Administration of Trump considers potential reclassification of marijuana
In a surprising move, President Donald Trump has announced his consideration of reclassifying marijuana as a less dangerous drug. The potential reclassification would see marijuana relegated to Schedule 3 of the Controlled Substances Act, a category that includes substances with a moderate to low potential for physical and psychological dependence.
The Wall Street Journal first reported about Trump weighing rescheduling marijuana, and the news was further confirmed during a news conference in the White House briefing room on Monday. The President also made it clear that he has heard good things about marijuana's potential for medical use, specifically for pain relief.
If rescheduled, marijuana would join the ranks of other Schedule 3 drugs such as ketamine, anabolic steroids, and testosterone. This shift would have significant implications, especially for businesses, research, and federal regulations.
One of the key consequences would be tax benefits. Businesses dealing with marijuana would potentially be able to deduct expenses on federal tax returns, a barrier currently imposed by Internal Revenue Code Section 280E. Rescheduling to Schedule III would remove this barrier, potentially increasing profits and encouraging business growth.
Another benefit could be improved banking access. While not fully solving all issues, rescheduling could make banks more willing to work with Schedule III drug businesses compared to Schedule I.
Rescheduling would also reduce regulatory burdens for researchers, potentially expanding scientific studies and drug development related to marijuana. However, it's important to note that state-legal cannabis products would still not be federally legal.
The market might expand due to reduced legal and financial barriers, but some predict it could also lead to market concentration and less competition. Legal status would remain a controlled substance under the Controlled Substances Act and subject to federal regulation but with recognized accepted medical uses and lower abuse potential than Schedule I drugs.
Rescheduling does not legalize marijuana federally or make state-legal recreational programs lawful under federal law. Products crossing state lines might remain subject to federal FDA regulations, potentially complicating interstate marijuana commerce and marketing, especially for small state-licensed operators.
The reclassification decision is expected within the coming weeks, and this shift has been actively discussed in Congress, with bills like the Marijuana 1-to-3 Act of 2025 introduced to formalize rescheduling.
In addition to the marijuana reclassification, Trump also announced the deployment of the National Guard to deal with Washington's crime and homelessness during the same news conference. Trump also noted that he has heard negative things about marijuana "just about everything else."
This potential reclassification of marijuana would represent a recognition of marijuana’s accepted medical use but would not fully legalize recreational cannabis at the federal level.
- The potential reclassification of marijuana as a less dangerous drug, if implemented, could lead to tax benefits for businesses dealing with marijuana, as expenses could be deducted on federal tax returns, a barrier currently imposed by Internal Revenue Code Section 280E.
- Rescheduling marijuana to Schedule 3 could potentially improve banking access for businesses, making banks more willing to work with Schedule 3 drug businesses compared to Schedule 1.
- Rescheduling marijuana could reduce regulatory burdens for researchers, potentially expanding scientific studies and drug development related to marijuana.
- The reclassification decision could have significant implications for politics and policy-and-legislation, with the Marijuana 1-to-3 Act of 2025 being one of the bills introduced to formalize rescheduling in Congress.
