💸 The Tape

Congress is once again proving that cannabis reform is never a straight line. The House Appropriations Committee, led by Republicans, has advanced its annual spending bill covering the Commerce, Justice, Science (CJS) agencies, and tucked inside is a provision that would block the Justice Department from rescheduling or descheduling marijuana.

Yes, you read that right: even as the Biden administration’s rescheduling proposal to move cannabis from Schedule I to Schedule III creeps along, the House majority is trying to freeze it in place, take note that this will die in the Senate. The rider bluntly states that no federal funds can be used to change marijuana’s status under the Controlled Substances Act. Think of it as Congress pulling the emergency brake on a train that already left the station.

This isn’t the first time we’ve seen such language in CJS appropriations, but it’s notable given that President Trump has promised a decision on rescheduling “within weeks.” With administrative hearings already delayed over allegations of DEA back-channeling, the House’s move adds yet another layer of uncertainty.

But it’s not all doom and gloom. The bill does keep in place the longstanding Rohrabacher-Farr rider, which protects state medical cannabis programs from federal interference. That safeguard has been law since 2014 and remains one of the most important bulwarks for patients and businesses operating in compliance with state law.

Of course, there’s a catch. The new version clarifies that DOJ can still enforce harsher penalties for sales within 1,000 feet of schools, playgrounds, or public housing. So yes, the feds can’t shut down your medical dispensary—but if you’re too close to the jungle gym, watch out.

The committee also retained a hemp-friendly rider, preventing DOJ from undermining industrial hemp research under the 2014 Farm Bill. At least someone remembered the crop that started this whole green wave.

What’s missing? Any relief for adult-use markets or federal-state alignment on recreational cannabis. Advocates had hoped for more forward-looking provisions, especially after the House last year briefly floated eliminating marijuana testing as a barrier for military enlistment. Instead, Congress seems to be doubling down on “not yet.”

The bottom line: the House GOP’s CJS bill is a mixed bag—part shield, part sword. It protects state medical markets but kneecaps federal reform momentum. Whether the Senate strips the anti-rescheduling language remains to be seen, but for now, the message from House appropriators is clear: cannabis might be medicine, but Washington isn’t ready to rewrite the prescription.

📈 Dog Walkers

Cali Could Be Getting Some Relief

What’s Going On Here: California lawmakers just tossed a lifeline to the state’s legal cannabis industry, voting to roll back a controversial 25% excise tax hike that took effect in July. Assembly Bill 564, authored by Asm. Matt Haney (D-San Francisco), sailed through the State Senate on a 39-1 vote and now heads to Gov. Gavin Newsom’s desk. The Assembly approved it earlier this year in a unanimous 74-0 vote.

If signed, AB564 would lock in the previous 15% tax rate until July 2028, sparing licensed operators from higher levies that critics said were starving the legal market while fueling the illicit one.

Haney framed it bluntly: “If we want to support our cannabis industry that drives millions of visitors to California every year, adding more costs makes absolutely no sense.”

Supporters like the California Cannabis Operators Association cheered, noting that legal operators already face effective tax rates north of 40% once state and local layers are stacked. “Smart policy grows revenue by keeping the legal market viable,” said the group’s director Amy O’Gorman Jenkins, arguing the rollback is true to the promises of Prop. 64.

Colorado and Michigan may be pulling ahead in cannabis sales, but California isn’t ready to hand over its crown just yet.

The DOJ is Cracking Down on Illegal Vapes

What’s Going On Here: The Department of Justice (DOJ) rolled out a high-profile crackdown last week, seizing 600,000 illegal vaping products during raids across six states. The joint operation, led by the ATF and FDA, targeted five distributors and nine retailers accused of selling flavored vapes, THC vapes, and kratom-derived compounds such as 7-OH, which has opioid-like effects.

Attorney General Pam Bondi and Health and Human Services Secretary Robert F. Kennedy Jr. appeared in Bensenville, Illinois to highlight the largest bust. Bondi blasted “Chinese companies making millions off these products” while Kennedy warned packaging was deliberately designed to lure young users.

The enforcement wave follows the Supreme Court’s April ruling upholding the flavored vape ban, and Bondi directed ATF to move after Kennedy flagged Chinese shipments as a health priority.

The unusual presence of two Cabinet secretaries at the raid underscored its political weight. It also came just days after the administration floated deploying the National Guard to Chicago, a move opposed by Gov. JB Pritzker and Mayor Brandon Johnson. While Trump has called Chicago “the worst and most dangerous city in the world,” local crime stats tell a different story: homicides down 31% and shootings down 37.4% year-over-year.

🗞️ The News

📺 YouTube

Rescheduling Cannabis Is Only the Beginning | TDR Cannabis in 5

What we will cover:

✅ The headlines earlier this week were big: Attorney General Pam Bondi stood with HHS Secretary RFK Jr. in Chicago to announce a federal crackdown on illicit vape sales, while DOJ quietly cut dozens of proposed rules from its regulatory agenda — but left cannabis rescheduling intact. Both stories matter. Both suggest that Washington is clearing the runway for the next move.

TDR Cannabis in Five, presented by Dutchie, with host Shadd Dales, looks at what comes next. Because rescheduling, if and when it happens, isn’t the finish line — it’s the starting gun. The conversation now shifts to two bills that will define the next stage of cannabis reform: the SAFER Banking Act and STATES 2.0.

We’ll break down what rescheduling actually does, what it doesn’t do, and why banking and states’ rights protections remain essential. We’ll talk politics: who’s leading these bills, who’s blocking them, and whether rescheduling changes the math enough to finally get a floor vote. And we’ll look at how bipartisan coalitions — from progressives like Elizabeth Warren to conservatives like Rand Paul — are shaping the debate.