President Trump Signs Cannabis Rescheduling Order
Yesterday, the Trump Administration officially directed the Attorney General to reclassify cannabis as a Schedule III substance. This marks a milestone for the industry, acknowledging at last what medical professionals, patients and millions of Americans have understood for decades: cannabis has accepted medical use and does not belong alongside the most dangerous controlled substances.
The rescheduling allows state-licensed marijuana businesses to take federal tax deductions previously denied under IRS code 280E. It also removes certain research barriers and federally recognizes that marijuana has accepted medical use and lower abuse potential than Schedule I drugs.
The change is expected to influence states to modernize cannabis policies, as lawmakers in some states have cited restrictive federal classification as a barrier to reform.
“Federal rescheduling marks a long-overdue shift toward treating cannabis as the medical, economic and community issue it truly is — not a criminal one,” says Jasmine Johnson, CEO of GŪD Essence. “This change opens the door for real scientific research, fairer taxation and more sustainable operations for licensed operators who have been building responsibly despite outdated federal barriers.”
Cannabis Rescheduling Opens Doors for Many
While cannabis rescheduling alone is not the finish line, it’s a critical stepping stone that propels the industry and policymakers toward ending prohibition and establishing a comprehensive federal framework.
“The industry’s focus pivots to the next phase of reform in Congress, prioritizing descheduling and federal regulation, ensuring access to banking and capital markets, and importantly ensuring criminal justice reform,” says Shawn Hauser, partner at Vicente LLP. “Leveraging both the rescheduling action and evolving federal scrutiny on hemp-derived THC products, the industry will press Congress to deliver a single, science-based regulatory model for all THC products. This is necessary to end the fragmented system, ensure public safety and protect legal markets.”
“For decades, federal cannabis policy has been untethered from medical evidence and economic common sense,” adds Paula Savchenko, Esq., founding partner of Cannacore Group and PS Law Group. “Schedule III status aligns federal law more closely with how cannabis is actually used in medical practice, research and regulated markets across the country. This shift opens the door to expanded clinical research, clearer regulatory pathways and a more rational national framework.”
Rescheduling cannabis to Schedule III is not just a cannabis policy shift, it is a pivotal moment for the industry.
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