Working In State-Legal Marijuana Sector Won’t Disqualify People...

Marijuana might be federally illegal, but the Trump administration said in
a recent little-noticed filing that working in and around the state-legal
cannabis sector won’t automatically disqualify people from receiving
certain federal benefits.

In a final rule published in the Federal Register late last month, the
Department of Education detailed a policy change related to its Public
Service Loan Forgiveness (PSLF) program that’s aimed at incentivizing
college graduates to work as teachers or for non-profit organizations or
government entities by allowing them to have their student loans forgiven.

When the new rule—which amends the definition of “qualifying employer” to
exclude organizations that have a substantial illegal purpose—was up for
public comment, the department received a message expressing “concern that
legal standards vary widely across States, particularly in areas such as
marijuana laws, reproductive health regulations, and immigration
enforcement.”

The commenter said the issue is that “an employer deemed lawful in one
jurisdiction could be disqualified in another, leaving borrowers subject to
arbitrary geographic disparities.” To that point, they requested that the
department either create a uniform federal standard for loan forgiveness
qualifications under the program or “explicitly preempt conflicting State
interpretations to ensure equitable treatment for borrowers nationwide.”

The department replied by saying it “recognizes that State laws differ and
appropriately drafted the rule to account for variation across States,” and
organizations “will not be penalized if their actions are legal in the
State in which they are operating.”

“Although uniform standards would make the adjudication process more
streamlined, such standards would not account for the differences across
States in our Nation’s system of vertical federalism. At the same time, if
the Secretary determines that an employer has engaged in activities such
that it has a substantial illegal purpose due to illegal conduct in one or
more States, the Department may remove eligibility for the entire
organization.”

What remains unclear is what kind of cannabis organizations might qualify
for the program in the first place, as the majority of marijuana
operators—from dispensaries to cultivators—are for-profit businesses in
legal states.

There are some jurisdictions where dispensaries are required to operate
under a non-profit status, such as New Hampshire, but it’s uncertain
whether workers in those shops could be eligible for the loan relief.
However, the federal program is also meant to provide loan forgiveness for
government workers, so it’s also possible that this update clarifies
eligibility for employees of state and local cannabis regulatory agencies,
for example.

Marijuana Moment reached out to the Department of Education for
clarification, but a representative did not respond by the time of
publication.

Overall, the new rule is meant to prevent loan forgiveness for people who
work at institutions with a “substantial illegal purpose,” making it all
the more notable that it explicitly suggested that certain
marijuana-related activity doesn’t rise to that standard.

“Taxpayer funds should never directly or indirectly subsidize illegal
activity,” Under Secretary of Education Nicholas Kent said in a press
release. “The Public Service Loan Forgiveness program was meant to support
Americans who dedicate their careers to public service—not to subsidize
organizations that violate the law.”

“With this new rule, the Trump Administration is refocusing the PSLF
program to ensure federal benefits go to our Nation’s teachers, first
responders, and civil servants who tirelessly serve their communities,” he
said.

*Photo courtesy of Brian Shamblen.*

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From Certain Federal Benefits, New Trump Administration Rule Says appeared
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