Trump Eyes Marijuana Reclassification, Signals Executive Action
President Donald Trump has confirmed that his administration is exploring a significant change to marijuana’s federal classification. In a recent press conference, he stated that an executive order to move marijuana from a Schedule I to a Schedule III controlled substance is “very strongly” under consideration. This shift would remove barriers for research and open doors for a potential economic boom worth billions.
“A lot of people want to see the reclassification—it leads to tremendous amounts of research that can’t be done unless you reclassify it,” Trump said during the press conference. His words echo a growing movement among industry stakeholders and medical researchers who advocate for reform. Presently, marijuana is categorized with substances like heroin and LSD, deemed to have “no currently accepted medical use” and a “high potential for abuse.” A reclassification would acknowledge marijuana’s medical benefits and lower its abuse classification, aligning it with substances like anabolic steroids and ketamine.
Strategic and Economic Implications
While the proposed change wouldn’t legalize marijuana for recreational use across the nation, it would eliminate critical obstacles for research institutions, medical professionals, and cannabis businesses. Under the current Schedule I status, cannabis companies face strict tax implications due to Section 280E of the Internal Revenue Code, which disallows the deduction of ordinary business expenses. This costly restriction has reportedly drained U.S. cannabis businesses of $1.8 billion in additional taxes just in 2022.
The financial market responds swiftly to news of potential reform. Reports of the impending executive action led to sharp increases in stock prices for major cannabis companies. Tilray Brands saw a jump of over 44%, while Canopy Growth surged by 54%, with SNDL Inc. climbing 25% in just a few days. Investment forums buzzed with heightened activity as sentiment turned “extremely bullish.”
Analysts like those from Moby highlight a substantial economic opportunity. Grand View Research forecasts that the global legal marijuana market could soar to $102 billion by 2030. Normalizing regulations in the U.S. could unleash tens of billions in domestic economic gains.
Scientific Research Barriers Could Erode
The reclassification could revolutionize the landscape of cannabis research. Currently, scholars face a convoluted maze of federal applications, special licenses, and DEA inspections to obtain the marijuana needed for their studies. They are restricted to a single, federally designated farm in Mississippi, which hampers the quality and breadth of research.
Transitioning to Schedule III would streamline these processes, allowing universities and medical institutions to conduct research more effectively. Notable institutions like the University of California, Yale, and Johns Hopkins, long advocates for reform, stand to gain access for expanded clinical trials geared toward studying cannabis’s therapeutic effects on medical conditions like chronic pain, PTSD, epilepsy, and nausea from chemotherapy.
“The reclassification of cannabis would be monumental,” stated a regulatory policy analyst with Americans for Safe Access, reflecting the eagerness of the scientific community for high-quality studies that have been stalled for years.
In the context of prior progress, the Department of Health and Human Services (HHS) has already proposed reclassifying cannabis based on a review indicating its medical use potential and reduced abuse likelihood. However, the final say on this reclassification remains with the DEA unless Trump’s executive action intervenes.
Congressional Roadblocks Remain
Even with Trump’s potential executive order, hurdles persist. Recent maneuvers by Republican members of the House Appropriations Committee included provisions in a key spending bill aimed at blocking the Department of Justice from implementing any changes to marijuana’s scheduling. The language reads, “None of the funds appropriated or otherwise made available by this Act may be used to reschedule marijuana,” posing a significant barrier unless overturned or vetoed.
This opposition mirrors broader concerns among some conservative lawmakers who emphasize the societal risks associated with marijuana use. The National Sheriffs’ Association formally expressed dissent, referencing studies correlating cannabis use with rising traffic fatalities and adolescent mental health issues in states where it’s legal.
“We cannot afford to send a mixed message to our youth. Reclassification would be seen as a green light for recreational use, regardless of federal intent,” remarked Rep. Pete Sessions, a vocal critic of rescheduling efforts.
Mixed Public Opinion and Political Messaging
Public sentiment appears to be shifting as support for marijuana legalization stabilizes. A recent Gallup poll indicated only 64% of Americans favored legalization, a decrease from a peak of 68% two years earlier, with declining support among Republican voters potentially influencing the administration’s approach.
Trump seems to navigate a delicate political landscape, balancing the libertarian views of some conservatives with traditional law-and-order perspectives. At an event in Mar-a-Lago, he remarked, “It’s awfully hard to have people all over the jails that are in jail right now for something that’s legal,” signaling a willingness to consider broader reforms.
Despite these discussions, a White House official made it clear that “no final decisions have been made on the rescheduling of marijuana.” This indicates a strategy to start the process through executive order while gathering public and legislative input.
Ongoing Federal-State Conflict
Even if marijuana were reclassified to Schedule III, it would not legalize recreational use federally. Cannabis businesses would still grapple with difficulties in accessing banking, insurance, and interstate commerce. The SAFE Banking Act, designed to address these issues, has yet to make progress in the Senate.
Evan Nison, CEO of a cannabis PR firm, underscores that without support from Congress, rescheduling would have limited impact. “If he really wants to foster a legal market that works, he’d have to go beyond Schedule III,” he stated, emphasizing that the existing legal framework treats cannabis as if it remains a criminal entity.
Notably, reform advocates such as Roger Stone and Mike Tyson are urging Trump to move ahead with rescheduling as a gesture of goodwill to the electorate and industry leaders.
Conclusion
Trump’s recent statements indicate that a significant shift in federal policy regarding marijuana may be on the horizon. With economic implications at play, medical access challenges, and ongoing debates about legitimacy, the long-standing classification of marijuana could soon change. However, any executive action will challenge the boundaries of federal authority and congressional oversight, reigniting discussions about safety, science, and state rights. As President Trump affirmed, “We are looking at that very strongly.”
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