What cannabis operators need to know this month

This Month in Focus

Three storylines worth your attention

1. Rescheduling is in court

The DOJ moved marijuana to Schedule III in late April. Within weeks, multiple lawsuits had been filed: doctors and a pharmaceutical company suing the Trump administration, "aggrieved persons" challenging the order, and Louisiana's AG pulling out of one suit while a congressional committee voted to block the reform entirely.

Operators should know two things. First, this isn't settled, and acting as if rescheduling is final could backfire. Second, the operational planning still matters: even if courts delay implementation, the eventual landing zone is more likely than not still Schedule III. Use the runway to get your 280E modeling and DEA registration conversations right.

2. The 280E waiting game

Seven House Democrats are now formally pressuring the IRS and Treasury to issue 280E relief guidance. The retroactive question, whether operators can amend prior years' returns once Schedule III takes effect, has become the most consequential financial question in the industry, with billions on the line.

The frustrating reality is that the answer depends on guidance no one has issued yet. Operators who are running scenarios now (best case, worst case, partial relief) will move faster when clarity lands than operators waiting for certainty before they model anything.

3. State-level whiplash

While federal news dominates the headlines, the state-level picture is going the other direction in places that matter. Virginia's governor vetoed the long-delayed adult-use sales rollout. Oklahoma's governor wants to recriminalize medical cannabis. Louisiana criminalized the smell of marijuana at football games.

The counter-narrative to federal momentum is real and operators in those markets are absorbing the cost. The takeaway: don't assume rescheduling fixes your state-level problems, and watch your state's session-end deadlines closely.

Worth Your Time

Six pieces that earned their place in your inbox

Regulation & Policy

Business & Markets

Operations & Compliance

Smart Take of the Month

A strong industry response to the NYT's framing

Worth your time this month: the MJBizDaily op-ed "If America Has a 'Marijuana Problem,' The New York Times Wants to Make It Worse." The piece pushes back on the NYT's recent anti-cannabis framing in a way operators rarely see in mainstream coverage: data-driven, calm, and unafraid to call out lazy reporting.

The takeaway for operators: when prestige outlets run shaky cannabis takes, the void where the industry's response should be tends to get filled by people who don't run cannabis businesses. Worth thinking about whose voices are speaking for your category, and whose aren't.

On the Calendar

What's coming in the next 30 to 45 days

• Throughout June: Q2 MSO earnings calls. Listen for state-level margin commentary and how the larger operators are positioning around rescheduling uncertainty.
• Mid-June: Congressional appropriations season ramps up. Watch for cannabis-related amendments, especially on intoxicating hemp enforcement and DEA registration funding.
• Late June: State legislative session-end deadlines. Bills to watch in California, Connecticut, Iowa, and New York around licensing, advertising, and product category restrictions.
• Early July: First wave of rescheduling lawsuit hearings expected. Initial procedural rulings will signal how the broader timeline plays out.
• Looking ahead: MJBizCon Las Vegas registration is open. If you're attending, book hotels early. Travel and rooms tightened up significantly last year.

One Thing to Try

Brief your team on the rescheduling lawsuit landscape

There's a real risk that operators move too fast on rescheduling assumptions that get walked back in court. The way to manage that risk isn't to ignore rescheduling. It's to get your team aligned on what's actually decided versus what's still contested.

Spend 30 minutes with your senior team this month walking through three questions:

1. What decisions are we making today that assume rescheduling is final?
2. Which of those decisions are reversible if the courts delay or undo the move?
3. Who is responsible for monitoring the legal landscape and bringing material changes to the leadership team?

That third question is the one most operators miss. Without a clear owner, you'll find out about adverse rulings from a competitor's press release, not your own intelligence.