Cannabis Client Spotlight: Brooke Gilbert, COO of the National Cannabis Industry Association

As the cannabis industry stands on the brink of one of the most significant policy shifts in decades, the conversation around rescheduling is dominating headlines. To better understand what this means for operators - and where the advocacy community goes from here - we sat down with Brooke Gilbert, the newly appointed Chief Operating Officer of the National Cannabis Industry Association (NCIA). With years of experience advancing NCIA’s mission, Brooke brings a sharp perspective on the opportunities, challenges, and next steps for cannabis businesses nationwide.

What does rescheduling cannabis to Schedule III mean for small-and-medium-sized cannabis businesses? 

One of the biggest changes business will see with rescheduling would be the end of the punitive effects of IRC Section §280E, which, as the National Cannabis Industry Association’s recent report found, strips away the ability to deduct ordinary business expenses, forcing compliant cannabis operators to pay effective tax rates that can exceed 70%. It would also facilitate more research, and acknowledge what we all already know: that cannabis most certainly has medicinal benefits. 

But again, from a business angle, the end of 280E’s application would throw businesses a much-needed lifeline and allow them to reinvest in their companies, hire additional employees, and compete more effectively with the illicit market - ultimately promoting public health and safety.

What role did NCIA play in rescheduling? 

NCIA has consistently lobbied lawmakers, the White House, and federal agencies to modernize cannabis policy. During former President Biden’s rescheduling attempts, we submitted formal comments to the Department of Health and Human Services (HHS) and the Drug Enforcement Administration (DEA), urging them to move marijuana to Schedule III of the Controlled Substances Act (and advocated for full descheduling). We believe it’s incumbent for the government to align federal law with scientific evidence, public opinion, and the growing number of states with legal cannabis markets.

When the previous administration decided to hold hearings on rescheduling (rather than immediately issue the final rule), NCIA was the only pro-cannabis trade association chosen to be a Designated Participant (DP) in the process. While those efforts have been stalled due to an interlocutory appeal, we still maintain that small-and-medium cannabis businesses must have a seat at the table in this process, and we look forward to working with DEA Administrator Cole and others in President Trump’s administration to ensure that.

What comes next for NCIA?  

Any move to reschedule marijuana must come with administrative guidance to ensure that state programs and businesses are not negatively impacted. In addition to lobbying for those provisions, NCIA continues to press upon Congress to fully deschedule marijuana and regulate cannabis products responsibly.