Donors, access and polls prompt President Trump to reclassify marijuana

President Donald Trump on Thursday signed an executive order loosening federal regulations on cannabis and paving the way for a Medicare pilot program targeting CBD, capping a year-long coordinated push by the cannabis industry that combined traditional lobbying, big political contributions, data-driven messaging and direct outreach to the president’s inner circle, industry officials told CNBC.

Despite longstanding Republican opposition to loosening drug laws (including a wave of legislation from lawmakers seeking to tighten regulations after the executive order), industry advocates claimed victory. They believe the order succeeded in reframing marijuana as a pro-business policy rather than a social issue, ultimately winning support from a president known for his prohibition.

“We’ve never had so many people rush to reclassify marijuana,” President Trump said during a signing ceremony in the Oval Office on Thursday.

Three people have emerged as the main architects of the policy change, according to multiple people involved, including the CEO of a New York Stock Exchange-listed cannabis company who requested anonymity to speak candidly. A key player was Howard Kessler, a Palm Beach billionaire and longtime friend of the president. Kim Rivers, CEO of cannabis giant Trulieve. and Trump’s longtime pollster Tony Fabrizio, the people said.

Kessler, known as the pioneer of affinity credit cards, has been in Trump’s orbit since at least 2005, attending his wedding to Melania Trump and appearing at Mar-a-Lago and state dinners.

Kessler, who is also a leukemia survivor, began advocating for the medical benefits of cannabis for older adults in 2019 and founded the Commonwealth Project to further that cause. In September, President Trump shared a Commonwealth Project video on Truth Social, calling CBD adoption “the most important senior health initiative of this century.”

Other prominent members of the Trump administration also cited Kessler’s influence Thursday.

At the signing ceremony, Secretary of Health and Human Services Robert F. Kennedy Jr. said that without Mr. Kessler, “we would not be here today.”

Dr. Mehmet Oz, director of the Centers for Medicare and Medicaid Services, joked to Kessler in the Oval Office: “God bless you for hurting our side.” Oz added that Kessler had promised to eventually stop calling the president on the issue once the order was signed.

Kessler did not respond to requests for comment.

The White House said President Trump’s executive order opens up access to new treatments.

“The presence of several leaders from law enforcement and veterans organizations in the Oval Office to sign the bill demonstrates how President Trump continues to push the envelope in support of our nation’s heroes,” White House Press Secretary Khush Desai said in a statement.

Kim Rivers, CEO of Trulieve, one of the largest cannabis companies in the United States, also has close ties to the Trump administration, particularly through her personal ties to Trump’s chief of staff Susie Wiles, a person familiar with the matter told CNBC.

Mr. Wiles was not a registered lobbyist for Trulieve, but previously worked for Ballard Partners, a Florida lobbying firm that represented the company.

“They (the Trump administration) want safe, regulated, tested products,” Rivers told CNBC’s “Fast Monday” Thursday night, adding that he interpreted the White House’s language as a signal that the administration intended to rein in the troubled market rather than letting it expand unchecked.

“Millions of Americans use medical marijuana,” Rivers said. “The president has made it very clear that he wants people to have access to safe, regulated, researched products in a controlled environment.”

Rivers attended two pre-inauguration events, including a dinner with Vice President J.D. Vance, and participated in a $1 million-a-plate fundraiser at Trump’s New Jersey golf club in August, where he reportedly urged Trump to reclassify marijuana, the Wall Street Journal first reported.

Mr. Trulivet’s campaign funds also supported Mr. Trump. According to Federal Election Commission filings, Trulieve donated $750,000 to Trump’s inaugural committee and $250,000 to Trump’s MAGA super PAC.

The company reportedly played a key role in securing President Trump’s support for a Florida ballot initiative that would legalize recreational marijuana for adults 21 and older. Although the initiative failed, Trulieve spent more than $100 million on the campaign, according to Florida Department of Elections records.

The president also received data from pollster Fabrizio, who has ties to the issue.

American Rights and Reform, a pro-cannabis super PAC, paid Fabrizio Reed a six-figure fee to conduct a poll that found widespread voter support for changing the date, according to FEC filings.

During Thursday’s signing ceremony, Trump referenced Fabrizio’s data multiple times, highlighting polls released in March showing widespread voter support for deregulation. The data shows that young voters between the ages of 18 and 34 form the main majority supporting reform at around 80%.

Mr. Fabrizio’s son, AJ Fabrizio, is also a spokesperson for the cannabis industry and a CEO who said he turned to medical cannabis to treat his own epilepsy.

AJ Fabrizio has launched his own cannabis extraction brand called IVXX. It’s a line of carbon dioxide-extracted hash oil created exclusively for Terra Tech Corporation, a publicly traded cannabis company that owns dispensaries such as Green Door in San Francisco and Blum in Oakland, California.

AJ said in an interview that he went from skepticism to advocacy after cannabis stopped his seizures. He also likened the future of cannabis to “standard oil,” arguing in a recent podcast interview that the cannabis industry is poised to revolutionize materials, medicine, and nutrition in the same way that Rockefeller turned petroleum byproducts into a petrochemical empire.