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Trump teases rescheduling decision in the next ‘few weeks’ 👀

Trump teases rescheduling decision in the next ‘few weeks’ 👀

Plus, Dutchie workers seek to unionize

Jeremy Berke
August 12, 2025

Good morning.

Well, Trump made his first comments on cannabis while in office on Monday. They weren’t resoundingly positive, but the big takeaway is that the administration is going to make a determination on rescheduling in the coming weeks.

More on that below.

-JB, JR, ZH, NM

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💡 What’s the big deal

SCHEDULE III
Trump says they’ll make a rescheduling decision in the next few weeks 👀

What happened: President Trump made his first comments on cannabis from the White House on Monday.

“We’re only looking at that, it’s early,” Trump said in response to a reporter’s question. “Some people like it, some people hate it. Some people hate the whole concept of marijuana, because if it does bad for the children, it does bad for people that are older than children.”

“But we’re looking at reclassification and we’ll make a determination over the next few weeks… very complicated subject.”

Back up: President Trump supported reclassifying cannabis from the most restrictive Schedule I to the less restrictive Schedule III — where prescription drugs like Tylenol with codeine are classified — on the campaign trail.

He also supported the failed bid to legalize cannabis in Florida, his adopted home state during the campaign last year. But he’s been quiet on the issue since taking office.

The Biden Administration kicked off the rescheduling process, but hearings planned for January were delayed and the process has since sputtered under Trump.

Now, there are signs of life.

Trump was responding to reporting from The Wall Street Journal and CNN over the weekend that said he spoke about the issue at a fundraiser at his New Jersey golf course earlier this month, where cannabis industry figures including Trulieve CEO Kim Rivers were in attendance.

The industry has spent heavily on lobbying Trump on the issue.

What the industry is saying: Reclassifying medical cannabis would lift outdated federal restrictions that have stifled scientific research for decades,” The US Cannabis Roundtable, an industry trade group, said.

“This policy shift would significantly expand research opportunities, unlock new treatment options for veterans and patients living with chronic conditions, and lay the groundwork for broader health system benefits rooted in evidence-based care.”

And: “We believe that President Trump’s current consideration of rescheduling cannabis signals meaningful progress for the industry and momentum toward practical and responsible policy, including potential U.S. federal legalization,” Tilray CEO Irwin Simon said.

Why it matters: The ball’s in Trump’s court when it comes to federal cannabis reform.

While his comments weren’t resoundingly positive, they do indicate that there is at least some meaningful movement on the issue from the White House.

While rescheduling falls far short of legalization, and doesn’t meaningfully achieve any social equity objectives that many advocates have fought for, the benefits for the industry and medical research are immense.

It would eliminate the 280E tax rule, which blocks companies selling Schedule I or II drugs from deducting standard business expenses. That rule has forced cannabis operators to pay sky-high effective tax rates, crushing profitability.

Cannabis stocks, long stuck in the doldrums, would get a major boost, bringing new momentum and energy to the sector.

It could also give banks more confidence to work with the industry, unlocking M&A opportunities and lowering the cost of much-needed capital for struggling operators. Rescheduling would also allow rank-and-file cannabis industry workers easier access to bank accounts, mortgages, and the broader financial system.

A new influx of capital could also give a major boost to social equity programs in states like New York and Illinois, where many entrepreneurs are buried in debt and have been unable to open their stores.

It may also give political cover to Republicans in Congress and throughout state capitols to act on cannabis reform, if Trump supports it.

Analyst Pablo Zuanic, of Zuanic & Associates, has more detail on the industry benefits of rescheduling if you want to more detail.

It’s good politics: Nearly 90% of Americans support legalizing medical cannabis, while a majority support full legalization, according to a recent Pew poll.

But there are some clear discrepancies between the two parties. Only 43% of Republicans support legalization, while 66% of Democrats do. So there’s still some work to be done in Trump’s own party, as evidenced by the reactions on social media in recent days.

Far-right pundits in Trump’s orbit like Charlie Kirk and Mike Cernovich, with millions of followers each, took to social media over the weekend to complain about the smell of pot and what they say are the impacts on children and families. (Most of which are untrue or complete hyperbole, I should point out).

Yet other Trump supporters took to social media to urge Trump to follow through on his campaign promise.

The market reacts: Cannabis stocks have surged in recent days and Monday was no exception. Canopy Growth closed up over 26% (and is up nearly 45% since last week), Tilray closed up over 42% (and is up over 51% since last week).

Meanwhile MSOS, an ETF that tracks a basket of US cannabis stocks, shot up 26%.

The final word: Trump is a teetotaling Republican president, trying to hold together a big tent of MAGA populists and old-school social conservatives.

Reclassifying cannabis to Schedule III might strike the right balance to keep everyone happy. But we shall see.

-JB

⏩ Quick hits

Dutchie workers file to unionize 💻

Workers at cannabis tech firm Dutchie filed to form a union with United Food and Commercial Workers Local 1445 on August 7. New England-based Local 1445 has worked with many cannabis companies, but this effort is the first to involve a cannabis software company.

Note: Dutchie is a Cultivated partner.

LIT ALERTS’ INSIGHTS
Average flower pricing: East Coast

Pricing compression is a part of every cannabis market's story and it's beginning to dominate conversations on the East Coast.

Our partners at Lit Alerts published a simple chart that shows the average retail menu pricing for common flower package sizes including eighths, quarters, half ounces, and ounces.

Although New Jersey is beginning to experience its first bout of price compression, the state continues to lead the growth market pack having the highest average pricing for all weights.

New York is next in line, facing pricing compression a bit earlier than other growth markets on the East Coast.

Maryland continues its gradual descent in pricing.

Pennsylvania gives us a glimpse into a mature medical market (hopefully on the eve of adult-use) while Massachusetts gives as a clear picture of where prices are most likely headed in the other growth markets on the East Coast if the same oversupply and discounting frenzy is carried out.

Important Note: Looking at flower pricing averages across all flower products can tell the top level story for a state and is useful for state by state comparisons. However, it falls short of telling the whole story as flower products are priced differently depending on value, standard, or premium brand or different levels of quality (tops, small buds, shake, etc.)

If you'd like to dive into those details, check out our friends at Lit Alerts for a special offer for Cultivated Media subscribers.

Have a look at Lit Alerts’ exclusive insights. 👇