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Federal · H.R. 1976Introduced

States Reform Act — federal descheduling + state-led regulation

Federal bill that would remove cannabis from the Controlled Substances Act and transfer regulatory authority to the states, modeled on the federal-state framework used for alcohol after Prohibition. Imposes a 3% federal excise tax with revenue routed to SBA, law enforcement, and veterans programs.

Chamber
house
Session
119th Congress
Sponsor
Nancy Mace (R)
Introduced
2025-03-05
Last action
2025-03-06 — Referred to the House Committee on Energy and Commerce, Judiciary, Ways and Means, and others.
Official record
https://www.congress.gov/bill/119th-congress/house-bill/1976

The States Reform Act is the most-developed Republican-sponsored federal cannabis reform bill in the 119th Congress. It would deschedule cannabis at the federal level rather than reschedule, transfer enforcement authority to the states (modeled on the 21st Amendment's treatment of alcohol), and impose a 3% federal excise tax.

Key provisions

  • Federal status: removes cannabis from Schedule I of the Controlled Substances Act
  • State authority: states retain full authority over prohibition, taxation, and licensing within their borders
  • Federal taxation: 3% excise tax on cannabis products
  • Banking: enables interstate cannabis commerce and resolves §280E tax penalty for state-legal operators
  • Veterans: VA physicians may recommend cannabis to veteran patients in legal states

Current status

Referred to multiple House committees. No floor action scheduled. The bill has been periodically reintroduced across Congresses since its first version in the 117th.

Sources

  1. Congress.gov: H.R. 1976 (119th Congress)accessed May 17, 2026
  2. Office of Rep. Nancy Mace: States Reform Actaccessed May 17, 2026