Federal drug policy is shifting as Congress uses funding bills to expand veteran access to cannabis and psychedelics while modernizing VA health care.
In Washington, change often arrives not with sweeping declarations but embedded in the fine print of appropriations bills. That’s exactly where the latest movement in federal drug policy is unfolding—quietly but deliberately—through Senate Appropriations Committee directives within the Military Construction and Veterans Affairs (MilConVA) and Commerce-Justice-Science (CJS) bills.
These provisions don’t just appropriate funds—they chart a course toward a dramatically different approach to cannabis and psychedelics in the context of veterans’ health care.
This isn’t about fringe reform or symbolic gestures. It’s a recalibration of the policies that govern treatment, enforcement, research, and vocational training for millions of veterans who remain tethered to outdated legislation, even as public opinion and state laws continue to evolve.
From Schedule I to Reality Check
The Controlled Substances Act (CSA) has long held cannabis hostage under Schedule I—right alongside heroin and LSD—on the grounds that it has “a high potential for abuse” and “no accepted medical use.” Yet in 2023, the Department of Health and Human Services (HHS) turned that classification on its head.
Following a scientific and medical review, HHS formally recommended rescheduling cannabis to Schedule III, recognizing its moderate abuse potential and growing record of therapeutic benefits.
The Department of Justice and Drug Enforcement Administration concurred, signaling the start of a formal rulemaking process. For veterans, this bureaucratic shift carries tangible weight: expanded access to clinical research, looser restrictions for prescribing, and potentially even a reimagining of cannabis-related penalties under federal law. It also paves the way for federal agencies like the VA and NIH to fund and conduct large-scale studies that were once impossible under Schedule I constraints.
VA Policy Reform: Medical Cannabis Enters the Room
Rescheduling cannabis creates space for policy that was previously taboo inside the Department of Veterans Affairs. A proposed directive from the Veterans Health Administration (VHA) would allow VA clinicians to discuss, recommend, and help facilitate access to medical cannabis in states where it’s legal—something they’re barred from doing under current policy.
There’s still work ahead. Credentialing updates, liability protections, and electronic health record integration must be squared away before the policy takes root. But for veterans in rural or underserved areas, telehealth options could serve as a critical lifeline—especially when distance, disability, or stigma keeps them out of traditional care settings.
Reducing Opioids, One Study at a Time
Veterans suffer disproportionately from chronic pain and opioid dependence, and while federal drug policy has often centered on law enforcement, this legislation shifts the spotlight toward evidence-based care. A VA-led study will examine whether cannabis use can reduce reliance on opioids, analyzing electronic health records across service eras and mental health conditions.
This isn’t exploratory—it’s targeted. Researchers will track metrics like morphine milligram equivalents and overdose rates, with subgroup analyses that capture nuances between, say, Vietnam veterans and those who served post-9/11. The interim results will be reported directly to Senate appropriators, helping inform future clinical guidelines and VA treatment protocols.
The GI Bill Loophole That Blocks Cannabis Careers
While state economies embrace cannabis as a legitimate sector, federal policy remains stubbornly out of step. A 2022 VA policy advisory prohibits GI Bill funds from being used on any program that trains veterans to “cultivate, sell, or distribute” marijuana—even if the program is state-certified and entirely legal.
That language has real-world consequences. Veterans are being denied access to horticulture, dispensary management, and extraction courses—fields that could otherwise connect them with jobs, equity grants, and ownership opportunities in one of the nation’s fastest-growing industries. The current appropriations bill requires the VA to report on how many veterans have been impacted and the types of programs affected. Whether Congress will carve out exceptions or overhaul the policy altogether remains to be seen.
Illegal Grows and the Return of the Hammer
Even as reform takes hold in some corners, enforcement remains a top priority elsewhere. The Senate’s appropriations language calls for a 90-day interagency report on illegal marijuana grow operations, especially those linked to foreign criminal networks like Chinese transnational organizations. The report will assess hotspots, organizational hierarchies, financing sources, and enforcement resource needs.
This renewed focus dovetails with national security concerns. It also reinforces the dual nature of federal drug policy: while the legal cannabis economy blossoms in one room, illegal cultivation faces aggressive crackdowns in another. Task forces, asset seizures, and public reporting campaigns will continue to be key tools in combating these operations.
Psychedelic Therapy: From Fringe to Frontline
Psychedelics once relegated to the counterculture are now being studied by the VA and NIH for use in treating PTSD, depression, and substance use disorders. Compounds like psilocybin and MDMA have earned FDA “breakthrough therapy” designations, acknowledging their therapeutic promise and accelerating trial pathways.
Congress has mandated a 180-day report from the VA that inventories current research efforts, staffing needs, facility requirements, and regulatory barriers. Insurance reimbursement, DEA scheduling issues, and institutional review board approvals still pose challenges, but the tide has clearly turned.
Looking ahead, a five-year longitudinal study will track veterans undergoing psychedelic-assisted therapy, analyzing outcomes across demographics, mental health status, and treatment dosage. Interim reports and a final policy review are expected to drive updates to clinical guidelines and standard operating procedures across the VA network.
Legislative Pulse and Power Struggles
In July 2025, the Senate marked up and approved both the MilConVA and CJS bills, including these landmark provisions. The House version, however, includes a rider that would block the Department of Justice from proceeding with cannabis rescheduling—a move conspicuously absent from the Senate’s draft.
At the agency level, the process now moves from HHS to DOJ to DEA, with final implementation relying on FDA approvals and VA coordination. Meanwhile, delays in administrative law judge hearings and pending leadership nominations have added friction to an otherwise forward-moving process.
What Comes Next?
Veterans stand at the intersection of some of the most pressing questions in federal drug policy. They’re both the beneficiaries and the test subjects in this unfolding experiment—one that spans research labs, legislative chambers, and clinical settings.
The next steps involve more than just passing legislation. They require training clinicians, updating clinical pathways, launching multi-site trials, and exploring how cannabis and psychedelics can safely and equitably be integrated into federal care models. Social equity dimensions—including veteran-owned cannabis businesses and workforce development—must also be considered.
Ultimately, what begins in VA hospitals could serve as a national proof of concept. If these reforms prove successful, they won’t just change how we treat veterans. They’ll redefine the future of federal drug policy itself.
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