LIT 2029

Policy Summary: The Legalize, Invest, and Tax Act of 2030 (LIT 2030)

Purpose

The LIT Act of 2029 directs the Drug Enforcement Administration (DEA) to reschedule marijuana from its current classification as a Schedule I substance to a classification that recognizes its widespread medical and recreational use. This change will allow marijuana to be regulated, sold, and taxed federally across all 50 states. The purpose of this legislation is to end outdated criminal policies, create economic opportunity, and fund critical public programs that support the health and wellbeing of all Americans.

Key Provisions

  • Marijuana will be reclassified and removed from Schedule I.
  • The Department of the Treasury will establish a federal excise tax on marijuana sales.
  • States will retain the right to regulate marijuana locally, but will be eligible for federal subsidies if they choose to legalize and participate in the market.
  • The Department of Health and Human Services will oversee a public registry of licensed marijuana producers and distributors.
  • Individuals with prior marijuana-related offenses will be eligible for record expungement under streamlined federal guidelines across the United States regardless of which State the infraction occured in.

 

Enforcement Measures

  • The DEA will have 180 days from the passage of the bill to finalize rescheduling.
  • The IRS and Department of the Treasury will oversee tax compliance and distribution of funds.
  • A federal cannabis commission will be created to ensure consistency in product safety, labeling, and advertising standards.

 

Funding Penalties

  • Any state that chooses to prohibit legal marijuana will forfeit eligibility for federal cannabis infrastructure grants.
  • Companies that operate without proper licenses or attempt to avoid federal taxation will face automatic disqualification from the program and criminal penalties.
  • Government agencies that fail to follow rescheduling or funding guidelines will be subject to audit and administrative penalties.


Criminal And Administrative Accountability

  • Federal funding will be used to launch employment programs specifically for individuals with non-violent drug convictions.
  • A new oversight task force under the DOJ will monitor discriminatory enforcement and ensure fair access to marijuana licensing and employment opportunities.
  • Expungement records must be processed within 12 months of application, or the reviewing agency will be fined and referred for investigation.

 

Federal Coordination

  • The DEA, DOJ, IRS, HHS, and Department of Labor will work in coordination to implement, regulate, and enforce all aspects of this legislation.
  • Funds will be automatically distributed based on fixed percentages (subject to change):
    • 50% to a new universal healthcare fund, replacing Medicare and Medicaid (saving the US Taxpayers billions of dollars per year).
    • 15% toward reducing the national debt
    • 15% to state-run cannabis investment and licensing subsidies
    • 10% to substance recovery and rehab programs
    • 10% to employment programs for individuals with criminal records

 

Intended Impact

  • The LIT Act will end the hypocrisy of marijuana prohibition, which has criminalized millions while the legal industry explodes in profit. This bill legalizes the industry, taxes it fairly, and uses those funds to support universal healthcare, addiction recovery, criminal justice reform, and deficit reduction. This is how we move forward: smarter policy, fairer enforcement, and long-overdue accountability.