Trump signs executive order to reschedule cannabis. Here's what's next

Core Insights - President Trump signed an executive order to reclassify cannabis from schedule 1 to schedule 3, easing restrictions on medical research, banking, and taxes [1] - A Medicare pilot program will allow some seniors to receive up to $500 a year in hemp-derived CBD products starting in April [2] - The executive order is seen as a calculated move rather than a sudden shift, influenced by increased industry lobbying and engagement [4] Industry Developments - The reclassification is not final yet; once the DEA finalizes the change, there will be a formal challenge period, likely leading to litigation [2] - Congress has passed a ban on all hemp products starting November 2026, which includes the CBD products under the Medicare pilot [2] - The White House plans to work with Congress to update the statutory definition of final hemp-derived cannabinoid products, but the specifics remain uncertain [3] Political Context - The timing of the executive order is strategic, appealing to states already advancing cannabis legislation and targeting voter demographics ahead of the 2026 election cycle [4][6] - There has been a notable increase in cannabis lobbying efforts in Washington, indicating growing influence within the political landscape [5][6] - The engagement of industry leaders, such as True Leaf CEO Kim Rivers, highlights the industry's push for reform [3]