President Donald Trump signed an executive order on Dec. 18 that would reclassify marijuana from a Schedule I drug to a Schedule III drug, a significant change in how the federal government would regulate and restrict its use.
The federal Controlled Substances Act lumped marijuana with the most dangerous drugs in 1970, but 45 states since adopted laws to permit medical or recreational adult use of marijuana.
Colorado was a pioneer with the nation’s first regulated adult recreational market, and Gov. Jared Polis welcomed Trump’s order.
“To be blunt, it’s far past time for the federal government to catch up to Colorado and many other states and get rid of arcane federal policies on cannabis that aren’t based in reality and hurt Colorado small businesses and public safety,” Polis said in a statement. “I thank the President and am pleased that they are finally taking this step to begin the process to reschedule.”
Because of the patchwork of state laws and regulatory systems across the country, the proposed rescheduling would affect each state differently.
No. The order calls for agencies to work to reclassify it from a Schedule I drug, like heroin and LSD, to a Schedule III drug, like ketamine, acetaminophen with codeine and some anabolic steroids. That classification acknowledges possible medical benefits alongside low to moderate potential for dependence.
If enacted, that change would open the door to more medical research and could soften how criminal penalties are applied in federal courts, but it would not make it federally legal to use recreationally.
No. The changes in federal classification do not have any direct impact on the laws already in place for cannabis in Colorado.
Businesses may get some financial advantages by being able to deduct expenses on federal taxes, but they could already deduct those on Colorado taxes. Adult recreational users would not see any changes from the rescheduling.
Trump’s order directed Attorney General Pam Bondi to “take all necessary steps to complete the rulemaking process” to reclassify marijuana as a Schedule III drug. His order also said the administration would work with Congress to redefine hemp-derived cannabinoid products so that Americans can get access to CBD products.
“This gives (rescheduling) a big push forward and sends a pretty clear signal about the likely outcome,” David Pozen, a law professor at Columbia University who wrote the book “The Constitution of the War on Drugs,” told USA TODAY. Pozen added: “It’s a big deal for the rescheduling debate but it’s by no means going to bring closure to our marijuana policy fights.”
Trump’s change doesn’t make marijuana legal at the federal level, but the reclassification could lower tax burdens for firms, accelerate research, enable standardized drug development and improve access to capital.
An immediate advantage for the industry is a business-tax break for companies making Schedule III drugs, in contrast to no tax breaks for those making Schedule I drugs. But unless the Food and Drug Administration approves of marijuana for medical uses, companies will still be unable to sell their products across state lines.
“The main effect of rescheduling will be a tax cut for marijuana firms,” Pozen said. “This won’t authorize medical marijuana at the federal level.”
Trump is considering a Medicare pilot program that would provide some seniors access to CBD, according to reports.
Rescheduling and Medicare coverage would likely attract investments from financial institutions and other investors.
Nate Trela covers trending news in Colorado and Utah for the USA TODAY Network.