Association for Cannabis Banking | November 10, 2026
The midterm elections changed the political landscape, but they did not change federal cannabis law overnight. Democrats won control of both chambers of Congress, potentially opening new opportunities for cannabis banking reform, broader rescheduling, and even de-scheduling. However, legislation will still require negotiations with the Trump administration and, potentially, bipartisan Senate support.
How Did States With Different Cannabis Laws Vote?
We compared the 36 states electing governors in 2026, grouping them according to the National Conference of State Legislatures' cannabis-law classifications.
Cannabis statusStatesGovernor racesDemocratic winsRepublican winsUncalledAdult-use legal24181611Medical-only1711470No comprehensive medical program97241Total503622122
Source: ACB analysis of NCSL classifications and 2026 gubernatorial election results. Alaska and Kansas remain uncalled as of November 10. Some states allow limited CBD products without comprehensive medical programs; adult-use legality does not always mean retail sales are operational.
The contrast is substantial: Democrats won 16 of 17 called governor races in adult-use states, compared with four of 11 in medical-only states and two of six in states without comprehensive medical programs.
These patterns reflect political geography, not proof that cannabis policy determined election outcomes.
What Did Voters Say Directly About Cannabis?
Two statewide ballot measures provided a clearer indication of voter sentiment.
StateBallot measureResultMassachusettsQuestion 8: Repeal licensed recreational marijuana salesRejected: 75.6% voted NoIdahoHJR 4: Give lawmakers exclusive authority over marijuana legalizationRejected: approximately 66% voted No
Neither vote created a new adult-use market. However, both suggest voters may resist attempts to remove existing access or restrict future opportunities for reform. Changes in state legislative control could also revive legalization debates in Pennsylvania and Wisconsin during 2027.
What Happens to Federal Rescheduling and Hemp?
Federal scheduling remains complicated. An April 2026 Justice Department rule moved FDA-approved marijuana products and qualifying state-licensed medical marijuana into Schedule III. It did not legalize recreational marijuana federally. Broader rescheduling remains under DEA review, while descheduling—removing marijuana from the Controlled Substances Act entirely—remains a separate possibility, not an enacted change.
Hemp presents a more immediate operational challenge. Congressional Research Service analysis identifies November 12, 2026, restrictions affecting certain cannabinoids that cannot occur naturally, with most remaining changes to the federal hemp definition scheduled for December 11. The election has not suspended those deadlines.
What Should Financial Institutions Expect?
The incoming Congress could revisit SAFE Banking legislation, but no new banking protections have been enacted. Existing FinCEN due diligence, transaction monitoring, and suspicious-activity reporting expectations remain relevant.
Banks and credit unions should monitor congressional developments and state legislative sessions while reassessing hemp-related customer exposures, product inventories, licensing, and compliance controls.
The election may change the direction of cannabis policy. It has not yet eliminated the risks financial institutions must manage.
