Key Issues
Congress targets cannabis and hemp reforms amid DOJ, DEA, Tax clashes
A U.S. House subcommittee advanced a bill barring the DOJ from rescheduling cannabis, directly opposing the Biden administration's move to reclassify marijuana under the Controlled Substances Act. Simultaneously, both House and Senate appropriations committees approved measures to redefine hemp and ban most hemp-derived THC products, including delta-8 and THCA, sparking industry concerns. Meanwhile, the DEA has stalled its cannabis rescheduling appeal for over six months, citing administrative delays and leadership turnover. Lawmakers also passed an amendment allowing VA doctors to recommend medical cannabis, while a federal court ruled cannabis firms ineligible for pandemic-era tax credits. Lastly, Sen. Warren and Rep. Stansbury urged President Trump to end federal cannabis arrests and embrace reform.
Texas hemp industry avoids blanket ban, Governor signs executive order
Gov. Greg Abbott issued an executive order directing state agencies to ban THC product sales to minors, require ID checks, and increase enforcement of existing rules. The order also calls for stricter labeling, testing, and oversight, as well as higher licensing fees to support compliance. While Lt. Gov. Dan Patrick continues to push for a full ban, hemp industry leaders welcomed Abbott's regulatory approach, saying it will support consumer safety while allowing legitimate businesses to operate.
Medical marijuana use tied to better health, lower ER visits, reduced reliance on prescription drugs
A Pharmacy journal study found chronic pain patients using medical marijuana for a year had fewer emergency room and urgent care visits and reported higher quality of life, with a 2-3% drop in urgent care usage. A separate federally funded study showed significant reductions in anxiety and depression symptoms within three months of cannabis use, with the strongest results seen from THC-dominant products. A NuggMD survey revealed 80% of cannabis users substitute it for prescription drugs, particularly for pain, depression, and anxiety, posing a potential multi-billion-dollar threat to the pharmaceutical industry. Despite growing public preference and scientific support, a federal judge in New Mexico ruled that insurance companies aren't required to cover medical cannabis due to federal law.
Cannabis industry losing jobs in mature markets, emerging markets continue to grow
Despite $30.1 billion in revenue in 2024, the U.S. cannabis industry lost 15,000 jobs - a 3.4% drop - due to price compression, oversupply and high taxes in saturated markets like California and Illinois. Comparatively, emerging markets such as New York, Maryland, and Ohio saw strong job growth, with New York tripling its workforce.
Industry Regulations
Federal
House subcommittee advances bill blocking DOJ from rescheduling cannabis
A U.S. House subcommittee approved a spending bill on July 15 that would bar the Department of Justice from using federal funds to reschedule or declassify cannabis under the Controlled Substances Act. The bill, which allocates $77 billion in discretionary funds, includes a clear provision prohibiting any reclassification of marijuana. While the Biden administration is pursuing a move to Schedule III, this measure seeks to remove that authority from the executive branch. The bill also preserves protections for state medical cannabis programs from DOJ interference, despite a Trump budget proposal to eliminate them.
Source: Cannabis Business Times
Senate panel advances bipartisan bill to ban most hemp-derived THC products
The Senate Appropriations Committee unanimously approved a bipartisan proposal to redefine hemp and effectively ban over 90% of hemp-derived THC products, including THCA flower and synthetic cannabinoids like delta-8 and delta-10. The bill, led by Sens. Mitch McConnell and Jeff Merkley, aims to close the "hemp loophole" created by the 2018 Farm Bill, with changes taking effect in one year. It creates distinct definitions for industrial hemp and hemp-derived cannabinoid products, mandating total THC (including THCA) remain below 0.3%. Advocates warn the bill would devastate the hemp consumables market, though others see the one-year delay as time to refine the language.
Source: MJBiz Daily
DEA stalls cannabis rescheduling appeal for six months with no progress made
The DEA failed to take any action on a cannabis rescheduling appeal for 180 days, submitting a second identical status update to its administrative law judge without providing a briefing schedule or progress update. The delay follows allegations of agency bias and improper communication with anti-rescheduling groups, which triggered the appeal and halted the rescheduling hearing in January. Leadership turnover and the Senate's delay in confirming Trump nominee Terrance Cole as DEA administrator have further stalled the process.
Source: Cannabis Business Times
Veteran-Lawmaker secures House approval for VA to recommend medical cannabis
Rep. Brian Mast, a double amputee and Army veteran, successfully attached an amendment to the House's military funding bill that allows Veterans Affairs doctors to recommend medical cannabis. The amendment, backed by the Congressional Cannabis Caucus, lifts restrictions preventing VA providers from helping veterans access state-licensed cannabis programs. Currently, veterans must choose between VA care and medical cannabis, even though 40 states have legalized it. The bill, passed 218-206, does not fund cannabis treatment but removes barriers to physician guidance.
Source: Cannabis Business Times
House Committee advances bill to ban intoxicating hemp, redefine THC products
The U.S. House Appropriations Committee approved a fiscal 2026 spending bill that includes a provision to ban hemp products containing synthetic or intoxicating cannabinoids like THCA and delta-8 THC. Led by Rep. Andy Harris, the measure aims to close what lawmakers call a loophole in the 2018 Farm Bill, which legalized hemp but left finished products largely unregulated. Critics argue the bill could effectively ban most CBD products and devastate the $28 billion hemp industry. The bill heads to the House floor.
Source: Cannabis Business Times
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