As we look ahead to 2025, the cannabis industry is gearing up for significant developments. With a new presidential administration, the possibility of rescheduling cannabis, and continued momentum toward state-level legalization, it could be a pivotal year.
Here’s an overview of these key updates and how they have the potential to reshape the cannabis industry:
Federal Cannabis Legalization 2025
Nearly half of the U.S. has already legalized recreational cannabis, and even more states have implemented medical marijuana programs. Despite this, federal cannabis legalization is left unenacted. With a new administration in office and the future of rescheduling uncertain, the question remains: will 2025 be the year we see meaningful progress on federal cannabis reform?
The Trump Administration’s Impact on Cannabis Policy
President Trump’s stance on cannabis has shifted over time. While his previous administration was generally not seen as supportive of cannabis, Trump’s recent statements signal a more favorable position. He has advocated for a states' rights approach, allowing individual states to determine their own cannabis policies, and has voiced support for medical marijuana use as well as the Biden administration’s efforts to reschedule cannabis.
In November 2024, Trump endorsed a Florida ballot initiative to legalize adult-use cannabis, indicating greater openness to reform. However, Trump’s views on comprehensive federal legalization are unclear. His latest nominee for DEA Administrator, Derek Malts, a 28-year veteran of the agency, has not shown the same support for cannabis rescheduling efforts. It remains uncertain whether this will influence the proceedings.
The outlook for cannabis reform under a second Trump term is mixed. While his support for state-level legalization and rescheduling offers hope, advocates are still waiting to see if he prioritizes broader federal legalization.
Federal Cannabis Rescheduling: A Critical Moment
The rescheduling of cannabis to Schedule III would mark a monumental shift in U.S. cannabis policy. This change would alleviate many of the financial hurdles that have long impeded the growth and sustainability of the cannabis industry, particularly for businesses trying to navigate financial restrictions and taxation challenges.
Initially scheduled for January 2025, the first hearing to determine cannabis rescheduling was recently canceled by the DEA. The hearing was postponed following an appeal alleging bias in the selection of anti-rescheduling witnesses. While this delay is frustrating, some within the industry view it as a positive development, as it could prevent the rescheduling process from being derailed by biased proceedings.
Despite the uncertainty around the rescheduling timeline, many are hopeful that cannabis will be moved to Schedule III by the end of 2025, paving the way for broader reforms and increased industry growth.
State-Level Legalization: 2025 Progress
While federal legalization remains unclear, state-level efforts continue to gain traction. Although there were some setbacks in the 2024 elections, including the failure of adult-use cannabis initiatives in Florida, South Dakota, and North Dakota, there is reason for optimism. Nebraska's medical marijuana legalization continues to move forward, and states like Pennsylvania, Hawaii, Wisconsin, and even Texas show promise for future cannabis legalization.
Nebraska: Medical Marijuana Legalization Moves Forward
In November 2024, Nebraska voters passed two initiatives to legalize and regulate medical marijuana. These measures, which received overwhelming support (71% and 67% approval), allow medical cannabis use for qualifying patients and establish a state commission to regulate its production and sale. Despite legal challenges, including initial allegations that the petitions did not meet signature requirements and a new lawsuit seeking to void the two successful 2024 ballot measures, advocates are hopeful that 2025 will bring a full medical marijuana program to Nebraska.
Pennsylvania: Prospective Adult-Use Cannabis Legalization
Pennsylvania is another state that could make significant strides in cannabis reform in 2025. Though cannabis legalization did not move forward in 2024, advocates are feeling positive about the new year. A bipartisan bill was introduced in September, and polling shows broad voter support for legalization, renewing hope that Pennsylvania will join the next wave of states to embrace adult-use cannabis.
Hawaii: Awaiting Progress on Adult-Use Cannabis Legalization
Hawaii has seen mixed progress in its efforts to legalize adult-use cannabis. While the state’s Senate approved a recreational cannabis legalization bill in 2024, efforts to end prohibition have stalled in previous legislative sessions. State officials are now exploring alternatives, including expanding the medical cannabis program to allow broader access for patients with various health conditions. While a pilot program to expunge certain cannabis records was signed into law, advocates are still working toward comprehensive legalization.
Wisconsin: A New Medical Cannabis Legalization Bill
Wisconsin could also make headway in 2025, as a Republican-led bill proposing a medical cannabis program was introduced in January. While the proposal received criticism for being highly restrictive, it signals the potential for medical cannabis reform in the state. If lawmakers can find common ground on a revised bill, Wisconsin may soon join the growing list of states with legalized cannabis.
Texas: Adult-Use Cannabis Legalization Faces Resistance
Texas, a state with one of the largest populations in the country, could see a shift in cannabis policy in 2025, though it faces strong opposition. A bill introduced by Texas Democrats in November 2024 would allow adults to possess, use, and transport cannabis for personal use. However, the state’s Attorney General has opposed decriminalization efforts, and the Lt. Governor has launched initiatives to tighten cannabis restrictions. With political opposition running high, it remains uncertain if Texas will see adult-use legalization in the near future.
The Future of US Cannabis Legalization
The year ahead holds great promise for the cannabis industry. Whether through federal rescheduling or state-level reform, the landscape of cannabis legalization in the U.S. is evolving rapidly. Advocates and entrepreneurs alike will want to keep a close eye on the new presidential administration’s stance on legalization, the progress of DEA rescheduling efforts, and key state-level legislative battles. The future of cannabis in the U.S. looks bright, and the industry is poised for growth in the coming year.
Stay tuned to our CannaBites Blog for additional updates about cannabis legalization and rescheduling, as well as other snackable news, commentary, and more from across the cannabis industry.
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