State Cannabis Programs Grow as Federal Momentum Meets Congressional Resistance
State cannabis programs expand while over 20 Republican senators block federal loosening efforts.
Event / Politics
US Cannabis Reclassification
Trump administration reclassifies medical marijuana from Schedule I to Schedule III, legitimizing state programs and allowing federal tax benefits for licensed cannabis companies.
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2026-08-18 to 2026-11-15 · UTC publication dates
Coverage begins 24 Apr, 00:08 UTC
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What happened
Biden administration proposed marijuana reclassification in 2024, received 43,000 public comments
The Justice Department under President Joe Biden proposed to reclassify marijuana in 2024, which generated nearly 43,000 formal public comments. The Drug Enforcement Administration review process was still underway when Trump succeeded Biden in January 2025.
Blanche's order sidesteps traditional DEA review process using international treaty provision
The acting attorney general's reclassification order bypassed the standard Drug Enforcement Administration review process by relying on a provision of federal law that allows the attorney general to determine appropriate drug classifications for substances the U.S. must regulate pursuant to an international treaty.
State-licensed medical marijuana companies gain federal tax deduction benefits
The reclassification order allows state-licensed medical marijuana companies to deduct business expenses on their federal taxes for the first time. This represents a significant financial benefit to the legal cannabis industry, potentially enabling billions of dollars in new economic activity according to industry analysts.
Acting Attorney General Todd Blanche signs order reclassifying state-licensed medical marijuana from Schedule I to Schedule III
Acting Attorney General Todd Blanche signed an order on April 23 reclassifying state-licensed medical marijuana products and FDA-approved marijuana-derived medicines from Schedule I (highest regulation level, reserved for drugs with no medical use and high abuse potential) to Schedule III (moderate to low potential for physical and psychological dependence). This represents a major shift in federal drug policy, as marijuana has been federally prohibited since the Marijuana Tax Act of 1937.
President Trump ordered acceleration of marijuana reclassification process in December
President Donald Trump ordered his administration in December to work as quickly as possible to reclassify marijuana at the federal level. Trump expressed frustration on Saturday while signing an unrelated executive order about psychedelics that the reclassification process was taking too long.
Twenty-four states plus Washington D.C. have authorized adult recreational marijuana use
Twenty-four states plus Washington D.C. have authorized adult recreational use of marijuana. This represents significant state-level divergence from federal Schedule I classification that has remained in effect for decades.
Expedited federal hearing scheduled for June 29 to consider broader marijuana reclassification
The Trump administration is launching a new administrative hearing process with the Drug Enforcement Administration scheduled for June 29 to consider the broader reclassification of marijuana under federal law. This follows through on President Trump's December executive action to accelerate the reclassification push that began under the Biden administration.
More than 20 Republican senators opposed marijuana restrictions loosening
More than 20 Republican senators, several of them staunch Trump allies, signed a letter last year urging the president to keep current marijuana standards and oppose loosening of federal restrictions on the drug.
Cannabis researchers no longer penalized for obtaining state-licensed marijuana for research
The order clarifies that cannabis researchers will not face federal penalties for obtaining state-licensed marijuana or marijuana-derived products for use in their research work. This eases barriers to conducting cannabis safety and efficacy studies at the federal level.
Forty states have adopted comprehensive medical marijuana programs
Forty states have adopted comprehensive medical marijuana licensing frameworks governing cultivation, processing, distribution, and dispensing of marijuana for medical purposes. An additional eight states allow low-THC cannabis or CBD oil for medical use. Only Idaho and Kansas ban marijuana outright.
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2 alternative perspectives
Medical Cannabis Firms Win Federal Tax Deductions Under Reclassification
Medical cannabis firms gain tax deductions and researchers gain study access under federal reclassification.
Acting AG Reclassifies Medical Marijuana Using Expedited Federal Process
Acting AG reclassifies medical marijuana to Schedule III via expedited process following presidential directive.