S. 331, HALT Fentanyl Act

S. 331 would automatically and permanently place all fentanyl-related substances (FRS, compounds that are structurally related to fentanyl) in Schedule I under the Controlled Substances Act (CSA), without any additional administrative action from the Drug Enforcement Administration (DEA) or the Food and Drug Administration. Currently, only some FRS are listed individually in Schedule I. All other FRS have been placed there temporarily since 2018 and are scheduled to be removed on March 31, 2025. Fentanyl, which would not be affected by this bill, would remain a Schedule II drug.

S. 331 also would change DEA registration requirements for researchers who handle Schedule I or II substances. The bill would require the inspector general within the Department of Justice (DOJ) to report to the Congress on fentanyl research. Lastly, the bill would require DOJ to promulgate regulations to implement the bill.

Under current law, certain drugs that are not explicitly designated as controlled substances can be subject to requirements under the CSA. However, to proceed with criminal cases, prosecutors must prove that such drugs meet specific criteria related to chemical structure and psychoactive effects. By placing all FRS in Schedule I, S. 331 would lower the burden of proof in certain cases by removing that requirement, thus increasing the likelihood of conviction.

Direct Spending and Revenues

Under the bill, CBO expects that the number of criminal convictions would increase when the temporary classifications become permanent, and more FRS are placed in Schedule I. Data from the U.S. Sentencing Commission indicate that a small number of people who are convicted of fentanyl trafficking pay criminal fines. Criminal fines are recorded as revenues, deposited into the Crime Victims Fund, and later spent without further appropriation.

CBO also expects that enacting the bill would lead to an insignificant increase in collections of registration fees from researchers. Such collections are classified in the budget as reductions in direct spending.

In total, CBO estimates that enacting S. 331 would increase revenues and direct spending by $1 million over the 2025-2035 period.

Spending Subject to Appropriation

Under S. 331, DOJ would incur additional administrative and personnel costs to complete the report and issue rules for implementing the bill. Based on the costs of similar activities, CBO estimates that implementing S. 331 would cost less than $500,000 over the 2025-2030 period. Any related spending would be subject to the availability of appropriated funds.

Mandates

Under current law, individuals and research facilities that handle FRS are required to hold a Schedule I registration with DEA and comply with applicable regulations through March 31, 2025. By making permanent the temporary classification of FRS, S. 331 would impose an intergovernmental and private-sector mandate, as defined in the Unfunded Mandates Reform Act (UMRA) by extending the expiration date of an existing mandate. To continue to handle FRS beyond the deadline, those entities would be required to maintain their Schedule I registration and comply with regulatory controls. The annual registration fee is less than $300 annually. According to DEA, fewer than 100 researchers hold such current registrations, and most public-sector researchers are exempt. CBO estimates that the cost to comply with the mandate would be small and would not exceed the annual thresholds established in UMRA for intergovernmental and private-sector mandates ($103 million and $206 million in 2025, respectively, adjusted annually for inflation).

The CBO staff contacts for this estimate are Jeremy Crimm (for federal costs) and Erich Dvorak (for mandates). The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.