STATES 2.0 Act Reintroduced to Bridge Federal-State Cannabis Divide

As federal cannabis reform continues to lag behind state-level progress, lawmakers are once again pushing for a fix. On April 17, 2025, a bipartisan trio of House Representatives reintroduced the STATES 2.0 Act—legislation designed to give states full control over their cannabis laws without federal interference. From tax relief to interstate commerce, the bill tackles some of the industry’s biggest sticking points. And if passed, it could mark a serious turning point for how cannabis is handled nationwide.

Key Takeaways

• The STATES 2.0 Act has been reintroduced by Reps. Dave Joyce, Max Miller, and Dina Titus to uphold state autonomy in cannabis regulation.
• The bipartisan bill would exempt state-legal cannabis activity from the federal Controlled Substances Act.
• It proposes federal oversight for product safety while preserving states’ rights to prohibit cannabis.
• The act includes long-sought tax relief by ending Section 280E penalties for legal businesses.
• Advocates say this bill could finally bring stability and clarity to cannabis policy across the U.S.

A Federal Cannabis Reset?

In a significant step toward untangling the long-standing mess between state and federal cannabis laws, U.S. Representatives Dave Joyce (R-OH), Max Miller (R-OH), and Dina Titus (D-NV) have reintroduced the Strengthening the Tenth Amendment Through Entrusting States (STATES) 2.0 Act. The bill is designed to let states—and also Washington D.C., U.S. territories, and tribal nations—decide their own cannabis policies without the feds breathing down their necks.

More than half of U.S. states now allow some form of cannabis use, and the current federal stance is getting harder to defend. The STATES 2.0 Act is meant to be the cleanup job that brings some long-overdue clarity.

What the STATES 2.0 Act Actually Does

This bill isn’t just a statement—it’s a detailed blueprint for reshaping federal cannabis policy. Here’s what it proposes:

• Takes cannabis out of the Controlled Substances Act—at least for any activity that complies with state or tribal law
• Keeps protections in place for states that still want to ban cannabis, including federal help with enforcement
• Assigns oversight to the FDA and the Alcohol and Tobacco Tax and Trade Bureau (TTB) for things like manufacturing standards, labeling, and contaminant testing
• Preserves safety rules, like banning cannabis sales at truck stops and keeping anyone under 21 out of the recreational market (unless it’s for medical use)
• Adds a federal study on cannabis-related traffic safety and impairment testing

And here’s a big one: The bill would finally fix the 280E problem. Under current law, cannabis businesses—even legal ones—can’t deduct normal business expenses because weed is still federally illegal. The STATES 2.0 Act changes that, stating plainly that compliant businesses are not “trafficking” and can be taxed like any other company.

Broad Support from Advocates and Industry Groups

Plenty of groups across the political spectrum are backing this move. From the R Street Institute to CPEAR and Americans for Prosperity, the message is pretty consistent: cannabis law in the U.S. is a mess, and this bill offers a real fix.

Shanita Penny of CPEAR called it a chance to “bring clarity, consistency, and accountability.” Anthony Lamorena of the R Street Institute called the bill “a good free-market approach” that finally gives states the tools they need to enforce their own laws properly and safely.

Even organizations that aren’t known for cheerleading cannabis legalization see STATES 2.0 as a practical step forward. As it stands now, businesses, law enforcement, veterans, and medical professionals are caught in legal limbo—especially in states where cannabis is already regulated and widely used.

Why Now?

There’s growing urgency behind this effort. Every time another state legalizes cannabis, the gap between federal and state law widens. That leaves the people working in the cannabis industry—growers, retailers, doctors, patients, and regulators—operating in a legal gray zone. The STATES 2.0 Act is a bid to close that gap.

It also aligns with the cannabis stance voiced by President Trump, who repeatedly said that states should be allowed to choose their own path. That might help the bill attract wider GOP support in the Congress, which could be key to getting it across the finish line.

Conclusion

The STATES 2.0 Act is aiming to bring some much-needed order to cannabis policy in the U.S. By giving states the final say, offering relief from unfair tax laws, and laying the groundwork for smarter federal oversight, this bill doesn’t just acknowledge the reality of legalization—it’s trying to make that reality easier to manage.

Whether it gains enough traction this time around is anyone’s guess. But with bipartisan support, increasing public pressure, and a growing number of legal cannabis markets, the STATES 2.0 Act might finally be the bridge between a tangled past and a better-regulated future.