Home grow, insurance, taxes: Congress seeks clarity on cannabis rescheduling

congress with cannabis leaves represeting lawful hemp protection act

There have been many questions raised since state-legal medical cannabis was moved to Schedule III. Operators and patients alike wonder what, if anything, will change. Members of Congress are curious as well and have sent a letter to the Trump administration requesting clarity.

RELATED: Marijuana in the mail? This state says it could happen

Reps. Dina Titus, D-Nev., Ilhan Omar, D-Minn., David Joyce, R-Ohio, and Greg Steube, R-Fla., are seeking answers to several outstanding questions about rescheduling. They specifically want to know how the change in federal policy affects home cultivation, operators participating in both medical and adult-use markets, health insurance coverage, and federal enforcement.

The bipartisan group asked:

“Is medical marijuana cultivated by a patient or their registered caregiver in accordance with state law currently considered a Schedule I or Schedule III substance?”

“How will the order apply to operators who participate in both medical and adult-use marijuana markets? Will such entities remain eligible for federal tax treatment changes associated with Schedule III status, including relief from Internal Revenue Code Section 280E?”

“How does the Department anticipate federal enforcement will be handled for businesses that do not register with the DEA, and for patients who obtain medical marijuana from state-licensed businesses that are not registered under the federal framework?”

RELATED: Bipartisan bill could rescue THC drinks from hemp ban

The lawmakers also asked what information applicants must provide when seeking DEA registration and how the government will keep the data secure.

The letter also addressed potential insurance coverage for medical cannabis. The legislators specifically focused on Medicare and whether the program could reimburse eligible patients for their Schedule III marijuana products. The Centers for Medicare and Medicaid Services recently launched a pilot program to increase access to hemp products, but cannabis has remained outside of the conversation.

Joyce, Titus, and Omar co-chair the Congressional Cannabis Caucus, while Steube has advocated for reform. The lawmakers called the rescheduling move a “significant step” and welcomed the change.

“We appreciate this development and the progress it reflects toward greater clarity in federal policy,” the letter states.

RELATED: The FDA is quietly fast-tracking a THC drug — and it’s a big deal

The letter is addressed to President Donald Trump, Treasury Secretary Scott Bessent, Health and Human Services Secretary Robert F. Kennedy Jr., and Attorney General Todd Blanche. The lawmakers requested a reply by Sept. 30.

Meanwhile, stakeholders are awaiting a decision in the separate federal proceeding over whether marijuana more broadly will move from Schedule I to Schedule III. Final briefs have been submitted in that case, and a final decision is pending.

rachelle gordon

Rachelle Gordon is the editor of GreenState. An award-winning cannabis journalist, Emerald Cup judge, and Budist critic, Rachelle began her weed writing journey in 2015. She has been featured in High Times, CannabisNow, Beard Bros, MG, Skunk, and many others. Rachelle was the recipient of the Cannabis Journalist of the Year award at the 2025 Emjays and the Community Cultivator trophy at the 2024 Women's Canna Awards. She has a particular interest in how cannabinoids may benefit people living with neurological conditions and autism spectrum disorder. Follow Rachelle on Instagram @rachellethewriter