The U.S. Department of Agriculture (USDA) is standing firm on new regulations that restrict companies servicing marijuana businesses from participating in a government loan guarantee program. This move follows the publication of a finalized rule in October 2024 that modifies the OneRD program managed by the USDA’s Rural Utilities Service.
In a recent notice published in the Federal Register, the USDA addressed feedback on the policy change regarding marijuana. The new rule stipulates that lenders cannot collaborate with entities that generate income from what are considered illegal activities, including marijuana operations, which remain classified as a Schedule I controlled substance under federal law.
The agency explicitly states that borrowers intending to lease space or engage in power purchase agreements with marijuana dispensaries are ineligible for assistance. USDA reinforced that any organization earning revenue from marijuana transactions violates federal regulations, as marijuana is prohibited under the Controlled Substances Act.
In response to the four individuals who commented on the rule, all expressing disagreement with the USDA’s position, the agency acknowledged the ongoing debate surrounding state legalization efforts. However, it reiterated that the classification of marijuana as illegal under federal law necessitates the stricter rule, thus confirming its final adoption without any changes.
The impact of this rule may fluctuate depending on the U.S. attorney general’s response to President Trump’s recent executive order, which aims to reassess marijuana’s classification under the Controlled Substances Act, potentially moving it from Schedule I to Schedule III.
As marijuana regulation remains a contentious issue reflecting the tension between state and federal laws, USDA is simultaneously focusing on bolstering the hemp industry following its legalization through the 2018 Farm Bill. This includes appointing industry stakeholders to a federal trade advisory committee to promote U.S.-grown cannabis globally.
The USDA also faces challenges in reconciling a new law that reinstates a federal ban on most consumable hemp products, which represent a lucrative market sector. Trump’s executive order also mentioned facilitating access to full-spectrum CBD products, emphasizing their potential therapeutic benefits, aiming to include them for certain Medicare patients.
While the USDA’s stance on marijuana regulation may appear stringent, the agency’s commitment to advancing the hemp industry reflects an ongoing effort to navigate the evolving landscape of cannabis policy in the United States.