Cannabis industry fails.

WASHINGTON – The cannabis industry is dramatically scaling back its presence in Washington.

Curaleaf, one the largest cannabis companies in the world, spent nearly 40% less on lobbying in the first half of 2023 than it did at its peak in 2019. Others like Columbia Care and Pax Labs got rid of their entire lobbying teams. Of the four major cannabis industry coalitions that have been pushing for federal legalization of marijuana the longest, one has seen its revenue cut in half; two others appear to have folded completely. Together, their spending on advocacy has dipped by more than 50% since 2019, back when federal weed lobbying was at its height.

The pullback is the clearest signal of the turbulence facing the cannabis industry. Cannabis companies are losing money, even as marijuana’s acceptance is higher than ever before. The financial woes are, in large part, a consequence of cannabis remaining illegal at the federal level. As a result, cannabis companies are ineligible for tax breaks, and often cannot even access business loans or open bank accounts.

“The cruel irony is that businesses are forced to cut back on their government relations spending when in fact that advocacy [is] what’s needed in order for the industry to actually succeed,” said Aaron Smith, the co-founder and CEO of the lobbying group National Cannabis Industry Association.

Advocates say the exodus is premature — and a potential death knell to the industry’s progress thus far in Washington. While Congress has so far failed to pass a major cannabis law, both Republicans and Democrats in Congress have introduced legislation to legalize the drug federally. Last July, even Senate Majority Leader Chuck Schumer introduced his own legislation to decriminalize marijuana federally. A closely watched bill that’s meant to make it easier for cannabis companies to get bank accounts also has over 100 cosponsors and has already received a hearing in the Senate this year; it’s passed the House a total of seven times.

“If they weren’t getting wins with lobbyists, how are they going to get wins without them?” asked Don Murphy, an independent lobbyist on cannabis banking who previously lobbied for the advocacy organization Marijuana Policy Project. “It’s like leaving the game in the third quarter.”