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Federal Judge Dismisses Anti-Marijuana Groups’ Lawsuit Challenging Medicare Hemp Coverage Program

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A federal judge has granted the government’s motion to dismiss a lawsuit by opponents of marijuana legalization challenging a new initiative by the Trump administration. Cover up to $500 of hemp-derived products annually for eligible Medicare patients. The program being implemented by the Centers for Medicare and Medicaid Services (CMS) focuses largely on CBD, but also allows a certain amount of THC in products.

Judge Trevor N. McFadden ruled Friday that the prohibitionist and activist groups, led by Smart Approaches to Marijuana (SAM), as well as a biopharmaceutical corporation MMJ International Holdings and its subsidiaries, “have no standing to bring this case.”

“Each one claims an injury too abstract or far-fetched to open the doors of the court,” he said.

“At the outset, the Court notes that it need not address most of the questions raised by plaintiffs in their motions,” McFadden wrote. “This is because Plaintiffs’ case suffers from a fatal flaw: failure to establish the Article III bar to present their claims. The Court addresses only that jurisdictional hole and will dismiss the entire case and deny Plaintiffs a preliminary injunction.”

In April, lawyers Section of Health and Human Services. Robert F. Kennedy Jr. and CMS Director Mehmet Oz presented the summary saying that Anti-cannabis organizations filed lawsuit against Medicare hemp coverage policy they have no value to bring the case. Now the judge has agreed.

“There’s no plaintiff’s body that doesn’t show enough for an injury,” McFadden said. “All claim that resources were diverted in response to the establishment of the EIB, but none specified that this diversion of resources ‘impeded’ its core activities or prevented it from ‘pursuing its true purpose’.”

As for MMJ and its subsidiaries, the judge said, “it is not a direct and present competitor with anyone who sells hemp to Medicare beneficiaries.”

“In short, MMJ has no product on the market for Medicare beneficiaries and no sense of when it might be,” he said.

Beyond advocacy organizations, the lawsuit involves individual plaintiffs, including anti-marijuana advocate David Evans, who says he was sued for the Substance Access Beneficiary Engagement Incentive (BEI) as a Medicare recipient, but federal agencies reject that argument.

“If Evans’s worst-case scenario — his doctor recommends hemp — were to come true, Evans would suffer no specific harm,” McFadden wrote.

“In short, regardless of theory, plaintiffs have failed to establish an Article III injury from the implementation of the BEI,” the judge said. “The use and regulation of hemp are important issues, and the plaintiffs understandably have strong views on those issues. But while BOTH may not like it, they have not been harmed. So the case will be dismissed for lack of subject matter jurisdiction.”

SAM, for its part, is reversing the dismissal and says it may appeal.

“We fundamentally disagree with the court’s decision today. All parties have shown substantial injury that exceeds the threshold required by Article III,” said SAM President and CEO Kevin Sabet. “We are currently exploring all of our options, including an appeal. We will not rest until we make sure America’s seniors are safe from these false medical claims and the harms of dangerous marijuana products.”

McFadden previously denied the plaintiffs’ request for a temporary restraining order to stop the program from running on April 1st.

Notably, the government’s motion to dismiss the case says it was prepared in part by Matthew Zorn, an HHS attorney, before he took the federal job. litigated numerous cases against government agencies on behalf of plaintiffs seeking marijuana and drug policy reform..

The CMS initiative comes after President Donald Trump signed an executive order in December calling on the attorney general to finalize a federal marijuana redistricting rule, now underway, that also includes “access improvement” components for full-spectrum CBD products.

Under the program, inhalable preparations are not allowed, and products cannot contain more than 0.3 percent delta-9 THC by dry weight and a total of 3 milligrams of THC per serving.

The THC limit could potentially change if the law the president signed late last year goes into effect as planned in November. Such a policy would strictly limit the types of cannabis products currently allowed under the 2018 Farm Bill signed by Trump during his first term, specifically banning hemp derivatives with a total of 0.4 milligrams of THC per container.

The federal agencies stated in a brief of the lawsuit that “CMS does not pay for hemp products under the BEI.”

“Participating providers supply eligible products at their own cost, subject to an annual limit of $500 per beneficiary. BEI operates within a shared savings framework that defines the underlying model. If a provider’s investment in beneficiary engagement reduces the beneficiary’s total cost of care, it shares in the savings generated by the provider and CMS. If it does not absorb new, if the provider does not absorb new. BEI is essentially entitled to certain interventions. It is a provider decision that allows one to reduce downstream claims.

Meanwhile, the White House Office of Management and Budget recently held a series of meetings a Food and Drug Administration (FDA) CBD product enforcement policy.

The FDA also issued guidance making it clear that it does not intend to interfere Establish a Medicare coverage plan for hemp-derived products.

CMS finalized a rule that will be adopted separately Coverage of certain hemp products, primarily as specialized health-related benefits, through Medicare Advantage the plans

Read the judge’s the order dismissing the lawsuit challenging the Medicare hemp program below:

user photo Nanny Kimzy.

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Massachusetts CCC pauses license applications

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The Cannabis Control Commission, the government body that oversees the marijuana business in the state of Massachusetts (USA), has decided to temporarily stop accepting new license applications for growing marijuana, both indoors and outdoors. This hiatus officially began on June 16, 2026.

Anyone planning to apply for a new marijuana cultivation license after June 16, 2026 will not be able to do so while this suspension is in effect. The Commission will not accept such requests during this period.

There are two groups that can continue normally. First, anyone who submitted an application before June 16, 2026, will continue to review and process applications as usual. Second, applicants for specific programs designed to help communities historically affected by drug laws, known as the Social Equity Program and the Economic Empowerment Program, are exempt from this suspension if they apply for a smaller-scale “Microenterprise” license.

The suspension will be in effect for 120 days from June 16, 2026, which is currently scheduled to be lifted around mid-October 2026. However, the Commission has the power to terminate earlier or extend further, depending on market conditions.

Source: Massachusetts Cannabis Control Commission










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Federal Marijuana Rescheduling ‘Does Not Appear To Apply’ To Washington Businesses, State Officials Say

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Marijuana regulators in Washington say the Trump administration’s move to re-regulate cannabis at the federal level “doesn’t appear to apply” to the state’s businesses.

US Department of Justice in April He issued an order that immediately reclassified the state’s licensed medical cannabisas well as marijuana products approved by the Food and Drug Administration (FDA) under Schedule I through Schedule III of the Controlled Substances Act (CSA). A trial scheduled for this month will take place consider marijuana III.

“Washington does not issue licenses to producers, processors or retailers of medical cannabis,” the state’s Liquor and Cannabis Board (LCB) said in guidelines released Tuesday. “Instead, Washington has a single recreational market and within that market producers/processors can manufacture (DOH) compliant products, and certain retailers can sell DOH-compliant products to adult patients and all designated providers.”

“Therefore, Washington cannabis licensees do not appear to qualify as ‘state medical marijuana licensees’ and therefore may not be eligible for registration under the final Rule,” the agency said, referring to the Drug Enforcement Administration (DEA). Registration process for legal marijuana businesses in the state to take advantage of the federal benefits that come with the reform.

That said, the LCB “does not take a position if licensees decide to apply for federal registration,” the guidance continues. “If a licensee is seeking federal registration, we would be interested in learning about their experience and federal decisions.”

However, “based on our analysis, the federal reorganization in its current form does not appear to apply to cannabis licensees in Washington, primarily because of the legal framework governing recreational cannabis,” the LCB said.

The agency emphasized, however, that while it has consulted with the Cannabis Regulatory Association, the National Governors Association and industry stakeholders, its current opinion does not represent Washington’s formal opinion and “may not be our final interpretation as information is evolving and the decision may not rest with the state.”

“We await additional guidance from the federal agencies involved, new or updated federal agency processes and/or other federal procedures,” he said. he saidreferring to the next administrative hearing and Ongoing litigation calls into question the rescheduling of cannabis.

“The LCB recognizes that there are many cannabis growers, processors, and retailers actively involved in the production and sale of medical cannabis in Washington. These businesses may or may not be eligible to use the 280e tax deduction, and may also register with the DEA III. Ultimately, they have no input into whether their licensees meet the criteria for “state medical marijuana licensees,” as that determination can be made unilaterally by the DOJ within the meaning of the Final Rule. to reasonably interpret and determine that Washington cannabis licensees qualify as “state medical marijuana licensees.”

The US Treasury and Internal Revenue Service (IRS) said they plan to issued new tax guidelines for the marijuana industry after reprogramming. The reform will benefit state-licensed marijuana businesses by allowing them to take federal tax deductions that are currently prohibited under IRS Code Section III, known as Section 280E.

In California, regulators recently approved emergency rule changes to the state’s marijuana licensing process. to make it easier for companies to receive benefits In line with the Trump administration’s latest move to federally regulate medical cannabis.

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How New Zealand showed up in London’s cannabis industry

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The medical cannabis market is expected to grow from $47 billion to $149 billion by 2031, and New Zealand has a real role to play in that story. And thanks in large part to New Zealand Trade and Enterprise (NZTE), the government’s international business development agency, Puro is starting to play.

At Cannabis Europa 2026 London, NZTE hosted an evening event at the City Arts Bar with Puro, New Zealand companies Bluelab, Rua Bioscience and CannFX. Puro called it The NZ Room.

Beyond all things Kiwiana – including Puro brand kiwifruit, Kiwi’d – the room was filled with some pretty amazing people: Ivy League scientists, company founders, patients, advocates, industry players, government officials, Maori tribal leaders and a tough Scotsman. All in the same space with the same true passion for where this industry is going.

It was one of those rooms where conversations went well when they had to end. That’s usually a sign of something well done.

Made possible by NZTE
For Puro, the NZTE relationship has been formative. With ongoing support, Puro has entered the Australian market with 47 unique product SKUs and signed a £7 million supply agreement with UK distributor IPS Pharma.

NZTE understands the potential of the New Zealand cannabis industry. The willingness to support this nascent industry and put New Zealand in the spotlight at events like Cannabis Europa is very significant. New Zealand is a small country and the country’s credibility in international markets is built from relationship to relationship, room by room. NZTE helps build those rooms.

© Cigar

what’s next
For the first time, patients in the UK have access to medicinal cannabis grown in New Zealand. That’s the direct result of years of work by Puro’s team, but it’s not worth much if you can’t connect with buyers globally. Creating international relationships that events like Cannabis Europa make this possible.

“We are grateful for the extensive support from the New Zealand Government that drives our progress, including the Ministry of Primary Industries’ support for our genetic breeding, product innovation and market access goals. This collective effort from agencies such as the Ministry of Business, Innovation and Employment, NZTE and the New Zealand Export Credit Bureau ensures that Mail that started in London will continue to grow in Puro’s international goals,” he said. a statement

For more information:
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www.puro.co.nz

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