VA Memo Warns Veterans Working In Marijuana Industry

The U.S. Department of Veteran Affairs (VA) released a memo clarifying that military veterans with income from a state-legal marijuana business are still eligible to receive home loan benefits. Although marijuana is currently prohibited as a Schedule I controlled substance under federal statute, veterans are not prohibited from receiving a certificate of eligibility (COE) for a VA-guaranteed loan if their income comes from the retail sale of marijuana. However, the memo warns veterans might face difficulty finding lenders willing to issue loans. In addition, it is noted that some lenders may not want to face the risk of giving loans due to the instability and uncertainty of the cannabis industry. Although veterans might have difficulty owning a marijuana business, the VA clarified that they can still receive home loan benefits. The Department also states that it will update its page if the legal status of marijuana changes at the federal level. It is uncertain whether this memo responded to recent requests from congressional lawmakers pushing the Department to clarify.

Lawmakers have repeatedly faced issues when dealing with cannabis-related issues or reform involving the Department. For example, in 2020, the VA was pushed to issue a similar report stating that working in the cannabis industry wouldn't make someone ineligible for benefits. The push came from Rep. Katherine Clark (D-MA) and other lawmakers who knew of instances where veterans were denied home loans for being in the cannabis industry. Clark introduced an amendment to a defense bill that would solve the issue, and although the House passed it in 2019, it was scrapped after the Senate didn't include it in the final version of its legislation. This week, Clark again filed the VA cannabis worker home loan amendment to the National Defense Authorization Act (NDAA) for the 2023 Fiscal year.

In addition to clarification issues, the VA has repeatedly opposed marijuana reform relating to the Department. The VA has previously testified against bills encouraging more research on the potential benefits of cannabis for military veterans. They've also stated that they will not support marijuana treatment in the new grants program to prevent veteran suicides. Despite the pushback, lawmakers continue to issue and support marijuana reform for veterans. In March, the House and Senate Committees held joint hearings with Veteran Service Organizations (VSO) to hear how Congress and the federal government could help. Multiple groups brought up marijuana. Last Month, a bipartisan bill to provide veterans with access to medical marijuana was reintroduced. Another bill, sponsored by Rep. Seth Moulton (D-MA), would encourage veterans to discuss medical marijuana treatment with their doctor without fearing losing their federal benefits. Moulton also recently filed an amendment that calls for the Department of Defense (DOD) to lead a study into the medical efficiency of cannabis over opioids for certain conditions.

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