Michael Stonebarger sorts young cannabis plants at a marijuana farm in Grandview, Mo., in 2022. President Trump set the process in motion to ease federal restrictions on marijuana. But his order doesn’t automatically revoke laws targeting marijuana, which remains illegal to transport over state lines.
Charlie Riedel/AP
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Charlie Riedel/AP
The landscape of marijuana legality in the United States is on the brink of significant change, as President Trump’s recent executive order seeks to loosen federal restrictions on cannabis. However, while this move signals potential progress, it doesn’t automatically dismantle existing laws, and marijuana remains illegal for interstate commerce.
“It’s hard to see the big headlines of, ‘Marijuana rescheduled to [Schedule] III; marijuana research will open,'” remarks Gillian Schauer, executive director of the nonpartisan Cannabis Regulators Association. “You know, those things are not true as of now.”
The order, signed on December 18, aims to reclassify marijuana as a lower-risk drug, sparking hopes for a new era of cannabis research. Yet, experts caution that transforming federal drug policy, a structure over 50 years old, is not a simple task. “The Controlled Substances Act [of 1970] does not grant any president the authority to unilaterally reschedule a drug,” Schauer explains. Changes usually occur through a formal rulemaking process or an act of Congress.
As the administration considers how to implement Trump’s directive, the timeline and extent of easing marijuana restrictions remain uncertain. Notably, rescheduling won’t automatically repeal federal laws targeting marijuana, thus keeping interstate marijuana commerce illegal.
The time frame depends on which path the DOJ takes
The order directs Attorney General Pam Bondi to “take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III” of the Controlled Substances Act “in the most expeditious manner in accordance with Federal law …”
This process echoes the steps initiated under former President Biden, during which the Department of Health and Human Services and the Justice Department proposed reclassifying marijuana from Schedule I to Schedule III. The Trump administration might continue this path, but the executive order also mentions Section 811 of the Controlled Substances Act, suggesting a possible shortcut.
“That allows the attorney general to move a drug to whatever schedule they deem is best, without going through the usual steps that are needed to reschedule a drug,” Schauer notes. This expedited process was previously used in 2018 to schedule the CBD epilepsy drug Epidiolex.
Will the DOJ call for public comment?
The administration’s approach to public comment periods and administrative hearings will play a critical role in determining the pace of rescheduling. “I would anticipate, if they use that [expedited] option, that we would not see a comment period,” Schauer explains, noting that this would quicken the process.
However, if the DOJ follows the traditional rulemaking process, which includes notice-and-comment periods, the timeline could extend significantly. Bondi could choose to issue a final rule after a comment period or bypass it entirely.
Legal challenges from anti-marijuana groups are anticipated, which means the DOJ must balance expedience with the need to defend its actions in court. A previous DEA rescheduling proposal for marijuana attracted over 43,000 comments.
Cannabis firms would get tax relief, but credit cards remain forbidden
Sam Brill, CEO of Ascend Wellness Holdings, a multistate dispensary company, believes rescheduling could trigger positive changes for the cannabis industry. An immediate benefit could be the relief from Section 280E, a tax code that prevents marijuana businesses from claiming common tax deductions.
Currently, Brill’s company pays taxes on income but can’t deduct standard business expenses due to marijuana’s Schedule I status. This exposes them to a higher effective tax rate. “I can’t deduct the rent for my stores, the cost of my employees in those stores, my interest expense,” Brill explains.
Brill also hopes that marijuana’s changing status might eventually lift other restrictions, particularly the inability to accept credit cards. Most financial institutions avoid providing services to state-authorized marijuana businesses due to potential liability.
Medical research
Scientists welcomed the news in 2023 about potential reclassification of marijuana under Biden, and Trump’s move is seen as a boost for medical research. The new rules would ease the process for researchers by eliminating the need for a Schedule I license and relaxing laboratory regulations.
However, sourcing marijuana for study remains a challenge. Researchers are required to obtain it from limited sources, a condition that has slightly improved since the time when only one facility at the University of Mississippi was allowed to provide marijuana.
Federal rules about sourcing marijuana have been decided separately from the controlled substances schedule. “This does a little to make research easier,” Schauer says, “but there’s a lot that will still be challenging unless we see a lot of agency policies change and adjust.”
This article was originally written by www.npr.org
