By THE ALASKA STORY
April 23, 2026 – The Trump Administration has taken a step to reshape federal marijuana policy. On Thursday, Acting Attorney General Todd Blanche ordered that FDA-approved and state-licensed marijuana be reclassified from Schedule I to Schedule III under the federal Controlled Substances Act. The Justice Department also set an expedited administrative hearing for June 29 to consider broader changes to marijuana’s federal status.
The shift is a change from decades of federal policy that treated marijuana alongside drugs like heroin and LSD, substances defined as having no accepted medical use and a high potential for abuse. Under Schedule III, marijuana joins a category that includes drugs such as ketamine and certain prescription steroids, which are recognized as having medical value and a lower risk profile when used under supervision.
President orders accelerated rescheduling of marijuana for medical uses
The change is tailored specifically to marijuana used within state-licensed medical programs and to FDA-approved cannabis-derived products. It does not legalize recreational marijuana at the federal level, nor does it override state laws that prohibit its use. Activities outside compliant medical frameworks remain subject to federal enforcement.
The practical implications are important: For researchers, the move could unlock long-constrained avenues of study. Schedule I classification has long imposed strict licensing requirements and limited access to research-grade cannabis, slowing scientific inquiry. Reclassification is expected to ease those barriers, allowing universities and medical institutions to more readily study cannabis’s therapeutic potential.
For businesses operating legally under state medical marijuana programs, the financial impact could be immediate. Under prior federal rules, cannabis operators were barred from deducting ordinary business expenses due to a provision of the tax code, known as Section 280E, that applies to Schedule I and II substances. Moving marijuana to Schedule III removes that restriction, potentially transforming the economics of the industry.
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There may also be incremental improvements in access to banking and financial services, an area that has long been fraught for cannabis businesses navigating the gap between state legality and federal prohibition.
The policy change follows a Dec. 18, 2025, executive order from President Donald Trump directing federal agencies to accelerate the rescheduling process. That order built on earlier scientific evaluations from federal health agencies that found marijuana has accepted medical uses and a lower potential for abuse than previously classified.
Markets reacted quickly. Cannabis-related stocks surged following the announcement on Thursday, reflecting investor optimism that the move signals a more stable regulatory environment for the medical side of the industry.
