U.S. GOVERNMENT SHUTDOWN FREEZES CANNABIS REFORM AND RESEARCH

Hype Mag Official
Oct 11
2 min read

20 Dollar Bill showing a decline in value

Shutdown Overview and Priorities

As of October 13, 2025, the U.S. government shutdown is still ongoing. Over 750,000 federal workers are furloughed, freezing most non essential programs which includes the US military. Meanwhile, $3.8B in military "aid" to Israel continues, highlighting how the Elite prioritizes strategic "real estate interests" over its own people putting Israel first once again.

U.S. Government Shutdown Cannabis Impact

⚠️ The Below Market Estimates combine historical shutdown data, industry reports, and market trends, using a two month shutdown window to realistically model ripple effects through the cannabis sector.

1. Rescheduling Halted

DEA and HHS are paused, blocking Schedule III reform.→ Impact: Businesses continue paying up to 40% more under Section 280E.→ Prediction: Delays until mid-2026; 10–15% slowdown in medical research.

2. SAFE Banking Delays

Treasury shutdown keeps cannabis firms cash-only.→ Impact: Higher risk and costs for operations; some shops may close or merge.→ Prediction: Expenses rise 15–25% for small businesses.

3. Farm Bill Freeze

Clarification of hemp and delta-8 THC rules is stalled.→ Impact: Farmers face confusion; markets unstable.→ Prediction: Hemp sales could drop 20–30%; black-market growth rises.

4. FDA & USDA Pauses

CBD approvals and hemp oversight frozen.→ Impact: Product testing halted; new launches delayed.→ Prediction: Industry growth slows from 15% to ~9% in 2025.

5. Research Standstill

NIH cannabis grants are paused.→ Impact: Medical discoveries delayed; legal reform slowed.→ Prediction: $500M–$1B in lost research over two months.

6. Consumer Spending Drop

Job losses reduce disposable income.→ Impact: Less spending on recreational cannabis.→ Prediction: Sales down 10–20% if shutdown lasts two months.

7. Investor Confidence Slips

Federal inaction spooks markets.→ Impact: Stock declines; fewer investments.→ Prediction: Venture funding down 20–25% through early 2026.

Estimated Industry Cost

A full two month shutdown could strip $1–3B from cannabis growth, stalling reform, freezing research, and widening the divide between thriving state markets and stalled federal policy.