Dec 18, 2025
Historic Shift in Federal Cannabis Policy as Administration Pursues Schedule III
FOR IMMEDIATE RELEASE
December 18, 2025
DENVER --- During a Thursday press conference, President Donald Trump directed federal agencies via an executive order to begin the process of reclassifying marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA). The order to reschedule is the most consequential shift in federal cannabis policy in more than 50 years.
Its implementation is anchored by a historic federal-state CBD Research Pilot Program, establishing a path for Medicaid-reimbursed senior care with cannabinoid medicine and critical federal-state coordinated research to support evidence-based regulation of cannabinoids. That framework underscores the President’s stated intent to work with Congress to draw a more distinct line between intoxicating cannabis and non-intoxicating products.
The President’s recommendation culminates decades of scientific analysis and state experimentation, as well as bipartisan recognition that cannabis does not belong in the same legal category as heroin and other Schedule I substances.
“This is the beginning of a new era of public health policy. The directive to reschedule marijuana, initiated by the Biden administration and finalized under President Trump, is a long-overdue acknowledgment of marijuana’s medical value and safety, marking a final repudiation of failed Nixon-era prohibition. This shift is anchored by the Kessler CBD Federal Research Pilot Program, which fosters critical federal-state research and sets the stage to resolve problems in federal hemp and cannabis laws, creating a mandate for the marijuana and hemp industries to work together with the government on unified, evidence-based reform,” said Shawn Hauser, partner at Vicente LLP.
Vicente attorneys have been deeply involved in advancing federal cannabis rescheduling since 2022, under both the Biden and Trump administrations. Their work has included compiling and reviewing scientific and safety data supporting Schedule III, representing a petitioner in the DEA’s administrative hearing, coordinating thousands of expert public comments during the federal notice-and-comment process, contributing to the Coalition for Cannabis Scheduling Reform’s white paper that informed the FDA’s recommendation, and advising on compliance with international treaty obligations.
Vicente LLP’s national cannabis legal and policy team will host a timely online briefing on Monday, December 22 at 1 p.m. MT to address complex questions about how rescheduling will unfold, what changes may take effect in the near term, and how the move to Schedule III could reshape state-legal cannabis programs, enforcement priorities, taxation, medical research, patient access, and Medicare implications, and the hemp and cannabinoid marketplace. See below for more details.
Implications of a Move to Schedule III
A Schedule III status removes restrictive research barriers that have limited medical and pharmaceutical study of cannabis and ends the application of Internal Revenue Code Section 280E, finally allowing state-legal cannabis businesses to take standard business deductions.
“This monumental change will have a massive, positive effect on thousands of state-legal cannabis businesses around the country. Rescheduling releases cannabis businesses from the crippling tax burden they have been shackled with and allows these businesses to grow and prosper,” said Brian Vicente, founding partner at Vicente LLP. “We work with hundreds of licensed cannabis businesses, and the ability to deduct ordinary operating costs under the Schedule III proposal is a game-changer for them."
Rescheduling would not, however, establish a federal regulatory framework for cannabis, address interstate commerce, or legalize adult-use sales nationwide. Vicente LLP emphasizes that congressional action remains essential to achieving a durable and comprehensive national policy.
“This momentum should empower us to push Congress for a comprehensive and responsible regulatory framework for medical and adult-use cannabis that ensures public safety, provides equitable access, and delivers the full scope of criminal justice reform that rescheduling alone cannot achieve,” Hauser said.
About Vicente’s Online Briefing
On Monday, December 22 at 1 p.m. MT/3 p.m. ET, Vicente LLP will host a free online briefing, “Marijuana to Schedule III: What Changes, What Doesn’t, and What Comes Next” covering:
- An overview of cannabis rescheduling and impacts on state-legal programs
- An overview of federal-state research pilot programs and impacts for medical cannabis
- Rescheduling timeline, next steps, and potential litigation risks
- Business and tax effects including changes to 280E, banking access, and operational considerations
- Medical research and patient access implications
- Hemp and cannabinoid market impacts
Speakers will include Brian Vicente, Shawn Hauser, Charles Alovisetti, Adam Fine, Cassia Furman, and Tim Swain of Vicente LLP.
Register now and learn more at: bit.ly/marijuana-schedule3-timely-briefing
About Vicente LLP
Vicente LLP is the premier cannabis and psychedelics law firm. Since 2010, the firm has helped clients navigate laws and regulations, build and grow businesses, and shape public policy to advance the legal marijuana, hemp, and psychedelics sectors across the globe. Vicente LLP has been ranked a Nationwide Band 1 law firm by Chambers and Partners since 2019. Learn more at VicenteLLP.com.