WASHINGTON — Acting Attorney General Todd Blanche on Tuesday signed an order that moves state‑licensed medical marijuana from Schedule I to Schedule III, a major federal reclassification that eases decades‑old restrictions on research, taxation, and regulation. The decision does not legalize marijuana nationwide, but it dramatically alters how the federal government treats cannabis used in state‑regulated medical programs.
Under the new order, medical marijuana will now be grouped with substances such as ketamine and Tylenol with codeine, rather than Schedule I drugs like heroin and ecstasy. Blanche said the change will “enable more targeted, rigorous research into marijuana’s safety and efficacy” and expand patient access to treatments.
What the Reclassification Does — and Doesn’t — Change
What changes
- Medical marijuana is now Schedule III, allowing researchers to study it more easily.
- Licensed medical marijuana businesses gain major tax relief, as Schedule III substances are not subject to the same IRS restrictions that previously prevented cannabis companies from deducting business expenses.
- Doctors and researchers can access state‑licensed cannabis products without facing federal penalties.
What does not change
- Marijuana remains illegal under federal law for recreational use.
- The order does not remove cannabis from the Controlled Substances Act.
- States that already allow medical or recreational marijuana will continue operating under their own laws.
How the Decision Came Together
The reclassification follows months of pressure from the White House, the cannabis industry, and researchers frustrated by the slow pace of federal action. President Trump had ordered the Justice Department in December to expedite the process, but internal delays prompted him to publicly complain that officials were “slow‑walking” the effort.
Blanche’s order effectively bypassed the slower administrative review process by invoking a federal provision allowing the attorney general to reclassify drugs tied to international treaty obligations.
The Drug Enforcement Administration will now hold administrative hearings before a judge to finalize the rule change, a step required before the reclassification becomes fully binding.
A Historic Shift in U.S. Drug Policy
Advocates say the move represents the most consequential federal cannabis reform in more than 50 years. Nearly 40 states operate medical marijuana programs, and the new classification aligns federal policy more closely with state laws.
Researchers have long argued that Schedule I status made it nearly impossible to conduct large‑scale studies on cannabis’s medical benefits or risks. The shift to Schedule III opens the door to expanded clinical trials and pharmaceutical development.
What Comes Next
The administration plans to launch a broader review in June to consider whether all marijuana, not just state‑licensed medical products, should be moved to Schedule III. Legal challenges are expected from opponents who argue the downgrade could encourage recreational use.
For now, Blanche’s order marks a historic recalibration of federal marijuana policy — one that reshapes the legal landscape for patients, researchers, and the rapidly growing cannabis industry.
