U.S. cannabis companies saw return on investment when they donated millions to a political action committee that steered money towards President Donald Trump, who later rewarded the industry with federal marijuana rescheduling.
But cannabis advocates are seeing the reverse of the coin now that Maga Inc., Trump’s super PAC, is backing the U.S. senate campaign of Texas Attorney General Ken Paxton – rated one of the least cannabis-friendly politicians in the country.
As Trump’s Republican Party frets about losing control of the Senate to Democrats, Paxton, Texas’ attorney general, is locked in a tougher-than-expected campaign against state Rep. James Talarico.
According to Politico, Republican political action committees, including Maga Inc., are expected to spend tens of millions of dollars on a “rescue mission” to save Paxton’s floundering campaign.
Talarico has spoken out against Texas’ “draconian” drug laws, which Paxton is sworn to enforce. Paxton also sued several Texas cities that tried to weaken restrictions around cannabis.
These are part of the reasons why, in its ratings of politicians’ friendliness towards cannabis, NORML gave legalization-friendly Talarico an A+ grade. Paxton, who went on record opposing medical cannabis, is graded an F.
But cannabis money may be on its way towards Paxton just the same, campaign finance records show.
Are big cannabis companies supporting President Donald Trump?
Federal campaign finance records show that several major cannabis companies last year made significant donations to American Rights and Reform PAC.
That organization then spread the money around Trumpworld and White House-friendly efforts, including $2 million contributed directly to Maga, Inc.
Major donors to American Rights and Reform PAC include:
- Chicago-based marijuana multistate operator Verano Holdings Corp., $1.59 million
- Chicago-based MSO Green Thumb Industries, $1.55 million
- Chicago-based MSO Cresco Labs, $1.3 million
- Massachusetts-based Curaleaf Holdings, $1.3 million
- Florida-based Trulieve Cannabis Corp, $800,000
How much are big cannabis companies spending to support President Donald Trump?
On top of the $2 million directly toward Maga Inc., another $1.5 million went from American Rights and Reform PAC towards another Trump-affiliated PAC called America First Agriculture Action.
And cannabis companies wrote that organization huge checks as well, according to records.
- Green Thumb Industries, through a subsidiary called Vision Management Services, $2.5 million
- Trulieve, $2.5 million
- Curaleaf, $2.5 million
- Verano, $2.5 million
- Arboretum Bidco, an affiliate of the Boston-based hedge fund that outbid Curaleaf for a Virginia vertically integrated MMJ permit, $1 million
- Ascend Wellness Holdings, $500,000
Both Maga Inc. and America First Action’s treasurer is Charles Gantt, Newsweek reported.
America First Agriculture Action had yet to spend most of its swelling war chest through the most recent reporting period that ended June 30. It had $13 million on hand.
Are Republicans or Democrats better for cannabis reform?
Cannabis companies saw their valuations peak in 2021 as investors bet that Democratic President Joe Biden would loosen federal restrictions and perhaps even usher in interstate commerce and federal legalization.
But though Biden’s Department of Health and Human Services did find that cannabis has a “currently accepted medical use in the United States,” concrete action never followed and those valuations quickly evaporated.
Critics also blamed then-Democratic Senate Majority Leader Chuck Schumer for not forcing an up-down vote on marijuana banking reform.
By contrast, Trump Attorney General Todd Blanche in April issued a final order reclassifying medical cannabis as a Schedule 3 drug, allowing Trulieve to reorganize as medical-only and then uplist to the New York Stock Exchange.
At the same time, the Florida GOP has foiled two efforts to legalize adult-use cannabis in Florida, both led by Trulieve.
Chris Roberts can be reached at chris.roberts@mjbizdaily.com.
