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Trump’s Cannabis Reform: A Game Changer for the Cannabis Industry in 2025
In a rapidly expanding market surrounded by regulatory uncertainties, cannabis businesses and stakeholders are wondering how a Trump cannabis policy reform will steer the future of the cannabis industry. From tax breaks to nationwide acceptance of marijuana for recreational use, could there be potential real shifts? This article delves into key events leading up to and during the current administration that could have a lasting impact on the cannabis industry, particularly in terms of marijuana rescheduling.
What We Know So Far
As Donald Trump’s second tenure begins, the future of cannabis reform might come down to Trump’s stance on weed and how he follows through with his statements during his campaign. His next moves will be crucial. Even under Biden, there’s already been talks of rescheduling marijuana from Schedule 1 to Schedule 3. This is big news, as it would help cannabis businesses improve and streamline their operations. Potential standard tax deductions, lenient access to banking, clearer regulations, and more research opportunities are what’s in store for cannabis businesses and stakeholders.
Donald Trump’s Stance on Weed Rescheduling
Trump has made it clear through a Truth Social Post during his presidential campaign that he supports the rescheduling. In another instance, before the campaign, Trump also expressed his support for recreational use in his home state, Florida. While Florida’s Amendment 3 didn’t materialize, it goes to show Trump’s been open to reforms ever since.
Stance on SAFE Banking Act
While not said explicitly, Trump also recognizes the economic relief and stability the SAFE Banking Act brings to the government and the cannabis businesses. This legislation allows smoother operations for cannabis companies by giving them access to banking services, even with federal restrictions.
Project 2025 and Cannabis
Trump’s laid-out agenda, Project 2025, conspicuously excluded cannabis reforms and any reference to cannabis. However, Project 2025 emphasized the focus on tightening control over illegal drugs in the US.
Appointment of Roles
Cannabis lobbyists have been busy reminding Congress of Trump’s campaign promises. This time, as we wait for a possible rescheduling—influence on cannabis policy will depend on how Congress, other legislative bodies, and the DEA administrator, a position appointed by the President, handle the looming matter. So, whoever Trump picks for that role could be a key factor in the future of cannabis.
How Will Trump’s Second Term Differ From The First?
While Donald Trump maintained a neutral position during his first term, the cannabis landscape saw significant growth and expansion during that time, achieving levels of success like never before. Cannabis businesses and advocates are hopeful for broader reforms as they await the latest federal legalization news.
The Federal Legalization of Hemp
Perhaps the most monumental cannabis reform to date was the 2018 Farm Bill. This Trump cannabis policy legalized CBD and other cannabis products derived from hemp, as long as they met the THC limit of 0.3%. This legalization marked the notable impact of cannabis’s role in wellness and medical uses. While it didn’t extend to broader marijuana legalization, the surge in CBD demand played a key role in bringing cannabis producers, manufacturers, and retailers into the U.S. legal market spotlight.
State Autonomy and Federal Protection
Trump cannabis policy supported state-level decisions on cannabis legalization that affirm the fact, that each state should be free to create its laws and regulations in its jurisdiction.
In particular, under his first term, Congress passed the STATES Act (Strengthening the Tenth Amendment Through Entrusting States Act). It acts alongside the Controlled Substances Act to give clarification and protection for state-legal cannabis businesses. This also gave so much confidence to states, as they can regulate cannabis and enjoy banking access without fear of federal prosecution.
Medical Use of Cannabis
While Trump expressed support for the medical use of cannabis, he refrained from pushing for federal legalized weed during his first term. In his 2021 budget proposal, which was eventually denied by Congress, it removed a rule that protected state medical cannabis from the Justice Department interference.
The Power of Appointments and Endorsements
Cannabis advocates believe that the next Attorney General could provide an opportunity for significant reforms, ideally someone who supports federal legalized weed. During his first term, the previous Attorney General revoked the Cole Memo, which had limited federal enforcement in states where cannabis was legal. This sparked concerns about potential federal crackdowns, but the Trump administration did not pursue significant enforcement, leaving the industry largely unaffected.
Reforming Cannabis Offenses Through Pardons and Clemency
In his first term, Trump took decisive actions to push for correcting lingering injustices of marijuana convictions. The First Step Act, which was signed in 2018, reduced sentences for non-violent offenders, including those convicted of marijuana use. Among several individuals he granted clemency in his last fiscal years, a few of them were convicted of marijuana possession.
Why Trump’s Cannabis Reforms Matter For Cannabis Businesses?
Cannabis businesses are anticipating Trump’s next moves as any reform concerning federal legalization will significantly impact their operations and plans. Despite their familiarity with shifting conditions, preparedness for opportunities and challenges can determine business growth. The legal cannabis industry has flourished throughout the years (under many administrations) and has witnessed the following developments:
- As of early 2024, there are 440,445 full-time jobs supported by legal cannabis
- Significant cannabis taxes generate revenue for state and local governments. In 2022 alone, states collected nearly $3 billion in revenues. Federal legalization may reach over $8.5 billion of annual revenue from sales.
- The spurt of the cannabis technology market or cannatech market. Around 68% of cannabis growers leverage tech to ensure high-quality strains.
Despite the key turn of events, challenges remain. Aside from the aforementioned problem of cannabis businesses with banking and securing investments, stakeholders are also hoping for reforms focused on the social impacts on public health. Additionally, local zoning regulations are creating instability, which has impacted property demand and the real estate industry.
The Next Chapter: Uncertainty or Opportunity for Cannabis?
Over the years, Trump’s stance on weed has moved toward supporting legalization, particularly when it comes to state authority. While there’s no focus on full federal legalization, major cannabis reforms happened which heavily shaped the cannabis industry in the U.S. To summarize, during his first term:
- States were free to legalize cannabis without federal interference
- Introduction of the 2018 Farm Bill, which legalized CBD and hemp-derived products
- Marijuana remains federally illegal
Despite his campaign promises, cannabis businesses remain cautious about what to expect. The industry holds hope for rescheduling but is apprehensive about delays if Trump appoints individuals resistant to reform Since Trump’s confirmation as the Republican nominee,
- He voted Yes for Florida’s Amendment 3
- He expressed his support for rescheduling marijuana from Schedule 1 to Schedule 3
- His nominee for Attorney General is an opponent of marijuana reforms
- He had solid plans detailed in Project 2025 and cannabis might not be a top priority in the first year of his term.
With President Donald Trump back in the Oval Office, the cannabis industry is hopeful for advancements in rescheduling. Although states largely determine the path to full legalization, hope remains that his second term will produce more substantial federal reforms.
Step Into New Opportunities with CannDelta
For those interested in what the cannabis industry’s future holds, the CannDelta offers a wealth of resources and insights on the latest federal legalization news. CannDelta has been helping businesses by providing them with clarity on legal changes, so they can grow their business with confidence.
Frequently Asked Questions
Will Trump federally legalize weed?
While Trump supports state-led legalization, federal reform under his administration remains unclear. His Project 2025 does not address the federal legalization or marijuana rescheduling. Experts argue it might not be his top priority in his first year. Still, even before his return to the Oval Office, he has repeatedly supported state cannabis legalization, as long as everything’s done in a lawful, clean, and well-planned approach.
Is Trump going to ban weed?
No, President Trump has not called for banning cannabis. Over the years, Trump’s stance on weed has shifted toward supporting legalizations, particularly regarding state jurisdictional autonomy. At the federal level, experts expect ongoing bipartisan efforts to introduce bills that could impact the cannabis industry, with both sides hoping to end the ban on weed.
What does Project 2025 say about cannabis?
President Trump’s Project 2025 does not address federal marijuana legalization or rescheduling. Experts speculate it might not be a top priority in the first year. The project, however, places a strong emphasis on intensifying the fight against illegal drugs in the US.
