Trump Administration Reclassifies State-Licensed Medical Marijuana To Schedule III Nationwide
President Trump's administration has reclassified state-licensed medical marijuana from Schedule I to Schedule III nationwide. The change grows out of years of state-level legalization and a December executive order directing the attorney general to start formal rescheduling rulemaking. That decentralized state patchwork and the White House order pushed federal officials to move beyond technical fixes.
On Thursday, Acting Attorney General Todd Blanche signed a formal DOJ order rescheduling specified marijuana products to Schedule III. The move covers FDA-approved marijuana products and products regulated by a state medical marijuana license, but it does not legalize marijuana under federal law. Because the listing changes, state-licensed producers can now pursue an expedited process to register with the Drug Enforcement Administration. The order explicitly allows state-licensed companies to deduct ordinary business expenses on federal taxes for the first time. It also says researchers will not be penalized for using state-licensed marijuana or derived products for studies and schedules a public hearing to consider broader rescheduling in late June.
Early reports framed the action as a regulatory loosening, focusing on eased restrictions for state programs. Subsequent coverage cast it as a formal shift in federal drug policy and explored practical consequences for banking, enforcement priorities and patient access. Officials have described the step as "delivering on President Trump's promise" and emphasized that it will expand medical access and research.
The action affects a landscape where 24 states plus Washington, D.C. allow adult-use marijuana and 40 states have medical programs. Eight states limit products to low-THC or CBD laws, and only Idaho and Kansas still fully prohibit marijuana. Rescheduling could ease banks' willingness to work with state-licensed companies and shift enforcement priorities away from medical operators. The DOJ order was signed nationally and takes immediate effect for the products it lists, while a broader federal reschedule would require further rulemaking.
📌 Key Facts
- The Justice Department issued a formal order, signed by Acting Attorney General Todd Blanche, reclassifying specified marijuana products to Schedule III.
- The rescheduling applies to FDA-approved marijuana products and products regulated by state medical-marijuana licenses, but it does not legalize marijuana under federal law.
- The DOJ action directly follows a December executive order from President Trump directing the attorney general to begin the rescheduling rulemaking process.
- The order creates an expedited Drug Enforcement Administration registration system for state-licensed producers and distributors and explicitly allows those companies to deduct ordinary business expenses on their federal taxes for the first time.
- The order says researchers will not be penalized for obtaining state-licensed marijuana or marijuana-derived products for scientific studies; Blanche framed the change as “delivering on President Trump’s promise” and said rescheduling would enable more research on safety and efficacy.
- The administration has scheduled a public hearing to begin in late June to jump-start a broader process of reclassifying marijuana beyond strictly medical, state-licensed use.
- News outlets describe the move as a formal shift in federal drug policy that is expected to affect banking access, criminal enforcement priorities, and patient access.
- The change reflects broader political and institutional debate within the administration and raises questions about how it aligns or conflicts with prior Republican positions on marijuana.
- Context: 24 states plus Washington, D.C. have legalized adult use, 40 states have medical-marijuana systems, 8 have low-THC or CBD-only medical laws, and only Idaho and Kansas fully prohibit marijuana.
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- 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.