This 4th of July’s “Freedom 250” is being celebrated in the nation’s capital, but things aren’t feeling very free. Our favorite plant is currently on a historically significant liberation roller coaster. We are at a pivotal moment and it feels like it is all about to fly off the rails.
Let’s get into the three major moves the Feds are making around hemp and cannabis policy, all of which amount to three coats of American Flag Blue paint that never repairs the faulty foundation of a prohibitionist mindset.
1) Hempocolypse Looms
While we have made huge strides in getting hemp consumables into the mainstream, that is all at risk with the new hammer coming down on hemp on November 12, virtually outlawing everything on the shelves today. As a refresher, last year, Congress passed an entirely new paradigm for regulating hemp–a limitation on the dosage per container. The new draconian limit–0.4 milligram per container–would fundamentally alter today’s consumable hemp market, which is dominated by 1-10 milligram dosing options. There’s a lot of legislative fixes floating around Congress since the ban passed in November 2025, but the November 12th 2026 implementation deadline looms large.
Last week, the presidential administration’s Office of Management and Budget (OMB) threw their weight behind one of these fixes, and directed Congress to pass the Lawful Hemp Protection Act, a bill sponsored by Rep. Andy Barr (R-Kentucky). Key provisions of the 25 page bill include:
-
Limits products to a 1% delta-9 THC threshold on a dry-weight basis of the finished product.
-
Restricts marketing and sales to those under 21.
-
Products must carry Surgeon General warning about birth defects and impaired driving.
-
Authorizes Medicare to cover CBD products under certain programs.
-
Imposes a 5% Federal tax on consumable hemp products, but beverages will be taxed at a rate of 5 cents per 1mg THC.
These are a lot of the same rules that are already being implemented in state level cannabis programs, and we know that overregulation and excessive taxation aren’t working great for small businesses or consumers.
It may sound reasonable at first glance, we gotta protect the children, right? Haven’t we heard that before? This is the DARE program nostalgia that we didn’t ask for.
We know the devil is in the details. And all of this relies on Congress to fix the mess they made? Woof. Currently they are in recess, the proverbial BRB for your elected officials.
2 ) Schedule III is a Bad Paint Job
What is really grabbing headlines is the administration’s action to move medical cannabis to Schedule III of the Controlled Substances Act. Honestly that feels like slapping American Flag Blue paint to cover up an already toxic environment.
On June 29th, the DEA began their hearings about Schedule III. These closed door hearings are prioritizing testimony from prohibitionists with the DEA taking the “pro-cannabis” position. You read that right, instead of involving researchers, drug policy reform leaders, and medical patients in the process, we are supposed to rely on the DEA to advance our cause? Come on. The fox is guarding the hen house.
We aren’t going to waste oxygen recapping how backwards some of the arguments are in this hearing so far. The DEA’s lawyer said these hearings are “not about recreational use of marijuana” and are about “regulation, not legalization.” TLDR: the DEA wants to keep their grip on the plant and the enforcement budget that goes with it.
We talk about this over and over, but nothing is really improving for the consumer. In fact, the consumer’s voice is completely absent from these hearings.
3) Medicare’s CBD Nothingburger
The administration announced that Medicare will cover CBD for seniors, but this is more of a PR move than a huge milestone for patient access. The true picture of the “Substance Access Beneficiary Engagement Incentive” is far murkier. It goes without saying that Medicare policy and processes are extremely complex. We are going to barely touch on this, but the key points to know are:
-
This is a pilot program and is extremely limited in scope.
-
CBD products must be purchased and provided by the doctor, and Medicare reimbursements of up to $500/year per patient are made to that provider.
-
Only providers participating in specific Medicare programs are eligible (ACO REACH, EOM, and LEAD), and combined those programs serve less than 3% of Medicare beneficiaries.
-
Only oral applications of CBD are permitted, inhaled products are expressly prohibited, topical products for arthritis and joint pain are notably absent from the guidelines. Some coverage has suggested topicals are included, but CMS’s own guidance limits eligible products to ‘orally administered’ forms only, meaning lotions, balms, and patches are not part of this pilot.
The headline says Medicare covers CBD. The fine print says almost no one can actually get it. The truth is this pilot is light years from providing seniors with CBD as a part of a pain management or wellness regimen.
Scheduled for a Shitshow
Three coats of American Flag Blue. Three ways the Federal government has found to talk about progress while delivering the opposite. They keep saying they’re executing on reform. But look closer: the only execution happening is of our freedoms.
Where is the consumer in these machinations? Conspicuously absent. Freedom is not just giving people what they want, it is about giving them an option to choose. But they aren't even in the conversation, which is how we are facing a regulatory cliff for hemp consumables and the DEA charged with making the case for regulation while maintaining their own budget
All packaged as “progress”?
If the Hemp Ban stays and the DEA does not issue a final rule on Schedule III by November 12th, the effect will be that all consumable hemp products on the market today will be considered Schedule I. When I asked Amber Senter of Isle Noire Hemp Beverages what it was going to look like on November 13th, she said, ”Its gonna look like a shitshow.” But honestly, this already looks like a shitshow.
What is there to do about it?
We always encourage people to call their Congressperson to make their voice heard. The administration directing Congress to correct the hemp ban gives us an opening to make those calls with an actionable ”ask.”
The Congressional switchboard is 202-224-3121.
Unfortunately there are not really other levers right now for the individual consumer. That disempowerment we are feeling for this 4th of July is ultimately giving us the American Flag Blues.
...
Read More
White House Pushes Congress To Ensure ‘Fair Treatment Of Hemp Products’ By Calling Off Broad Recriminalization Law Set For November (Marijuana Moment)
White House Asks Congress to Revise Hemp Definition, Delay THC Product Ban (Cannabis Business Times)
Lawful Hemp Protection Act (House.gov)
Marijuana Activists Say They’re Being ‘Shut Out’ Of DEA’s Rescheduling Hearing That Features Only Legalization Opponents (Marijuana Moment)
Marijuana Opponents Attack Government Analysis Behind Rescheduling Recommendation On Second Day Of DEA Hearing (Marijuana Moment)
Substance Access Beneficiary Engagement Incentive (CMS.gov)
What the CMS CBD Pilot Program Means for Patients, Providers, and the Future of Cannabinoid Care (Realm of Caring)
