Federal Cannabis Decriminalization Bill Mandates Expungement and Creates New Tax-Funded Reinvestment Programs

The Marijuana Opportunity Reinvestment and Expungement Act, or MORE Act, is a massive federal overhaul that does exactly what it says on the tin: it decriminalizes cannabis at the federal level and starts the process of repairing the damage done by the War on Drugs. The biggest, most immediate change is that the law completely strikes "Marihuana" and related compounds from the federal Controlled Substances Act. This isn’t just a symbolic move; the change is retroactive, meaning it applies to any offense committed before, on, or after the date the Act is passed, fundamentally changing the legal status of past and pending federal cases. Within 180 days, the Attorney General must finalize the rule making this official, finally aligning federal law with the 47 states that have already moved forward with some form of legal access.

Clearing the Slate: Automatic Expungement and Resentencing

For anyone with a federal cannabis conviction, this bill is a game-changer. The law mandates that within one year, every federal district court must automatically review and expunge all non-violent federal cannabis convictions and arrests dating back to May 1, 1971. If you’re currently serving a sentence (like probation or prison) for a non-violent federal cannabis offense, you can petition the court to have your sentence vacated and be resentenced as if the new law had been in place all along. Once expunged, you can legally act like the arrest or conviction never happened, removing a massive barrier to jobs and housing. However, if you received an “aggravating role adjustment” during your original sentencing, you’re specifically excluded from this expungement process, which is a key detail for those with more complex criminal histories.

The Opportunity Trust Fund and the New Federal Tax

Decriminalization isn't free; it’s being funded by new federal taxes on cannabis products, which flow into a newly created Opportunity Trust Fund. This fund is designed to reinvest in communities disproportionately harmed by past prohibition. The tax starts at 5% of the product’s removal price for the first two years, gradually increasing to 8% by the fifth year. After that, the tax switches to a weight-based calculation (per ounce/gram of THC) based on national sales data, a formula the Treasury Secretary has to figure out and publicize six months in advance. This tax structure provides a steady income stream for three major programs:

• Community Reinvestment Grants: Half of the fund goes to the new Cannabis Justice Office to issue grants for job training, legal aid (like clearing state convictions), literacy, and substance use treatment for those impacted by the War on Drugs.
• SBA Programs: The remaining 40% is split between two Small Business Administration (SBA) programs: the Cannabis Restorative Opportunity Program for loans and technical assistance to small businesses owned by socially and economically disadvantaged individuals, and the Equitable Licensing Grant Program to help states set up fair licensing systems that prioritize those impacted by prohibition.

Opening the Door for Cannabis Businesses

For the state-legal cannabis industry—which has been locked out of traditional banking and federal support—this bill is a massive step forward. The MORE Act explicitly requires the SBA to treat Cannabis-Related Legitimate Businesses (CRLB) and their service providers (think landlords, accountants, and lawyers) the same as any other eligible business. This means CRLBs can finally access crucial SBA resources like Section 7(a) loans, disaster loans, microloans, and assistance from Small Business Development Centers. This change is critical for minority-owned businesses that often struggle to raise capital in the existing, federally restricted environment.

No More Penalties for Being a Consumer

Beyond the business side, the bill cuts the cord between cannabis use and major life hurdles. It prohibits federal agencies from denying anyone a federal public benefit (like housing or food assistance) based on their use or possession of cannabis or a past cannabis conviction. Similarly, it prohibits using past or current cannabis use as a reason to deny or revoke a security clearance. On the immigration front, past cannabis activity can no longer be used as a basis to deny any immigration benefit or protection, cleaning up a long-standing issue where simple possession could trigger deportation proceedings. While the federal prohibition ends, it’s worth noting that the Secretary of Health and Human Services may still include marijuana when drug testing federal employees, maintaining a small exception to the general decriminalization for that specific workforce.