Cannabis industry faces hurdles from potential government shutdown

The potential government shutdown is raising concerns for the cannabis industry in the United States. Many small businesses in this sector are already struggling, and a shutdown may worsen their situation. Although most of the public supports greater access to legal cannabis, some lawmakers remain opposed. One major issue at stake is the rescheduling of marijuana from Schedule I to Schedule III under the Controlled Substances Act. This change has been a priority for the Biden administration since 2022. Rescheduling could lead to better medical research, tax benefits for small cannabis businesses, and a more straightforward way of doing business. Currently, the Drug Enforcement Administration (DEA) is reviewing this rescheduling. However, plans for important hearings have already seen delays. A government shutdown could push these hearings back even further and disrupt the public comment period, which has already attracted a record number of responses. Legal cannabis businesses operate in a complicated environment. They are often caught between state laws that may allow marijuana use and federal laws that do not. This uncertainty could increase if the government shuts down, affecting the stability of state-licensed operators and their tax responsibilities. Rescheduling marijuana could significantly impact patients who benefit from medical cannabis, including veterans and cancer patients. Delays caused by a shutdown might impact ongoing medical research and patient care. Though any shutdown would likely be temporary, the effects on the cannabis rescheduling process could be significant and long-lasting. The timeline for a final decision may stretch well beyond expectations, and ongoing legal challenges may gain strength as a result.