Federal Marijuana Legalization Bills: Where the Senate's CAOA and Other Proposals Stand

WASHINGTON — The most sweeping federal cannabis bill now before Congress, the Cannabis Administration and Opportunity Act (S. 5022), would remove marijuana from the Controlled Substances Act altogether, tax and regulate it, and expunge federal cannabis convictions. Sens. Cory Booker, Chuck Schumer and Ron Wyden filed it on July 16, 2026, with 17 original Democratic cosponsors and no Republican sponsors, and it was referred to the Senate Finance Committee. We found no House companion bill. Here is what it says, how it compares with the other legalization and hemp bills in Congress, and what it would and would not change for Texas.

What the Cannabis Administration and Opportunity Act Would Do

The bill is a version of legislation filed in the two previous Congresses, and, per Marijuana Moment, it was filed the day after a DEA hearing on the Trump administration’s narrower plan to move marijuana to Schedule III. Kight on Cannabis (July 17, 2026), an attorney’s analysis of the 278-page text, and the sponsors’ summaries describe these main provisions:

Tax rates and details differ slightly across summaries, so readers should check the bill text before relying on a figure. The text is on Congress.gov.

Who Is Behind It, and What They Said

Booker, Schumer and Wyden are the lead sponsors. Marijuana Moment lists the other 14 original cosponsors as Sens. Michael Bennet, John Fetterman, Kirsten Gillibrand, John Hickenlooper, Ben Ray Luján, Alex Padilla, Gary Peters, Tina Smith, Raphael Warnock, Ed Markey, Jeff Merkley, Patty Murray, Elizabeth Warren and Peter Welch. All are Democrats.

• Booker: “For decades, generations have suffered unjustly under the failed War on Drugs and broken cannabis laws,” he said, per Kight on Cannabis (July 17, 2026).
• Wyden: “the only reefer madness I’m seeing is the continued federal prohibition of cannabis,” per Marijuana Moment.
• Bennet and Hickenlooper of Colorado said Congress should “follow Colorado’s lead,” according to Sen. Michael Bennet’s office.
• Fetterman of Pennsylvania urged Congress to “make weed legal,” per Levittown Now (July 27, 2026).

Advocacy groups also backed the bill. Bryon Adinoff of Doctors for Drug Policy Reform told Marijuana Moment that Schedule III “would represent an important acknowledgment of medical reality,” but that it “still falls far short of the comprehensive reform that is needed.” NORML urged supporters to sign on, per NORML (July 16, 2026).

The Hemp and THCA Provisions

For Texas hemp businesses, the section to watch is hemp. Marijuana Moment and Kight on Cannabis both report that the bill would block the federal recriminalization of hemp-derived THC products. That restriction was due to take effect November 12 but, as we reported, was delayed to December 11, 2026, by a stopgap funding law.

Kight, who read the text, describes how the bill would do it: Section 803 would create a “total THC equivalent” standard covering delta-8, delta-9, delta-10, THCA and similar compounds, with finished hemp products limited to 1 milligram of total THC per 100 grams. By that reading, many cannabinoid-rich and full-spectrum products would fall outside the federal definition of hemp and move into the regulated cannabis system rather than becoming prohibited. That is one attorney’s reading of the draft, not a government analysis, and we have not independently verified it. The bill would also set a path for hemp-derived CBD as a dietary supplement.

The Other Federal Bills

Sponsor counts, status and descriptions for the House bills come from Rep. Dave Joyce’s office and a January 2026 tracker by The Marijuana Herald (Jan. 2, 2026); we did not re-check each bill’s current status on Congress.gov, and none was reported to have passed a chamber.

The Competing Track: Rescheduling

The Trump administration is pursuing a narrower route. On April 23, 2026, Acting Attorney General Todd Blanche signed an order moving FDA-approved marijuana products and marijuana sold under qualifying state medical licenses to Schedule III, per FDA Law Blog (April 2026). A broader proceeding on moving all marijuana to Schedule III held an 11-day hearing from June 29 to July 15 before DEA Chief Administrative Law Judge Derek Julius. Morgan Lewis (September 2026) reports that the government asked him to recommend the move, and that his recommended decision is still pending, followed by exceptions and a final DEA decision. For how this affects Texans, see our guide to rescheduling and Texas patients.

Rescheduling keeps marijuana under the Controlled Substances Act, which is why legalization advocates say it is not enough. It also faces resistance in Congress: per Levittown Now (July 27, 2026), the Republican-led House has advanced legislation to block rescheduling, and 22 Republican senators signed a letter opposing a move to Schedule III.

Hemp Bills Racing the December 11 Deadline

A separate set of bills would regulate hemp THC rather than legalize marijuana. Foley Hoag lists a proposal from Rep. Andy Barr (R-KY) to prevent recriminalization and regulate manufacturing, labeling, sales, taxes and a minimum age of 21; a bill from Reps. Beth Van Duyne (R-TX) and Greg Landsman (D-OH) to keep hemp-THC drinks legal and regulate them like alcohol; and a bill from Rep. James Comer (R-KY) to delay the ban and add packaging, testing and age rules. A Senate companion to the Barr proposal was expected from Sens. Tim Sheehy (R-MT) and Amy Klobuchar (D-MN). The same report says Congress must act before December 11 or the full restrictions take effect. Our guide to what is legal after December 11 explains the stakes.

What It Means for Texas

None of these bills would, on its own, make marijuana legal in Texas. The CAOA and STATES 2.0 are built around state authority, so Texas law would stay in place unless the Legislature changed it. The state-level bills that would do that, HB 362, HB 369 and SB 237, are covered in our report on the first 2027 Texas cannabis bills, and the hemp gap is covered in Where Are the Hemp and THCA Bills? As we read the federal bills, a descheduling law would change federal criminal penalties, banking and taxes, while Texas’ Compassionate Use Program and hemp rules would continue to apply to Texans.

Outlook

The odds for the CAOA are long. All 17 original cosponsors are Democrats, versions filed in the previous two Congresses did not advance, and Kight, who supports descheduling, writes that passage will be difficult without bipartisan support. Even so, advocates say the bill keeps full legalization on the table while rescheduling moves through the DEA. The practical next dates are December 11 for hemp and January 3, 2027, when the 119th Congress ends.