Trump’s new DEA head 🤔

OH, DEA
Trump taps Terrance Cole to lead DEA

Driving the news: President Donald Trump’s pick to lead the Drug Enforcement Administration has been a “known unknown” for the cannabis industry, as we’ve written in the past.

It’s now known. Trump picked Terrance Cole, who served in the DEA for over 20 years, to lead the agency. 

Where he stands: Like many members of Trump’s party, Cole seems to be an opponent of sensible cannabis reform.

He’s frequently posted on social media against cannabis reform. “Everybody knows my stance on marijuana after 30 plus years in law enforcement , so don’t even ask ! #justsayno,” Cole wrote after a visit to Virginia’s Cannabis Control Authority. Marijuana Moment has more. 

What they’re saying: “President Trump has been very clear about his support for cannabis reform. Terry Cole will serve on behalf of the President, and we fully expect him to fulfill the Trump Administration’s agenda,” The US Cannabis Council, a lobbying group, said. 

And: “The new President's people continue to appear to be hard core prohibitionists stuck in the past,” Green Thumb Industry CEO Ben Kovler said. 

Why it matters: As the new head of the DEA, Cole will have vast oversight into the now-delayed process to reclassify cannabis from the most restrictive Schedule I to the less restrictive Schedule III of the Controlled Substances Act. 

While it’s not yet clear how he’ll direct the agency to engage in the process, what is clear is that like many Republicans, he will not be a friend to reform. 

Still, Cole served as Virginia’s top public safety official — and while Virginia Gov. Glenn Youngkin vetoed cannabis sales in the past — the state does have a medical cannabis program. Youngkin, for his part, celebrated the pick.

Republicans line up in opposition: The cannabis industry, fed up with years of perceived inaction on federal cannabis reform, has pinned its hopes on Trump pressuring his party to fall in line.

Execs like Trulieve’s Kim Rivers have spent hundreds of thousands donating to his inaugural committee. The industry formed the US Cannabis Roundtable, a merger between the industry’s two largest advocacy groups, and tapped plugged-in GOP lobbyists to help make the case in DC. 

(Watch our chat with Saphira Galoob and Ed Conklin, two of the new group’s leaders, about what to expect from the new Administration here). 

But less than a month into the Administration, it appears it’s going to be an uphill battle. Trump has tapped relatively old-school, tough-on-crime types to important agencies that have oversight over potential cannabis reform.

That includes Attorney General Pam Bondi, who opposed medical cannabis reform as attorney general of Florida, and Russ Vought, the new head of the White House Office of Management and Budget, who has called for federal intervention on cannabis shops in the past.

Senate Majority Leader John Thune and House Speaker Mike Johnson are also old-school Republicans from states without legal cannabis, meaning their willingness to put forward pro-reform legislation — or even allow it to come to a vote — is likely low. 

And earlier this week, two Republican Senators, Pete Ricketts and James Lankford, introduced legislation straight out of the anti-legalization group Smart Approaches to Marijuana playbook — that would prevent cannabis companies from taking regular business tax deductions under 280E, even if cannabis were rescheduled. Lankford said on X that “marijuana doesn’t make our families stronger.”

Ricketts also said he met with Robert F. Kennedy Jr., Trump’s nominee to lead the Department of Health and Human Services, to underscore the importance of “preventing the expansion of marijuana.”

RFK Jr. campaigned on cannabis reform, though it’s unclear whether or not it will be a priority for him if he’s confirmed.

And in a recent Senate hearing on “debanking,” cannabis did come up — but it was far from the priority for lawmakers. 

Last, according to reporting in Politico, former Ohio Senator and current VP JD Vance appears to be Trump’s man on the Hill. Vance voted against the SAFER Banking Act, a cannabis banking bill, and has frequently discussed his opposition to legal cannabis sales. 

Our take: All policy is personnel, and so far, the Trump Administration personnel don’t seem to be super favorable to cannabis. 

Trump posted in favor of cannabis reform on the campaign trail, but has been quiet ever since. It doesn’t appear to be an issue he wants to expend political capital on within his own party, but we can only hope we’re wrong. 

Cannabis is immensely popular among Americans of all political stripes, however. Only 11% say it should remain illegal, according to a recent Pew poll — and 57% say cannabis sales should be federally legal, though Republicans tend to have less favorable views on cannabis than Democrats. 

Moving cannabis to Schedule III is not only sensible policy, but would go a long way toward legitimizing the still-nascent industry and improving profitability.

We hope that the process is allowed to continue. The industry needs to continue to work with Republicans and advocate the Trump Administration for reform. It will take lots of pressure from all of us, given the hand that’s been dealt. 

-JB

ACLU highlights racial disparities in cannabis arrests in Wisconsin 🔍

Cannabis is illegal in Wisconsin, and Black people are 5.29 times more likely to be arrested for cannabis than white people. The report highlights that the vast majority of Wisconsites are supportive of legal medical cannabis. Read it here.

Michigan proposes cannabis tax changes 🌿

Michigan Gov. Gretchen Whitmer this week released her $3 billion funding plan for the state’s roads, which would include taxing cannabis sales wholesale — similar to how cigarettes are taxed in the state. The change is expected to draw $470 million of additional tax revenue. Read more. 

Tennessee Democrats file legalization bill 🤝

Two Democrats have filed bills that would legalize recreational marijuana in Tennessee, a move one of the bill's sponsors said could add millions to the state's general fund, reports The Center Square. The bills would legalize sales, allow Tennesseans to grow up to 12 plants at home, and levy a 15% tax on top of regular sales tax. 

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