President Trump’s administration continues to signal support for a major change in federal cannabis policy: moving marijuana from Schedule I to Schedule III under the Controlled Substances Act. If finalized, this shift would formally acknowledge cannabis’ medical use, and end some of the most punitive tax burdens on the industry, plus give researchers a better path to study its benefits for commercial consumers and medical patients alike.
What Rescheduling Achieves
Classifying cannabis as a Schedule III drug would recognize what most Americans already believe—that marijuana has real medical value and doesn’t belong in the same category as heroin. It would end the IRS 280E rule that blocks cannabis businesses from deducting ordinary expenses. That’s a big deal. Operators could reinvest in jobs, facilities, and better customer service.
It would also make it easier for banks to work with cannabis businesses. The risk of federal penalties is a significant reason why much of the industry still operates on a cash basis that puts their staff in harm’s way. Rescheduling doesn’t completely fix the issue, but it improves the climate and gives Congress more room to do its part.
And crucially, it would encourage essentially first-of-its-kind clinical research. Under current rules, studying cannabis is nearly as difficult as researching LSD. It’s an absurd status quo that Democrat and Republican administrations have come to agree upon.
Schedule III status wouldn’t eliminate every barrier, but it would remove many of them.
What It Doesn’t Do
Rescheduling doesn’t legalize cannabis. It doesn’t allow for interstate commerce, remove criminal penalties, or free anyone still imprisoned for marijuana-related offenses. It won’t automatically allow cannabis products to be sold in pharmacies.
And it won’t stop the FDA from cracking down on dispensaries over unapproved claims.
In short, Schedule III is better than the status quo, but it still treats marijuana as something that must be tightly controlled and contained by federal regulators.
What Comes Next
To fully modernize cannabis policy and reflect what voters already support, a few things need to happen:
- Deschedule cannabis entirely. Treat it like alcohol or tobacco—regulated for quality and safety, but legal to sell and consume.
- Allow interstate commerce. Cannabis businesses should be able to grow, ship, and sell across state lines, just like any other agricultural or wellness product.
- Clear criminal records. Federal reforms must include expungement for non-violent marijuana offenses and end ongoing prosecutions where laws have already changed.
- Bank Access. Allow legal cannabis businesses to bank, take out insurance, and otherwise participate as law-abiding entities in a regulated and legal framework.
Trump’s interest in rescheduling is encouraging. But unless Congress moves forward with descheduling, federal law will continue to treat millions of Americans as second-class citizens for engaging in legal activity under state law.
A Moment to Build On
This is a rare opportunity to clarify the market for consumers. The overwhelming majority of Americans support marijuana legalization in some form, including a growing share of conservatives. Rescheduling is a test of whether DC is ready to catch up with the country.
We don’t need to settle for halfway measures or bureaucratic fixes. Fights between HHS, DOJ, and the DEA need to be put to bed, and the President of the United States is in a position to do this.
Freedom, fairness, and common sense all point in the same direction: legal, regulated cannabis markets that serve consumers, respect state choices, and stop treating common cannabis users like criminals.
For more on this, read Use Your Power, Mr. President: Reschedule Marijuana and Trump Needs to Deliver Clarity on Cannabis
