What Is Going On With The Cannabis Reschedule?

In September 2023, the U.S. Department of Health and Human Services (HHS) proposed reclassifying cannabis, a move that would shift cannabis from Schedule I to Schedule III.

So, what exactly is rescheduling? In a nutshell, it’s moving cannabis from Schedule I to Schedule III legal status. A Schedule I drug is described as having a high potential for abuse and/or addiction with no accepted medical use as treatment. 

A transition into a Schedule III would mean that cannabis would then be defined as having moderate potential for abuse but with accepted medical use within federal law.

Since the proposal’s first announcement, the White House has clarified that the rescheduling process is an independent action led by the HHS and the Department of Justice (DOJ). They must work closely with the Drug Enforcement Administration (DEA) to pass the move. Now, however, the public hearings to discuss the proposal and reach a verdict have been pushed back and canceled amidst ongoing legal challenges and interpersonal disputes. 

Let’s look at what we know about the future of this public hearing and what is still unknown. 

Current Status Of Cannabis Reclassification

Are you also curious about the state of the proposed cannabis reclassification? You aren’t alone. Since the first announcements about rescheduling, many green plant supporters have been anxiously awaiting to see the potential impacts on the cannabis industry.

At the tail end of the Biden Administration, the process experienced setbacks when the DEA was accused of unfairly blocking pro-cannabis advocates from participating in rescheduling hearings and improperly communicating with anti-cannabis groups. The hearings were halted so DEA Administrative Law Judge John Mulrooney could review these allegations. He set specific instructions to move the proceedings forward, but the DEA failed to follow those instructions.

John Mulrooney criticized the agency’s procedural missteps but allowed for an interlocutory appeal, which has halted any progress for at least three months. Meanwhile, newly appointed acting DEA Administrator Derek Maltz, a vocal cannabis opponent, has publicly denounced the rescheduling process as politically driven and voiced concerns about the health and safety impacts of high-THC cannabis and legalization.

For now, things are very uncertain, particularly as we start a new Presidency and settle into a fresh administration. With Trump administration officials yet to finalize DEA leadership or clarify their federal marijuana policy stances, the process is stalled, and the fate of cannabis rescheduling is left unresolved.

Public Opinions and Reactions

In April 2024, Matthew Schweich, the executive director of the cannabis policy group Marijuana Policy Project, shared a statement on the proposed reschedule. “This is a positive step forward for federal cannabis policy, however, it is a rather modest step given the strong support among American voters for comprehensive cannabis reform. 

“It is important to acknowledge that this rescheduling would not affect the criminalization of medical cannabis patients and cannabis consumers under state laws – so we must continue the work of enacting sensible and fair cannabis legalization and medical cannabis laws through state legislatures and ballot initiatives.”

The decision to delay the rescheduling of cannabis has come as a letdown to many within the cannabis industry. If cannabis does become a Schedule III drug, it would have a game-changing impact on taxes for these businesses. Currently, the majority of cannabis businesses cannabis cannot have typical tax deductions due to IRS regulations.

CEO of Neatleaf, Elmar Mair, shared in a written statement the impact this delay has on the weed industry. “The majority of the country overwhelmingly agrees that cannabis should be rescheduled, and delaying this decision could hinder progress on crucial issues like releasing individuals wrongfully imprisoned or potentially affecting several others being prosecuted under outdated laws. It’s vital that this matter receives the timely attention it deserves, benefiting countless individuals, communities, and businesses nationwide.”

Looking Ahead — What’s To Come?

The future of this public hearing on cannabis reform will continue to loom over U.S. policy as we transition into another presidency under Trump. We have seen that the HHS, the DOJ, the cannabis industry, and consumers themselves are anticipating the benefits of a future that will shift marijuana from Schedule I to Schedule III status.

This change would not mean unrestricted freedom at the federal level, but it would ring in a new era of acceptance for cannabis businesses. While the final verdict is still uncertain, rescheduling could lower major barriers and provide a more nuanced approach to cannabis policy.