Federal cannabis regulation refers to Canada's Cannabis Act, which legalized recreational cannabis in 2018 under federal law while creating responsibilities and costs for municipalities. While the federal government sets the overall legal framework and provinces determine distribution and retail models, municipalities bear enforcement costs: police respond to impaired driving and illegal dispensaries, bylaw officers address public consumption and odour complaints, and planning departments regulate retail locations. Many municipalities argue they weren't adequately consulted before legalization and don't receive sufficient cannabis tax revenue to cover their costs. Federal cannabis excise taxes are shared with provinces, but flows to municipalities are inconsistent. Local challenges include determining appropriate retail zoning, managing the transition from illegal dispensaries, and addressing community concerns about cannabis facilities near schools or residential areas.