Overview
- President Trump signed an executive order directing Attorney General Pam Bondi and the DEA to complete rulemaking to move marijuana from Schedule I to Schedule III as quickly as possible.
- The directive does not change federal law yet, since the DEA and DOJ must finalize the rule through the administrative process following prior public comments and a paused hearing.
- Rescheduling would formally recognize medical use and impose Schedule III controls, including DEA registrations, inventories, recordkeeping, and prescription-only dispensing under FDA and CSA requirements.
- Cannabis businesses anticipate major tax relief through exemption from IRS Section 280E and improved access to banking, though federal prohibition and criminal liability under the CSA would continue until rules change.
- The order also calls for updated federal work on hemp-derived CBD definitions and research guidance, while local police departments say day-to-day enforcement will continue under existing state and local laws.