Overview

• President Trump told reporters he is weighing a federal move to reclassify cannabis from Schedule I to Schedule III and expects to decide within weeks.
• Rep. Greg Steube filed the Marijuana 1-to-3 Act in the House to compel the attorney general to transfer marijuana to Schedule III within 60 days of enactment.
• The DEA’s rulemaking process, launched under Biden after FDA and HHS recommended rescheduling in 2023, remains on hold following an interlocutory appeal that canceled a scheduled evidentiary hearing.
• Industry advocates say Schedule III status would lift Section 280E tax restrictions and expand banking access for licensed cannabis firms, spurring investment and research.
• Critics warn that placing cannabis in Schedule III would subject many products to FDA approval requirements, increase compliance costs for small operators and imply a safety endorsement.