Tax & FinanceNew York-Jul 16, 2026

Senate Democrats File Bill To Fully Legalize Marijuana Under Federal Law As Trump Moves To Merely Reclassify It

Key Takeaway

Senate Democrats have filed a bill to federally legalize marijuana, a far-reaching proposal that comes as the Trump administration is moving ahead with a more incremental reform to reschedule cannabis. The Cannabis Administration and Opportunity Act (CAOA), which is also being led by Sen. Cory Booker (D-NJ), Minority Leader Chuck Schumer (D-NY) and Sen. Ron

What This Means for Cannabis Businesses

Tax developments like this directly impact the bottom line for every cannabis operator. With Section 280E creating effective tax rates above 70% for many businesses, any shift in federal tax policy - whether through rescheduling, court rulings, or IRS guidance - can mean the difference between profitability and closure. Cannabis business owners should work closely with a specialized CPA to understand how these changes affect their specific situation.

New York Cannabis Market Overview

New York is one of the newest major recreational markets. Despite a slow rollout, the state has issued over 2,100 licenses and continues to expand. The state has approximately 2,161 active cannabis licenses and 13 licensed testing laboratories. There are 49 cannabis professionals serving New York businesses on our directory, including CPAs, attorneys, and compliance consultants.

This analysis is based on reporting by Marijuana Moment. Read the original article. CannaBizGuide provides original commentary and analysis - this is not legal or tax advice.