Overview
- The executive order directs Attorney General Pam Bondi and the DEA to fast‑track formal rulemaking, with public comment, to shift marijuana from Schedule I to Schedule III while its current classification remains in place.
- If finalized, the change would end IRS Section 280E penalties, allowing state‑legal cannabis businesses to take ordinary deductions and significantly lowering effective tax burdens.
- Researchers expect easier licensing, material access, and clinical trial approvals once Schedule I barriers are removed, enabling more rigorous studies of cannabis and cannabinoids.
- The order also calls for clearer federal guidance on hemp‑derived cannabinoid products and instructs CMS to design a Medicare pilot for certain CBD products targeted for 2026.
- Political and legal pushback is underway, including a letter from 24 Senate Republicans opposing rescheduling and anticipated lawsuits that could slow or alter the timeline.