Federal Marijuana Charges Despite State Legalization

Your state legalized marijuana. You bought it from a licensed dispensary. You followed every rule your state requires. And none of that matters to federal prosecutors. Not one bit. Federal law hasn't changed - marijuana is still Schedule I, the same category as heroin. The license on your dispensary wall, the taxes you pay to your state, the regulations you follow - all of it is legally irrelevant the moment a federal prosecutor decides to charge you.

Welcome to Spodek Law Group. Our goal is to explain what state marijuana legalization actually protects - and what it doesn't. Todd Spodek has represented clients who believed they were operating legally, who followed every state requirement, and who still faced federal prosecution. The pattern is always the same: people assume "legal in my state" means something. It doesn't mean anything to the federal government.

Here's what nobody explains clearly: state legalization and federal law exist in completely separate universes. The Supreme Court has ruled that state marijuana laws do not affect federal restrictions at all. When your state "legalized" marijuana, it became legal under state law only. Federal law remained exactly the same. You can be 100% compliant with your state and 100% guilty under federal law simultaneously. That's not a contradiction - that's how the system is designed.

The Illusion of State Protection

Most people point to the Cole Memo when they talk about being protected. Heres the problem with that - the Cole Memo was rescinded in 2018. Its gone. The document people cite as there protection dosent exist anymore. Attorney General Jeff Sessions withdrew it, and while enforcement practices didnt change dramatically during the remainder of that administration, the legal protection vanished.

The Cole Memo wasnt even law. It was prosecutorial guidance - a policy memo telling US Attorneys to deprioritize marijuana cases in states with legalization. It could be withdrawn at any time by any Attorney General. And it was. People built entire businesses on a document that had no legal force and could disappear with a signature.

People also point to the congressional appropriations rider as protection. This is were things get really dangerous. That rider only protects medical marijuana operations. If your in a recreational state, you have zero congressional protection. None. The rider says the DOJ cant use funds to prevent states from implementing there medical marijuana laws. Recreational marijuana isnt mentioned at all.

The Congressional Research Service has analyzed this rider extensively. There conclusion is clear: it "does not provide immunity from prosecution for federal marijuana offenses." It dosent prevent prosecution. It dosent create a defense. It dosent make marijuana legal. All it does is restrict how the DOJ can spend money - temporaraly.

And heres what almost nobody understands about that rider. It dosent provide immunity from prosecution. It restricts DOJs ability to spend money on enforcement - for as long as the rider remains in effect. If Congress revokes the rider or lets it lapse, the DOJ can prosecute past violations that occured while the rider was active. Your "protected" activity from three years ago becomes prosecutable the moment Congress changes its mind.

Think about what that means for your planning. Your operating today under protection that could vanish in the next budget. And when it vanishes, everything you did while it was in effect becomes fair game for prosecution. Theres no grandfathering. Theres no transition period. The moment the rider lapses, your entire history of marijuana-related activity is exposed.

Weve seen clients at Spodek Law Group who operated for years beleiving they were protected. They werent. They were operating under a temporary funding restriction that could disappear with the next budget cycle. Some of them are now facing the consequences of that false assumption.

What Federal Law Actually Says

Federal marijuana law hasnt changed since 1970. The Controlled Substances Act classifies marijuana as Schedule I - the most restricted category. This means the federal goverment considers marijuana to have high abuse potential, no accepted medical use, and no safe level of use under medical supervision. Every state medical marijuana program contradicts this classification, but the classification stands.

The numbers tell the story. In 2024, there were aproximately 500 federal cannabis trafficking cases according to the US Sentencing Commission. Thats down from 3,500 in 2015 and about 5,000 in 2013. So federal prosecutions have declined - but they havent stopped. Five hundred cases is five hundred people facing federal charges despite operating in a landscape were more then half of states have legalized.

The DEA made 5,764 marijuana-related arrests in 2024. They seized over five million marijuana plants. This isnt an agency thats stopped enforcing marijuana laws. There selective about what they pursue, but there still pursuing cases.

Heres the kicker. The new administration has issued guidance telling federal prosecutors to enforce simple cannabis possession on federal lands. National parks. Military bases. Federal buildings. The marijuana you legally purchased at a Colorado dispensary becomes a federal crime the moment you enter Rocky Mountain National Park. This isnt hypothetical - this is current DOJ policy.

The Triggers That Create Federal Cases

Not every marijuana case becomes federal. Prosecutors are selective. But certain triggers almost garantee federal involvement.

Interstate activity. The moment marijuana crosses state lines, federal jurisdiction attaches. It dosent matter that both states have legalized. Moving marijuana from Colorado to California creates a federal trafficking case. The interstate commerce clause gives the federal goverment authority over anything crossing state borders.

Federal property. National parks, military installations, federal courthouses, post offices - any drug activity on federal property is automaticaly federal. State legalization is completly irrelevant on federal land.

Large scale operations. When quantities suggest distribution rather then personal use, federal prosecutors pay attention. Multi-state networks, large grows, and operations with connections to other criminal activity attract federal interest.

Financial crimes. Bank fraud, money laundering, tax evasion connected to marijuana operations bring federal jurisdiction regardles of underlying state legality.

Look at what happened with Cannaland in Southern California. Operators ran what they beleived was a legitimate business. Federal prosecutors charged more then 30 individuals. They seized nearly 30,000 pounds of marijuana and marijuana products. They recovered 68 firearms including ghost guns. They shut down almost 30 dispensaries. The operators thought they were running a business. The federal goverment called it drug trafficking.

The Tax Trap Nobody Mentions

Heres were the irony gets absurd. The IRS requires marijuana businesses to pay federal taxes on there income. Your required to report your earnings from what the federal goverment considers drug trafficking. You must file returns and pay taxes on illegal activity.

But - and this is the trap - you cant take normal business deductions. Section 280E of the tax code prohibits deductions for businesses trafficking in Schedule I or II substances. So you pay taxes on gross revenue, not net profit. Legitimate business expenses that any other company would deduct - rent, wages, utilities - cant be deducted by marijuana businesses.

Think about what this means. The federal goverment treats you as a drug trafficker for tax purposes while your state treats you as a legitimate business. You pay taxes at an effective rate that can exceed 70% becuase you cant deduct expenses. And paying those taxes dosent protect you from prosecution - it just documents your illegal activity for federal investigators.

Why Rescheduling Wont Save You

People are waiting for marijuana to be rescheduled. In 2024, the DEA proposed moving marijuana from Schedule I to Schedule III. This sounds like progress. Its not the protection people think.

Even at Schedule III, marijuana would still be a federally controlled substance. Manufacturing, distribution, and possesion would still be illegal under the Controlled Substances Act. The penalties might be less severe - Schedule III substances have lower maximums then Schedule I - but the underlying prohibition would remain.

Rescheduling is not legalization. Only Congress can remove marijuana from the Controlled Substances Act entirely. Until that happens - and theres no indication it will happen soon - federal prosecution remains possible regardless of state law.

What Actually Happens When Feds Prosecute

If you face federal marijuana charges, state legalization provides zero defense. You cannot argue that your conduct was legal in your state. The judge will not consider it. The jury will not hear it. Its legally irrelevant.

Federal marijuana trafficking charges under 21 USC 841 carry mandatory minimums based on quantity. For marijuana specificaly:

• 100-1,000 kg: 5 year minimum
• 1,000+ kg: 10 year minimum
• If death or serious injury results: 20 year minimum

These minimums double for second offenses. Federal conviction rates exceed 93%. Federal prison means no parole - you serve at least 85% of your sentence.

What To Do If Your Facing Federal Marijuana Charges

If your under federal investigation or facing charges, immediate action matters.

Dont talk to investigators. Federal agents will try to get statements. Anything you say becomes evidence against you. Invoke your right to counsel and remain silent.

Understand the jurisdiction. If the case is federal, state legalization is irrelevant. Federal rules, federal penalties, federal consequences.

Get federal defense counsel. You need someone who understands federal court, federal sentencing guidelines, and federal prosecution priorities. Federal practice is fundamentaly different from state practice.

Call Spodek Law Group at 212-300-5196. Our office is in the Woolworth Building in Manhattan. We handle federal drug cases nationwide. The gap between state legalization and federal prosecution is real, and navigating it requires understanding both systems. Todd Spodek has years of experience with exactly these cases - clients who beleived they were legal and discovered they werent.

State legalization has created a false sense of security for millions of Americans. The marijuana industry operates in a legal gray zone were state compliance means nothing to federal prosecutors. Until Congress acts to change federal law - which may never happen - this contradiction will continue. Understanding that reality is the only way to make informed decisions about your exposure.