The U.S. cannabis policy landscape continued to evolve—though progress varied across the map. From federal reform debates to state-level missteps, the summer season underscored how the road to national normalization remains uneven.
Federal Dynamics: Rescheduling, Research, and the Hemp Loophole
The biggest storyline this summer has been the continued debate over federal rescheduling. The DEA, following Health and Human Services (HHS) recommendations, has been weighing whether cannabis should move from Schedule I to Schedule III. The change would recognize accepted medical use and lower barriers to research, insurance, and taxation. Yet, hearings originally expected in late 2024 were pushed into 2025, leaving the industry waiting while lawsuits challenge or defend the process.
Lawmakers, however, haven’t stood still. In May 2025, Representatives Dina Titus and Ilhan Omar introduced the Evidence-Based Drug Policy Act, aimed at easing restrictions on research involving Schedule I substances. The proposal received bipartisan curiosity, though not yet broad momentum.
In August, forty House Democrats reintroduced the MORE Act, calling for full descheduling, decriminalization, and expungement measures. Though unlikely to pass in the current Congress, its reemergence highlights continued pressure for comprehensive federal reform.
Meanwhile, a proposed amendment to federal spending bills seeks to close what’s often called the “hemp loophole.” The measure would redefine THC limits to include total THC—covering THCA and other isomers—and ban synthetically derived cannabinoids outright. If adopted, it could drastically reshape the booming hemp-derived market, cutting off an entire class of delta-8 and HHC products that thrive under current interpretation.
Together, these moves reveal a federal policy landscape in flux—part cautious progress, part political stalemate.
State-Level Shifts: Expansion, Rollback, and Regulatory Hurdles
At the state level, legalization efforts remain active but far from guaranteed. The Marijuana Policy Project reported at least 14 states introducing adult-use bills in 2025, including Florida, Indiana, Kentucky, and Mississippi. Most were postponed or stalled before significant legislative progress, though local advocates continue to push toward 2026 ballots.
Some states also faced rollback proposals. In Massachusetts, organizers submitted draft 2026 ballot language seeking to end adult-use sales and home cultivation while preserving medical access. While most experts doubt it will succeed, the campaign reflects tension between evolving acceptance and lingering cultural resistance.
Elsewhere, regulatory errors created major headaches. In New York, the Office of Cannabis Management misapplied buffer-zone rules—measuring 500 feet from school entrances instead of property lines. The mistake left over 150 dispensaries potentially out of compliance. In response, state leaders established a $15 million relief fund and promised legislative fixes, but the episode highlighted how fragile oversight frameworks remain even in established programs.
California, on the other hand, expanded consumer experiences. The state’s AB 1775, effective January 2025, legalized on-site cannabis lounges, allowing food, beverages, and live events. Regulators also simplified licensing to ease burdens on small operators. Yet proposed excise tax hikes—from 15 to 19 percent—sparked criticism that the changes could drive consumers back toward unregulated markets.
A Summer of Mixed Signals
As summer 2025 winds down, U.S. cannabis reform reflects both momentum and volatility. Federally, rescheduling remains the key milestone, though bureaucratic inertia slows progress. Legislative proposals—from research reform to hemp regulation—show Washington’s awareness of shifting attitudes, even if consensus is distant.
On the state level, growth continues in pockets while backlash brews elsewhere. Mature markets face complex compliance challenges, and newer ones struggle to balance consumer safety with economic opportunity.
For businesses, advocates, and consumers, the message is clear: cannabis in 2025 remains a work in progress. Federal reform may be closer than ever, but patchwork state policies and unpredictable enforcement continue to shape the real-world experience of legalization.
The coming year will test whether the U.S. can harmonize its fragmented approach—or whether cannabis policy will remain a state-by-state experiment caught between reform and restraint.