House Blocks Workers’ Comp From Covering Medical Cannabis

The federal workers comp medical cannabis question just got answered — with a hard no. The House Appropriations Subcommittee on Labor-HHS-Education voted 11-7 to advance an FY27 spending bill that bars the Labor Department from using any funds to “authorize, provide, reimburse, or otherwise recognize marijuana or any cannabis-derived substance as a compensable medical treatment or benefit” under any federal workers’ compensation program, as reported by Marijuana Moment.

workers comp medical cannabis

The “regardless of rescheduling” clause

The provision applies “regardless of any change in the scheduling of marijuana” under the Controlled Substances Act — language designed specifically to neutralize the Schedule III order. The full committee report is at Congress.gov (H. Rept. 119-271). A separate House Appropriations bill directs DOT to keep drug-testing truck drivers, pilots, and other safety-sensitive workers for cannabis “regardless of any future changes” to scheduling.

Why workers comp medical cannabis coverage matters

As Marijuana Moment put it, this is the “second straight appropriations cycle in which House Republicans have used spending bills to insulate federal drug policy from the effects of rescheduling.” Schedule III changed the tax code, not the politics: federal employees with legitimate medical cannabis recommendations still can’t get reimbursed, and federally regulated drivers still lose jobs over legal THC use. Note the contradiction: the same House majority blocking these provisions is the one refusing to vote on the White House’s hemp CBD fix — Washington is fighting itself in public.

Why it matters for the bigger fight

Rescheduling was never the finish line. The downstream battles — workers’ comp, drug testing, 280E relief (see the rescheduling lawsuits piece), and federal benefits — are where the next 12 months get won or lost. If appropriations riders keep stacking, Schedule III ends up a tax event, not a policy revolution. News commentary, not legal advice.

What happens next

This is subcommittee language, not law — it still has to survive full committee, the House floor, a Senate that has shown less appetite for cannabis riders, and conference. Appropriations riders die quietly all the time. But the pattern is what matters: two consecutive cycles of House language insulating federal benefits and testing regimes from rescheduling tells you the appropriations process is now the chosen battlefield for the post-Schedule III fight.

For the roughly 2 million federal civilian employees and the state programs that look to federal practice for guidance, the workers comp medical cannabis question is genuinely consequential: workers’ comp formularies are where medical legitimacy gets operationalized. State programs in New York, New Jersey, Minnesota, and New Mexico already require or permit reimbursement for medical cannabis in workers’ comp claims — the federal government is now deliberately carving itself out of the trend its own rescheduling order accelerated.

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We covered this story on the June 7 episode of Cannabis Legalization News — Trump Begs Congress to Save CBD: Is the Hemp Ban Backfiring?

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Thomas Howard

a seasoned cannabis business attorney, entrepreneur, and advocate with over a decade of hands-on experience navigating complex cannabis regulations across the United States. As the founder of Cannabis Industry Lawyer and co-host of Cannabis Legalization News, Tom has helped clients win cannabis licenses in multiple states, advised startups from seed to sale, and litigated key industry cases involving constitutional challenges and regulatory disputes. He’s personally built and launched cannabis businesses, giving him a rare combination of legal expertise and real-world operational insight. Tom has studied thousands of pages of cannabis laws and rules, testified on legalization issues, and regularly appears in media to break down developments in plain English. His mission: to fight outdated prohibition, empower entrepreneurs, and provide trustworthy, actionable information to anyone building a future in the legal cannabis industry.
Picture of Thomas Howard

Thomas Howard

a seasoned cannabis business attorney, entrepreneur, and advocate with over a decade of hands-on experience navigating complex cannabis regulations across the United States. As the founder of Cannabis Industry Lawyer and co-host of Cannabis Legalization News, Tom has helped clients win cannabis licenses in multiple states, advised startups from seed to sale, and litigated key industry cases involving constitutional challenges and regulatory disputes. He’s personally built and launched cannabis businesses, giving him a rare combination of legal expertise and real-world operational insight. Tom has studied thousands of pages of cannabis laws and rules, testified on legalization issues, and regularly appears in media to break down developments in plain English. His mission: to fight outdated prohibition, empower entrepreneurs, and provide trustworthy, actionable information to anyone building a future in the legal cannabis industry.

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