Trump Administration Reschedules FDA-Approved And State-Licensed Medical Marijuana To Schedule III

Since the 1970 Controlled Substances Act, marijuana has been classified federally as Schedule I, which has blocked broad medical use, research, and normal banking for the industry. States moved in different directions, creating a long conflict between federal law and state medical systems. In December President Trump signed an executive order directing the attorney general to begin a formal rulemaking process to reconsider marijuana's federal classification.

This week the Justice Department issued a formal order signed by Acting Attorney General Todd Blanche that reschedules specified marijuana products to Schedule III. The change applies only to FDA-approved marijuana products and products regulated by a state medical marijuana license. It does not legalize marijuana under federal law but creates an expedited system for state-licensed producers and distributors to register with the Drug Enforcement Administration. The order allows state-licensed medical marijuana companies to deduct ordinary business expenses on federal taxes for the first time. It also makes clear researchers will not be penalized for obtaining state-licensed marijuana or marijuana-derived products for scientific study. Moving medical marijuana to Schedule III removes the need for researchers to obtain a Schedule I license and eases laboratory and regulatory burdens. The administration has scheduled a DEA hearing in late June to begin considering broader rescheduling beyond strictly medical, state-licensed use.

Early coverage framed the move primarily as expanding access and providing regulatory clarity for state-licensed medical marijuana. Later reporting emphasized internal administration debate, political stakes, and sustained opposition from some advocates who say the products still meet Schedule I criteria. That narrative shift reframed the action from a technical fix into a politically charged policy change with implications for banking and law enforcement priorities.

The order was signed Thursday by Acting Attorney General Todd Blanche, who said the department is "delivering on President Trump's promise." The change affects only FDA-approved products and state-licensed medical programs and does not erase federal criminal prohibitions for other marijuana use. The move could ease banking and tax burdens for state-licensed businesses, industry leaders say, while opponents warn it falls short of broader legalization. Policy context: 24 states and Washington, D.C. have legalized adult recreational use, 40 states have medical programs, eight have limited low-THC laws, and only Idaho and Kansas prohibit marijuana entirely.