16 Governors Demand Congress Pass Cannabis Banking Reform Before Year's End
A coalition of 16 Democratic governors is urging Congress to pass cannabis banking reform before the end of 2026. The proposed SAFE Banking Act would help state-licensed cannabis businesses access traditional financial services, reduce cash-related security risks, and address longstanding conflicts between state legalization and federal banking restrictions.
A coalition of 16 Democratic governors is urging Congress to pass cannabis banking reform before the end of 2026, arguing that federal restrictions continue to create financial and public safety challenges for state-licensed cannabis businesses.
A coalition of 16 Democratic governors is calling on Congress to finally address one of the cannabis industry's longest-running challenges: access to traditional banking services.
In a letter sent to congressional leadership on November 9, the governors urged lawmakers to pass cannabis banking protections before the current congressional session ends.
The legislation, commonly known as the Secure and Fair Enforcement (SAFE) Banking Act, would provide federal protections for qualifying banks and credit unions serving state-licensed cannabis businesses.
Maryland Governor Wes Moore led the effort, joined by governors from states including Oregon, New York, Michigan, Washington, and New Mexico.
A Multibillion-Dollar Industry Still Operating in Cash
Despite the expansion of legal cannabis markets across the United States, many licensed businesses continue struggling to access financial services that other industries take for granted.
Traditional banking relationships, business loans, payment processing, and other financial tools remain difficult or expensive for some cannabis operators because marijuana remains subject to federal restrictions.
This creates problems extending beyond business convenience.
Cash-heavy operations can increase security risks for dispensaries, employees, customers, and surrounding communities.
Businesses may need to transport significant amounts of physical currency, maintain larger cash reserves, and navigate complicated financial arrangements simply to conduct everyday operations.
The governors argue that these restrictions undermine public safety and make it more difficult for state regulators to oversee an industry operating legally under their own laws.
According to figures cited in their letter, 21 states have collected more than $27.6 billion in cannabis tax revenue since 2012.
What Would the SAFE Banking Act Actually Change?
The SAFE Banking Act would protect qualifying financial institutions from certain federal penalties for providing services to state-authorized cannabis businesses.
That could expand access to checking accounts, lending, payroll services, and other essential financial infrastructure.
The legislation could also help bring more cannabis-related financial activity into the regulated banking system, where transactions can be monitored under existing financial oversight requirements.
- Reduce certain federal legal risks for banks serving licensed cannabis businesses.
- Improve access to checking and deposit accounts.
- Create more opportunities for business lending.
- Reduce reliance on cash-heavy operations.
- Improve financial transparency and oversight.
However, the bill would not federally legalize cannabis, automatically guarantee business loans, or require every bank to accept cannabis customers.
It also would not automatically make major credit card networks available to dispensaries.
Instead, the proposal focuses on reducing the federal legal risks that discourage financial institutions from serving legitimate, state-licensed operators.
New Mexico Joins the National Push
New Mexico Governor Michelle Lujan Grisham is among the governors supporting cannabis banking reform.
For New Mexico's cannabis industry, financial access remains particularly relevant as licensed businesses compete with unregulated sellers, manage operational expenses, and navigate state and federal compliance requirements.
Smaller businesses can be especially vulnerable to financial barriers because they often lack the resources to negotiate specialized banking relationships or absorb additional compliance costs.
Greater access to traditional banking could improve financial stability for businesses operating within the state's regulated cannabis marketplace.
Years of Political Promises, but Still No Federal Solution
Cannabis banking reform is hardly a new proposal.
Previous versions of the SAFE Banking Act have passed the U.S. House of Representatives multiple times, only to stall before becoming federal law.
The Senate Banking Committee advanced related legislation in 2023, but the measure never received a final Senate vote.
A new bipartisan version of cannabis banking legislation was introduced in June 2026, yet the measure has not advanced through committee hearings.
Supporters argue that lawmakers have had years to address a problem affecting thousands of businesses and their employees.
Banking industry representatives have also supported cannabis banking legislation, emphasizing the importance of regulatory clarity and bringing financial transactions into the supervised banking system.
The Clock Is Ticking on Congress
With the current congressional session approaching its conclusion, the governors are urging lawmakers to act rather than postpone the issue until the next Congress convenes in January 2027.
Changes in congressional membership following the midterm elections could affect the political landscape for cannabis reform.
However, bipartisan cooperation will remain important, particularly in the Senate, where most legislation faces a 60-vote threshold to overcome a filibuster.
Whether the current Congress acts before its term expires remains uncertain.
For cannabis operators, another delay would mean continuing to navigate financial restrictions that businesses in most other legal industries rarely encounter.
A Question of Fairness and Public Safety
The governors' message highlights a fundamental contradiction in American cannabis policy.
States authorize and regulate cannabis businesses, collect taxes from their operations, and require them to comply with extensive financial and licensing rules.
Yet federal restrictions continue to make basic banking relationships difficult for many of those same businesses.
The SAFE Banking Act would not resolve every conflict between state and federal cannabis laws, but supporters argue it represents a practical step toward a safer, more transparent financial system.
For an industry that has repeatedly watched cannabis banking legislation advance only to stall, the question is whether Congress will finally turn bipartisan promises into enforceable law.
Sources & Further Reading
- Marijuana Moment: Federal Cannabis Banking Coverage
- American Bankers Association: Cannabis Banking Policy
- Congress.gov: Federal Cannabis Banking Legislation
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