On the one-year anniversary of a Senate committee’s passage of a bipartisan marijuana banking bill, the Congressional Budget Office (CBO) has released an analysis on the economic impact of the reform, including the likely increase in federally insured deposits from cannabis businesses by billions of dollars once banks receive protections for servicing the industry.
The Senate Banking Committee approved the Secure and Fair Enforcement Regulation (SAFER) Banking Act last September, but it’s so far gone without floor action amid competing legislative priorities and ongoing disagreements among members about specific components of the proposal. Stakeholders are hoping that the release of CBO score could help clear the path for floor consideration.
CBO looked at the legislation from multiple angles, assessing potential costs and savings for a variety of federal agencies such as the Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA), Financial Crimes Enforcement Network (FinCEN) and members of the Federal Financial Institutions Examination Council (FFIEC), including the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA).
CBO said it expects direct spending to be impacted in three key ways if the SAFER Banking Act is enacted. For example, mortgage programs would likely be affected due to
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