Acting Attorney General Todd Blanche signed an order on Thursday that officially moves state-licensed medical marijuana out of the government’s most restrictive drug category. In a major policy pivot, the Department of Justice reclassified the substance from Schedule I—a tier reserved for dangerous drugs like heroin—to the less-regulated Schedule III.
While the order does not legalize marijuana at the federal level for recreational or general medical use, it fundamentally changes how the industry operates.
By moving to Schedule III, the government recognizes cannabis as having a moderate to low potential for physical and psychological dependence. The move also triggers a massive financial windfall for state-licensed operators, who can now deduct business expenses on their federal taxes for the first time.
The shift follows a direct push from President Donald Trump, who told his administration in December to fast-track the reclassification. During the signing of an unrelated order on psychedelics this past Saturday, the President expressed visible frustration with the pace of the process.
READ: Virginia Court Taps The Brakes: Redistricting Overhaul Vote Struck Down
“This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information,” Blanche said in a statement, noting the department was “delivering on President Trump’s promise” to expand medical options.
The order effectively legitimizes medical programs in the 40 states that have already legalized them. It establishes an expedited registration system with the Drug Enforcement Administration (DEA) for state-licensed producers and ensures that researchers will no longer face federal penalties for using state-licensed products in their studies.
This ends a federal stance dating back to the Marijuana Tax Act of 1937, which had remained largely unchanged even as the vast majority of the country moved toward legalization. Today, only Idaho and Kansas maintain total bans on the plant. Blanche noted that the “comprehensive licensing frameworks” developed by states since California first legalized medical use in 1996 have proven capable of protecting public health.
However, the change is specific. Marijuana and related products not distributed through a formal state medical program will remain in Schedule I. Furthermore, the administration plans to launch new administrative hearings in June to debate a broader rescheduling of all marijuana.
READ: End Of The Road For Florida’s 2026 Marijuana Ballot Push As Supreme Court Passes On Appeal
The decision has not been without pushback. Last year, more than 20 Republican senators—including several of the President’s close allies—urged him to keep the current restrictions. Some critics also argue that modern cannabis products have become increasingly potent and require more oversight, not less.
The legal mechanism used by Blanche sidestepped a lengthy review process initiated by the previous administration. By citing a federal provision that allows the Attorney General to classify drugs governed by international treaties, the DOJ was able to bypass a backlog of nearly 43,000 public comments.
Questions remain regarding how this will impact “dual-use” states. In Washington, for example, hundreds of shops sell both recreational and medical products. It is currently unclear how the federal government will distinguish between the two in a single retail environment.
Even as the administration loosens the reins on cannabis, it continues a hardline approach to other substances. President Trump recently signed an executive order labeling fentanyl a “weapon of mass destruction” and has authorized military action against international smuggling operations.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox
