The order Todd Branch signed does not legalize marijuana for medical or recreational use under federal law. But it did change the way it was regulated, moving licensed medical marijuana from Schedule I, a drug reserved for non-medical uses with a high potential for abuse, to the less stringently regulated Schedule III. It also provides significant tax breaks for licensed medical marijuana operators and eases some of the barriers to researching marijuana.
The Trump administration has also said it is launching a broader process to reclassify marijuana, with hearings scheduled for June.
Trump told his administration in December to reclassify marijuana as soon as possible. On Saturday, as the president signed an executive order that had nothing to do with hallucinogens, he seemed to express frustration that it had taken so long.
Branch said Thursday that the Justice Department is “fulfilling President Trump’s promise” to expand Americans’ access to health care options. “This rescheduling action allows for research into the safety and effectiveness of this substance, ultimately providing better care for patients and more reliable information for physicians,” he said.
Branch’s action does much to legalize medical marijuana programs in the 40 states that have adopted them. It establishes an expedited system for state-licensed medical marijuana producers and distributors to register with the U.S. Drug Enforcement Administration.
The bill clarifies that cannabis researchers will not be penalized for using state-licensed cannabis or cannabis-derived products in their work and provides a windfall for state-licensed medical cannabis companies by allowing them to deduct business expenses from federal taxes for the first time.
The order represents a major policy shift for the U.S. government, which continues to enforce long-standing cannabis prohibition since the Marijuana Tax Act of 1937, despite nearly all states approving some form of marijuana use. Twenty states, including Washington, D.C., have authorized adult recreational use of marijuana, 40 states have medical marijuana systems, and eight states allow low-THC hemp or CBD oil for medical use. Only Idaho and Kansas ban marijuana.
Michael Bronstein, president of the American Hemp and Hemp Trade Association, called it “the most significant advancement in cannabis policy in 50 years.” “This acknowledges what Americans have known for a long time, that marijuana is medicine,” he said.
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