Full Breakdown
Trump Administration Reclassifies State-Licensed Medical Marijuana to Schedule III
4/25/2026, 8:22:10 PM
Federal Rescheduling of Medical Marijuana
Acting Attorney General Todd Blanche signed an order on April 23 moving FDA-approved and state-licensed medical cannabis from Schedule I (the most restrictive class, alongside heroin) to Schedule III (the same tier as Tylenol with codeine, ketamine and anabolic steroids). The change applies only to products covered by a state medical license or an FDA approval and does not legalize marijuana federally.
Legal and Historical Background
Marijuana has been a Schedule I substance since the 1970 Controlled Substances Act. The Biden administration began a formal review in 2022, and the Department of Health and Human Services recommended a Schedule III move in 2023. President Donald Trump issued a December 2025 executive order directing the Attorney General to expedite the reclassification, citing international treaty obligations and the need for “common-sense” policy.
Key Actors and Groups
- Todd Blanche, Acting Attorney General, author of the order.
- President Donald Trump, who signed the December executive order.
- Smart Approaches to Marijuana (SAM), anti-legalization group led by Kevin Sabet.
- Industry representatives such as Sam Brill (Ascend Wellness Holdings) and Gabe Gilman (Vermont Cannabis Control Board).
Data & Statistics
- Medical programs operate in 40 states plus the District of Columbia; 24 states allow adult recreational use.
- Prior to reclassification, cannabis businesses faced an effective federal tax rate of roughly 60 % under Section 280E.
- Vermont’s 2022 medical sales exceeded $150 million.
- The U.S. market for THC-infused products is valued at billions of dollars.
Why It Matters: Research, Tax, Industry
The Schedule III status removes the requirement for a Schedule I license, easing laboratory regulations for researchers and allowing federal tax deductions for ordinary business expenses. Industry analysts expect improved cash flow, greater access to banking, and potential price reductions for consumers.
Official Statements & Responses
The Justice Department framed the move as “delivering on President Trump’s promise to expand Americans’ access to medical treatment options” and emphasized that it will “enable more targeted, rigorous research… empowering doctors to make better-informed healthcare decisions.” The administration also noted that the order “maintains strict federal controls” on non-medical use.
Criticism & Opposition
SAM’s Kevin Sabet argued the drug remains “more dangerous than previously thought” and warned that the change “creates another tobacco industry.” Twenty-two Republican senators and several GOP House members sent a letter urging the president to retain the Schedule I classification, citing public-health concerns.
On-the-Ground Perspectives
- Joseph Verga, owner of Green Leaf Central (Vermont), called the tax shift “a huge win.”
- Nico Richardson, CEO of Texas Original, said the order “clarifies a legal gray area for Texans.”
- Mo Asnani, D2 Dispensary (Arizona), described April 23 as “a historic day” for patients.
Conflicting Reports & Gaps
Sources differ on whether tax deductions apply retroactively; the DOJ suggested retroactive relief but did not specify dates. Guidance on patient rights—such as travel, housing and employment protections—remains absent, prompting uncertainty among medical users. Additionally, the distinction between medical and recreational sales for tax purposes is unclear for dispensaries that serve both markets.
Verbatim Quotes
- “These actions will enable more targeted, rigorous research into marijuana’s safety and efficacy, expanding patients’ access to treatments and empowering doctors to make better-informed healthcare decisions,” — Todd Blanche, Acting Attorney General
- “While rescheduling is not legalization, and it does not resolve all structural challenges in the industry, it is an important step toward a more transparent and accountable market that supports compliant operators.” — Sam Brill, CEO, Ascend Wellness Holdings
- “Today's marijuana is more dangerous than previously thought, not less dangerous. And until data shows otherwise, it meets current criteria for Schedule I,” — Kevin Sabet, President, Smart Approaches to Marijuana
- “a great step in the direction of legalization” — Ryan Dominguez, Executive Director, Massachusetts Cannabis Coalition
What’s Next
The Drug Enforcement Administration has scheduled an administrative hearing for June 29 to consider a broader rescheduling of all marijuana to Schedule III. Industry groups anticipate further tax guidance and potential banking reforms, while opponents plan legal challenges to the order.
