Cannabis Rescheduling May Sound Like a Win. Here’s Why It’s Complicated
First, what is actually happening?
Multiple outlets have reported that Trump is weighing an executive move that would direct the Justice Department to advance cannabis rescheduling to Schedule III.
The White House has not confirmed a final decision.
This matters because we’ve heard versions of this before. The Biden administration launched a rescheduling review in 2022. Federal health officials later acknowledged cannabis has accepted medical use. And yet, the process stalled.
So for now, this is credible reporting, not enacted policy.
Can Trump do this without Congress?
Yes, but with limits.
Under the Controlled Substances Act, rescheduling does not require Congress. The authority sits with the attorney general, typically delegated to the DEA, with scientific input from Health and Human Services.
Trump cannot personally reschedule cannabis with a tweet or executive order alone. But he can direct the Justice Department to move the process forward and potentially bypass stalled administrative steps.
Congress would only be required for full legalization or descheduling, not rescheduling.
Didn’t Biden already try this?
Yes.
In 2022, President Biden ordered a formal review of cannabis’ classification. In 2023, Health and Human Services concluded that cannabis has accepted medical use and recommended Schedule III.
The DEA process dragged on. Hearings were delayed. Legal challenges loomed. Nothing was finalized.
That’s why skepticism is fair. This has been promised before.
What does Schedule III actually mean?
Schedule I drugs are defined as having no accepted medical use. That’s where cannabis still sits, alongside heroin.
Schedule III drugs are recognized as having medical value but remain controlled. Examples include ketamine, anabolic steroids and certain prescription painkillers.
Moving cannabis to Schedule III would be a formal federal acknowledgment of medical use. It would not legalize cannabis.
Does this legalize cannabis?
No.
Cannabis would still be federally illegal.
State-legal markets would continue to exist in a gray zone. Interstate commerce would remain prohibited. Federal criminal laws would still apply.
Rescheduling changes classification, not prohibition.
What happens to dispensaries and state markets?
Nothing changes overnight.
States like California and Oregon would continue running their own regulated systems. Dispensaries would not suddenly shut down. Licenses would not vanish.
The core contradiction remains: state-legal cannabis would still conflict with federal law.
Rescheduling does not resolve that tension. It only shifts it.
What happens to dispensaries and state markets?
Nothing changes overnight.
States like California and Oregon would continue running their own regulated systems. Dispensaries would not suddenly shut down. Licenses would not vanish.
The core contradiction remains: state-legal cannabis would still conflict with federal law.
Rescheduling does not resolve that tension. It only shifts it.
Will this help small, local businesses and growers?
It could. But it’s not guaranteed.
The biggest potential benefit is taxes.
As long as cannabis is Schedule I or II, businesses are subject to IRS rule 280E, which blocks normal deductions like rent, payroll and utilities. That has crushed many small operators.
If cannabis moves to Schedule III, 280E would no longer apply. That alone could be a lifeline for independent dispensaries and growers.
At the same time, rescheduling does not fix licensing costs, access to capital or consolidation. Bigger companies still have structural advantages.
