DOJ Reclassifies Medical Marijuana as Less Dangerous Drug

The US Department of Justice has officially reclassified certain marijuana products from Schedule I to Schedule III narcotics. Acting Attorney General Todd Blanche announced the change on Thursday, April 18, 2024, stating that it aligns with President Trump's promise to expand Americans' access to medical treatment options.

The reclassification applies specifically to products containing marijuana that are either approved by the Food and Drug Administration or have received a state medical-marijuana license. This change is part of a broader effort by the Trump administration to increase medical marijuana research, as outlined in an executive order issued on December 18, 2023.

Blanche also ordered that a hearing be held on June 29, 2024, as part of a rule-making process to consider reclassifying all marijuana more broadly. This move has been met with mixed reactions, angering some of Trump's closest Republican allies while being welcomed by others as a step toward expanding medical research and treatment options.

The Department of Justice emphasized that the reclassification provides immediate clarity to researchers, patients, and providers while maintaining strict federal controls against illicit drug trafficking. The change is expected to lower longstanding barriers that have made it difficult for researchers to study cannabis in clinical settings.

Blanche's action largely legitimizes medical marijuana programs in the 40 states that have adopted them. It sets up an expedited system for state-licensed medical marijuana producers and distributors to register with the U.S. Drug Enforcement Administration. The reclassification also grants state-licensed medical marijuana companies a significant tax break by allowing them, for the first time, to deduct business expenses on their federal taxes.

The Trump administration's decision drew criticism from Kevin Sabet, chief executive of Smart Approaches to Marijuana. Sabet argued that while marijuana research is necessary, the move sends a confusing message about marijuana’s harms and gives a tax break to the industry. Despite this, advocates like Michael Bronstein, president of the American Trade Association for Cannabis and Hemp, hailed it as 'the most significant federal advancement in cannabis policy in over 50 years.'

Sam Brill, CEO of Ascend Wellness Holdings, noted that the reclassification lifts a huge tax burden from cannabis firms registered in state medical marijuana programs. Before the shift, companies like his operated largely in cash due to the refusal of most financial institutions to provide basic banking services because of potential liability.