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Is marijuana legal in U.S.? President Donald Trump's acting attorney general today signed an order reclassifying state-licensed medical marijuana as a less-dangerous drug, a major policy shift long sought by advocates who said cannabis should never have been treated like heroin by the federal government. Shares of cannabis firms surged on Thursday after the U.S. government moved to reclassify the Food and Drug Administration-approved and state-licensed marijuana as a less-dangerous drug.
Cannabis in U.S.
The order signed by Todd Blanche does not legalize marijuana for medical or recreational use under federal law. But it does change the way it's regulated, shifting licensed medical marijuana from Schedule I — reserved for drugs without medical use and with high potential for abuse — to the less strictly regulated Schedule III. It also gives licensed medical marijuana operators a major tax break and eases some barriers to researching cannabis.
The Trump administration also said it was jump-starting the process for reclassifying marijuana more broadly, setting a hearing to begin in late June.
Trump told his administration in December to work as quickly as possible to reclassify marijuana. On Saturday, as the Republican president signed an unrelated executive order about psychedelics, he seemed to express frustration that it was taking so long.
Blanche said Thursday that the Department of Justice was “delivering on President Trump’s promise” to expand Americans’ access to medical treatment options. “This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information,” he said in a statement.
Marijuana Programs in U.S. States
Blanche's action Iargely legitimizes medical marijuana programs in the 40 states that have adopted them. It sets up an expedited system for state-licensed medical marijuana producers and distributors to register with the U.S. Drug Enforcement Administration.
It makes clear that cannabis researchers won't be penalized for obtaining state-licensed marijuana or marijuana-derived products for use in their work, and it grants state-licensed medical marijuana companies a windfall by allowing them, for the first time, to deduct business expenses on their federal taxes.
Any marijuana-derived medicine approved by the Food and Drug Administration is similarly listed in Schedule III, it said.
The order represents a major policy shift for the U.S. government, which has continued its longstanding marijuana prohibition — dating to the Marihuana Tax Act of 1937 — even as nearly all the states have approved cannabis use in some form. Two dozen states plus Washington, D.C., have authorized adult recreational use of marijuana, 40 have medical marijuana systems, and eight others allow low-THC cannabis or CBD oil for medical use. Only Idaho and Kansas ban marijuana outright.
The regulation of medical marijuana has come a long way since California became the first state to adopt it in 1996, Blanche wrote.
Marijuana Firms Stocks
Cronos Group, Aurora Cannabis, Canopy Growth, Tilray Brands jumped between 6 per cent and 13 per cent following the announcement, which many in the industry see as "most consequential federal cannabis policy development in decades".
In a post on X, Acting Attorney General Todd Blanche said the Department of Justice was "immediately rescheduling FDA-approved marijuana and state-licensed marijuana from Schedule I to Schedule III." The department is also initiating an expedited hearing to consider the broader rescheduling of marijuana.
Industry executives applauded the decision.
"Rescheduling has the potential to accelerate clinical research, broaden access and elevate the quality, consistency, and safety standards that establish medical cannabis as a legitimate pillar of modern healthcare," Tilray CEO Irwin Simon said in a statement. Cannabis firms will also no longer be subject to Section 280E, a provision of the U.S. federal tax that prevents businesses dealing in Schedule I- and II-controlled substances from claiming tax credits and deductions for business expenses.
Verano CEO George Archos had said, "We've previously quantified rescheduling would save Verano an estimated $80 million in annual 280E expenses that we could invest back into our operations, putting us on a level-playing field with any other legal business."
The decision could also ease access to funding as federal restrictions have long kept most banks and institutional investors on the sidelines, forcing cannabis producers to rely on costly loans or alternative lenders.
Cannabis in U.S.
The order signed by Todd Blanche does not legalize marijuana for medical or recreational use under federal law. But it does change the way it's regulated, shifting licensed medical marijuana from Schedule I — reserved for drugs without medical use and with high potential for abuse — to the less strictly regulated Schedule III. It also gives licensed medical marijuana operators a major tax break and eases some barriers to researching cannabis.
The Trump administration also said it was jump-starting the process for reclassifying marijuana more broadly, setting a hearing to begin in late June.
Trump told his administration in December to work as quickly as possible to reclassify marijuana. On Saturday, as the Republican president signed an unrelated executive order about psychedelics, he seemed to express frustration that it was taking so long.
Blanche said Thursday that the Department of Justice was “delivering on President Trump’s promise” to expand Americans’ access to medical treatment options. “This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information,” he said in a statement.
Marijuana Programs in U.S. States
Blanche's action Iargely legitimizes medical marijuana programs in the 40 states that have adopted them. It sets up an expedited system for state-licensed medical marijuana producers and distributors to register with the U.S. Drug Enforcement Administration.
It makes clear that cannabis researchers won't be penalized for obtaining state-licensed marijuana or marijuana-derived products for use in their work, and it grants state-licensed medical marijuana companies a windfall by allowing them, for the first time, to deduct business expenses on their federal taxes.
Any marijuana-derived medicine approved by the Food and Drug Administration is similarly listed in Schedule III, it said.
The order represents a major policy shift for the U.S. government, which has continued its longstanding marijuana prohibition — dating to the Marihuana Tax Act of 1937 — even as nearly all the states have approved cannabis use in some form. Two dozen states plus Washington, D.C., have authorized adult recreational use of marijuana, 40 have medical marijuana systems, and eight others allow low-THC cannabis or CBD oil for medical use. Only Idaho and Kansas ban marijuana outright.
The regulation of medical marijuana has come a long way since California became the first state to adopt it in 1996, Blanche wrote.
Marijuana Firms Stocks
Cronos Group, Aurora Cannabis, Canopy Growth, Tilray Brands jumped between 6 per cent and 13 per cent following the announcement, which many in the industry see as "most consequential federal cannabis policy development in decades".
In a post on X, Acting Attorney General Todd Blanche said the Department of Justice was "immediately rescheduling FDA-approved marijuana and state-licensed marijuana from Schedule I to Schedule III." The department is also initiating an expedited hearing to consider the broader rescheduling of marijuana.
Industry executives applauded the decision.
"Rescheduling has the potential to accelerate clinical research, broaden access and elevate the quality, consistency, and safety standards that establish medical cannabis as a legitimate pillar of modern healthcare," Tilray CEO Irwin Simon said in a statement. Cannabis firms will also no longer be subject to Section 280E, a provision of the U.S. federal tax that prevents businesses dealing in Schedule I- and II-controlled substances from claiming tax credits and deductions for business expenses.
Verano CEO George Archos had said, "We've previously quantified rescheduling would save Verano an estimated $80 million in annual 280E expenses that we could invest back into our operations, putting us on a level-playing field with any other legal business."
The decision could also ease access to funding as federal restrictions have long kept most banks and institutional investors on the sidelines, forcing cannabis producers to rely on costly loans or alternative lenders.
