Trump Administration Formally Reschedules Marijuana To Lower Federal Drug Classification
The Justice Department formally reclassified state-licensed medical marijuana from Schedule I to Schedule III on April 23, 2026, in an order signed by Acting Attorney General Todd Blanche (PBS News).
The order applies to FDA-approved marijuana products and to products regulated under state medical marijuana licenses, but it does not legalize marijuana under federal law (CBS News). It creates an expedited pathway for state-licensed producers to register with the Drug Enforcement Administration and allows those companies to deduct ordinary business expenses on federal taxes (PBS News). Blanche said the department is "delivering on President Trump's promise" and framed the change as a step to expand research and medical access (CBS News). Officials and industry leaders say the move should ease banking access and blunt criminal-enforcement pressure, while critics say current products still meet Schedule I criteria (New York Times).
The action follows a regulatory arc that began with a 2022 directive asking federal health and justice officials to review marijuana's classification. Health agencies recommended moving marijuana to Schedule III in 2023, and a Justice Department and DEA proposed rule in May 2024 drew nearly 43,000 public comments. President Trump signed an executive order in December 2025 directing faster rulemaking, and the department has scheduled a public hearing for late June to consider broader rescheduling (Christian Science Monitor). The U.S. medical cannabis market generated about $7.6 billion in sales in 2025, and more than 3.6 million people are registered patients. Tax rules have left state-licensed firms facing effective federal rates as high as 80 percent.
Initial coverage stressed that the order was a technical carve-out for medical products, an angle emphasized by outlets such as PBS News and NPR. Later reporting from The Christian Science Monitor and The New York Times framed the reclassification as a broader milestone that could normalize the marijuana industry and affect banking and enforcement. Those differing frames have sharpened political reactions, with some Republicans opposing the move and industry voices calling it an overdue correction.
Show source details & analysis (8 sources)
đź“Š Relevant Data
In 2025, U.S. medical cannabis sales totaled $7.6 billion. ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics)) ([Flowhub](https://www.flowhub.com/cannabis-industry-statistics))
2026 Cannabis Industry Statistics — Flowhub
Due to Section 280E of the Internal Revenue Code, state-legal cannabis businesses currently face effective federal tax rates as high as 80 percent because they cannot deduct ordinary business expenses. ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e)) ([Wiss](https://wiss.com/marijuana-business-tax-compliance-section-280e))
As of the latest available data, there are over 3.6 million registered medical cannabis patients in the United States, though this is a partial figure omitting some jurisdictions. ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers)) ([Marijuana Policy Project](https://www.mpp.org/issues/medical-marijuana/state-by-state-medical-marijuana-laws/medical-marijuana-patient-numbers))
Medical Cannabis Patient Numbers — Marijuana Policy Project
đź“Ś Key Facts
- Acting Attorney General Todd Blanche signed an order on April 23, 2026, formally moving state‑licensed medical marijuana and specified products from Schedule I to Schedule III (Acting Attorney General Todd Blanche).
- The rescheduling applies specifically to two categories — FDA‑approved marijuana products and products regulated under a state medical‑marijuana license — and does not itself legalize recreational cannabis under federal law (FDA‑approved marijuana products and state medical marijuana license).
- The order creates an expedited system for state‑licensed producers and distributors to register with the Drug Enforcement Administration, and is intended to let those businesses access banking and take ordinary federal business tax deductions while stopping short of full legalization (expedited system for state‑licensed producers and distributors to register with the Drug Enforcement Administration).
- Rescheduling to Schedule III removes the need for many researchers to obtain a Schedule I license, and the DOJ said researchers will not be penalized for obtaining state‑licensed marijuana or marijuana‑derived products for scientific studies, a move intended to expand research on safety and efficacy (researchers will not be penalized).
- DOJ said the action follows a December executive order from President Trump directing the attorney general to begin the rescheduling rulemaking process; Blanche framed the move as the department 'delivering on President Trump's promise' (December executive order by President Trump).
- The administration has scheduled an expedited administrative hearing — set for June 29 — to consider broader rescheduling of marijuana beyond the initial medical and state‑licensed carve‑outs (June 29 hearing).
- News outlets and officials are framing the change as a historic federal policy shift (the first reclassification of marijuana since 1970), and the move has sparked political debate and scrutiny about long‑term enforcement and regulation (first reclassification since 1970).
- The decision has drawn organized political opposition and policy criticism — including letters from 22 GOP senators and 26 House Republicans and on‑the‑record objections from groups such as Smart Approaches to Marijuana, which argue many current products still meet Schedule I criteria (Smart Approaches to Marijuana).
đź“Š Analysis & Commentary (1)
"A Wall Street Journal Potomac Watch opinion segment comments on the Trump administration’s formal rescheduling of medical marijuana (noting its tax and industry windfalls) and on presidential signals about a possible federal bailout or purchase of Spirit Airlines, framing both as consequential policy moves with economic and political precedents. ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB)) ([The Wall Street Journal](https://www.wsj.com/podcasts/opinion-potomac-watch/trump-moves-to-reschedule-marijuana-a-federal-bailout-of-spirit-airlines/4AE23615-2181-4A85-B339-E6F1E4A6CCBB))"
đź“° Source Timeline (8)
Follow how coverage of this story developed over time
- NPR confirms the Trump administration is moving marijuana from Schedule I to Schedule III and that Acting Attorney General Todd Blanche announced the move, calling it a step to allow more research.
- The piece notes expectations that reclassification will further normalize the marijuana business, expanding banking services and enabling ordinary tax deductions, while stressing that this changes regulation but not full legalization.
- NPR reports that DOJ is moving swiftly to more broadly reschedule marijuana beyond the initial carve-outs, with an administrative hearing scheduled for June, which could benefit recreational businesses.
- Confirms the order was signed on April 23, 2026 by Acting Attorney General Todd Blanche as the operative step moving state-licensed medical marijuana to Schedule III.
- Clarifies that the current reclassification applies to state-licensed medical marijuana broadly, not only FDA-approved products, and frames it as a shift out of Schedule I into a less-regulated category.
- States that the Drug Enforcement Administration has scheduled a June 29 hearing as part of an expedited process to consider broader marijuana rescheduling beyond medical markets.
- Adds that President Trump previously signed an executive order directing federal agencies to loosen restrictions on psychedelic drugs such as psilocybin and ibogaine, after direct lobbying by podcaster Joe Rogan.
- Includes updated public opinion context: a 2024 Gallup poll finding a slim majority of Americans viewing marijuana as harmful to users and to society, even as other polls show support for some form of legal use.
- Notes organized Republican opposition: 22 GOP senators and 26 House Republicans sent letters to Trump opposing the rescheduling move.
- CBS reports that, for the first time since 1970, the federal government has reclassified marijuana from the most dangerous category to a less dangerous category.
- The segment frames the move as a historic break in federal drug policy rather than only a technical tweak for specific medical products.
- Dr. Jon LaPook is presented as explaining implications, indicating mainstream framing as a public-health and regulatory milestone.
- Clarifies that the rescheduling applies only to two types of products: FDA-approved marijuana products and those regulated under a state medical marijuana license, and does not immediately affect recreational marijuana.
- Reports that in late June the Drug Enforcement Administration will hold hearings on broader marijuana rescheduling beyond medical programs.
- Includes on-the-record opposition from Smart Approaches to Marijuana, whose president Kevin Sabet argues current products still meet Schedule I criteria.
- Details that moving medical marijuana to Schedule III eliminates the need for researchers to obtain a Schedule I license, easing laboratory and regulatory burdens.
- Adds industry perspective from Ascend Wellness Holdings CEO Sam Brill on current tax burdens and lack of banking access for state-licensed cannabis firms.
- NYT emphasizes that the move represents a formal shift in federal drug policy by the Trump administration, not just a technical DOJ step.
- Additional detail on how rescheduling is expected to affect banking access, criminal enforcement priorities and patient access (as described in the NYT framing).
- Broader political and institutional context around internal administration debate and how this aligns or conflicts with prior Republican positions on marijuana.
- Acting Attorney General Todd Blanche signed the order Thursday formally reclassifying state-licensed medical marijuana from Schedule I to Schedule III.
- The order 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 explicitly allows state-licensed medical marijuana companies to deduct ordinary business expenses on their federal taxes for the first time.
- The order makes clear that researchers will not be penalized for obtaining state-licensed marijuana or marijuana-derived products for scientific studies.
- The Trump administration has scheduled a hearing to begin in late June to jump-start the process of reclassifying marijuana more broadly beyond strictly medical, state-licensed use.
- Blanche framed the change as DOJ 'delivering on President Trump's promise' and said rescheduling will enable more research on safety and efficacy.
- The article quantifies current state policy: 24 states plus Washington, D.C. with adult-use legalization, 40 with medical systems, 8 with low-THC or CBD medical laws, and only Idaho and Kansas fully prohibiting marijuana.
- Confirms that an order has been formally issued by the Justice Department, signed by Acting Attorney General Todd Blanche, rescheduling specified marijuana products to Schedule III.
- Specifies that the rescheduling applies to FDA-approved products containing marijuana and products regulated by a state medical marijuana license.
- Clarifies that the DOJ action directly follows a December executive order by President Trump directing the attorney general to begin the rescheduling rulemaking process.
- Includes Blanche's on-the-record quote that the department is 'delivering on President Trump's promise' and framing the change as expanding access to medical treatment and research.