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Federal Republicans push back on cannabis rescheduling 🥊

Plus, cannabis consumers have healthier lungs than smokers

Good morning. 

In today’s newsletter, we break down how federal Republicans are seizing the moment to push back on cannabis reform.

If you’re enjoying this newsletter, help us grow by sharing with your boss, colleagues, friends, and family. We’re only as good as our readers. 

Let’s get to it. 

-JB, JR, and ZH

This newsletter is 1,376 words or about a 11.5-minute read. 

Today’s newsletter made possible by:

💡What’s the big deal?

GOP
GOP-led committee wants a review of cannabis rescheduling

Driving the news: Last year, President Joe Biden directed the Department of Health and Human Services (HHS) to move cannabis from the most restrictive Schedule I of the Controlled Substances Act to the less restrictive Schedule III.

While stopping far short of federal legalization, it would have been the biggest change to federal drug policy since the Nixon Administration. 

But since President Donald Trump took office, rescheduling has sputtered amid a series of lawsuits and shifting federal priorities. Planned January hearings were cancelled, and the status quo remains. 

What happened: Federal Republicans are seizing the moment to push back on cannabis reform. 

The Republican-led House Appropriations Committee attached a report to a big 2026 spending bill that directs HHS to complete a report on the rescheduling recommendation — but not in a good way.

The bill would also, if passed, close the intoxicating hemp ‘loophole’ that allows hemp-derived THC products to be sold across the US. It passed a subcommittee last week, but as I’ve written, paints far too broad of a brush to be effective legislation.

What they’re saying: “The Committee is concerned about deviations from established drug scheduling evaluation standards in the FDA 2023 marijuana scheduling review,” the report reads, per Marijuana Moment

“The Committee is concerned about reports of the mental health hazards of regular use of high-potency marijuana, particularly among adolescents. The Committee encourages the FDA to support research on high-potency marijuana and its effects on the adolescent brain, specifically regarding addiction and mental illness such as schizophrenia or psychosis.”

Call out: If the language in this report sounds familiar, by attacking the HHS review process and highlighting the potential of cannabis to be addictive and spur schizophrenia and psychosis, that’s because it comes straight from Smart Approaches to Marijuana (SAM), a prominent anti-cannabis advocacy group.

SAM CEO and founder Kevin Sabet confirmed as such on X. Clearly, the group is finding a receptive audience among House Republicans.

And for what it’s worth, the jury is very much out on whether cannabis causes mental illness. It’s an under-studied, developing area for scientists and medical researchers. 

And more: Nevada Rep. Dina Titus, a Democrat and co-chair of the Congressional Cannabis Caucus, said in an interview that Trump’s federal budget cuts could catalyze a renewed push within states to legalize cannabis.

But, she says that initial hope among pro-reform lawmakers during the campaign that Trump would act on cannabis reform have dissipated. 

“It’s just so hard to say about this administration. I mean every policy position they take, they switch the next day or the next hour,” she said on the National Cannabis Industry Association’s Voice of Cannabis podcast

“Look at tariffs — back and forth, back and forth. Employees of the federal government, same thing. So it’s hard for me to predict, but until they kind of get on board more, I think you will still see a reluctance by Republicans in Congress.”

-JB

📣 Quotable

“Texans do not want a total ban. They do want a reasonable, regulated hemp market free of dangerous products - especially those advertised and sold to minors. The gas station garbage must go while Texans enjoy the freedom they expect from conservative governance,” Texas Republican State Rep. and former House Speaker Dade Phelan said on X, in a discussion about a bill that’s awaiting Gov. Greg Abbott’s signature that would outlaw intoxicating THC products in the state.

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Quick hits

Minnesota cannabis gets a tax hike 💸

Minnesota lawmakers voted to increase the state's cannabis tax and to secure more of it for state coffers days after regulators held the state's first cannabis license lottery. If signed by the governor, the new tax rate would be 15%, up from 10% while 20% of tax revenue will no longer be reserved for local governments. And in other MN news, license lottery winners were mistakenly told their applications were denied after a staffer sent out the wrong email. Whoops. 

Nebraska Medical Cannabis Commission finally meets 🏃

The commission, which is required to draft rules that will govern the state's upcoming medical market by July 1, held their first official meeting on June 9. Their second meeting is scheduled for June 26, which is likely to be a busy one considering how much regulatory work is still left ahead. 

North Carolina Governor hoping for legalization 💨

Governor Josh Stein told the Carolina Journal that he is counting on his newly-created State Advisory Council on Cannabis to produce recommendations for decriminalizing cannabis in the state, while closing access to intoxicating hemp for minors. 

Infused products dominate California's pre-roll market 🛢️

Sales in California are declining overall, but it appears that infused pre-rolls are now preferred in the Sunshine State over traditional pre-rolls, almost 2-to-1. From December through February, infused pre-rolls, which feature ground flower mixed with concentrates to boost the THC potency, made up 66.3% of all pre-roll sales. MJBizDaily has more.

🚀 Deals, launches, partnerships

Tilray shareholders approve stock split 📉

Tilray shareholders approved a reverse stock split at a ratio ranging from 1-to-10 to 1-to-20 in order to remain compliant with the Nasdaq. The company said it paused timing on the split to evaluate options. Tilray stock is down over 70% this year and trading at about 42 cents per share as of Tuesday. 

MTL Cannabis moves up to OTCQX 📈

The Montreal-based cannabis company announced that its stock market stature has grown enough the company will transition from the OTCQB venture market to OTCQX. The move indicates MTL Cannabis' improved financial health. 

And more:

  • The Flowery will open its second Staten Island, New York dispensary with a “Grand Opening Jam” featuring the Clearly Faded pro skate team and a mini halfpipe competition. 

  • New York cannabis brand ayrloom launched what it says is the first cannabis-infused rosé. 

  • Edibles company KANHA is marking its tenth anniversary with the release of a line of vegan Rosin Sour gummies. 

  • FIKA Cannabis is partnering with pharmacist-led Apothecare to offer personalized, evidence-based cannabis consultations to customers across its 21 Ontario stores.

🧳 People moves

Kate Steinberg Patton said she stepped into the new role of Manager, Enterprise Integration and Communications at TerrAscend.

🔬 Science and research

Cannabis consumers have healthier lungs than cigarette smokers 🚬

Research published in the journal Current Problems in Radiology found that long term users of cannabis were far less likely to show as much lung damage than their cigarette-smoking counterparts. Emphysema and hyperinflation, which are commonly found in smokers, were rare among cannabis users.

📷 One fun thing

Summertime is concert season. So mark your calendars for The Miracle, a cannabis-friendly music festival in Mundelein, Illinois on September 6 and 7 featuring headliners Damian Marley and De La Soul. The concert is presented by Green Thumb Industries’ RYTHM brand.

📰 What we’re reading

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