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⚡ What Happened
- December 10, 2025: Trump held an Oval Office meeting with Big Cannabis CEOs
- Present: Kim Rivers (Trulieve CEO, donated $750K to Trump), Charlie Bachtell (Cresco Labs CEO), RFK Jr., Dr. Oz
- Trump called House Speaker Mike Johnson during the meeting to tell him: he's moving cannabis from Schedule I to Schedule III
- Johnson opposed it. Trump did it anyway.
💰 The Money Shot
- Current situation: Cannabis is Schedule I (same as heroin). This triggers Section 280E—a tax law that blocks normal business deductions.
- Result: Cannabis companies pay 70%+ effective tax rates instead of the normal 21%
- If rescheduled to Schedule III: 280E no longer applies. Industry saves $2.3 billion per year
- Who wins: Trulieve, Curaleaf, Cresco, Green Thumb Industries—basically everyone who donated millions to Trump
🤝 The Pay-to-Play Timeline
Cannabis industry donations to Trump-aligned groups:
- $1 million from American Rights and Reform PAC (cannabis-funded) to Trump's MAGA Inc.
- $750,000 from Trulieve CEO Kim Rivers to Trump's inauguration
- $250,000 from U.S. Cannabis Roundtable
One month later: Trump's planning to hand them $2.3 billion in tax relief. Coincidence?
🎭 The Irony
One month ago (November 12, 2025): Trump signed a bill that killed the $28 billion hemp-THC industry—Delta-8, THCA flower, hemp beverages, everything. Over 300,000 jobs gone.
Now: Trump's giving Big Cannabis $2.3 billion in tax relief.
Translation: Small hemp businesses = crushed. Big Cannabis oligopoly = saved.
⚔️ Who's Fighting Back
- Kevin Sabet (Smart Approaches to Marijuana): "This is a tax break for Big Marijuana based on friends and money—not science."
- Senators James Lankford (R-OK) & Pete Ricketts (R-NE): Already filed the "No Deductions for Marijuana Businesses Act" to block 280E relief even if rescheduling happens
- House Speaker Mike Johnson: Opposed the move during the December 10 call
📊 Market Reaction
Cannabis stocks exploded after the news leaked:
- Trulieve: +27%
- Canopy Growth: +20%
- Tilray: +19%
🚨 What's Next
- Trump issues an Executive Order directing the DEA and FDA to move cannabis to Schedule III
- The rescheduling process could take months—but Trump can accelerate it
- Congress could pass legislation to block 280E relief (Lankford/Ricketts bill)
- If rescheduling succeeds: instant $2.3B windfall for licensed operators
🎯 Bottom Line
Trump just gave Big Cannabis the biggest gift in industry history. Hemp got nuked. Cannabis got billions. Welcome to Prohibition 2.0: Corporate Edition. 💸