On April 23, 2026, Acting Attorney General Todd Blanche signed an order reclassifying state-licensed medical marijuana from Schedule I to Schedule III under the federal Controlled Substances Act. This move, initiated by President Donald Trump’s administration, changes how medical marijuana is regulated but does not legalize it for medical or recreational use [1].
The reclassification allows state-licensed medical marijuana operators to deduct business expenses on their federal taxes for the first time, a significant shift in financial policy. It also eases barriers to cannabis research, potentially accelerating clinical research and development [1][2].
The order establishes an expedited system for state-licensed medical marijuana producers and distributors to register with the U.S. Drug Enforcement Administration (DEA) [1]. This development is part of a broader initiative by the Trump administration to reclassify marijuana, with a hearing scheduled to begin in late June 2026 [1].
President Trump had signed an executive order in December 2025 directing the attorney general to move marijuana from Schedule I to Schedule III. This category includes substances with moderate to low potential for dependence, such as ketamine and testosterone [2].
While the reclassification is expected to ease federal restrictions on research and lower tax burdens for cannabis companies, it does not legalize marijuana for recreational use under federal law. Reports indicate that access to big-bank capital for cannabis companies may remain limited despite the reclassification [1][2].
What Is Known
The reclassification of state-licensed medical marijuana to Schedule III allows for tax deductions and eases research barriers [1]. An expedited registration system with the DEA has been set up, and a broader reclassification process is underway with a hearing planned for June 2026 [1][2].
What Remains Unclear
The reclassification does not legalize recreational marijuana use under federal law [1]. Additionally, it is uncertain whether large banks will begin lending to cannabis companies, as access to such capital may remain restricted [2].
This article was generated by Bluxle's AI system based on research from multiple news sources. All facts are sourced and cited below. The AI is designed to be neutral and fact-based with no editorial opinion.
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