September 29, 2025
Built by a former cannabis regulator, Policy, Decoded is your high-signal daily briefing for operators, investors, and policymakers navigating the collision of law, regulation, and business.
Today’s edition is brought to you by THC Group and The Hybrid podcast. The latest episode features now-former operator Carl Giannone of Trade Roots - listen or watch wherever you get your podcasts.
President Trump elevated CBD as a senior health priority by promoting Medicare coverage, even as his own party inserts spending bill riders to block marijuana rescheduling. Michigan lawmakers advanced a 24% wholesale tax, Illinois’ governor threatened an executive hemp ban, and House appropriators moved against Trump’s rescheduling directive. Meanwhile, Weedmaps faced fresh lawsuits, insurance panels revealed evolving industry risks, and Newt Gingrich leaned into psychedelics.
💊 Trump pushes Medicare CBD
🚨 Illinois hemp ban threat
💰 Michigan’s 24% tax grab
Start the week ahead.
Start here — the day’s most important development, decoded for impact.
📌 What Happened: President Trump shared a video from The Commonwealth Project promoting CBD coverage under Medicare as "the most important senior health initiative of the century," highlighting potential $64 billion annual health care cost savings through cannabis integration. The Commonwealth Project represents a passion project of Howard Kessler, a close personal friend of President Trump (and member at Mar-a-Lago), adding significant weight to the health care-focused messaging. The video directly addresses Trump throughout using "you" language, stating "You can revolutionize senior health care" and "You will deliver the most important senior health initiative of the century, cementing your legacy," making Trump's decision to share a video clearly designed to persuade himself a notable strategic choice. The video advocates for educating doctors about the endocannabinoid system and providing Medicare coverage for hemp-derived CBD to address pain, inflammation, cognitive decline, and other aging-related ailments affecting seniors. The timing coincides with House Republicans inserting language into appropriations legislation that would prohibit using any funds to reschedule marijuana, directly contradicting Trump's August directive, while simultaneously other GOP lawmakers push hemp prohibition efforts that would eliminate CBD markets entirely.
💡 Why It Matters: The same weekend House Republicans slip language into spending bills to block any funds for rescheduling, President Trump shares his Mar-a-Lago buddy's video about revolutionizing senior health care through hemp-derived CBD. Keep that in mind: hemp-derived. The contradiction couldn't be starker: congressional Republicans are literally prohibiting the rescheduling that President Trump teased in August while the president floats Medicare coverage for the exact same substance. Howard Kessler's personal friendship, and obvious influence, with Trump matters here because Medicare CBD coverage doesn't need congressional approval, making it the perfect workaround when your own party refuses to follow your directives. Cannabis stocks surged 20 percent Monday morning on the video alone - Canopy Growth and Tilray both jumped, while MSOS is tracking toward its biggest quarterly gain on record at 70 percent. Investors just bet billions on a social media post from a president whose party is actively writing appropriations language to stop him from doing what he said he'd do five weeks ago.
🧠 THC Group Take: The president just retweeted a video begging him to do something while House Republicans write budget language trying to stop him from doing it. the appropriations might not survive conference negotiations with the Senate, but Trump's floating Medicare CBD coverage anyway because he's watching his own party fight over whether to let him follow through on what he promised. Markets going up 20 percent on a Sunday retweet shows how starved investors are for any signal, and they're betting Trump means this one. The Medicare pathway matters because it doesn't require waiting for DEA to finish rescheduling or for Congress to resolve their internal contradictions about hemp, prohibition, and whether listening to their president matters more than appeasing the traditional prohibitionist wing. Trump knows nobody wants to vote against coverage for seniors' pain management, which makes health care policy the path of least resistance when your own caucus can't agree on drug policy. The real question is whether Trump pursues Medicare CBD (remember - hemp-derived) instead of rescheduling or alongside it, and this video suggests he's keeping both options open while Congress fights over spending bills. Either way, he just used his Mar-a-Lago friend to signal he's serious about cannabis health care integration, leaving everyone to guess whether that means DEA rescheduling, Medicare coverage changes, or both. Stay tuned.
Fast-moving headlines, flagged for what matters.
Michigan's Republican-led House approved a 24% wholesale tax on cannabis with bipartisan support, generating an estimated $420 million annually for road funding. The tax creates an entirely new revenue layer beyond Michigan's existing 10% retail excise tax, essentially treating cannabis as a permanent budget solution rather than an emerging industry. The proposal passed 78-21 as part of urgent budget negotiations to avoid government shutdown, giving cannabis operators zero negotiating leverage against legislative revenue extraction. This wholesale tax model provides a replicable template for other Midwest states facing budget pressures, with Michigan serving as the perfect test case for tax elasticity in competitive border markets where pricing sensitivity could drive consumers back to illicit sources. (Bridge Michigan)
Governor JB Pritzker warned he will issue an executive order banning hemp-derived THC products if lawmakers fail to pass regulations, following California's Newsom ban and Texas Governor Abbott's recent executive action limiting hemp sales to adults 21 and older. Pritzker cited the lack of age restrictions and child-targeted marketing as primary concerns after the legislature adjourned without hemp legislation in May, leaving an unregulated market selling intoxicating products in gas stations while Illinois' $2 billion regulated cannabis industry operates under strict controls. Premium beverage companies like Cann support "smart regulation" that restricts sales channels and potency while keeping products away from minors, highlighting the divide between craft manufacturers and synthetic edibles flooding convenience stores. The potential ban creates tension between public health advocacy and economic equity arguments from hemp entrepreneurs who argue regulation rather than prohibition protects both consumers and small businesses. (MJBizDaily)
House Republicans inserted Section 607 into the Commerce, Justice, Science appropriations bill prohibiting the use of any funds to reschedule marijuana or remove it from controlled substance schedules, directly contradicting President Trump's August directive to continue Biden-era rescheduling efforts. The Senate's version contains no similar language, setting up potential conference committee negotiations before the September 30 government funding deadline. Nine House Republicans sent Attorney General Pam Bondi a letter opposing rescheduling, arguing it would imply marijuana safety to children and enable criminal activity, revealing significant party resistance to Trump's position. The appropriations rider represents Congress attempting to block executive branch rescheduling through spending restrictions, though a continuing resolution to avoid shutdown could render the provision temporarily moot while broader fiscal negotiations continue. (Washington Examiner)
House Oversight Chairman James Comer led 26 bipartisan lawmakers challenging hemp THC ban language in agriculture spending bills, arguing it violates congressional rules against changing existing law through appropriations without committee authorization. The letter warns the ban would eliminate dual-use hemp cultivars that allow farmers to produce grain, fiber, and cannabinoids from single crops, threatening tens of billions in economic activity across interconnected hemp markets. Lawmakers announced alternative regulation legislation being drafted in House Energy and Commerce Committee focused on age restrictions, labeling standards, and testing requirements rather than outright prohibition. The procedural violation argument creates legitimate grounds for stripping hemp language during final budget negotiations, as appropriations bills cannot legally modify statutory frameworks without proper committee markup. (Marijuana Moment)
Los Angeles delivery service CannaQuik sued Weedmaps' parent company, alleging the platform "knowingly and intentionally" advertises unlicensed California retailers despite cleanup promises made during its 2021 public offering. The complaint details operators posting 1,000mg edibles above legal limits, using stolen license numbers from legitimate businesses, and advertising midnight deliveries while undercutting compliant competitors paying regulatory compliance costs. This marks the third major legal challenge since 2018 over Weedmaps' business model of monetizing black market access, with licensed operators claiming the company returned to illegal advertising after regulatory pressure subsided. The timing exposes how venture-backed platforms can systematically undermine state regulatory frameworks by providing technological infrastructure that makes compliance optional rather than mandatory. (WeedWeek/Law360)
Insurance professionals at the annual Insuring Cannabis Summit detailed sophisticated risk patterns including entire safe thefts, vehicles ramming through cultivation facilities, and power driver fires from LED lighting systems requiring remote installations. Claims managers report that protective safeguard non-compliance and accounting gaps in dispensaries create significant coverage complications during business interruption claims. Cultivation facilities are transitioning to individual room ventilation systems and driverless LED configurations to minimize cross-contamination losses from smoke damage between grow rooms. The industry anticipation around SAFER Banking Act passage focuses on crime reduction benefits, though risk management professionals note that cash-heavy operations remain primary exposure drivers regardless of federal banking access. (Claims Journal)
Former House Speaker Newt Gingrich promoted ibogaine as "cutting-edge science" during his podcast with Ambio Life Sciences executives, questioning FDA regulatory complexity that delays access while people die from addiction annually. Gingrich compared ibogaine's regulatory hurdles to aspirin, noting the latter never met current FDA standards but remains widely available through grandfathering provisions. His advocacy aligns with broader Republican psychedelics support including Texas Governor Abbott's state research consortium and VA Secretary Collins' promise to advance veteran access within 12 months. The convergence of conservative voices like Gingrich with Trump administration officials signals potential federal scheduling reforms that could bypass traditional FDA approval pathways for therapeutic psychedelics. (Marijuana Moment)
From the hearing room to the comment section — we’re watching it all.
🍁 Canada's legal cannabis sector contributed $16 billion to GDP and supported 227,000 jobs in 2024, yet outdated excise taxes still assume cannabis sells for $10 per gram when actual prices hover around $3. The Canadian Chamber of Commerce warns that regulatory friction prevents the country from capitalizing on its first-mover advantage in a global market projected to reach $140 billion by 2026, as international competitors scale production while Canada debates whether to treat cannabis as strategic economic infrastructure. (National Newswatch)
🧪 Cannabis edibles manufacturers face food safety gaps that third-party certification could address, with experts observing workers without hairnets or gloves and standing water on floors during facility tours. Most states lack mandatory good manufacturing practices requirements, leading operators to adopt "bare minimum" compliance mentalities where voluntary safety measures costing $1,800 to $5,400 annually are viewed as unnecessary despite recall and litigation risks. (MJBizDaily)
🧘 Gen Z approaches cannabis as "survival" rather than rebellion, using it to manage anxiety, ADHD, and insomnia as a default coping mechanism throughout daily routines. Mental health professionals warn this functional use prevents emotional resilience development, as young adults reach for THC during stress instead of building natural coping skills. The shift from social consumption to individualized wellness reflects broader generational anxiety management strategies amid normalized high-potency products. (Vice)
📊 Public perception of cannabis danger increased modestly from 35% to 42% over three years, yet majority Americans still view cannabis as safe despite emerging research on health risks. The shift suggests cultural attitudes evolve slower than scientific findings, creating regulatory disconnects between evidence-based policy and voter sentiment. (Rasmussen Reports)
📰 New Hampshire's medical cannabis program serves fewer than 15,000 patients who spend $548 for six weeks of medicine despite senior and veteran discounts, highlighting access barriers in the state's restrictive therapeutic-only market. The Concord Monitor profiled patients cutting vacation and dining expenses to afford cannabis medicine from just seven dispensaries statewide, illustrating how limited supply and nonprofit-only licensing creates pricing bottlenecks even in established medical programs. (Concord Monitor)
🏖️ San Diego's cannabis tourism sector offers curated experiences combining beach activities with cannabis consumption, cannabis-infused dining, and cultivation tours that target diverse adult demographics from solo travelers to couples. Hotels now provide "cannabis-friendly" accommodations while operators create comprehensive guides about legal consumption boundaries, reflecting the mainstream integration of cannabis into traditional vacation planning rather than niche counterculture tourism. (NUG Magazine)