Background & Timeline
- In October 2022, President Biden directed the Department of Health and Human Services (HHS) and Drug Enforcement Administration (DEA) to review marijuana’s federal classification under the Controlled Substances Act (CSA). READ MORE: Moritz College of Law
- In August 2023, HHS concluded marijuana should be moved from Schedule I to Schedule III, citing acceptable medical use and moderate potential for dependence.
- In May 2024, the Department of Justice, through DEA, published a Notice of Proposed Rulemaking (NPRM) to formally reschedule cannabis to Schedule III. READ MORE: Federal Register
- A public comment period closed in July 2024, drawing nearly 43,000 comments, most of which supported broader reform than just rescheduling. READ MORE: Wikipedia
- A hearing was scheduled for December 2, 2024, then postponed on January 13, 2025, as appeals from stakeholders paused proceedings into the Trump administration era.
The Trump Administration and Rescheduling
Leadership & Policy Signals
- President Trump, during his 2024 campaign, endorsed cannabis rescheduling to Schedule III and signaled support for safe‑banking reforms and expanded research. READ MORE: Dope CFO
- Trump’s new DEA Administrator, Terrance Cole, confirmed by the Senate in July 2025, notably omitted cannabis rescheduling from his strategic priorities, reversing expectations raised at his confirmation hearing. READ MORE: Cannabis Business Times
- Although rescheduling was initially pursued under the previous administration, the DEA process remains stalled; industry advocates continue urging timely and transparent progress. READ MORE: Marijuana Moment
Legislative Roadblocks
- On July 15, 2025, the U.S. House appropriations subcommittee advanced a bill blocking the Department of Justice from using funds to reschedule or deschedule cannabis—effectively hobbling the administrative process.
What Would Rescheduling Actually Mean?
If finalized, moving cannabis to Schedule III, alongside drugs like codeine and anabolic steroids, would:
- Enable federal tax deductions for state-licensed cannabis businesses (lifting the IRS Code 280E restriction).
- Facilitate access to federal banking, insurance, and interstate commerce—though cannabis remains illegal federally without new legislation.
- Expand medical and therapeutic research, as Schedule III substances are easier to study under federal rules. READ MORE: Pulmonology Advisor
However, rescheduling would not legalize recreational use, nor resolve inconsistencies with state laws where adult-use is permitted. Federal and state laws will still conflict, especially around impairment and workplace drug testing. READ MORE: Jackson Lewis
States & Rescheduling: What’s the Role?
- No state has authority to reschedule cannabis under the CSA. Only the federal government can alter Schedule I status.
- At the state level, many jurisdictions have already advanced medical or adult-use legalization, but those operate independently from federal scheduling.
- A rescheduling decision would create potential tensions with existing state laws, though it might reduce legal friction—for example in housing, employment, and research contexts.
Timeline & Projections
| Timeframe | Milestone | Status / Projection |
|---|---|---|
| 2022–Aug 2023 | Biden initiates review; HHS recommends Schedule III | Completed on schedule: Moritz College of Law. “Federal Marijuana Rescheduling” |
| May 2024 | DOJ/DEA publishes NPRM | Rule proposed; public comment period launched |
| Jul 2024 | Comment period closes | 43,000 submissions received: Wikipedia |
| Dec 2024 | Hearing scheduled | Delayed due to appeals |
| Jan 2025 | Hearing postponed | Under pending legal appeals |
| Jul 2025 | Trump’s DEA Administrator sworn in | Rescheduling not a named priority: Cannabis Business Times |
| Jul 2025 | House subcommittee bill passed blocking rescheduling funds | Could halt process: Cannabis Business Times |
| Late 2025–2026 | Potential hearing resumption or final decision | Uncertain; may require litigation or new administration action |
Political & Industry Context
- Cannabis companies, industry associations, and public justice advocates (including figures like Mike Tyson, Kevin Durant, and Dez Bryant) are publicly calling on Trump to fulfill rescheduling promises—framing it as a justice and research issue. READ MORE: New York Post
- Critics like Kevin Sabet warn that rescheduling may boost illicit actors, undermine public health standards, or favor overseas organized crime—arguments frequently raised in letters and opinion pieces aimed at Trump’s advisers. READ MORE: New York Post
- A bipartisan group of Senators introduced legislation in early 2024 to maintain the 280E tax restriction, even if cannabis is rescheduled—blunting one of the business incentives to support reform. READ MORE: Marijuana Moment
Summary
- The rescheduling of cannabis from Schedule I to Schedule III is underway at the federal level only—no states join or control this process.
- HHS and DOJ have formally moved forward, but DEA hearings remain stalled, and key watchdog appointments in the Trump administration have de-prioritized the issue.
- Rescheduling would ease tax burdens, expand research, and improve federal banking security*, but would **not legalize cannabis or eliminate state‑federal conflicts_.
- Legislative obstacles, including a House funding restriction, may block progress unless overturned.
- The next 6–12 months are critical: hearing schedules, political leadership shifts, and funding votes could determine whether rescheduling proceeds or stalls indefinitely.