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PHOENIX — The Trump administration has taken a significant step in federal drug policy by reclassifying medical marijuana as a Schedule III substance, a move experts say could expand research opportunities and provide financial relief to cannabis businesses.
The order, signed Thursday by the U.S. attorney general, shifts medical marijuana out of the same classification category as drugs like heroin and LSD. While the change does not legalize marijuana at the federal level, it marks the first time the substance is formally recognized as having accepted medical use under federal law.
The new classification applies to both FDA-approved products containing marijuana and products regulated under state-issued medical marijuana licenses.
Industry experts say the shift could spur innovation and renewed focus on medical cannabis programs.
“You’re probably going to see a lot more innovation in the marketplace, because there’s going to be more focus on the MediCal program again, and then also it’s going to allow for additional medical studies.” Ann Torrez, the Executive Director for the Arizona Dispensaries Association, said.
According to the Drug Enforcement Administration, Schedule III drugs are defined as substances with a moderate to low potential for physical and psychological dependence.
Although the decision does not alter marijuana’s legal status for recreational use or affect CBD products, it is expected to deliver a major financial benefit to cannabis businesses. Under the previous Schedule I classification, dispensaries were barred from taking standard business tax deductions, resulting in significantly higher tax burdens.
“So, the operators will still continue to operate as they have from a functionality standpoint, minus the fact that they’re no longer treated as a drug dealer or the manufacturer of illegal drugs, from a federal perspective, they’ll be able to take standardized business deductions that they couldn’t,” Torrez said.
Researchers also say the reclassification could ease longstanding barriers to studying cannabis.
“Doing research on a schedule one substance was really hard. It’s really hard to get the research that was necessary to prove the medicinal value as a Schedule three substance. I think a lot of those barriers will be taken down. So in the medical scientific community, mostly positive.” Dr. Sanjay Gupta, a CNN Chief Medical Correspondent, said.
Experts emphasize that the change applies only to medical marijuana and does not impact recreational cannabis laws.
The Department of Justice is expected to evaluate broader federal marijuana policy changes in a hearing scheduled to begin June 29.
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