THE CANNABIS LEGALIZATION ACT OF 2026

A Bill
To legalize cannabis at the federal level, establish a unified national regulatory framework consistent with alcohol and tobacco, modernize hemp policy, close intoxicating-hemp loopholes, protect cannabidiol (CBD) and other non-intoxicating hemp derivatives, restore federal rights to cannabis consumers, enable interstate commerce, and protect tribal sovereignty.

SECTION 1. SHORT TITLE.
This Act may be cited as the “Cannabis Legalization Act of 2026.”

SECTION 2. FINDINGS.
Congress finds the following:
1. Cannabis prohibition has failed and created a nationwide unregulated intoxicant gray market.
2. Thirty-nine states have legalized medical or adult-use cannabis.
3. Forty-seven states allow some legal form of cannabis or hemp derivative.
4. Industrial hemp is an agricultural commodity requiring clear distinction from intoxicating cannabis.
5. The 2018 Farm Bill unintentionally created loopholes enabling intoxicating hemp-derived products (delta-8, delta-10, synthetics) to be sold outside regulated systems.
6. CBD is widely used, non-intoxicating, and safe when derived from lawful hemp.
7. Federal legalization, properly structured, will strengthen public health, reduce illicit markets, and support farmers and small businesses.
8. A clear national framework is necessary for product safety, interstate commerce, taxation, and financial services.

SECTION 3. DEFINITIONS.
(a) Hemp.
“Hemp” means the plant Cannabis sativa L. and any part of that plant containing 3.0% total THC or less on a dry-weight basis, including fiber, hurd, seed, grain, non-intoxicating cannabinoids, and all derivatives incapable of producing an intoxicating effect.

(b) Cannabis.
“Cannabis” means the plant Cannabis sativa L. or any derivative, extract, concentrate, compound, or product containing more than 3.0% total THC, or capable of producing an intoxicating effect, regardless of source.

(c) Total THC.
Includes delta-9 THC, THCA (post-decarboxylation), delta-8 THC, delta-10 THC, HHC, THC-O, THC-P, THC-B, and all intoxicating analogs, esters, salts, synthetic or semi-synthetic cannabinoids.

(d) Intoxicating Effect.
Any measurable psychoactive, euphoric, depressant, stimulant, or psychotropic effect.

(e) Licensed Entity.
Any individual or business licensed under this Act or a state cannabis program.

(f) Cannabidiol (CBD) — SAFE HARBOR.
1. CBD derived from lawful hemp is not cannabis and shall not be treated as an intoxicating substance.
2. Hemp-derived CBD products remain regulated as hemp, provided they contain ≤0.3% delta-9 THC and ≤3.0% total THC.
3. Non-intoxicating cannabinoids (CBN, CBC, CBT, CBDa, CBG) remain hemp unless intentionally converted into intoxicating cannabinoids.
4. Standard hemp extraction processes do not constitute cannabis manufacturing.
5. FDA may regulate CBD as a dietary or consumer product but may not classify hemp-derived CBD as a drug unless artificially synthesized or combined with intoxicating cannabinoids.
6. CBD products may freely participate in interstate commerce under hemp regulations.

SECTION 4. FEDERAL LEGALIZATION OF CANNABIS.
(a) Cannabis is removed from all schedules of the Controlled Substances Act.
(b) It is lawful to cultivate, manufacture, distribute, transport, possess, or consume cannabis.
(c) Regulation is structured similarly to alcohol and tobacco under ATF, FDA, and USDA.

SECTION 5. CLOSING THE HEMP INTOXICANT LOOPHOLE.
(a) All intoxicating products, regardless of origin, are classified as cannabis.
(b) Chemical conversions require a cannabis manufacturing license.
(c) Unlicensed intoxicating production or distribution is prohibited.
(d) ATF, FDA, and USDA jointly enforce penalties.

SECTION 6. STATE REGULATORY AUTHORITY.
(a) States with legal cannabis retain full control.
(b) States without legal cannabis retain prohibition internally.
(c) States may not obstruct interstate commerce.
(d) States may not allow unregulated intoxicants.

SECTION 6A. STATE CLASSIFICATION.
Tier I — Adult-use states.
Tier II — Medical-only states.
Tier III — CBD-only states.
Tier IV — Prohibition states.
No state may interfere with interstate commerce or permit unregulated intoxicants.

SECTION 7. AGE RESTRICTIONS.
21+ for all intoxicating cannabis products.

SECTION 8. INTERSTATE COMMERCE.
Interstate commerce of cannabis and hemp is legalized.
States may not blockade, seize, tariff, or obstruct federally legal shipments.

SECTION 9. FEDERAL TAXATION.
Cannabis taxed similarly to alcohol and tobacco.
Revenue supports farmers, small businesses, banking access, hemp industrialization, and enforcement.

SECTION 10. INDUSTRIAL HEMP MODERNIZATION.
Hemp ≤3% THC fully legal as agriculture.
Federal R&D and grants for fiber, hurd, biochar, graphene, composites, and construction materials.

SECTION 11. BANKING, RIGHTS & PROTECTIONS.
SAFE Banking integrated.
No loss of federal employment, housing, VA benefits, SNAP, or student aid.

SECTION 12. TRIBAL SOVEREIGNTY.
Tribes may regulate cannabis on tribal lands and participate in interstate commerce without state interference.

SECTION 13. IMPLEMENTATION TIMELINE.
Immediate — Legalization.
6 months — Interstate commerce regulations.
12 months — Full federal framework in place.
18 months — Banking and tax provisions active.
24 months — National integration complete.

SECTION 14. SEVERABILITY.
If any provision is invalidated, the remainder stands.