Trump Administration Formally Reschedules Marijuana To Lower Federal Drug Classification
Acting Attorney General Todd Blanche on April 23, 2026 signed an order formally moving state-licensed medical marijuana from Schedule I to Schedule III under federal law.
The order applies to FDA-approved marijuana products and products regulated by state medical marijuana programs, and it does not legalize recreational cannabis. It creates an expedited path for state-licensed producers and distributors to register with the Drug Enforcement Administration and allows ordinary business tax deductions for those companies. The change also removes key research barriers by eliminating the need for a Schedule I license to obtain state-licensed marijuana for scientific studies. Blanche said the department is "delivering on President Trump's promise" and framed the move as expanding access to medical treatment and research. The Drug Enforcement Administration has scheduled an administrative hearing for June 29 to consider broader rescheduling beyond state medical markets.
The decision is the latest step in a multi-year review that began under President Biden, who in October 2022 ordered a federal review of marijuana's classification. In August 2023 the Department of Health and Human Services recommended moving marijuana to Schedule III. The Justice Department and DEA issued a proposed rule in May 2024, drawing nearly 43,000 public comments. During the 2024 campaign Donald Trump backed rescheduling, and after his January 2025 inauguration he signed an executive order on December 18, 2025 directing the attorney general to expedite the rulemaking.
Early reports framed today's action as a narrow, technical carve-out for medical products, but later coverage broadened the story to emphasize industry and political consequences. Outlets including The New York Times, NPR and The Christian Science Monitor highlighted how rescheduling could normalize the market, improve banking access, and allow ordinary tax deductions, while also noting organized Republican opposition and criticism from anti-legalization groups. The shift could affect a $7.6 billion medical cannabis market, more than 3.6 million registered medical patients, and businesses hit by Section 280E tax rules that can push effective federal tax rates as high as 80 percent. On social media and in political circles, some praised the step as overdue, while others warned it falls short of full legalization and called for clearer federal legislation.
📊 Relevant Data
In 2025, U.S. medical cannabis sales totaled $7.6 billion.
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.
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.
Medical Cannabis Patient Numbers — Marijuana Policy Project
📌 Key Facts
- On April 23, 2026 Acting Attorney General Todd Blanche signed a Justice Department order formally moving specified marijuana products from Schedule I to Schedule III — the first federal reclassification of marijuana since 1970.
- The rescheduling covers FDA‑approved marijuana products and products regulated under state medical‑marijuana licenses; it does not legalize recreational marijuana under federal law.
- The order creates an expedited system for state‑licensed producers and distributors to register with the Drug Enforcement Administration, and for the first time allows state‑licensed medical marijuana companies to deduct ordinary business expenses on their federal taxes.
- Officials say the change will ease research barriers by eliminating the need for researchers to obtain a Schedule I license to study state‑licensed marijuana or marijuana‑derived products, enabling more laboratory work on safety and efficacy.
- The Justice Department framed the action as following President Trump’s December executive order directing the attorney general to begin rescheduling rulemaking and as ‘delivering on President Trump’s promise.’
- The DEA has scheduled expedited public hearings in late June (reported as June 29) to consider broader marijuana rescheduling beyond the initial medical/state‑licensed carve‑outs.
- The move is expected to further normalize the marijuana industry by expanding banking access and reducing tax and regulatory burdens, a point stressed by industry leaders such as Ascend Wellness CEO Sam Brill.
- The decision drew organized opposition from Republicans and some advocacy groups: 22 GOP senators and 26 House Republicans sent letters opposing the rescheduling, and Smart Approaches to Marijuana (Kevin Sabet) publicly argued the products still meet Schedule I criteria.
- Coverage places the reclassification in broader political and public‑opinion context — reporting internal administration debate, mixed public polling (a 2024 Gallup poll noting a slim majority viewing marijuana as harmful), and related Trump actions directing agencies to loosen restrictions on certain psychedelics.
📊 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."
📰 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.