Trump Administration Moves Medical Marijuana to Schedule III, Easing Federal Controls

The Trump administration moved to ease decades-old federal restrictions on medical marijuana Thursday, reclassifying it from Schedule I — the most restrictive federal drug category — to Schedule III, a shift that could reshape the industry, cut taxes on cannabis businesses, and open new doors for medical research.

Acting Attorney General Todd Blanche announced the change, saying it "allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information." The reclassification applies to two categories of marijuana products: those that are FDA-approved and those regulated under a state medical marijuana license.

For Treasure Coast residents, the policy shift carries direct consequences. Florida is one of 40 states with a legal medical marijuana program, and the state's licensed dispensaries — including operations serving Martin, St. Lucie, and Indian River counties — have operated under a punishing federal tax structure that treats cannabis businesses differently from virtually every other legal industry. Under current federal law, cannabis companies cannot deduct standard business expenses, effectively taxing them on gross revenue rather than profit. Schedule III status would eliminate that burden for state-licensed operators.

Sam Brill, CEO of Ascend Wellness Holdings, which operates dispensaries in multiple states, said his company pays "a full tax bill on my gross margin, which no other company does except for people in our industry." After the shift was confirmed, Brill called it "an important step toward a more transparent and accountable market that supports compliant operators," while acknowledging it "does not resolve all structural challenges in the industry."

Not everyone welcomed the move. Kevin Sabet, president of the anti-legalization group Smart Approaches to Marijuana, condemned the rescheduling, arguing that "today's marijuana is more dangerous than previously thought, not less dangerous." Sabet warned the change amounts to legalization "through the back door" and vowed to challenge it legally. His group and others have already signaled they will fight the rescheduling in court.

Thursday's action does not affect recreational marijuana. The reclassification was executed through a streamlined process tied to U.S. compliance with international drug treaty obligations — a legal shortcut opened by a Trump executive order in December. Traditional rulemaking will govern any broader changes, officials said.

The Drug Enforcement Administration is scheduled to hold a hearing June 29 on the wider proposed rescheduling of marijuana beyond medical programs — a proceeding that could determine how far the federal government ultimately goes.

For Treasure Coast residents who hold Florida medical marijuana cards, immediate practical changes are limited. However, the June 29 DEA hearing in Washington will signal whether the federal government moves further, potentially affecting drug testing rules, banking access, and the booming THC consumer market that has already spread into convenience stores and gas stations across Florida's coastal communities.

This article was generated with AI assistance using publicly available information. It was reviewed and approved by a human editor before publication. TC Sentinel uses AI writing tools in accordance with FTC guidelines.