The first week of 2026 sets high stakes for cannabis as Congress, the White House, and regulators clash.  Congress is back in session and the first week of 2026 sets high stakes for cannabis. DC has delivered a series of consequential developments for the industry, highlighting growing momentum for reform alongside persistent resistance in Washington which could shape the sector’s trajectory throughout 2026. On Capitol Hill, the U.S. House of Representatives moved quickly to pass an appropriations measure to continue long-standing protections for state medical marijuana programs. The bill maintains language barring the Department of Justice from interfering with state-legal medical cannabis systems, a provision which has been renewed annually for nearly a decade. Notably, the House rejected an effort to include language that would have blocked the federal government from rescheduling marijuana under the Controlled Substances Act. The House vote was seen as a significant signal to the cannabis industry, which has closely watched congressional maneuvering over federal reform. By allowing the spending bill to advance without restrictions on rescheduling, lawmakers effectively cleared one procedural obstacle to a change that could have sweeping financial and regulatory consequences for cannabis businesses nationwide. The measure now heads to the Senate, where similar provisions have historically received bipartisan support.

These legislative developments come as the executive branch continues to press forward with plans to reschedule marijuana. In late December, President Donald Trump issued an executive order directing the Department of Justice to move marijuana from Schedule I to Schedule III, a classification which would formally recognize its medical use and significantly reduce the tax burden on state-legal cannabis operators by easing Internal Revenue Code Section 280E restrictions. Despite the executive order, progress has been uneven. House Speaker Mike Johnson of Louisiana has publicly expressed opposition to rescheduling, raising concerns about public health and warning against moving too quickly on cannabis reform. His resistance reflects broader divisions within Congress, particularly among conservative lawmakers who remain skeptical of federal marijuana policy changes even as public support for legalization continues to grow. Adding to the uncertainty, the Drug Enforcement Administration has indicated it will follow standard administrative procedures before implementing any rescheduling decision. While the White House has called for expedited action, industry observers say the DEA’s internal review process could slow the timeline, potentially pushing final implementation well into the year. Beyond marijuana itself, federal attention has also turned to hemp and hemp-derived products. Regulatory scrutiny of intoxicating hemp compounds, including delta-8 and similar cannabinoids, remains intense as lawmakers and federal agencies debate tighter limits on THC content and clearer enforcement standards. While recent executive actions did not directly alter existing hemp law, companies across the sector are preparing for potential changes later this year potentially reshaping the rapidly growing hemp marketplace. Taken together, the opening days of 2026 underscore a cannabis industry navigating a complex policy environment. Congressional support for medical marijuana protections, executive pressure to advance rescheduling, leadership opposition in the House, and unresolved questions around hemp regulation have combined to create a moment of high stakes and mixed signals. How these forces resolve in the coming months will have lasting implications for patients, consumers, investors, and businesses across the United States.

The Fresh Toast is a daily lifestyle platform with a side of cannabis. For more information, visit www.thefreshtoast.com.

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