Four bipartisan House lawmakers are pressing the Trump administration for more details about how the federal government plans to implement its new approach to medical marijuana.
The lawmakers, led by Representative Dina Titus, sent a letter on August 18 to President Donald Trump, AG Todd Blanche, Treasury Secretary Scott Bessent, and HHS’ Robert Kennedy Jr. They are seeking answers about the practical consequences of placing certain state-regulated medical marijuana businesses and FDA-approved cannabis products in Schedule III.
Reps. Greg Steube, Dave Joyce, and Ilhan Omar joined Titus in signing the letter.
The administration took the rescheduling action on April 23. Blanche’s order cited authority connected to the UN Single Convention on Narcotic Drugs, an international treaty governing controlled substances.
However, several questions surrounding implementation remain unresolved, particularly for businesses, patients, and health care providers operating under state marijuana laws.
Among the issues raised by lawmakers is the federal tax treatment of companies that serve both medical and recreational markets. The Treasury Department previously said it planned to issue guidance concerning Section 280E of the IRS code, which restricts deductions for businesses involved in “trafficking” Schedule I or II substances.
The guidance could clarify how companies with multiple lines of business should allocate expenses when some activities involve Schedule I cannabis while medical operations fall under Schedule III.
The lawmakers also asked whether the federal government will coordinate with the Centers for Medicare and Medicaid Services on possible coverage by Medicare or reimbursement for medical cannabis. They want clarification on how health insurance could treat cannabis-based treatments used by patients following state law.
Other questions concern home-grown cannabis, including whether marijuana cultivated by patients or caregivers under state rules is now treated as a Schedule I or Schedule III substance.
The group also questioned how Drug Enforcement Administration registration will work. The DEA opened an online application process for qualifying medical cannabis firms after the April order. Businesses that submitted applications before June 26 were eligible for expedited consideration within a maximum of six months. Questions remained, however, over whether registration was compulsory.
Lawmakers further asked how federal enforcement would apply to businesses that don’t register, as well as patients purchasing products from those companies. They also sought details about the information applicants must provide to the DEA and what protections will prevent that data from being misused.
The House members requested responses to their questions by September 30, saying additional federal guidance would help provide consistency for patients, workers, businesses, and other stakeholders affected by the policy shift.
Many firms, including entities like Innovative Industrial Properties Inc. (NYSE: IIPR), will be watching for any guidance that the federal administration provides regarding the practical implementation of the scheduling change.
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