Trump’s Marijuana Rescheduling Order Could Include Industry Banking...

Cannabis industry observers believe it is increasingly likely that
President Donald Trump will soon sign an executive order directing federal
agencies to complete the marijuana rescheduling process. But multiple
reports indicate that the directive could also contain additional
components touching on cannabis business banking access and Medicare
coverage for CBD.

The exact details of the executive order aren’t clear, but White House
sources seem to be coalescing around the idea that it will be signed on
Thursday and will instruct the Justice Department to proceed with plans to
move marijuana from Schedule I to Schedule III of the Controlled Substances
Act (CSA).

A source familiar with fluid discussions around the administrative action
also told Marijuana Moment that Trump may couple the presidential directive
with clemency for some people who have been convicted over federal
marijuana offenses. Neither that plan, nor the reported details about
cannabis banking or CBD and health care, have yet been confirmed, however.

According to NBC News, the potentially imminent executive order may contain
an explicit push from the president urging Congress to pass a bipartisan
bill titled the Secure and Fair Enforcement Regulation (SAFER) Banking Act,
which would prevent federal regulators for penalizing financial
institutions simply for working with state-licensed marijuana businesses.

The lack of banking access for the cannabis industry was also raised in a
Senate subcommittee hearing on Tuesday.

It’s also being speculated that the plan is to take a novel—albeit
logistically complicated—approach to cannabinol, a non-intoxicating
component of the cannabis plant that’s widely used as a health supplement.
Sources have said that drafts of the executive order have called on the
Centers for Medicare and Medicaid Services (CMS) to amend its rules to let
people on Medicare receive reimbursements for the cannabinoid product.

That potential reform was also floated in a video from The Commonwealth
Project touting the health benefits of CBD that Trump shared on Truth
Social in late September.

CMS implemented a rule in April specifically stipulating that marijuana, as
well as CBD that can be derived from federally legal hemp, are ineligible
for coverage under its Medicare Advantage program and other services. But the
agency has since revised the proposed rule, just weeks before the expected
administrative order by Trump.

Marijuana Moment reached out to the White House for clarification on the
rumored executive order, but a spokesperson did not respond by the time of
publication.

On Monday, Trump said he is “very strongly” considering rescheduling
cannabis in part to ease restrictions on research into its effects.

Opponents of the policy change have stepped up their efforts to dissuade
the administration from moving forward, arguing that a reclassification to
Schedule III will further normalize marijuana use even though it would not
federally legalize the plant. Rescheduling would, however, let marijuana
businesses take federal tax deductions while reducing certain research
barriers associated with Schedule I drugs.

Rep. Andy Harris (R-MD), one of the more vocal prohibitionists in Congress,
said this week that Trump doesn’t have the authority to unilaterally
reschedule marijuana via executive order. But while lawmakers could
overrule any administrative move to enact the reform, it would be a “heavy
lift” in the Republican-controlled Congress, he acknowledged.

Meanwhile, multiple top congressional Democrats are making the case that
the modest reform would not go far enough—including Sen. Ron Wyden (R-OR)
who said the move is only an attempt by the president to “gaslight” voters
into thinking he legalized cannabis to boost his “pathetic” approval
ratings.

A major drug testing industry organization separately said it’s “sounding
the alarm” amid the reports Trump may soon finalize the rescheduling
proposal, arguing that the policy change would “have catastrophic
consequences for the safety of the United States workforce and
transportation sectors.”


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For what it’s worth, a White House spokesperson told Marijuana Moment last
week that no actions have been finalized so far.

Bipartisan congressional lawmakers have been weighing in on the potential
rescheduling decision over the past week—with Democrats like Rep. Alex
Ocasio-Cortez (D-NY) calling the reform a “no-brainer” and others like Rep.
Andy Harris (R-MD) pushing back against the proposal.

The Washington Post reported last week that Trump was planning to issue an
executive order directing federal agencies to move ahead with cannabis
rescheduling.

The outlet also said the president met earlier this week in the Oval Office
with marijuana industry executives, Health and Human Services Secretary
Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services
Administrator Mehmet Oz. During that meeting, Trump phoned Johnson, the
House speaker, who expressed his opposition to rescheduling cannabis,

If the administration does ultimately enact rescheduling, it would mark one
of the most significant developments in federal marijuana policy since its
prohibition a half a century ago, with a Schedule III reclassification
recognizing that marijuana has medical value and a lower abuse potential
compared to other Schedule I drugs like heroin.

*Photo courtesy of Philip Steffan.*

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