Please ensure Javascript is enabled for purposes of website accessibility

Members of Congress Formally Request Marijuana Industry's Inclusion in Future Coronavirus Relief Packages

By Eric Volkman – Apr 18, 2020 at 11:04AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A bipartisan group tells House leaders the fledgling industry could use some financial help.

A clutch of congresspeople are pushing for the marijuana industry to be included in the next round of government relief for businesses and people affected by the economic fallout of the SARS-CoV-2 coronavirus. The lawmakers have made a formal request for such assistance in a brief letter to House of Representatives Speaker Nancy Pelosi and Minority Leader Kevin McCarthy.

All told, the document bears the names of 34 members of the House. It's a bipartisan group which includes Democrats Katie Porter and Tulsi Gabbard, and Republican Matt Gaetz. 

Illegal and Legal spelled out in dice next to marijuana leaf symbols.

Image source: Getty Images.

The recently passed CARES Act coronavirus relief package did not provide any support for the marijuana industry, despite its $2 trillion size. The 34 lawmakers hope to change that, asking in their letter that the sector not only be included in future aid packages, but that cannabis companies also be permitted to receive financial assistance from the government's Small Business Administration (SBA).

At the moment, since the drug remains technically illegal at the federal level, cannabis businesses are prohibited from receiving government funding.

The letter states that marijuana is a business employing around 240,000 people in this country. And despite its struggles, it produces tax revenue for states and municipalities -- a figure of $1.9 billion last year alone is quoted.

If the lawmakers' request is granted, many cannabis businesses large and small in the U.S. would benefit from the help. One that's under a bit of pressure these days is Curaleaf Holdings (CURLF -5.00%). Based in Massachusetts and the operator of several dispensaries there, Curaleaf is coping with a shutdown of the state's recreational marijuana market in the wake of the coronavirus.

On Friday, Curaleaf's stock rose by 1.7%; however, that figure was outpaced by the brisk gains of the wider stock market.


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Curaleaf Holdings, Inc. Stock Quote
Curaleaf Holdings, Inc.
$4.66 (-5.00%) $0.24

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.