Overview
- President Trump signed an executive order directing the attorney general to accelerate DOJ/DEA rulemaking to move marijuana from Schedule I to Schedule III, without immediate rescheduling effect.
- HHS previously recommended Schedule III and DOJ issued a 2024 proposed rule that drew about 43,000 comments, with an administrative hearing expected before any final DEA action.
- Reclassification to Schedule III is intended to lower research barriers and would lift IRS Section 280E limits, enabling state-legal cannabis businesses to take ordinary federal tax deductions.
- CMS announced a pilot to provide certain Medicare beneficiaries access to doctor-recommended CBD, and the White House signaled work with Congress to refine CBD definitions after recent hemp restrictions.
- Reform advocates welcomed research and tax implications, while opponents including Smart Approaches to Marijuana threatened lawsuits and public-health experts warned against interpreting the move as approval of cannabis as medicine; banking access is expected to improve gradually, not immediately.