Congresswoman Blasts Lack Of Cannabis Banking Protections In Key Spending Bill

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September 08 2025

A Democratic congresswoman is calling out Congress for dropping the ball on protections for banks working with state-licensed cannabis and hemp businesses in a major spending bill that moved forward this week.

At a House Appropriations Committee markup of the Financial Services and General Government (FSGG) bill, Rep. Betty McCollum (D-MN) expressed frustration over the missing cannabis policy provisions.

“Without this common-sense fix, which past bills included, we’re leaving legal businesses high and dry without access to proper financial services,” she said.

Minnesota recently legalized adult-use cannabis, but McCollum zeroed in on hemp, legalized federally under the 2018 Farm Bill.

“In just six years, Minnesota’s hemp industry has rebuilt a strong domestic supply chain for products like textiles, paper, and lotions,” she noted.

Surprisingly, McCollum also gave a nod to Rep. Andy Harris (R-MD), who’s pushing a broad ban on intoxicating hemp-derived cannabinoid products—a big chunk of the market.

“Hemp is used in textiles, construction, insulation, and therapeutic oils,” she said. “These are legal businesses, but banks serving them face heavy compliance burdens.”

She explained banks must file suspicious activity reports with the Financial Crimes Enforcement Network, making many hesitant to work with hemp or cannabis businesses. This forces these companies to operate mostly in cash, risking employee and customer safety.

A bipartisan group of 32 state and territory attorneys general recently urged Congress to pass a cannabis banking bill to unlock financial services for licensed businesses.

Sen. Jeff Merkley (D-OR), the Democratic sponsor of the SAFER Banking Act, said other priorities are currently overshadowing the bill. Meanwhile, Sen. Bernie Moreno (R-OH), the lead GOP sponsor, told Marijuana Moment he doesn’t expect action until fall.

Rep. Dave Joyce (R-OH), leading the House effort, told Marijuana Moment the cannabis banking legislation is coming this session, but it’s not on the immediate horizon.

The spending bill includes a report directing federal agencies to evaluate state-level cannabis regulations and retains provisions blocking Washington, D.C. from using tax dollars to legalize cannabis sales.

Local lawmakers have expanded medical cannabis access to work around this, but advocates, frustrated by the rider pushed by Harris, see it as an attack on D.C.’s autonomy.

The White House has called D.C.’s local cannabis reform a “failed” policy that’s led to “disorder.”