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State-by-state rescheduling fallout, Trump urges Congress on hemp, IRS tax guidance coming, and 70% of Americans support legalization.
By Hightree Team for The Canopy
April 25, 2026 · 4 min read
The biggest cannabis news in decades dropped this week. While our standalone coverage dives deep into the Schedule III rescheduling itself, today's roundup covers the ripple effects hitting states, businesses, and the broader market.
The federal government confirmed that official tax guidance for the cannabis industry is on the way now that rescheduling has eliminated the Section 280E penalty for state-licensed medical operations. For businesses that have spent years paying taxes on gross revenue without deducting rent, payroll, or operating costs, this is the most immediate and tangible benefit of rescheduling. Industry analysts estimate the change could reduce effective tax rates for medical cannabis businesses from 60-80% down to standard corporate rates. If you're a vendor on Hightree, talk to your accountant — the rules just changed in your favor.
Source: Marijuana Moment
In a separate but related move, President Trump urged Congress to address federal legislation that would effectively ban many hemp-derived products. The statement came via Cannabis Business Times and signals that the administration views hemp regulation as a legislative issue, not an executive one. This matters because the hemp industry has been fighting state-level bans in court — Texas, Ohio, Missouri — and has been hoping for federal preemption. Trump's statement suggests the White House wants Congress to act rather than relying on executive orders or agency rulemaking. Hemp advocates are cautiously optimistic.
Source: Cannabis Business Times
The Schedule III order has triggered a wave of reactions across the country:
Sources: Multiple state outlets
A new national survey confirms that most Americans support "making marijuana legal" nationwide — with personal experience being the single biggest predictor of support. According to NORML's analysis, the more familiar people are with cannabis use (either their own or someone they know), the more likely they support legalization. The numbers have been climbing steadily for over a decade and are now at or near historic highs across every demographic group. Federal lawmakers who continue to oppose legalization are increasingly out of step with their constituents.
Source: NORML
A federal judge is set to rule on whether Medicare can distribute hemp-derived cannabinoid products without FDA approval. The case could set an important precedent for how federally funded health programs interact with the growing CBD and hemp market. If the court allows distribution, it would represent a significant expansion of cannabinoid access for elderly and disabled Americans — and a major commercial opportunity for hemp brands. The case follows the Biden-era rule that opened the door for some hemp products as Medicare Advantage benefits.
Source: Newswire
North of the border, Canadian cannabis sales continued their steady advance. Statistics Canada reported February retail revenues of C$440.5 million — down 7.9% from January on a raw basis, but up 2.0% when adjusted for the shorter month. Canada's mature legal market, now in its eighth year, offers a preview of what stabilized U.S. markets might look like: consistent growth, gradual consolidation, and a slow shift from illicit to legal channels.
Source: New Cannabis Ventures
Texas hemp court fight, Missouri's hemp ban, North Carolina opens medical door, Virginia bill in limbo, and Indiana's surprise pivot.
The DEA begins accepting applications from state-licensed medical marijuana businesses, marking the first concrete step in implementing Schedule III rescheduling.
The DOJ ordered cannabis moved from Schedule I to Schedule III, ending 56 years of the most restrictive federal classification and unlocking tax relief and research access.