Trump Reclassifies Medical Marijuana to Schedule III

President Donald Trump issued an executive order on Thursday reclassifying state-licensed medical marijuana from Schedule I to Schedule III under federal drug regulations, a move that provides significant relief to the industry while stopping short of full legalization.

The change recognizes medical marijuana's lower potential for abuse and accepted medical uses, allowing licensed dispensaries to deduct business expenses on federal taxes, a benefit previously denied under Schedule I rules. It also reduces barriers to cannabis research and opens possibilities for exporting medical marijuana to other countries. However, the order maintains federal prohibition on marijuana and does not extend to recreational use, though it could pave the way for broader changes. An administrative hearing scheduled for late June may consider reclassifying marijuana more comprehensively, potentially benefiting state-licensed recreational markets as well.

"This is a signal that this administration means business on getting this done," said Jesse Alderman, a cannabis industry attorney with Foley Hoag in Boston. The shift marks a departure from decades of strict federal prohibition, even as states have...