Friday, December 26, 2025

Marijuana Damage Control 12-26-25

Marijuana has not yet been officially moved from Schedule I to Schedule III as of December 21, 2025; it remains a Schedule I controlled substance under federal law. However, the process to do so is currently underway, expedited by a recent executive order.  

Current Status of Rescheduling

Executive Order: On December 18, 2025, President Trump signed an executive order directing the U.S. Attorney General to complete the rulemaking process to reschedule marijuana to Schedule III in the most expeditious manner. This follows a process initiated by the Biden administration in 2022.

Ongoing Process: The executive order itself does not change marijuana's legal status. The change will only take effect after the formal federal rulemaking process is finalized by the Drug Enforcement Administration (DEA) and the Department of Justice (DOJ). This process involves a public comment period and an administrative law hearing, which was postponed in January 2025 and is currently awaiting resolution.

Federal vs. State Law: Until the process is complete, marijuana remains illegal at the federal level as a Schedule I drug, defined as having no currently accepted medical use and a high potential for abuse. State-level legalization for medical or recreational use remains separate from federal law. 

Potential Implications Once Finalized

If the rescheduling to Schedule III is finalized, it would have several significant impacts:

Medical Use Recognition: The federal government would formally recognize that marijuana has accepted medical uses, which would reduce barriers for scientific and clinical research.

Tax Relief for Businesses: State-legal cannabis businesses would be able to deduct normal business expenses under federal tax law (specifically, they would be exempt from IRS Code Section 280E), providing major financial relief.

No Full Legalization: Rescheduling would not make recreational marijuana legal under federal law. It would still be a controlled substance, albeit in a less restrictive category than Schedule I or II. 

As of December 2025, marijuana has not yet been officially moved to Schedule III, though a major step toward this change occurred recently. 

On December 18, 2025, President Donald Trump signed an executive order titled "Increasing Medical Marijuana and Cannabidiol Research". While several news reports have described this as a finalized reclassification, legal and administrative requirements mean the transition is still in progress: 

Current Status of Rescheduling

Executive Order: The order does not immediately reschedule marijuana. Instead, it formally recognizes marijuana's medical use and directs the Department of Justice (DOJ) to complete the ongoing rulemaking process to move it to Schedule III "in the most expeditious manner".

Administrative Process: Rescheduling must follow the requirements of the Controlled Substances Act, which involves a formal Drug Enforcement Administration (DEA) rulemaking process.

Timeline: Some experts suggest the process could be finalized within 3 to 6 months if pursued diligently by the administration. 

What This Change Means (When Finalized)

Tax Relief (280E): Cannabis businesses will be exempt from IRS Code Section 280E, finally allowing them to deduct ordinary business expenses like rent and payroll.

Medical Research: Shifting to Schedule III reduces significant bureaucratic hurdles, making it easier for scientists and medical centers to conduct clinical trials and procure study materials.

No Federal Legalization: Moving to Schedule III does not legalize recreational marijuana federally. It remains a controlled substance, and state-level recreational programs will still technically be in conflict with federal law.

Medicare CBD Pilot: Alongside the order, the administration announced a new Medicare program set to begin as early as April 2026, which may provide certain seniors with up to $500 annually for legal forms of CBD. 

https://www.google.com/search?q=has+marijuana+been+moved+from+schedule+1+to+schedule+3+2025

Norb Leahy, Dunwoody GA Tea Party Leader

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