First Banking. Now Insurance. Congress Expands Its Cannabis Finance Agenda.

Congress is continuing to examine one of the cannabis industry’s biggest operational challenges—not legalization itself, but the financial infrastructure that supports state-licensed businesses.

Just weeks after lawmakers introduced legislation to expand access to banking and capital markets, a bipartisan pair of senators has turned its attention to another essential service: insurance.

Sens. Kevin Cramer (R-N.D.) and Ruben Gallego (D-Ariz.) on Tuesday introduced the Clarifying Law Around Insurance of Marijuana (CLAIM) Act, a bill that would create a federal safe harbor for insurance companies, brokers and agents providing coverage to cannabis businesses operating legally under state law.

The proposal follows a series of recent congressional efforts to address the practical barriers facing the regulated cannabis industry. Lawmakers have increasingly introduced targeted legislation focused on individual parts of the financial system, from banking and lending to insurance and capital markets.

What the CLAIM Act Would Do

At its core, the CLAIM Act would prohibit federal regulators from taking adverse action against insurance companies solely because they choose to provide coverage to state-licensed cannabis businesses. The same protections would extend to insurance brokers, agents, and employees involved in providing those services.

“Much like marijuana businesses are barred from using bank accounts, they are also locked out of insurance markets,” Cramer said in announcing the legislation. “The CLAIM Act makes sure insurers can offer their commercial products to regulated marijuana-related businesses without fear of federal prosecution.”

Gallego called the proposal a “commonsense, bipartisan fix,” arguing that legitimate cannabis businesses operating under state law should have access to the same insurance products available to companies in other industries.

Why Insurance Matters to Cannabis Operators

For operators, insurance is about far more than protecting against losses.

Commercial insurance is frequently required before businesses can lease facilities, obtain financing, secure certain licenses or enter into commercial agreements. Without adequate coverage, companies may struggle to purchase real estate, finance equipment or satisfy contractual obligations, even if lenders and business partners are otherwise willing to work with them.

Property, casualty, product liability and workers’ compensation coverage all play a critical role in supporting day-to-day operations. Limited access to those products can increase costs, restrict expansion opportunities and complicate financing.

By shielding insurers from federal penalties, supporters argue the CLAIM Act would help reduce one of the industry’s longstanding operational hurdles while allowing cannabis businesses to access risk management tools that are commonplace in other regulated industries.

Part of a Broader Financial Reform Effort

The CLAIM Act addresses one consequence of federal prohibition by protecting insurers that choose to serve businesses operating legally under state programs.

That approach mirrors other recent proposals in Congress aimed at reducing financial barriers without resolving the broader question of federal legalization.

While banking legislation has traditionally received the most attention, the introduction of the CLAIM Act highlights another challenge operators consistently identify: obtaining reliable insurance coverage while cannabis remains federally prohibited.

Together with recent proposals addressing banking and capital formation, the legislation suggests lawmakers continue to pursue targeted reforms designed to improve how state-legal cannabis businesses access essential financial services, even as broader legalization proposals face a more uncertain path.

Looking Ahead

The legislation also directs the Government Accountability Office (GAO) to study barriers affecting minority- and women-owned cannabis businesses, including access to financial services and challenges entering regulated markets.

The CLAIM Act marks the fourth consecutive Congress in which similar legislation has been introduced, underscoring both the persistence of the issue and the difficulty of advancing cannabis-related financial reforms through Congress.

Its bipartisan sponsorship may improve its prospects, but the bill must still move through committee and the full legislative process before becoming law.