President Trump’s Executive Order to Loosen Marijuana Restrictions: A Mixed Bag of Immediate and Long-Term Changes
President Trump’s long-awaited executive order to ease federal restrictions on marijuana has sparked both excitement and caution within the cannabis industry. While the order promises some immediate relief, experts warn that it’s not as straightforward as flipping a switch.
The order directs Attorney General Pam Bondi to reschedule marijuana from Schedule I to Schedule III, a lower-risk drug category. However, this change won’t automatically revoke federal laws targeting marijuana, and interstate marijuana commerce will remain illegal.
The process of rescheduling marijuana is complex and will depend on the path chosen by the Department of Justice (DOJ). The DOJ can opt for a traditional, lengthy notice-and-comment process or use an expedited option, which could speed up the process. If the latter is chosen, the public may not be given the opportunity to comment.
One immediate benefit of the order is that it would exempt cannabis businesses from the 280E tax code, which restricts their ability to claim common tax deductions. This could save companies millions of dollars in taxes.
However, other changes will take time to materialize. For instance, rescheduling won’t automatically open up new research opportunities. While it would ease some laboratory regulations and eliminate the need for a Schedule I license, researchers would still face challenges in obtaining marijuana for study.
The sourcing of marijuana for research is another hurdle that needs to be addressed. The U.S. requires researchers to obtain marijuana from a limited number of sources, which could be improved but is not directly tied to the controlled substances schedule.
Experts caution that the rescheduling process is not a guarantee of success and may face legal challenges from anti-marijuana groups. The DOJ will need to balance the need for expediency with the need to defend its actions in court.
In the meantime, cannabis businesses will continue to operate under a patchwork of state and federal laws. While the order promises some relief, it’s clear that the path to full legalization and regulation will be long and winding.
