As Canada Reimburses Medical Marijuana For Military Veterans, The U.S. Keeps Failing Those Who Served (Op-Ed)

“The lies, hypocrisy and inaction are enough to make anyone cynical…but a better world is indeed possible.”

By Eric Goepel, Veterans Cannabis Coalition

For a nation that puts its military veterans in such high esteem and notionally spends hundreds of billions of dollars on caring for them, the failures of the U.S. government to even marginally reduce suicide or overdose among veterans stands as a stark reminder that more can—and should—be done.

In the last 20 years that we have been working together as allies in Afghanistan and elsewhere, Canada has gone from federally allowing for the medical use of cannabis to legalizing it for all adults. For more than ten years, they have been reimbursing veterans for “cannabis for medical purposes,” starting with 37 clients in 2011 and expanding to more than 18,000 in 2021. Canadian veterans, unlike their U.S. peers, are seeing dropping rates of suicide

There is no question that veterans of the U.S. Armed Forces are using cannabis.

To what extent, it is hard to say. Surveys by veterans service organizations and government data like the National Survey on Drug Use and Health make it difficult in determining use patterns because of their limitations in precision and scope.

At this point, however, more than half of the county’s 18 million veterans live in states that have legalized cannabis for adult use. When you consider that all but a small number have passed laws that acknowledge its therapeutic value, the vast majority of veterans have more access to state-legal cannabis than ever before.

In the midst of all this progress, there stands the U.S. Department of Veterans Affairs (VA). Since the first introduction of the Veterans Equal Access Act by Congressman Earl Blumeanuer in 2014, the VA under three presidents and four secretaries has opposed every cannabis-related reform aimed at the department. That includes falsely stating in a 2018 letter from VA Secretary David Shulkin to the House Committee on Veterans’ Affairs leadership that the VA could not even conduct research on cannabis.

Over the last eight years, hundreds of representatives and senators have sponsored and cosponsored bills which the VA has uniformly rejected, including:

Codifying a Veteran Health Administration directive protecting veterans who disclose cannabis use.

Allowing VA physicians to fill out paperwork to allow veterans to access state medical marijuana programs.

Conducting mandated research investigating the medical applications of cannabis.

Creating a safe harbor for veterans to possess cannabis on VA property.

The budget for the VA was $40 billion in 2001; the most recent budget request for 2023 is $300 billion. In that same time period, which includes 3.5 million Americans deploying to Iraq and Afghanistan and 7,052 direct war deaths, more than 127,000 veterans have died by suicide. In fact, there are more suicides in 2020 (6,146) than when VA started collecting data in 2001 (6,001) despite the veteran population dropping by 5 million (25 percent) over that timespan.

Veteran suicide prevention, by all accounts to the public, is the VA’s “top clinical priority.” In turn, veterans have grown increasingly vocal about sharing their lived experience of using cannabis—THC, CBD and other cannabinoids—as a tool to dramatically reduce their suicide risk by substituting cannabis for more harmful, less effective substances.

Cannabis, for some veterans, offers effects like pain management, sleep enhancement and reduced anxiety and depression. In comparison to the cocktails of opioids, sleeping pills, antidepressants and antipsychotics they are regularly prescribed by the VA and private physicians, cannabis delivers far better results at a fraction of the mental and physical cost.

While those experiences are not universal, even the VA grudgingly admits that specific cannabinoid formulations and Food and Drug Administration- (FDA) approved drugs have documented positive effects. In spite of community demands and a clear evidence base, the VA has only one approved and funded one cannabinoid study underway: a synthetic CBD trial at UC San Diego.

Meanwhile, veterans who have faced ignorance, dismissal or punitive actions from the Veterans Health Administration for disclosing their cannabis use are confronted with official support for weakly supported “complementary and integrative health” practices like acupuncture and biofeedback.

Whatever an individual thinks or believes about the morality or consequences of cannabis use, cannabinoids are not a placebo. Every human being possesses an endocannabinoid system that “regulates and controls many of our most critical bodily functions such as learning and memory, emotional processing, sleep, temperature control, pain control, inflammatory and immune responses and eating.” The major cannabinoids found in the cannabis plant, like THC and CBD, all have mechanisms of action that create the effects people seek out, like pain relief, easing of anxiety and sedation at far less risk than what is currently available.

There is also no question that cannabis poses far less health risk, even with chronic consumption, than legal drugs like alcohol, tobacco and pharmaceuticals. In the 51 years since then-President Richard Nixon declared a “War on Drugs,” no federal agency has ever associated a single death with cannabis consumption. Those legal and regulated substances, however, are linked to more than 700,000 deaths annually. Even seemingly innocuous over-the-counter medications like non-steroidal anti-inflammatory drugs (NSAIDs, some of which are known commonly by their trade names Motrin and Aleve), are associated with thousands of deaths and tens of thousands injuries.

The risk of cannabis is low relative to the substances it competes with. The lived experience of veterans and a growing body of research support its use as a medicine. The current options are more harmful and/or less effective. And every level government has failed to stop the ever-increasing rise of suicide and overdose among veterans specifically and the population generally.

The lies, hypocrisy and inaction are enough to make anyone cynical…but a better world is indeed possible. In Canada, for example, veteran advocates fought for and achieved a world-first: government reimbursement of cannabis purchased from legal sources for qualified individuals.

A recent audit of the Veterans Affairs Canada program shows that, in 2021, they reimbursed $150 million to more than 18,000 veterans. A skeptical writeup points out that VAC reimbursement of cannabis amounted to spending “more than on all other prescriptions combined.”

Veterans Affairs #Canada reimbursed over $80 million in #cannabis to more than 10,000 #veterans in 2020. Meanwhile, @DeptVetAffairs has opposed every attempt by #Congress to mandate research, codify protections, or allow docs to fill out medical recommendations. https://t.co/4uBTXdkgZC

— Veterans Cannabis Coalition (@VetsCannaCoal) September 14, 2022

In the U.S., meanwhile, VA spent more than $9 billion on pharmacy services in 2022, which accounted for more than 300 million 30-day scripts.

In 2019, California enacted the Dennis Peron and Brownie Mary Act–named for two of the pioneering advocates who led the first successful state campaign to make cannabis for medical purposes legal. That law created another world-first: a legal pathway for the licensed cannabis industry to donate their products to eligible patients at no cost.

Between Canada and California, a new approach begins to emerge. Consider the comparable size of the respective populations and scale of legal cannabis; now realize that, in Canada, licensed producers destroyed more than 800 million grams of unsold dried cannabis between 2018 and 2021.

We do not have public visibility on similar data in California, but there is every reason to believe there are literally tens of thousands of pounds of biomass and flower that end up composted annually because they have no buyer. Even in a state that now has a lawful process to donate cannabis, laws and regulations have crafted a system where it is cheaper to trash it than pay for retesting once the annual certificate of analysis expires.

Across the globe, the cannabis industry must realize that patients and consumers are its natural allies and constituency. By supporting real people in a concrete way, like providing free donations to patients, the industry can begin to deliver on the public health promise within cannabis legalization. By providing a financial backstop that ensures patients can access legal cannabis, governments can incentivize individuals away from more risky and harmful substances.

Finally, through integrating cannabis into existing resource networks like the VA, we can begin to better understand how cannabis can best be used within the full context of an individual’s health. Current solutions continue to fail to address the complex and growing needs of people and communities fraying under the strain of multiple crises. Cannabis legalization can help, if we can summon the political will to make it so.

Eric Goepel is the founder and CEO of the Veterans Cannabis Coalition, a non-profit advocacy group dedicated to ending cannabis prohibition and ensuring that the Department of Veteran Affairs researches and develops cannabis-based medications.

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State Treasurers Discuss Marijuana Banking Challenges At Annual Conference With Congressional Officials

State treasures from across the U.S. participated in a panel on Tuesday that focused on federal marijuana banking reform as part of a three-day conference organized by the National Association of State Treasurers (NAST) that was attended by stakeholders and congressional officials.

Moderated by Colorado Treasurer Dave Young, the panel discussed the “history, challenges, and prospects for SAFE banking laws that would allow legal cannabis businesses into the mainstream banking system,” according to an event description.

My pleasure! Let’s pass the #SAFEBankingAct in the Senate! https://t.co/2L9qcHhsZG

— Colorado Treasurer Dave Young (@ColoTreasurer) March 15, 2022

The Secure and Fair Enforcement (SAFE) Banking Act was a focal point of the discussion. That bill, sponsored by Rep. Ed Perlmutter (D-CO), would protect financial institutions that choose to service state-legal cannabis businesses from being penalized by federal regulators. It’s passed the U.S. House of Representatives in some form six times but has yet to advance in the Senate under either Republican or Democratic control.

Perlmutter’s senior legislative assistant Colin Anonsen spoke on the NAST conference panel, alongside representatives of Scotts Miracle-Gro and the American Bankers Association (ABA).

ABA recently released a poll it commissioned showing majority support for marijuana banking reform among Americans.

State treasurers have been among the consistent voices pushing Congress to take action on the issue, submitting multiple letters to leadership on the issueover the years, for example. In 2019, NAST adopted a resolution endorsing “common sense federal laws and regulations to provide essential banking services to state legalized cannabis businesses.”

—Marijuana Moment is already tracking more than 1,000 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.—

“NAST supports common sense federal laws and regulations to provide essential banking services to state legalized cannabis businesses, promote public safety and financial transparency, and facilitate local, state, and federal tax and fee collection without compromising federal enforcement of anti-money laundering laws against criminal enterprises,” the organization said in a statement to Marijuana Moment.

However, a spokesperson emphasized that NAST “takes no position as to whether cannabis should be legalized under the laws of the United States or of any state.”

On the first day of the NAST conference on Sunday, members of the organization’s Banking and Cash Management Committee also met to discuss the organization’s previously adopted banking resolution, which is due to be renewed this year. Washington State Treasurer Mike Pellicciotti serves as a member of that committee and told Marijuana Moment in a statement that he’s “committed to doing everything my office can do to urge Congress to legalize cannabis banking this year.”

In DC, affirming support for banking reform for the cannabis industry. “As the first state with legal #cannabis a decade ago, WA must convince #congress to finally get our state’s legal #marijuana retail stores out of the cash business an into banking.” – Treasurer Pellicciotti

— WA State Treasurer (@WaTreasurer) March 14, 2022

“Legal retailers must be allowed out of the cash business to stop the inequities and traumatic daily robberies taking place in Washington state and around the country due to a decade of congressional inaction,” he said. “I’m focused on uniting state treasurers around the country to amplify this critical equity and public safety issue in America, and I look forward to meeting with members of Congress this week to explain why it must pass cannabis banking now.”

While he is in D.C., Pellicciotti plans to meet with lawmakers to discuss cannabis banking and other issues of interest.

In the House, Perlmutter has been vocal about his frustration over inaction on his SAFE Banking Act in the Senate. He has also continued to raise the issue in committee hearings, even those that don’t necessarily pertain to the issue.

At a recent event hosted by ABA, the congressman promised to “continue to be a real pest, and persistent in getting this done” before he retires from Congress at the end of the session.

Following the bipartisan House passage of the banking bill, Perlmutter said he naively expected it “to sail through the Senate, which is always a bad assumption, because nothing sails through the Senate.”

But he’s taken pains to build support, including from current Senate leadership that has insisted on enacting comprehensive legalization with firm equity provisions in place before advancing a bill viewed as friendly to the industry.

Despite recently saying that he’s “confident” that the Senate will take up his bill this session, the congressman recognized that while he’s supportive of revisions related to criminal justice reform, taxation, research and other issues, he knows that “as we expand this thing, then we start losing votes, particularly Republican votes and we got enough votes in the Senate to do it” as is.

Perlmutter also brought up the fact that Treasury Secretary Janet Yellen has addressed the federal-state marijuana banking conflict and “she wants to get this off her plate and get it done.”

Meanwhile, the number of banks that report working with marijuana businesses ticked up again near the end of 2021, according to recently released federal data.

It’s not clear if the increase is related to congressional moves to pass a bipartisan cannabis banking reform bill, but the figures from the Financial Crimes Enforcement Network (FinCEN) signal that financial institutions continue to feel more comfortable servicing businesses in state-legal markets.

Some Republicans have questioned how Democrats have so far failed to pass the modest banking reform with majorities in both chambers and control of the White House, too. For example, Rep. Rand Paul (R-KY) criticized his Democratic colleagues over the issue in December.

In the interim, federal financial regulator Rodney Hood—a board member and former chairman of the federal National Credit Union Administration (NCUA)—recently said that marijuana legalization is not a question of “if” but “when,” and he’s again offering advice on how to navigate the federal-state conflict that has left many banks reluctant to work with cannabis businesses.

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Majority Of State Attorneys General Tell Congress To Pass Marijuana Banking Bill

The top law enforcement officials from 38 U.S. states and territories are calling on Congress to pass legislation to increase marijuana businesses’ access to banks. The move comes just days after the treasurers of 17 states issued a separate call in support of the pending cannabis financial services bill.

Even as a growing number of states adopt laws to legalize marijuana for medical or recreational use, federal prohibition remains intact—for now—and that makes many banks wary of maintaining accounts for cannabis growing, processing or retail operations. They could, they fear, be prosecuted under federal money laundering laws.

Legislation to shield financial services providers from being punished by regulators for working with the cannabis industry has been gaining momentum in Congress, and now the effort is getting a boost from the National Association of Attorneys General, which is officially endorsing the bill.

“Businesses are forced to operate on a cash basis. The resulting grey market makes it more difficult to track revenues for taxation and regulatory compliance purposes, contributes to a public safety threat as cash-intensive businesses are often targets for criminal activity, and prevents proper tracking of billions in finances across the nation,” the attorneys general wrote in a letter to congressional leaders on Wednesday.

@COAttnyGeneral leads coalition of 38 state/territory AGs calling on #Congress to pass @RepPerlmutter's bill allowing #cannabis companies to access banks w/o fear of federal repercussions. @NatlAssnAttysGn has adopted this position as official policy.https://t.co/6kr60PamhQ

— CO Attorney General (@COAttnyGeneral) May 8, 2019

“[R]regardless of how individual policymakers feel about states permitting the use of medical or recreational marijuana, the reality of the situation requires federal rules that permit a sensible banking regime for legal businesses,” the officials wrote.

In March, the House Financial Services Committee approved the marijuana banking bill in a bipartisan vote of 45 to 15. The legislation, sponsored by Rep. Ed Perlmutter (D-CO), now has 173 cosponsors—substantially more than a third of the entire chamber’s membership. It is expected to be considered on the House floor within the next several weeks.

“The SAFE Banking Act is about public safety, accountability and respecting states’ rights. I appreciate the overwhelming support of the attorneys general and treasurers,” Perlmutter said in a statement. “Their endorsement of the SAFE Banking Act underscores the need to respect states’ rights on this issue and make our communities safer by allowing the marijuana industry and related businesses access to the banking system.”

The support of our nation's attorneys general and state treasurers underscores the need to respect states’ rights on this issue and make our communities safer by allowing the marijuana industry and related businesses access to the banking system. #SAFEBankinghttps://t.co/B1GpOUIoNK

— Rep. Ed Perlmutter (@RepPerlmutter) May 8, 2019

An identical companion bill on financial services for cannabis businesses in the Senate has 25 lawmakers signed on—fully a quarter of the body.

The new letter, led by Colorado Attorney General Phil Weiser, was joined by attorneys general from Alaska, Arizona, Arkansas, California, Connecticut, Delaware, the District of Columbia, Guam, Hawaii, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Jersey, New Mexico, New York, North Dakota, the Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Utah, the U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia and Wisconsin.

It just makes sense: Majority Of State Attorneys General Tell Congress To Pass Marijuana Banking Bill via @forbeshttps://t.co/fmOn6JYRXn

— Rob McKenna (@robmckenna) May 8, 2019

Late last month, Oregon Treasurer Tobias Read led a group of fellow state fiscal officials in sending a separate letter to congressional leaders in support of the marijuana banking legislation.

“Businesses operating in cash pose a significant public safety risk. Absent access to banking services, cannabis-related businesses are unable to write checks, make and receive electronic payments, utilize a payroll provider, or accept credit and debit cards,” they wrote. “Processing, storing, and moving large amounts of cash puts business owners, their employees, and their customers at risk of violent crime. The cash-only environment means state and local government agencies must collect tax and fee payments in person and in cash, incurring added expenses and employee safety risks.”

Despite the advancement of the cannabis banking bill in the House, Senate Banking Committee Chairman Mike Crapo (R-ID)refused to commit to hold a hearing or vote on the bill in his panel when asked last month.

The proposals have already been endorsed by the American Bankers Association and a number of other organizations representing financial services industry interests, as well as by drug policy reform groups.

The backing by the state attorneys general, which was first reported by the Denver Post, could go a long way toward earning support from law-and-order conservatives who might otherwise scoff at the notion of supporting legislation to assist marijuana businesses.

Today I’m leading 38 AGs in urging Congress to pass the #SAFEBankingAct, to allow legal marijuana businesses to access the US banking system.

Forcing these businesses to operate only in cash leaves communities vulnerable to violence and crime: https://t.co/xgYurGRxuipic.twitter.com/bMrUoLIoAc

— AG Karl A. Racine (@AGKarlRacine) May 8, 2019

“Compliance with tax laws and requirements would be simpler and easier to enforce with the regulated tracking of funds in the banking system, resulting in higher tax revenues,” the attorneys general wrote. “Our banking system must be flexible enough to address the needs of businesses in the various states and territories, with state and territorial input, while protecting the interests of the federal government. This includes a banking system for marijuana-related businesses that is both responsive and effective in meeting the demands of our economy.”

This is simple: not incorporating an $8.3 billion industry into our banking system is hurting our public safety and economy. #SAFEBanking#Cannabishttps://t.co/La9kBIAhEG

— Xavier Becerra (@AGBecerra) May 8, 2019

AG Yost has joined a coalition of 38 states urging Congress to allow marijuana-related businesses to access the banking system. Read more here: https://t.co/MBL3ZNr7n7pic.twitter.com/d5e7n9HCLP

— Ohio Attorney General Dave Yost (@OhioAG) May 8, 2019

The treasurers, in their letter, offered further encouragement to skittish lawmakers by saying that allowing the banking fix would not be “a tacit endorsement of descheduling or rescheduling cannabis from the Controlled Substances Act.”

“Without banking services, cannabis businesses are less able to obey the law, pay taxes, and follow state regulations of the industry,” they wrote. “The public safety risks posed by these businesses are easily mitigated through access to banking service providers and keeping the cash off the streets. Nearly every U.S. state has a stake in this issue.”

This piece was first published by Forbes.