Good morning.
Reports indicate that President Trump will make a cannabis related announcement, flanked by industry executives, at 1:30PM Eastern today.
Some outlets say that Trump will direct Attorney General Pam Bondi to publish the rule to reschedule cannabis rather than go through the lengthy administrative hearing process, which ultimately fizzled out earlier this year.
Others indicate that Trump will go further and direct Congress to pass the SAFER Banking Act, a banking bill, and even direct Medicare to cover CBD.
It’s a big moment, so stay tuned. We’ll find out soon and we’ll bring you updates.
-JB, JR, ZH
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💡 What’s the big deal?
COURTS
Why the Supreme Court was never going to hear the Canna Provisions case
We’re running an opinion column from attorney James B. Mann on the Canna Provisions case today. Read an excerpt below.
The Supreme Court never had the slightest intention of hearing the Canna Provisions appeal, an outcome that has been obvious for at least six months (when the Court of Appeals opinion was issued). Canna Provisions and several other cannabis businesses doing business in Massachusetts challenged the application of Schedule I of the Controlled Substances Act to cannabis grown and sold entirely within a state.
To begin with, it should be made clear that there is a 2005 Supreme Court decision, Gonzales v. Raich, on this exact issue, so it’s a big hurdle to overcome to ask the Supreme Court to overrule a relatively recent decision. Canna Provisions advanced two central arguments — the first is that the circumstances of the cannabis market have changed so much that the Raich factual analysis is now wrong. The second argument is that Congress has passed legislation demonstrating that cannabis no longer belongs in Schedule I. The First Circuit Court of Appeals emphatically disagreed with those arguments, pointing out that the facts had not changed enough to make Congress’ Schedule I classification irrational as part of a comprehensive regime of drug regulation (the relevant test). The Court further noted that the federal funding restrictions were limited to medical cannabis (Canna Provisions does not sell medical cannabis) and were limited in other ways.
The 3-0 First Circuit opinion is unrelentingly critical of Canna Provisions’ arguments and even takes some shots at the way the law firm, Boies Schiller, argued the case. Anyone reading the opinion would not view this case as being remotely a suitable candidate for being taken up by the Supreme Court.
📣 Quotable
“If [McConnell] sees an accomplishment in destroying a multimillion, actually billion-dollar industry, I don't see that as an accomplishment. I don't know that we're going to change his mind, but I think he really has not been well informed on this,” said Sen. Rand Paul when touring one of Cornbread's hemp facilities in Louisville, Kentucky.
Paul was referring to the hemp industry, which remains on the precipice of disaster with an impending federal ban set for November, 2026. Kentucky Public Media has more.
✍️ Apply today
On January 29th, Gotham and Cultivated will host our inaugural event: The Highrise.
The Highrise goal is to host an event where attendees represent the full breadth and depth of the cannabis industry in New York and throughout the country.
To do that, we are asking would-be attendees to apply to attend.
Only by identifying leaders throughout the industry can we truly create a representative group of attendees for The Highrise.
So, get your application in today » thehighrise.nyc
⏩ Quick hits
Senate Banking Committee holds a cannabis banking hearings 🏦
The Senate Banking Subcommittee on Financial Institutions and Consumer Protection held a hearing on Tuesday to discuss the lack of banking access for cannabis companies and the SAFER Banking Act, a cannabis banking bill. Tyler Klimas, the founder of Leef Street Strategies, said he testified on the committee at the invitation of Sen. Catherine Cortez Masto.
LIT ALERTS’ INSIGHTS
SKU counts in New Jersey
After receiving positive feedback about the Lit Alerts’ analysis of New York retail menus, Lit Alerts put together the same analysis for New York’s neighbor: New Jersey.
New Jersey now has over 250 stores open, about half of the stores in New York.
So is there more shelf space per retailer?
According to Lit Alerts' most recent analysis in December 2025, the median number of cannabis items on a retailer's menu in New Jersey is 342, which is 85 more than the median of 257 we reported last month in New York.
If you remove non-cannabis items — accessories and apparel — that number moves down slightly to 309.
Over 40% of stores are carrying 250 cannabis SKUs or less. Nearly 75% of stores are carrying 500 cannabis SKUs or less. These numbers are lower when compared to New York which means a higher percentage of stores in New Jersey are carrying over 500 SKUs.
Flower, pre-rolls and vapes each usually take up between 20-25% of the shelf.
Edibles round out the major categories with a median of 54 slots available.
Concentrates are taking up about 4% of the shelf in both NJ and NY.
Have a look at Lit Alerts’ exclusive insights into SKU counts in New Jersey. 👇
To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.
🤝 Deals, launches, partnerships
Vireo Growth to acquire PharmaCann assets 🪨
Vireo Growth, a Minnesota-based company that also has a presence in New York and Maryland is expanding into Colorado with an agreement to acquire 41 dispensaries in the Centennial State.
📰 What we’re reading
KOJO Koram: Trump's cannabis reform would revolutionise US policy. Just don't expect the 'war on drugs' to end | The Guardian
Hemp industry fighting federal ban with bills to regulate, not outlaw, THC gummies and drinks | MinnPost
EXCLUSIVE: Sen. Tom Cotton, Rep. Andy Harris, and AG Tim Griffin commend hemp ban, say overturn unlikely | The Washington Reporter