Trump Rescheduling Stalls as Internal Resistance Emerges

Cannabis rescheduling efforts face unexpected headwinds as internal resistance within the Trump administration creates delays in implementing the president's executive order. A longtime Trump advisor reveals that someone within the administration is actively blocking progress on the Department of Justice's mandate to move cannabis from Schedule I to a lower classification, raising questions about the timeline for federal reform.

The disclosure comes three months after Trump issued his executive order directing DOJ to finalize rescheduling rules, a move that initially sparked optimism across cannabis markets. Multi-state operators like Curaleaf Holdings, Green Thumb Industries, and Trulieve Cannabis had rallied on expectations that federal rescheduling would unlock banking access, reduce tax burdens under 280E, and accelerate interstate commerce opportunities.

This internal friction highlights the complex political dynamics surrounding cannabis policy within Republican circles. While Trump has embraced rescheduling as part of his broader deregulation agenda, traditional law enforcement and conservative factions within his administration appear resistant to rapid implementation. The delay underscores how bureaucratic processes can impede even presidential directives on cannabis reform.

For cannabis operators, the stalled timeline creates continued uncertainty around tax relief and regulatory frameworks. Companies currently face effective tax rates exceeding 70% under Section 280E, which prohibits standard business deductions for Schedule I substances. Each month of delay costs the industry millions in additional tax burden while maintaining barriers to institutional investment and traditional banking relationships.

The revelation also impacts broader reform momentum as state-level programs continue expanding despite federal uncertainty. With over 40 states now operating medical or adult-use programs, the disconnect between state and federal policy grows more pronounced. Cannabis companies must navigate this regulatory limbo while competing against illicit markets that face no such compliance costs, making swift federal action increasingly critical for legitimate operators' competitiveness.