The Daily Toke

March 29, 2026

Federal lawmakers are advancing 16 cannabis bills during the 2025-2026 Congressional session, with the Marijuana Opportunity Reinvestment and Expungement (MORE) Act leading the charge at 62 sponsors. The MORE Act would fully deschedule marijuana from the Controlled Substances Act, establish automatic expungement for federal cannabis offenses, create a new federal excise tax, and direct revenue toward community reinvestment and small business programs. Meanwhile, competing proposals like the STATES 2.0 Act and the CLIMB Act—which would allow cannabis businesses to list on major stock exchanges—signal growing bipartisan appetite for federal cannabis reform beyond simple legalization, even as Republican and Democratic lawmakers clash over regulatory frameworks at the state level.

The state-by-state landscape reveals a patchwork of expansion and resistance. 💰 MONEY MOVES Georgia's House voted 144-21 to approve the "Putting Georgia's Patients First Act," which would remove the 5% THC cap on medical cannabis products and allow up to 12,000 milligrams of THC per product—effectively redefining "low THC oil" as full medical cannabis. The bill also expands qualifying conditions and permits vaping for patients 21 and older. Idaho activists have surpassed signature thresholds for a medical marijuana ballot measure that economists project could generate $108.5 million in annual retail sales and up to $28 million in state tax revenue by the program's sixth year. Hawaii's House Health Committee unanimously advanced a bill to create a psychedelics task force focused on psilocybin and MDMA therapy access, while Utah's governor signed legislation supporting clinical trials on psychedelic-assisted therapy for military veterans. These moves signal accelerating acceptance of cannabis and psychedelics as legitimate medical tools, particularly for mental health and chronic conditions.

Yet political gridlock persists where money and ideology collide. Pennsylvania Gov. Josh Shapiro's 2026-27 budget projects $729 million in new cannabis revenue, but lawmakers remain deadlocked over regulatory authority: Republican Sen. Dan Laughlin backs a new Cannabis Control Board, while Democratic Rep. Dan Frankel advocates placing marijuana under the existing Liquor Control Board. Republican Rep. Kathy Rapp opposes legalization entirely, citing concerns about youth addiction, impaired driving, and mental health costs—claims that rest on worst-case scenarios rather than documented cannabis harm. 🤔 THINK ABOUT IT Rapp's argument emphasizes protecting youth, yet alcohol is the #1 drug-related killer of teenagers in the United States, and her state hasn't moved to ban alcohol sales. Massachusetts faces a ballot initiative that would effectively repeal recreational legalization, with campaign leader Wendy Wakeman framing the issue as discomfort with cannabis smell in public spaces—a concern notably absent from alcohol regulation despite its documented 95,000 annual deaths in America.

The U.S. Army's decision to allow single marijuana convictions without waivers—effective April 20—marks a significant pivot in federal employment standards aimed at broadening the recruitment pool. Meanwhile, the Centers for Medicare & Medicaid Services released details on a pilot program covering hemp-derived CBD products with up to 3 milligrams of THC starting April 1, though that allowance could evaporate if a recent Trump-signed law to recriminalize hemp THC takes effect without delay. 🚀 THIS IS COOL The Colorado Marijuana Enforcement Division reported a 99% compliance rate on underage sales checks at cannabis retailers, and the WNBA has agreed to end marijuana testing as part of a new collective bargaining agreement—signaling growing mainstream acceptance of cannabis use among professional athletes and workers.

💰 MONEY MOVES The legal cannabis market experienced its first annual revenue decline in 2025, dropping to $29.1 billion from $30.1 billion in 2024, but Whitney Economics projects growth to resume at $30.5 billion in 2026, reaching $43.3 billion by 2030. The downturn reflects market maturation: supply saturation is driving price deflation, and consumer behavior has shifted toward buying only what's needed rather than expanding baskets—a stark contrast to the pandemic-era spending patterns that masked falling prices. Arizona lawmakers advanced a bill to punish "excessive" marijuana odor with up to four months in jail, Delaware approved medical cannabis use in hospitals for terminally ill patients, and federal prosecutors warned that high school kids gathering to smoke legal marijuana could be classified as a "criminal gang" and deported under proposed homeland security legislation. These contradictions—expanding access for patients and veterans while criminalizing social use and threatening deportation—illustrate the fractured landscape where cannabis reform coexists with increasingly punitive measures, all happening as zero Americans have ever died from a cannabis overdose in recorded history.

March 29, 2026

# HEMP BAN WATCH: Texas Enforcement Looms as Federal Deadline Threatens Industry Nationwide

Texas is moving forward with sweeping hemp restrictions set to take effect March 31, marking the most aggressive state-level crackdown on intoxicating hemp products since legalization began spreading across the country. The Texas Department of State Health Services finalized regulations that shift enforcement from a "Delta-9 THC" standard—which focused only on the primary psychoactive compound—to a "Total THC" standard that combines Delta-9 and THCA, the precursor compound that converts to intoxicating THC when heated. This means smokable hemp products including pre-rolled joints and flower will effectively disappear from shelves unless they meet the new 0.3% total THC cap. 💰 MONEY MOVES The impact is staggering: the $8 billion Texas hemp sector, which has grown to roughly 1,500 retail locations since hemp legalization in 2019, faces potential collapse. Manufacturer licenses are jumping from $258 to $10,000 annually, while retail registrations spike from $155 to $5,000—increases that industry players say, combined with product bans, could force widespread closures and push consumers toward illegal markets.

The legal battle is already underway. Boomtown Vapor LLC filed a lawsuit in Travis County on March 17 challenging the regulations, arguing that the Texas Department of State Health Services is overstepping its authority by unilaterally redefining the legal standard for hemp. The retailer is seeking a temporary restraining order, warning that without court intervention, thousands of small businesses face immediate closure and layoffs. The case hinges on a narrow legal question: whether the state agency has the power to reinterpret legislation passed in 2019 (House Bill 1325) that explicitly defined hemp using Delta-9 THC levels alone. A judge has yet to rule on the restraining order request, leaving the March 31 deadline in limbo—but the uncertainty itself is paralyzing retailers who don't know whether to liquidate inventory or hold on.

Texas is not alone. Ohio's hemp restrictions took effect this month, clearing shelves at gas stations and convenience stores across the state. Pennsylvania district attorneys, meanwhile, have formally requested that state lawmakers regulate intoxicating hemp products sold in smoke shops, placing the issue squarely in the legislative arena. But the real ticking clock is federal. 🤔 THINK ABOUT IT A provision in the federal spending bill will ban the sale of hemp-derived THC products beginning November 12, 2026—unless Congress acts. The new standard would prohibit all hemp products containing more than 0.4 milligrams of THC per container, classifying anything exceeding that threshold as a Schedule I controlled substance with zero exceptions. That's an existential threat to an industry that only exists because of hemp's federal legality.

Industry advocates are pushing back on multiple fronts. Diana Eberlein, chair of the Coalition for Adult Beverage Alternatives, noted that the November deadline poses an "existential threat" to the hemp-derived THC sector. Two competing federal bills have emerged: Representative James Baird's H.R. 7010 would push the ban deadline to November 2028, while the bipartisan Hemp Enforcement, Modernization and Protection (HEMP) Act—introduced by Representatives Morgan Griffith (R-Virginia) and Marc Veasey (D-Texas)—would authorize the FDA to regulate hemp-derived THC products instead of banning them outright. Eberlein emphasized that retailers and suppliers need to engage in active advocacy at the state and federal level: "If you want to sell it, you have to advocate for it." Edibles and beverages are expected to survive most of these regulatory shifts, offering a potential lifeline for retailers willing to pivot their business models. But shops built around higher-margin smokable products may not have enough time or capital to make the transition before March 31—or before the federal axe potentially falls in November.

The irony is stark: regulators are moving to eliminate a product with zero recorded overdose deaths in human history, while alcohol—which kills an estimated 95,000 Americans per year—remains fully legal and heavily marketed. Prescription opioids, which kill over 16,000 Americans annually, continue to flow through licensed pharmaceutical channels. Yet hemp retailers face $5,000 annual registration fees and the threat of overnight inventory destruction based on reinterpreted definitions of a compound that has harmed no one. 🚀 THIS IS COOL The silver lining is that edible and beverage formats allow consumers to access the same compounds in regulated, measurable doses—a win for safety and consistency. But for the roughly 1,500 Texas retailers, tens of thousands of employees, and the millions of Americans who rely on legal hemp access—particularly veterans managing PTSD and chronic pain without pharmaceutical alternatives—the next eight months will determine whether the legal hemp market survives, adapts, or gets pushed underground.

March 29, 2026

# THC in Science: Major Mental Health Study Contradicts Popular Use, While Medicare Expands Coverage and Regulators Split on Safety

A landmark meta-analysis published in The Lancet Psychiatry has delivered sobering news for the millions of Americans self-medicating with cannabis for mental health. Researchers at the University of Sydney reviewed 54 clinical trials spanning 1980 to 2025 and found little to no strong evidence that medicinal cannabinoids treat anxiety, depression, or PTSD. Dr. Jack Wilson, the study's lead author, noted potential harms including increased psychosis risk and delayed access to proven treatments—a finding that directly contradicts how cannabis is being used in practice. 🚀 THIS IS COOL The research does matter, because it forces a reckoning: roughly 20% of American adults report using CBD products, and an unknown but significant portion use THC specifically for mood disorders, yet the clinical foundation for these uses remains shaky. The contradiction is stark—consumer behavior and medical evidence are moving in opposite directions.

Even as the research community sounds alarms about mental health applications, federal regulators are pushing ahead with expanded access. The Centers for Medicare & Medicaid Services announced the first official details of a pilot program launching April 1 that will cover up to $500 annually in hemp-derived CBD and THC products for Medicare beneficiaries, allowing up to 3 milligrams of THC per product. 💰 MONEY MOVES Industry analysts estimate the CBD wellness market alone could reach between $8.5 billion and $13 billion in 2026, and Medicare's endorsement is a massive signal that legitimizes the category even as clinical evidence remains thin in some areas. The catch: President Trump recently signed legislation to recriminalize hemp THC products, meaning the 3mg allowance could change if that law takes effect without delay—creating legal uncertainty that affects both patients and the marketplace simultaneously.

But the research picture is more complicated than headlines suggest. A separate study published in the Journal of Pain Research found that full-spectrum CBD-dominant extracts outperformed synthetic THC (dronabinol) in older adults with chronic pain, with 85.7% of CBD users meeting primary endpoints versus just 21.9% on synthetic THC. Adverse reactions occurred in only 15.5% of the CBD group compared to 35.7% in the THC group. 🚀 THIS IS COOL Epilepsy remains the gold standard—FDA-approved Epidiolex shows sustained seizure reduction over 144 weeks, and new real-world data from France confirm strong outcomes even for off-label rare epilepsy syndromes. The pattern suggests cannabis compounds may have genuine therapeutic value in specific conditions, but the mental health applications driving consumer purchases lack comparable evidence. For pain and seizure disorders, the science is building. For depression and anxiety, the science is failing to build.

The real controversy emerging is about regulation and the path forward. Daniel Kruger, a cannabis policy researcher at the University at Buffalo, argues that an outright ban on hemp-derived CBD and THC products—scheduled for November under a provision tucked into last year's government shutdown bill—is unnecessary and counterproductive. Instead of banning, Kruger advocates for mandatory testing, certificates of analysis accessible via QR code, and consistent regulation of all intoxicating cannabis products. He notes that delta-8 THC is most popular in states without legal delta-9 THC access, suggesting the real solution is legalization and regulation rather than prohibition.

🤔 THINK ABOUT IT Congress currently has 16 cannabis bills in play during the 2025-2026 session, ranging from the MORE Act (which would end federal prohibition) to the Hemp Planting Predictability Act (which would delay new restrictions for three years). Meanwhile, the scientific evidence keeps splitting: strong for epilepsy and chronic pain in some populations, weak or absent for mental health conditions where most consumers believe it works. Utah just signed legislation supporting psychedelic clinical trials for military veterans, and Georgia expanded medical cannabis access to include vaping and new qualifying conditions. The normalization is happening legislatively and commercially, even as the mental health research suggests millions of people are using cannabis for conditions where it likely doesn't work. The gap between consumer behavior, clinical evidence, and federal policy is wider than it's been in decades. What happens when that gap finally closes—in either direction?

March 29, 2026

Texas hemp retailers and users face a seismic shift as new state regulations take effect March 31, effectively banning smokable THC products—joints, flower, and pre-rolled hemp—that currently represent the majority of sales across the state's dispensaries. The Texas Department of State Health Services (DSHS) implemented the restrictions through a regulatory redefining of hemp's legal standard, shifting from a "Delta-9 THC" threshold to a "Total THC" measurement that combines Delta-9 and THCA compounds and caps all hemp at 0.3%. Simultaneously, the state is raising licensing fees to $5,000 annually, adding testing and labeling requirements that industry operators say amount to an effective prohibition rather than reasonable regulation.

The crackdown originated when Governor Greg Abbott vetoed Senate Bill 3 last summer—legislation pushed by Lieutenant Governor Dan Patrick that would have outright banned most intoxicating hemp products. Instead of accepting defeat, Abbott issued Executive Order GA-56 in September 2025, directing state agencies to implement new hemp rules through the back door. 💰 MONEY MOVES For thousands of small retailers like Bee's Wellness Cafe and Alamo Botanicals, the March 31 deadline means inventory overnight becomes illegal to sell, forcing business pivots or closures just as they face the new $5,000 registration fee.

Dispensary operators argue the state is overstepping its authority. On March 17, Boomtown Vapor LLC filed a lawsuit in Travis County challenging the DSHS regulations, alleging the agency exceeded its power by unilaterally redefining what constitutes legal hemp. The suit also argues the $5,000 fee amounts to a "prohibitive tax" designed to destroy the industry rather than regulate it. Without court intervention before March 31, thousands of Texas small businesses could face immediate closure. The legal battle centers on a fundamental question: whether state health agencies can rewrite the statutory definition of hemp that Texas legislators established in House Bill 1325 back in 2019.

Brook Richie, owner of Bee's Wellness Cafe, summed up the frustration bluntly: "It just seems to be unfair for the people of Texas, because [state officials] are basically telling them how they can get their medicine." David Burrow, CEO of Alamo Botanicals, called for stronger testing and compliance measures instead of an outright ban. Both operators emphasized that THC products remain largely misunderstood—a gap that state leadership hasn't helped close.

What remains available after March 31 are edibles, tinctures, and other non-smokable hemp products. But for users who relied on flower or joints for anxiety, chronic pain, PTSD, or other wellness needs—including veterans with service-connected conditions—the options narrow considerably. 🤔 THINK ABOUT IT Texas is banning a product with zero recorded overdose deaths in human history, while alcohol kills nearly 100,000 Americans annually and prescription opioids kill over 16,000 per year. The question isn't whether hemp can harm some people in some contexts—most substances can. The question is whether a state regulatory agency should rewrite hemp's legal definition to eliminate a market that legislators created, especially when the justification rests on evidence that even sympathetic reviewers describe as incomplete.