a state-by-state patchwork of marijuana legalization.

It is past time for simple bipartisan reform.

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