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

Regulatory Changes & Political Landscape - The DEA is directed 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 per year in hemp-derived CBD products starting in April [2] - Congress passed a ban on all hemp products starting November 2026, including CBD products under the pilot program [2] - The White House will work with Congress to update the statutory definition of final hemp-derived cannabinoid products [3] Industry Dynamics & Lobbying - There has been growing industry engagement and intensified lobbying in Washington [3] - The president shared a medical CBD commercial produced by a longtime friend [4] - Cannabis's influence in DC has seen an uptick year-over-year [6] Strategic Considerations - The executive order is testing a limited medically focused path to reform [4] - The move is appealing to states already moving ahead and keeping tighter controls in place as the 2026 election cycle approaches [4] - The president may see this as appealing to younger and senior voters as the 2026 midterm election process approaches [6]