Key Issues
Movement on legalizing cannabis appears stalled on a federal level
The Trump administration's 2025 drug policy agenda omits cannabis rescheduling, despite earlier signals of support, instead prioritizing fentanyl, border security, and addiction treatment. This omission, coupled with a stalled DEA rescheduling process, has added to industry uncertainty and is frustrating reform advocates, especially as federal restrictions on interstate trade are blamed for fueling the illicit market. Separately, the DOJ's decision to stop defending DEA legal protections may accelerate cannabis research, and bipartisan voices, including Sen. Fetterman and GOP Sen. Yaw, are pushing for federal legalization.
States continue to push cannabis industry forward, though concerns remain
New York launched a mandatory training program for all cannabis industry workers to improve safety, compliance, and market stability, while also offering grants to businesses led by people with past cannabis convictions. Meanwhile, cannabis reform remains contentious nationwide: Virginia's governor vetoed adult-use sales for the second year, and Ohio lawmakers are attempting to roll back voter-approved legalization. Several states, including Kansas, Pennsylvania, and North Carolina, introduced new legalization bills with strong public support, while Michigan is distributing $100 million in cannabis tax revenue to local communities.
Despite claiming support, cannabis banking reforms under Trump are slipping away
The cannabis industry was optimistic about potential banking reforms under President Trump, citing his support for economic growth and states' rights as encouraging signs. However, Trump's appointment of DEA Chief, Derek S. Maltz, has turned those hopes into doubts. JPMorgan CEO Jamie Dimon confirmed the bank would likely serve the cannabis sector if federal law changes.
Cannabis industry experiencing shock over Trump tariffs
Trump's tariffs are raising cannabis production costs by increasing prices on imported components, which is expected to drive consumers toward the illicit market. The cannabis industry launched a $1 million ad campaign targeting Trump, urging federal rescheduling and criticizing Biden's inaction. Meanwhile, a looming $3 billion cannabis debt cliff in 2026 threatens major operators unless federal reforms materialize. Other notable developments also include DoorDash's entry into THC/CBD delivery and BLAZE launching a nocode website builder for cannabis retailers.
The Supreme Court steps in amid cannabis industry confusion
The Supreme Court ruled that a trucker fired after a positive THC test can sue a CBD company under RICO laws, citing alleged product mislabeling. Issues like this, and confusion over what's legal, are expected to continue as Trump's DEA nominee has taken a strong anti-cannabis stance, even linking cannabis use to mental health risks. Also, a Burlington dispensary, The Bern Gallery, is offering to pay fines for public cannabis use to protest Vermont's ban, though no one has claimed reimbursement yet.
Industry Regulations
Federal
Trump's drug policy priorities exclude cannabis rescheduling in first-year agenda
The Trump administration's new drug policy priorities do not include cannabis rescheduling, despite prior campaign support. The focus is on combating fentanyl, securing borders, and expanding treatment and prevention efforts. While cannabis reform is absent, no new enforcement measures against cannabis were announced. Advocates see the omission as a missed opportunity, adding that uncertainty surrounds any future reform prospects.
Related: Cannabis signals from Trump growing increasingly murky—Green Market Report
Source: Marijuana Momen
N.Y. cannabis chief eyes $1.5B in sales for 2025 as market stabilizes
Felicia Reid, acting director of New York's Office of Cannabis Management (OCM), says the state's adultuse cannabis market could reach $1.5 billion in sales in 2025, up from $1 billion in 2024. Since taking over a troubled rollout, Reid has overseen the expansion to 343 licensed retailers, a crackdown on illicit sellers, and an increase in OCM staff. Despite lingering issues, including a lack of seed-to-sale tracking and pending grower applications, Reid stands by the state's equity-first approach, which prioritized justice-impacted businesses. She adds the state will slow cultivation approvals to prevent oversupply and stabilize the legal market.
Source: MJBiz Daily
DOGE cancels cannabis research grant focused on LGBTQ+, women's health
The Department of Government Efficiency (DOGE) canceled a $699,000 NIH grant for a study on cannabis use disorder risk among LGBTQ+ individuals and heterosexual women. The Ohio State University research aimed to explore daily cannabis use patterns and risk factors in marginalized groups. Experts say the move limits vital cannabis research while more costly agencies like the DEA remain untouched.
Source: Marijuana Moment
Federal ban on interstate cannabis trade fuels illicit market: Calif.
A California state-commissioned report finds that the federal ban on interstate cannabis commerce strengthens the illicit market and undercuts legal cannabis businesses. The analysis, conducted by ERA Economics, shows that only about 40% of consumers buy from licensed retailers, with illicit operations exploiting cross-state trade to offer lower prices. The report concludes that legalizing interstate trade would stabilize prices and reduce illegal activity. Other challenges include unregulated hemp products, local bans on cannabis businesses, and regulatory burdens. While Governor Newsom supports legalization, federal restrictions and legal risks continue to limit the state's ability to enter interstate cannabis agreements.
Source: Marijuana Moment
DOJ shift could accelerate cannabis research by weakening DEA's legal protections
The Department of Justice (DOJ) will no longer defend legal protections that shield administrative law judges (ALJs) from removal, a move that strengthens MMJ International Holdings' lawsuit against the DEA. MMJ claims the DEA has stalled its cannabis research application due to unconstitutional reliance on insulated ALJs. The DOJ's stance could force reforms in how the DEA handles cannabis approvals, potentially expediting research on treatments for conditions like Huntington's and multiple sclerosis. If MMJ prevails, the ruling may streamline federal cannabis oversight and accelerate clinical trials.
Source: Cannabis Business Time
Senator Fetterman launches petition urging federal cannabis legalization
Senator John Fetterman (D-PA) is circulating a petition calling for federal cannabis legalization, emphasizing broad public support and potential benefits such as economic growth and criminal record expungement. His campaign email highlights Fetterman's continued support for legal cannabis, veterans, small businesses, and justice reform. While not the lead sponsor of cannabis legislation, he has backed bills like the Cannabis Administration and Opportunity Act. The petition is also a campaign tool to mobilize supporters and expand fundraising outreach.
Source: Marijuana Moment
Pa. GOP senator says cannabis prohibition is a disaster, supports legalization
Pennsylvania Senator Gene Yaw called cannabis prohibition a "disaster" and said cannabis should be regulated like alcohol and tobacco. While he hasn't endorsed a specific legalization bill, he said there's growing GOP support for reform in the state. A recent poll found nearly 70% of Pennsylvania voters support legalization. Governor Josh Shapiro included legalization in his budget proposal, but has been criticized for not having a concrete legislative strategy, especially as lawmakers remain divided on the issue.
Source: Marijuana Moment
Russia releases American detained for alleged cannabis possession
Russia released Kalob Byers, a 28-year-old American arrested in February at a Moscow airport for allegedly carrying cannabis-infused products. Reports are unclear on whether the items were CBD gummies or cannabis-laced marmalade, but Byers said they were prescribed by a U.S. doctor. His release follows the Trump administration's recent prisoner swap securing freedom for Marc Fogel, a U.S. medical cannabis patient jailed in Russia.
Related: Trump administration secures release of American medical cannabis patient who was serving 14- year sentence in Russia—Marijuana Moment
Source: Marijuana Moment
Cannabis rescheduling paused indefinitely after DEA judge cancels hearing
The U.S. Drug Enforcement Administration's (DEA) rescheduling process for cannabis has been delayed indefinitely after Chief Administrative Law Judge John Mulrooney II canceled a key hearing scheduled for Jan. 2025. The decision follows a request from pro-rescheduling participants alleging bias against rescheduling by the DEA and its administrator. The delay comes amid political uncertainty, as President-elect Donald Trump's upcoming DEA appointee is expected to play a significant role in the rescheduling process. Critics argue the DEA's actions have corrupted the process and call for a fair hearing to move cannabis from Schedule 1 to Schedule 3 of the Controlled Substances Act.
Related: Suspicions that DEA rigged rescheduling process fueled by court documents—MJBizDaily
Source: MJBiz Daily
State
New York launches mandatory cannabis industry workforce training program
The state now requires all cannabis industry employees to complete a state-run "Responsible Workforce Training Program" within 30 days of being hired. The program includes online modules on product safety, labor standards, license education, and cultural competency. Workers must also complete additional employer-provided training specific to their job roles. Regulators say the goal is to ensure safety, compliance, and professionalism across the legal cannabis supply chain, and to stabilize and grow the New York's cannabis market after a slow rollout.
Source: Marijuana Moment
Conn. law enforcement supports bill allowing stops, arrests for suspected cannabis DUIs
Connecticut law enforcement officials have endorsed a bill permitting police to stop and arrest drivers suspected of smoking cannabis in their vehicles. The bill requires officers to both observe cannabis consumption and detect the smell of cannabis. However, critics argue that this could lead to racial profiling and point out the lack of a standardized cannabis sobriety test. Lawmakers like Representative Steve Stafstrom question the necessity of the bill, noting existing laws already allow officers to stop vehicles for various infractions, and cannabis industry advocates say the bill could unfairly target legal cannabis users.
Source: Police 1
NYC Cannabis Chief Dasheeda Dawson resigns amid allegations, prompts investigation
Dawson, New York City's cannabis chief, resigned on March 29, 2025, after leading the city's adult-use cannabis program since Oct. 2022. Dawson, praised for her role in advancing social equity, said she plans next to broaden her impact on state and federal cannabis policy. Her resignation follows a New York City investigation into allegations of misconduct involving a woman cannabis executive, which Dawson denies. Despite her departure, Dawson will remain active as chair of the Cannabis Regulators of Color Coalition and with her cannabis brand, The WeedHead & Co.
Source: MJBiz Daily
Va. governor vetoes adult-use cannabis sales bill for second consecutive year
Governor Glenn Youngkin vetoed a bill on Mar. 24 aimed at establishing licensed adult-use cannabis dispensaries in the state. This marks his second consecutive veto of such legislation, citing concerns over public health and safety, including potential increases in crime, mental health issues, and road accidents. Despite widespread support for cannabis sales, with 60% of Virginians in favor, Youngkin's veto prevents Virginians from purchasing regulated, lab-tested cannabis legally, and has sparked criticism from industry advocates who argue that it leaves consumers reliant on unregulated products.
Source: Cannabis Business Times
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