New Mexico Cannabis Brands Lose Federal Fight Over Border Patrol Seizures

Stephen Andrews
12 Feb 2026

LAS CRUCES, NM – In a significant legal blow to the state-regulated cannabis industry, a federal judge has dismissed a lawsuit brought by eight New Mexico cannabis operators against U.S. Customs and Border Protection (CBP). The ruling confirms that federal agents may continue to lawfully seize state-legal cannabis products at interior checkpoints, regardless of their status under state law.


The ‘Contraband’ Ruling

Federal court has dismissed New Mexico cannabis operators’ lawsuit over border seizures. The ruling was issued Monday, Feb. 9, while the 20-page decision was officially published on the following day. 

Chief Judge Kenneth Gonzales of the U.S. District Court for the District of New Mexico ruled that because cannabis remains a Schedule I controlled substance under federal law, it is technically “contraband.” 

The plaintiffs had argued that the seizures violated their Fifth Amendment rights to due process and their Tenth Amendment rights regarding state sovereignty. However, the court found that since the federal government does not recognize a “property interest” in federally illegal substances, the constitutional protections did not apply in this context.

Why Rescheduling Didn’t Help

The operators pointed to the ongoing efforts to move cannabis to Schedule III as a sign of shifting federal policy. Judge Gonzales countered that a proposal to change the law is not the same as a change in the law itself. Until the administrative process is finalized and the law is officially amended, the CBP maintains its full authority to enforce the Controlled Substances Act at federal checkpoints.

The ‘100-Mile Border Zone’ Trap

This ruling highlights a dangerous reality for businesses in states like New Mexico, Arizona, and California. Under federal regulations, CBP operates interior checkpoints within 100 miles of the U.S. border.

  • Seizures Are Common: Agents at checkpoints in areas like Las Cruces and the I-25 corridor have seized millions of dollars worth of state-compliant products.
  • Federal vs. State Manifests: Federal agents are not required to honor state-issued transportation manifests or licenses.

Safe Transport 

For licensed operators and medical patients, this ruling serves as a stark reminder: compliance with state law does not grant immunity from federal seizure. When navigating southern New Mexico, it is vital to map distribution routes that avoid permanent interior checkpoints to prevent loss of inventory and potential federal prosecution.

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Stephen Andrews