President Donald Trump has ordered the reclassification of marijuana from Schedule I to Schedule III under the Controlled Substances Act, a significant shift in federal policy. This change acknowledges the potential medical benefits of marijuana and aims to facilitate research into its therapeutic uses. The move follows decades of advocacy and debate surrounding the drug’s classification and safety.
Nearly four decades ago, Francis Young, the chief administrative law judge at the Drug Enforcement Administration (DEA), argued that marijuana did not belong in Schedule I, which includes highly restricted substances like heroin and LSD. Although his conclusion was overturned by then-DEA Administrator John Lawn, Young was vindicated when Trump issued his executive order last week.
The reclassification allows marijuana to join Schedule III, which encompasses prescription medications such as ketamine and Tylenol with codeine. While this does not equate to legalization, it implies a shift in the government’s long-standing view of marijuana, which has been categorized as a drug with a high potential for abuse and no accepted medical use since its classification in 1970.
The U.S. Department of Health and Human Services (HHS) conducted a review ordered by President Joe Biden in 2023, which found “credible scientific support” for marijuana’s medical applications, including its efficacy in treating pain, nausea, and loss of appetite related to medical conditions. HHS concluded that the dangers associated with marijuana do not warrant its retention in Schedule I, suggesting a more balanced approach to its regulation.
In May 2024, Attorney General Merrick Garland endorsed HHS’s recommendations, paving the way for the proposed rule to be finalized. Trump framed this change as a positive development for “American patients suffering from extreme pain, incurable diseases, aggressive cancers, seizure disorders, neurological problems and more.”
Rescheduling marijuana will ease the path for medical research by removing stringent regulatory hurdles associated with Schedule I drugs. However, it will not automatically legalize medical use, which still requires the Food and Drug Administration (FDA) to approve specific cannabis-based products. Additionally, state-licensed marijuana businesses will not gain legal status under federal law, though they may face less severe penalties.
Despite these limitations, the reclassification offers potential benefits for state-legal marijuana businesses. They will now be able to claim standard deductions on their income tax returns, addressing a financial burden that has led to high effective tax rates. Although Trump did not highlight this aspect, it could significantly impact the cannabis industry, which has been advocating for broader reforms to improve access to financial services.
Currently, 40 states have legalized marijuana for medical purposes, with 24 states also permitting recreational use. This widespread acceptance stands in contrast to federal prohibition, a stance that is increasingly unpopular among the American public. Trump emphasized that his order does not legalize marijuana, but the implications of his directive could lead to further discussions about its status and use in the future.
As the landscape of marijuana regulation continues to evolve, the reclassification marks a pivotal moment in the ongoing debate over the drug’s role in medicine and society.
