Cannabis corporations are spending more than ever to sway lawmakers in Congress, as evidenced by a federal lobbying report analysis. This expenditure is motivated by the first real steps toward federal marijuana legalization in a generation as well as threats from competitors using hemp as a raw material.
Marijuana companies spent nearly $4 million in the first and second quarters of 2024, a significant increase from $2.4 million in 2023. This surge in spending mirrors a similar uptick in late 2022, when cannabis banking reform seemed imminent during a congressional session. The current rise, however, is more significant because it takes into account the larger range of legislation that is being considered, such as the farm bill and the Biden administration’s efforts to reschedule cannabis, which may lessen the restrictions imposed by Section 280E.
Charlie Panfil, a prominent lobbyist with the Daschle Group, a public policy agency based in Washington, DC, says there is increasing awareness that marijuana reform is becoming a more bipartisan subject.
While the spending data show the resources being used to influence politicians at the federal level, the data does not fully convey the scope of the endeavors. Significant time and effort is also devoted to cannabis-related problems by powerful political players with strong interests in marijuana, such as the beer behemoth Anheuser-Busch and the tobacco company Altria Client Services. However, lobbying reports do not completely reflect this.
A wide range of entities have been interacting with Congress on cannabis-related issues during the past year. These include large insurance corporations, financial unions, and lobbyists for state and municipal government agencies.
Despite these efforts, the impact remains uncertain. It is unlikely that the current Congress will adjourn with any major advancements toward a new farm bill or banking reform. This may indicate that the legal loophole allowing the online sale of intoxicating hemp-derived goods in the majority of the United States will remain in place.
Furthermore, the U.S. Department of Justice’s rescheduling procedure is largely outside the purview of Congress, and Section 280E will stay in force until the process is completed, a procedure that is unlikely to be influenced by lobbyists.
Advocacy groups and individual marijuana multistate operators (MSOs) in Washington, DC, continue to have a substantial amount of spending power. For instance, Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF), an MSO based in Chicago, has invested $1.24 million this year for internal lobbyists and to keep the services of significant government relations companies such as Brownstein Hyatt Farber Schreck, which also represents credit unions in congressional lobbying on marijuana banking. Compared to the $250,000 the company spent in the first half of 2023, this is a significant rise.
Curaleaf Holdings also spends $290,000 every quarter on lobbying. Of that amount, $80,000 goes to Brownstein Hyatt Farber Schreck, $140,000 goes to its in-house lobbyist and $70,000 goes to Cozen O’Connor Public Strategies, an advisory company.
In some instances, the spending by cannabis companies rivals that of major companies. For instance, the $80,000 that Cresco Labs paid to Brownstein Hyatt Farber Schreck is the same amount that McDonald’s paid to Brownstein Hyatt Farber Schreck during the same period.
The additional challenges that cannabis companies encounter as a result of federal cannabis regulation are also highlighted by the companies’ higher spending. This might encourage legislators to delay resolving these difficulties because cannabis companies will have to keep paying for lobbying services for a longer period if these concerns remain, according to some observers.
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CannabisNewsWire.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer
CannabisNewsWire
Denver, CO
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CannabisNewsWire is powered by IBN
