S. 4942: Secure And Fair Enforcement Banking Act of 2026 (119th Congress) Bill Summary

This bill would create federal protections for banks, insurers, and other financial service providers that work with businesses operating legally under state marijuana or hemp laws. It is meant to reduce the risk that these companies could be punished under federal banking rules simply for serving those businesses.

Financial Services Protections

The bill would block federal regulators from penalizing a bank, credit union, insurer, or related entity solely because it provides services to a state-legal marijuana or hemp business. It would also limit pressure on financial institutions to close accounts or stop doing business with these companies just because the businesses are involved in marijuana or hemp.

The bill would apply these protections to hemp businesses as well as marijuana-related businesses. However, it would not require any bank or insurer to offer services to these businesses if they choose not to.

Reporting and Compliance Rules

The bill would set rules for how suspicious activity reports and related guidance are handled for covered businesses. It would also aim to clarify expectations for financial institutions that choose to serve these customers, so they are not discouraged by uncertain federal enforcement rules.

Mortgage Eligibility

The bill would require marijuana-related income to be counted when determining eligibility for federally backed mortgages. In other words, if a borrower’s income comes from a legal marijuana business under state law, that income could be considered for home loan purposes under federal mortgage programs.

Studies and Oversight

The Government Accountability Office would be directed to study barriers to financial access for minority-owned, veteran-owned, women-owned, and small marijuana and hemp businesses. The study would also examine how suspicious transaction reports are being used in connection with these businesses.

Limits on the Bill

The bill would not prevent regulators or law enforcement from investigating illegal activity. It would also not force financial institutions to provide services to marijuana or hemp businesses, only protect them from certain federal penalties if they do.