At a Glance
- 2025 saw only a federal executive order on marijuana, while state-level changes were modest.
- President Trump signed an order to move marijuana from Schedule I to Schedule III, speeding research.
- A new budget bill will ban hemp-derived products with THC >0.3% in November 2026, threatening the hemp market.
- Why it matters: These moves could reshape medical research, state regulations, and the hemp economy.
In 2025, the cannabis scene was relatively quiet on the state front, with only a handful of updates. Texas expanded its medical program, and Governor Greg Abbott vetoed a proposed ban on THC products. Delaware celebrated its first recreational sale in August, two years after legalization, and Kentucky opened its first medical dispensary.
State-Level Developments
The year was largely calm, yet a few states made notable adjustments.
- Texas broadened its medical marijuana program.
- Governor Greg Abbott vetoed a ban on THC products.
- Delaware saw its first recreational sale in August.
- Kentucky opened its first medical dispensary.
Federal Rescheduling Effort
Early December, President Trump considered a plan to reschedule marijuana to Schedule III. He signed an executive order a week before Christmas to accelerate the process. The move acknowledges medical uses and reduces abuse potential but does not legalize recreational use nationwide.
President Trump stated:
> “Unless a drug is recommended by a doctor for medical reasons, just don’t do it. At the same time, the facts compel the federal government to recognize that marijuana can be legitimate in terms of medical applications when carefully administered.”
| Schedule | Current Status | Potential New Status |
|---|---|---|
| Schedule I | Illegal, no medical use | Schedule III |
| Schedule III | Includes ketamine, testosterone | Marijuana would join these |
The order focuses on increasing medical research for marijuana and CBD, yet it leaves recreational use unchanged.
Hemp Industry Impact
A November budget bill closed a loophole that had benefited hemp-derived products for years. The law prohibits products with THC >0.3% and bans CBD-derived items like delta-8. The provision takes effect in November 2026, potentially upending the industry and curbing unregulated marijuana sales.
- Products with THC >0.3% are banned.
- CBD-derived items such as delta-8 are prohibited.
- Effective date: November 2026.
Future Legislative Moves
More than 36 states have legalized cannabis in some form. Congress may formalize state-level control through the bipartisan STATES 2.0 Act, which would end federal prohibition and let states set their own policies. The bill was referred to the House Committee on Energy and Commerce in April.
Key Takeaways
- President Trump accelerated marijuana rescheduling to Schedule III, boosting medical research.
- A new budget bill will ban hemp products with THC >0.3% in November 2026.
- The STATES 2.0 Act could shift cannabis regulation entirely to the states.
The coming year promises a more fragmented but potentially more accessible cannabis landscape, with federal and state actions shaping the future of both medical and recreational markets.
News Of Austin‘s Hannah E. Clearwater contributed to this report.
