A coalition of health advocacy organizations and anti-cannabis groups sued the Trump administration on Monday over its plan to allow Medicare coverage for hemp-derived CBD and THC products. Plaintiffs include Smart Approaches to Marijuana, Cannabis Industry Victims Educating Judges, North Carolinians Against Legalization of Marijuana, Cannabis Impact Prevention Coalition, LLC, Cannabis Industry Victims Seeking Justice, County Drug Foundation of America, Save Drugs Courses International Anti-Drug Alliance, Illinois Family Institute and North Carolina resident and SAM donor David Evans.

The lawsuit was filed after the Centers for Medicare & Medicaid Services (CMS) will begin covering CBD and THC products as an incentive to engage beneficiaries of substance access (BEI). The document names CMS Administrator Mehmet Oz and US Department of Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. as a defendant.

Under the proposed BEI, patients enrolled in certain federal health insurance programs could cover up to $500 worth of hemp-derived products each year. The lawsuit alleges that the plan violates administrative rules because the CBD and THC products covered by the program have not received Food and Drug Administration approval and because CMS did not publish a notice of proposed rulemaking, which prevented public comment.

The complaint further alleges that the program would violate the Social Security Act, which “does not permit CMS to sanction the possession and use of illegal and dangerous Schedule I substances by Medicare patients without express congressional authorization.”

“CMS’s action represents an unprecedented and unlawful assertion of binding decision-making authority that will profoundly affect the health of older Americans. “CMS took this action without the hurdles imposed by the administrative process, without any reasoned explanation, in violation of the agency’s final determination pursuant to the APA, and without statutory authority.” – Smart approaches to marijuana, etc. al v. HHS, US CMS

The filing alleges that Evans would be personally harmed by CMS’ changes because he is a Medicare recipient who was not allowed to submit public comment on the BEI and whose “health care relationship” with CMS is changed by the plan.

The lawsuit alleges that there is a “research gap” for medical cannabis and hemp products and alleges that “commercially available CBD products are contaminated and mislabeled.”

The suit seeks a temporary restraining order, a preliminary injunction, a stay of the agency’s action pending a judicial review, and asks the court to vacate the EIB, declare it illegal and permanently enjoin the policy.

The US military will now allow recruits who have a single possession of cannabis or possession of drug paraphernalia to enlist without a waiver. Before change of regulationsuch convictions would have technically barred potential recruits from enlisting, but those with such convictions were often granted waivers to join the service.

Previously, under the waiver program, recruits with a single conviction for cannabis or drug paraphernalia required a waiting period of up to 24 months and a mandatory drug test at a military entry processing station.

The rule changes do not change the rules for recruits with a “pattern” of multiple drug-related convictions or offenses. Such recruits still claim waivers.

The change, which applies to the Regular Army, Army National Guard and Army Reserves, takes effect on April 20, 2026.

Cannabis use remains prohibited for all active duty, reserve and National Guard service members, regardless of state laws. The military also does not recognize cannabis medical cards, and the use of cannabis-related substances is prohibited, even if prescribed by a doctor.

The military also prohibits active duty service members from using hemp or products containing hemp oil, including CBD. Soldiers who test positive for THC, including CBD or synthetic products, may face mandatory separation processing.

U.S. Representatives Troy Carter (D-LA) and Guy Reschenthaler (R-PA) this week introduced the bipartisan Capital Lending and Investment for Marijuana Businesses (CLIMB) Act, which aims to give state-legal cannabis companies access to lending and investment opportunities available to other industries.

Most financial institutions are currently unwilling to serve the industry, as cannabis remains a federally prohibited, Schedule I substance.

But to Act of ASCENT would establish protections for private lenders to make loans and for government agencies, such as the Small Business Administration (SBA), or the Minority Business Development Association (MBDA), to provide grants to state-licensed cannabis companies.

“This legislation is an opportunity to bring equity and equal opportunity to our nation’s growing cannabis industry,” said Rep. Carter in one press release.

“Working directly with small, minority, and veteran-owned cannabis businesses, it’s clear that access to capital remains one of the biggest barriers to entry and success in the industry. By bringing symmetry to the business ecosystem with the CLIMB Act, we can help communities that have long been harmed by the criminalization of marijuana—and that’s all leaders in American business.” – Carter, in a statement

Saphira Galoob, CEO of the US Cannabis Roundtable, said the bill would “help unleash the full potential of the American cannabis industry” and ensure that “American cannabis businesses, workers and investors have the same opportunities and access to financial services as foreign competitors.”

Meanwhile, President Donald Trump issued an executive order last December directing federal agencies to move cannabis from Schedule I to Schedule III under the Controlled Substances Act. Officials, however, have so far failed to implement the order.

Federal agencies initiated first rescheduling process in 2024 under then-President Joe Biden.