💸 The Tape

In a rare show of bipartisan alignment (and perhaps momentary sanity), the U.S. Senate passed a sweeping appropriations package on Friday that does two things cannabis advocates have long hoped for: paves the way for VA doctors to recommend medical marijuana to veterans in legal states, and ditches a proposed ban on consumable hemp products with “quantifiable” THC that industry insiders warned would nuke the entire hemp economy.

The package, which covers Military Construction and Veterans Affairs (MilConVA) as well as Agriculture/FDA (AgFDA) funding, cruised through with an 87-9 vote. Along for the ride was an amendment by Sen. Jeff Merkley (D-OR), giving the nod to the long-stalled Veterans Equal Access Act—a legislative zombie that’s died and been revived more times than your favorite dispensary’s Tuesday BOGO deal.

The new Senate language would prevent VA from blocking veterans or their doctors from participating in state-legal medical marijuana programs, effectively nullifying the department’s infamous directive that muzzled VA physicians from recommending cannabis—even as it remained the therapy of choice for many struggling with chronic pain and PTSD.

Now, before you pop a celebratory gummy: the Senate and House versions differ, meaning the issue will head to conference committee purgatory, where promising cannabis language has often gone to die. Still, it's a meaningful signal—and this time, there’s more institutional support and public pressure than ever.

On the hemp front, Sen. Mitch McConnell’s surprise bid to criminalize consumable hemp products with any THC went up in smoke after Sen. Rand Paul threatened a procedural blockade, forcing McConnell to withdraw his amendment with a scowl and a warning: “My effort to root out bad actors... will continue.”

McConnell’s proposal mirrored language backed by Rep. Andy Harris (R-MD) in the House, but for now, consumable hemp survives another day. Meanwhile, Paul is going even further—he's introduced a standalone bill to triple the legal THC limit in hemp, a move that has the hemp industry lighting up (figuratively, of course).

Also buried in the Senate’s report: calls for psychedelic therapy studies, rescheduling-triggered VA cannabis guidance, and even GI Bill access for veterans pursuing cannabis careers.

TL;DR: Veterans may soon get better access to cannabis, the hemp industry dodged a legislative bullet, and the feds are inching toward a more sensible approach to drug policy—emphasis on "inching."

📈 Dog Walkers

Big Bust out in Cali

What’s Going On Here: In one of the most explosive cases in Los Angeles cannabis history—literally—charges have been filed against six individuals tied to a sprawling, illicit honey oil extraction ring responsible for five deaths and 27 tons of illegal product worth over $100 million.

Ted Chien, 53, faces five counts of murder, arson, drug manufacturing, and maintaining drug houses. If convicted, he could spend the rest of his life behind bars—or face the death penalty. His alleged partner, Han Quan Jiao, 55, is also facing murder, arson, and a laundry list of drug charges.

Four others—Xiaolong Deng, Chengyan Xu, Christopher Reyes, and Frank Herrera—face conspiracy and drug production charges, with maximum sentences ranging from 7 to nearly 9 years.

The operation came to a tragic head after fatal explosions at warehouses in Irwindale (2023) and South El Monte (2024). Yet, authorities say Chien and Jiao continued producing high-grade hash oil undeterred.

DA Nathan Hochman didn’t mince words: “80% of LA’s cannabis is illegal,” and warned unlicensed operators, “Shut down now—or you’ll be featured in my next press conference.”

This isn’t just a bust—it’s a wake-up call for California’s cannabis black market.

New York’s OCM Makes Yet Another Blunder

What’s Going On Here: New York’s cannabis rollout just hit another bureaucratic snag, threatening over 150 dispensaries—including many owned by social equity applicants—due to a sudden reinterpretation of a school buffer zone rule. For years, the 500-foot distance from schools was measured from a dispensary’s entrance to the school’s entrance. But this week, the Office of Cannabis Management (OCM) announced it had been doing it wrong and will now measure from the school’s property line, putting many already-approved stores in violation.

Entrepreneurs like Nubia Ashley, days from opening, were blindsided and told to relocate—despite OCM admitting fault. The move has triggered backlash from lawmakers, legal experts, and business owners, many of whom now face delays, relocation costs, and possible license risks. Gov. Kathy Hochul says the shift is about legal consistency, but key legislators argue the OCM already had authority to interpret the law as it did.

While some relief may come through $250,000 relocation grants or legislative fixes next year, the damage is done: trust is shaken, lawsuits are likely, and New York’s cannabis market—just hitting its stride—finds itself in yet another regulatory mess.

🗞️ The News

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Trump’s Quiet Cannabis Promise + Ayr’s Collapse | TTB Weekly Recap

What we will cover:

✅ Trump’s cannabis rescheduling promise, DEA’s new enforcement tone, the fall of Ayr Wellness, and a full-scale hemp war erupting in Texas. This week’s Trade To Black weekly recap—presented by Dutchie—delivers one of our most jam-packed rundowns to date.

Scotts Miracle-Gro CEO James Hagedorn says Trump has made private commitments—multiple times—to reschedule cannabis federally. This isn’t secondhand gossip—Hagedorn has real access through his company’s cannabis subsidiary, Hawthorne. What does it mean? That a law-and-order rescheduling pivot may be taking shape under the radar, aligning with a broader enforcement-focused approach.

Meanwhile, DEA Administrator Terrance Cole released his strategic priorities—and rescheduling wasn’t even mentioned. Some saw that as a red flag. We argue it’s a green light. Why? Because keeping cannabis off the enforcement radar means the rescheduling process is staying where it belongs: with DOJ and HHS.