Federal Government Reschedules Marijuana to Schedule III: Key Changes and Implications

Acting Attorney General Todd Blanche signed an order this morning rescheduling FDA-approved and state-licensed marijuana from Schedule I—the most restrictive federal classification—to the less restrictive Schedule III.

Under the leadership of President Donald Trump, the Department of Justice is fulfilling a promise to improve American healthcare. The order includes:

• Immediate rescheduling of FDA-approved marijuana and state-licensed marijuana from Schedule I to Schedule III
• New directives to facilitate research and access for federally funded studies
• Allowance for state-licensed marijuana businesses to claim federal tax breaks

"This Department of Justice is delivering on his promise to improve American healthcare." — Acting AG Todd Blanche

The order does not legalize marijuana but removes barriers for research and financial relief for state-licensed businesses.

Blanche’s order follows reports that the White House instructed federal agencies to expedite marijuana rescheduling. In December, President Trump signed an order directing agencies to move marijuana from Schedule I to Schedule III "in the most expeditious manner." Despite the urgency, no action was taken by April 20 (420), reportedly frustrating the president.

Jacob Sullum noted in a December column that while rescheduling acknowledges marijuana’s potential benefits, it falls short of resolving conflicts between federal prohibition and state legalization laws.

Limited but Symbolic Progress

The rescheduling acknowledges that the federal government has "exaggerated marijuana's dangers and ignored its potential benefits for half a century," Sullum wrote. While progress is limited, it represents a shift in federal policy.

Trump Administration Weighs $500 Million Bailout for Spirit Airlines

In a separate development, the Trump administration is reportedly finalizing a $500 million taxpayer-funded bailout for struggling low-cost carrier Spirit Airlines.

Politico reported that the administration and airlines are in "advanced discussions" for a deal that could grant the U.S. government up to 90% ownership of Spirit Airlines shares.

A spokesperson for the administration stated that Spirit would be on stronger financial footing had the Biden administration not blocked its merger with JetBlue. However, critics argue that the merger denial does not justify a taxpayer-funded bailout.

Critics Warn of Market Distortion

Gary Leff, writing for View From the Wing, argues that a bailout would be illegal and shift Spirit’s financial burdens to taxpayers. He warns that a bailout would "make Spirit Airlines no longer a low fare airline. You're paying more for Spirit whether you fly them or not."

Marc Scribner, a transportation policy expert at the Reason Foundation, echoed concerns on X, stating that turning low-cost carriers into government subsidiaries would disrupt the competitive air travel market. Scribner emphasized that the low-cost/ultra-low-cost (LCC/ULCC) model thrives on rapid market entry and exit, which drives down prices and benefits consumers.