WASHINGTON, D.C. — In a decision that highlights the persistent and widening chasm between state-level legalization and federal drug policy, the U.S. Department of Agriculture (USDA) has officially doubled down on its rule to block companies that provide services to the marijuana industry from participating in a key federal loan guarantee program.
The announcement, finalized on January 1, 2026, serves as a stark reminder to rural businesses that even indirect involvement with the cannabis sector—such as leasing warehouse space or providing utility power—can lead to immediate disqualification from federal financial support.
The Rule: OneRD and the “Illegal Income” Barrier
The controversy centers on the OneRD Guaranteed Loan Initiative, a unified platform that streamlines four flagship USDA loan guarantee programs designed to boost rural economies:
- Community Facilities Guaranteed Loan Program
- Water and Waste Disposal Loan Guarantees
- Business and Industry (B&I) Guaranteed Loans
- Rural Energy for America Program (REAP)
Under the finalized rule, the USDA’s Rural Utilities Service (RUS) and related agencies have made it clear that any entity deriving income from “illegal drugs” or “drug paraphernalia” is ineligible. Specifically, the agency noted that if a borrower intends to enter into a Power Purchase Agreement (PPA) or a lease agreement with a marijuana dispensary, they are considered to be receiving income from a violation of the Controlled Substances Act (CSA).
Key USDA Statements:
“The Agency is aware that many states have legalized the production and sale of marijuana; however, marijuana is currently listed as a schedule I substance under the Controlled Substances Act… No change to the rulemaking is necessary.”
The USDA confirmed the rule without change, effectively ignoring public comments from stakeholders who argued that the policy unfairly penalizes auxiliary businesses—like landlords, electricians, and utility providers—who are operating legally under their state’s laws.
The Geopolitical Twist: Trump’s Executive Order and Schedule III
The USDA’s rigid stance comes at a confusing time for federal cannabis policy. Just weeks ago, in December 2025, President Donald Trump signed a high-profile executive order directing the Attorney General to expedite the rescheduling of marijuana from Schedule I to Schedule III.
The Conflict of Scheduling:
- Schedule I: Reserved for drugs with “no accepted medical use” and a high potential for abuse (currently where marijuana sits).
- Schedule III: Reserved for substances with “moderate to low potential for physical and psychological dependence” (where the Trump administration aims to move it).
While moving to Schedule III would provide significant tax relief (by removing the 280E tax penalty) and facilitate medical research, it does not federally legalize marijuana. Consequently, the USDA argues that as long as the substance remains a “controlled substance” subject to federal prosecution, their loan programs must remain closed to anyone profiting from it.
The “Hemp Crackdown” of 2026
While the USDA continues to block marijuana-adjacent firms, the hemp industry—once the “golden child” of the 2018 Farm Bill—is facing its own existential crisis.
The 2026 Extensions Act, signed into law recently, has reimposed strict federal controls on consumable hemp products. The law effectively bans products containing more than 0.4 milligrams of total THC per container, a move that many industry leaders say will wipe out the market for delta-8 THC and even some full-spectrum CBD products.
| Category | Status (as of Jan 2026) | Federal Loan Eligibility |
| Marijuana (Medical/Rec) | State-Legal / Federal Schedule I | Prohibited |
| Marijuana Service Providers | Auxiliary (Landlords/Utilities) | Prohibited |
| Industrial Hemp (Fiber) | Federally Legal | Eligible |
| Consumable Hemp (CBD) | Heavily Restricted (<0.4mg THC) | Varies/Restricted |
FAQ: Celebrity-Level Asset Protection & Insurance Tips
For entrepreneurs in the cannabis and hemp space, navigating these federal “blockades” requires more than just a good lawyer; it requires a specialized insurance strategy to protect business assets when federal loans are unavailable.
Q: Why do federal agencies like the USDA and SBA block cannabis loans?
Federal agencies are bound by the Controlled Substances Act. Since they are using taxpayer dollars, they cannot legally “guarantee” a loan for an activity that is considered a federal crime, even if that activity is licensed by a state.