On Thursday, December 18, President Trump signed an Executive Order instructing the Attorney General to reschedule cannabis from a Schedule I to a Schedule III drug — a significant development for our industry, as The Council has spent many years advocating for a safe harbor that would allow banks, insurers, and agents/brokers to provide financial services to cannabis businesses. There are still miles and miles before we sleep on this issue, but this decision removes a major hurdle. To that end, we’re sending an analysis of next steps in this memo from our legal partners at Steptoe. (login required)
Additionally, we are sharing a few updates on ACA Subsidies, and what you can expect to see in January when Congress is back in session:
- After weeks of uncertainty, House Democrats were joined this week by four House Republicans—Reps. Brian Fitzpatrick (R-Pa.), Ryan Mackenzie (R-Pa.), Rob Bresnahan (R-Pa.), and Mike Lawler (R-N.Y.)—to force a vote on legislation to extend the enhanced subsidies set to expire at the end of the year.
- Having secured the 218 votes to force Speaker Johnson’s hand, the House vote will now happen in early January and is almost certain to pass the chamber.
- While the legislation is dead on arrival in the Senate, the move adds momentum to negotiations led by Senate moderates to find a compromise. A potential deal would likely include a shorter time frame and steep income caps for subsidy recipients.
- The Council was advocating for the inclusion of PBM reforms in any subsidy package considered by the House. However, that language was not included in the bill set to be considered next year.
- Still, PBM reforms enjoy broad bipartisan support, and we continue to be told that they will get a vote separate from the ACA subsidies. That vote is not expected to happen until January at the earliest.
Our team will continue to monitor these issues and provide important updates, as needed, to help guide your discussions with your teams and your clients.