Trump's Return: What It Means for the Future of Cannabis in America

Donald Trump has won the 2024 presidential election. Now if your panic attack is over, take a big toke and lets unpack the what ifs of four more years with the guy. And since this is a cannabis site, yeah we will just stick to that. There is significant speculation about how his administration will approach cannabis policy. During his first term, Trump largely left cannabis issues up to the states but took a more hands-off approach federally. However, the federal landscape has shifted since then, with public and bipartisan support growing for cannabis reform, particularly around banking and decriminalization. Trump has signaled support for state-led legalization and rescheduling cannabis on the federal level, a shift that could allow cannabis businesses to access benefits like tax breaks while easing some operational burdens.

One major area Trump may target is the federal classification of cannabis. Trump has voiced support for rescheduling, which would move cannabis from Schedule I (where it is considered highly addictive with no medical benefits) to a lower classification, likely Schedule III. This could open doors for tax breaks and reduced regulatory obstacles, making it easier for cannabis businesses to thrive. However, full legalization or major federal reform is less likely. Rescheduling would help with certain issues like banking, but many industry experts believe it won’t address all challenges. For instance, Tyler Beuerlein from Safe Harbor Financial anticipates that while a Trump administration may promote state autonomy, it could avoid heavier federal intervention that might standardize interstate commerce rules or fully legitimize banking services for cannabis companies.

Trump’s recent campaign has leaned on a state-rights approach, advocating for state autonomy over federal mandates on cannabis, a stance that might appeal to both conservative voters and those who favor limited federal control. Yet, the industry could still face challenges without clearer federal standards, especially as key policies like the SAFE Banking Act still require Congressional support. Cannabis businesses could find it challenging to navigate banking and taxation without federal protections, even if rescheduling is achieved.

For the cannabis industry, a Trump administration may mean incremental progress rather than sweeping reform. Trump’s state-focused stance suggests he’ll support gradual easing of federal restrictions but is less likely to drive dramatic policy shifts. Nonetheless, growing Republican support for cannabis reform indicates that bipartisan action may still push the industry forward, even if Trump's administration focuses on state-led approaches. For now, the industry is in a “wait-and-see” mode, with hopes pinned on potential rescheduling and further state-by-state expansion.

Sources: GreenState, Marijuana Moment, Dispensaries.com

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Charlotte Jones