Cannabis Industry Lobbying Spend Soars in the US

The increase in lobbying spending reflects the potential impact of pending legislation, including the Farm Bill, as well as heightened interest in rescheduling and the subsequent lifting of the Internal Revenue Code Section 280E tax burden.

There is also a general recognition that cannabis has become more of a bipartisan issue and interest is growing amongst non core cannabis industries including tobacco and alcohol giants.  Over the past year, members of Congress have heard from a range of varied interests on cannabis-related issues including major insurance companies and credit unions, as well as lobbyists representing state and local governments.

The cannabis sector’s lobbying spend is becoming increasingly competitive. Cresco Labs spent $80,000 on one prominent lobbying firm in a single quarter which is the same as what huge corporations like McDonald’s paid for similar services.

… with questionable returns

The cannabis industry clearly has growing financial muscle, but it has to navigate complex federal laws while competing for legislative attention in a competitive lobbying environment.

Despite the increased spend and interest, the tangible impact of these lobbying efforts remains unknown. The main legislative goals still appear unlikely to pass in the current congressional session, leaving many industry challenges unresolved.

Marijuana policy is much more involved than whether to legalize or not, but that nuance is largely lost on a Capitol Hill contingent with a multitude of other concerns.  This is unlikely to change however much money and time are spent.

However, the choice is to spend on lobbying when the political returns are questionable, or risk fading into the background.  As Charlie Panfil, from top lobbying firm The Dashchle Group, said: “If you are not at the table, you’re on the menu.”