Trump Reclassifies Medical Marijuana as Schedule III Drug in Historic Federal Policy Shift

President Trump's administration reclassified state-licensed medical marijuana from Schedule I to Schedule III under the Controlled Substances Act through an order signed by Todd Blanche, representing the most significant federal cannabis policy shift in over 50 years. The reclassification affects medical marijuana programs in 40 states and grants licensed operators major tax breaks by allowing business expense deductions for the first time, while establishing an expedited DEA registration system. The order does not legalize marijuana federally and maintains Schedule I classification for cannabis outside state medical programs, while the Trump administration has scheduled a hearing for late June to consider broader marijuana reclassification. The policy change follows a Biden administration proposal that drew nearly 43,000 public comments, though more than 20 Republican senators had urged Trump to maintain current classification standards.

Reclassification of Medical Marijuana to Schedule III

• ▪The Trump administration set a hearing to begin in late June for reclassifying marijuana more broadly
• ▪The order signed by Todd Blanche does not legalize marijuana for medical or recreational use under federal law
• ▪Todd Blanche's order relied on a provision of federal law allowing the attorney general to determine appropriate classification for drugs the U.S. must regulate pursuant to an international treaty
• ▪Todd Blanche signed an order on Thursday reclassifying state-licensed medical marijuana as a Schedule III drug

Practical Impacts on Medical Marijuana Industry and Research

• ▪In Washington state, 302 of 460 licensed marijuana stores have endorsements allowing them to sell tax-free cannabis products to registered patients
• ▪The order sets up an expedited system for state-licensed medical marijuana producers and distributors to register with the U.S. Drug Enforcement Administration
• ▪California became the first state to adopt medical marijuana in 1996
• ▪Todd Blanche's action largely legitimizes medical marijuana programs in the 40 states that have adopted them

Political Context and Opposition to the Policy Change

• ▪Donald Trump ordered the marijuana reclassification process to move along as quickly as legally possible
• ▪The DEA was still in the review process when Donald Trump succeeded Joe Biden
• ▪The Justice Department under President Joe Biden had proposed to reclassify marijuana, eliciting nearly 43,000 formal public comments
• ▪Donald Trump has made his crusade against fentanyl a feature of his second term
• ▪Kevin Sabet is the chief executive of Smart Approaches to Marijuana
• ▪Donald Trump signed an executive order declaring fentanyl a weapon of mass destruction
• ▪Donald Trump told his administration in December to work as quickly as possible to reclassify marijuana
• ▪The U.S. government's marijuana prohibition dates to the Marihuana Tax Act of 1937
• ▪Michael Bronstein is the president of the American Trade Association for Cannabis and Hemp
• ▪More than 20 Republican senators signed a letter last year urging Donald Trump to keep the current marijuana classification standards
• ▪Michael Bronstein called the marijuana reclassification the most significant federal advancement in cannabis policy in over 50 years

Perspective of Anti-marijuana advocacy groups

• ▪More than 20 Republican senators urged Donald Trump to maintain current marijuana classification standards rather than reclassify the drug