Acting Attorney General Todd Blanche signed an order Thursday to reclassify state-licensed medical marijuana as a less dangerous drug, marking a significant shift in federal drug policy. The move, announced on social platform X, downgrades the designation from Schedule I—the most restrictive category—to Schedule III, aligning it with substances like ketamine and anabolic steroids.
The order specifically applies to medical marijuana products approved by the Food and Drug Administration and operated under state licensing. It does not legalize recreational marijuana use under federal law, but it provides a critical tax break for licensed operators by removing them from the stringent IRS code 280E, which previously barred deductions for businesses trafficking in Schedule I substances.
Blanche stated the reclassification will enable “more targeted, rigorous research into marijuana’s safety and efficacy,” expanding patient access and empowering doctors to make better-informed healthcare decisions. The order calls for an expedited hearing to finalize the rescheduling process.
This action comes amid a broader shift in the Trump administration’s approach to drug policy. Earlier this year, President Trump signed an executive order on psychedelics, reportedly sparked by a text from podcaster Joe Rogan, signaling a move toward more nuanced federal regulation of controlled substances. That order similarly aimed to facilitate research and reduce barriers for certain therapies.
Critics argue the reclassification does not go far enough, as it still keeps marijuana in a regulated schedule and does not address the conflict between federal and state laws. However, industry advocates see it as a pragmatic step that recognizes the medical benefits of cannabis while maintaining federal oversight. The tax break alone could save licensed dispensaries millions annually, potentially stabilizing a sector that has struggled under heavy federal tax burdens.
The move also carries political implications, as marijuana reform has broad bipartisan support. With the Senate GOP recently passing a budget for DHS funding and President Trump threatening Iran vessels, the administration appears to be balancing multiple policy fronts. The budget deal and this reclassification suggest a focus on domestic regulatory adjustments amid international tensions.
Blanche’s order is likely to face legal challenges from conservative groups opposed to any relaxation of drug laws. But for now, it stands as one of the most concrete federal actions on marijuana policy in years, potentially reshaping the landscape for medical cannabis research and business operations across the country.
