On April 23, Donald Trump’s acting attorney general, Todd Blanche, signed an order reclassifying state-licensed medical cannabis as a less dangerous drug, resulting in a major policy shift. While this move does not legalize cannabis federally in the U.S., it changes it from Schedule I to Schedule III, easing regulations, enabling tax benefits for operators, and facilitating research.
Moreover, the Trump administration announced it is accelerating broader cannabis reclassification efforts, with hearings set to begin in late June. The order effectively legitimizes state medical cannabis programs, facilitates DEA registration for licensed operators, protects researchers using state-approved products, and also allows companies to deduct business expenses federally for the first time.
Cannabis-derived medicines approved by the FDA are currently classified under Schedule III, aligning with the new designation for state-licensed medical cannabis. Despite longstanding federal prohibition of cannabis dating back to 1937, most U.S. states now permit cannabis use in some form. “This [reclassification] recognizes what Americans have long known, cannabis is medicine,” said the president of the American Trade Association for Cannabis and Hemp, Michael Bronstein, in a released statement.
However, critics have argued that the move acts as a tax break for the cannabis industry and sends mixed signals about its risks, despite acknowledging the need for research. While only state-licensed medical cannabis shifts to Schedule III, indicating moderate to low dependence risk, non-approved cannabis products remain in Schedule I, and concerns have been raised that increasingly potent cannabis warrants stricter study rather than relaxed classification.
Under Joe Biden, the Justice Department had already proposed cannabis reclassification, drawing extensive public input, but the review was still ongoing when Donald Trump took office and pushed to accelerate the process. Todd Blanche ultimately bypassed the standard review by invoking legal authority tied to international treaty obligations; however, the impact on states with mixed medical and recreational cannabis markets remains uncertain. The move faces political opposition from some Republicans. Specifically, over 20 Republican senators have signed a letter urging Donald Trump to keep the current standards.
