1. Short title This Act may be cited as the Restraining Excessive Federal Enforcement & Regulations of Cannabis Act of 2018 or the REFER Act of 2018 . 2. Limitation on the use of funds None of the funds made available by any Act of Congress to any department or agency of the United States may be used to— (1) prevent a State or unit of local government from implementing or maintaining its State law or regulation that authorizes the use, distribution, possession, or cultivation of cannabis; (2) detain, prosecute, sentence, or initiate civil proceedings against an individual, business or property, that is involved in the cultivation, distribution, possession, dispensation, or use of cannabis, in accordance with the law or regulation of the State or unit of local government in which the individual is located; or (3) penalize a financial institution solely because the institution provides financial services to an entity that is a manufacturer, producer, or a person that participates in any business or organized activity that involves handling cannabis or cannabis products, or any related activity, and engages in such activity pursuant to a law or regulation established by a State or a unit of local government in which the financial institution is located. 3. Definitions In this Act: (1) The term financial institution has the meaning given such term in section 5312 of title 31, United States Code. (2) The term State means any State, the District of Columbia, any territory or possession of the United States, or any Indian tribal government.