Trump Signals Cannabis Rescheduling: Schedule III Marijuana Decision Expected Soon
By Shawn Hauser
Aug 20, 2025
Key Takeaways
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President Trump’s administration is actively reviewing a proposal to move cannabis from Schedule I to Schedule III of the federal Controlled Substances Act (CSA) and a decision on rescheduling is expected within the next few weeks.
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Rescheduling would officially recognize medical use and remove cannabis from the same federal control category as heroin and other dangerous drugs.
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Key benefits for the cannabis industry include elimination of IRS 280E tax penalties, improved access to banking and capital, and accelerated medical research.
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Vicente LLP recommends cannabis operators seek legal and policy guidance to navigate possible regulatory changes and compliance risks.
President Donald Trump has confirmed that his administration is “looking at” a proposal to move cannabis from Schedule I to Schedule III of the federal Controlled Substances Act (CSA), with a decision expected “over the next few weeks.”
This is the first time the president has spoken publicly about cannabis rescheduling since taking office. His remarks follow reports from CNN and The Wall Street Journal that the White House is actively reviewing agency recommendations on the matter, which is a development with major implications for the cannabis industry and federal marijuana policy change in 2025.
Trump’s Comments on Cannabis Rescheduling
During an August 11 White House press conference, President Trump described marijuana reclassification as “a very complicated subject,” stating that “some people like it, some people hate it,” and noting he has “heard great things” about medical cannabis but “bad things” about other uses, according to Cannabis Business Times. He said the administration will “make a determination over the…next few weeks, and that determination hopefully will be the right one.”
The president’s remarks echo a Trump campaign pledge to support rescheduling, although Monday’s comments appeared more cautious than his prior endorsements.
What Schedule III Marijuana Would Mean
If the administration directs the Drug Enforcement Administration (DEA) to move cannabis to Schedule III, it would:
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Acknowledge medical use for the first time in 50+ years: Officially recognize cannabis’ medical benefits and lower abuse potential compared to Schedule I and Schedule II drugs, removing it from the same category as heroin and PCP.
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Legitimize cannabis in the medical community: Federal recognition will strengthen credibility for doctors, patients, and researchers, with far-reaching benefits across healthcare.
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Accelerate cannabis research: “Existing research indicates cannabis holds tremendous promise for a wide range of medical and therapeutic uses, including pain and opiate use disorders, which have reached epidemic levels in recent years. Yet clinical trials are limited in comparison to other treatments. Schedule III will not lift all barriers to research, but it may contribute to the advancement of urgently needed research, which should be prioritized and vigorously pursued,” Vicente partner Shawn Hauser explains in a Marijuana Moment op-ed. This, along with recent legal changes supporting cannabis research, such as the HALT Fentanyl Act, can significantly advance this much-needed research.
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End 280E tax penalties: Eliminating the IRS rule preventing cannabis businesses from deducting ordinary expenses could potentially save operators hundreds of thousands or millions annually.
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Improve access to banking and capital: Reduce legal risk for lenders, potentially increasing credit, loans, investment activity, and mergers & acquisitions across the industry.
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Reinforce current enforcement trends: Federal enforcement against compliant state-licensed operators has historically been low; rescheduling could further solidify that stance, though formal DOJ guidance is not guaranteed.
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Increase momentum for broader reform: Recognition of cannabis’ medical use and rescheduling may embolden policymakers and advocates to push for further medical changes, positioning Schedule III as the first step rather than the finish line.
What Schedule III Marijuana Would Not Do
Rescheduling maintains marijuana as a controlled substance under the purview of DEA and commercial cannabis products are not FDA-approved products. It does not legalize marijuana. Even under Schedule III cannabis classification:
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Make cannabis fully federally compliant: Sales under state programs would still violate federal law.
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Open interstate commerce: Transporting cannabis across state lines would remain illegal.
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Allow dispensary products in pharmacies: Whole-plant cannabis and cannabis products would not suddenly become available at pharmacies without FDA approval.
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Prevent FDA enforcement: Rescheduling does not change marijuana’s illegality as a consumer good under the FDA (excepting certain approved drugs). However, it’s possible that rescheduling may increase FDA scrutiny of cannabis products, especially around false or misleading health claims, as seen in the FDA’s approach to hemp.
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Falls short of imminently needed criminal justice reform: Cannabis arrests and convictions could still occur. Rescheduling does not remove potential criminal penalties, expunge past records, free those incarcerated for marijuana offenses, or address ongoing disparities in enforcement.
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Replace the need for descheduling: The industry would still face challenges tied to the controlled status of cannabis, including patchwork compliance burdens and limits on federal reform until cannabis is removed entirely from the CSA. However, rescheduling and acknowledgment of marijuana’s medical use and relatively low abuse potential are critical incremental progress for the industry.
Why This Is Instrumental for the Cannabis Industry
If cannabis is moved to Schedule III, the industry could see immediate and significant changes. Most notably, the end of 280E tax penalties would save individual marijuana businesses hundreds of thousands, if not millions, in excessive taxes. These savings could be reinvested into expansion, higher wages, and increased political engagement at the federal level.
However, descheduling is necessary to relieve the cannabis industry from its inappropriate regulation as a controlled substance with no medical use. This includes challenges in the ability to operate in interstate commerce, stigma associated with the drug, and access to banking and financial services. Unfortunately, Schedule III will not solve the marijuana industry’s banking troubles, but it should improve current conditions and has the potential to garner more congressional support on cannabis issues in general. The shift could also increase FDA enforcement, particularly against false or misleading drug claims.
As the industry navigates this potential shift, cannabis operators should work with experienced legal and policy advisors to ensure success and compliance under marijuana’s new classification and manage compliance risks. Vicente LLP has been at the forefront of cannabis scheduling reform for over 15 years, helping businesses anticipate regulatory changes and position themselves for long-term success.
Stay Informed
Vicente LLP will continue monitoring federal marijuana policy changes and the Trump administration’s stance on DEA cannabis reclassification.
For a deeper dive into the legal and business implications of Schedule III, read our analysis: 4 Major Implications of Cannabis Moving to Schedule III.
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