Trump Administration Reclassifies Medical Marijuana: Historic Shift to Schedule III

Federal Government Reclassifies Medical Marijuana Under Trump Administration

WASHINGTON — Acting Attorney General Todd Blanche signed an order on Thursday reclassifying state-licensed medical marijuana as a less-dangerous drug, marking a historic policy shift long advocated by cannabis reform supporters.

The order does not legalize marijuana for medical or recreational use under federal law. However, it significantly alters federal regulation by moving licensed medical marijuana from Schedule I—a category reserved for drugs with no accepted medical use and a high potential for abuse—to Schedule III, which has looser restrictions.

Key Changes Under the New Classification

• Tax Relief for Licensed Operators: Medical marijuana businesses will now qualify for federal tax deductions under Section 280E, which previously barred such deductions for Schedule I drugs.
• Easier Cannabis Research: The reclassification removes barriers to studying marijuana’s medical benefits, potentially accelerating research into its therapeutic uses.
• No Recreational Legalization: The order does not affect the federal status of recreational marijuana, which remains classified as a Schedule I substance.

Advocates Praise the Shift

Cannabis reform advocates have long argued that marijuana should not be grouped with drugs like heroin.

"This is a historic step toward ending the federal prohibition on medical marijuana," said Paul Armentano, deputy director of NORML (National Organization for the Reform of Marijuana Laws). "For decades, cannabis has been unfairly classified as a Schedule I substance despite overwhelming evidence of its medical efficacy."

The reclassification aligns with growing public and state-level support for medical marijuana. Currently, 38 states and Washington, D.C. have legalized medical cannabis, while 24 states permit recreational use.

What’s Next for Federal Marijuana Policy?

While this move represents a major shift, advocates continue pushing for further reforms, including:

• Full federal legalization of medical and recreational marijuana.
• Rescheduling or descheduling marijuana entirely to remove it from the Controlled Substances Act.
• Expanding banking access for cannabis businesses, which remain largely excluded from federal financial services.

The Biden administration has also signaled support for marijuana reform, with President Joe Biden pardoning federal marijuana possession offenses in 2022 and directing a review of federal cannabis scheduling.

For now, the reclassification marks a significant step toward modernizing federal drug policy, though challenges remain for the cannabis industry and advocates pushing for broader legalization.