Alan Thayer - Marijuana

On December 18, 2025, President Donald Trump signed an executive order directing the U.S. Attorney General to "take all necessary steps to complete the rulemaking process" to reclassify marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA). This action marks a significant shift in federal policy, moving marijuana away from the most restrictive category—which includes heroin and LSD—to a classification for drugs with a "moderate to low potential for physical and psychological dependence". 
Key Aspects of the Reclassification

• Not Fully Legalized: The order does not legalize marijuana nationwide for recreational use. Marijuana remains illegal under federal law.
• Medical Use Recognition: The move formally recognizes that marijuana has accepted medical value, allowing it to be dispensed by prescription if approved by the FDA.
• Financial/Business Impact: Schedule III classification allows cannabis businesses to deduct expenses (IRS Code Section 280E) and improves access to banking services.
• Research & Access: The order aims to accelerate scientific research and improve access to medical marijuana, particularly for patients with chronic pain.
• Hemp Policy: The executive order also aims to work with Congress to revise the definition of hemp to protect access to certain CBD products while restricting others that pose health risks. 

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Next Steps and Potential Hurdles

• Administrative Process: While the order expedites the process, it requires a formal administrative review by the Drug Enforcement Administration (DEA) and the Department of Justice (DOJ), which could take months.
• Legal Challenges: The move faces potential legal challenges from groups opposed to legalization.
• No Immediate Change in Law: The reclassification does not change state-level laws, nor does it immediately alter federal employment restrictions or safety-sensitive roles. 

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