The shift delivers a major tax break to state-licensed cannabis operators and opens new research pathways — but stops short of federal legalization
Acting Attorney General Todd Blanche signed an order Thursday reclassifying state-licensed medical marijuana from Schedule I to Schedule III under federal law, the most significant shift in U.S. cannabis policy in more than five decades.
The order does not legalize marijuana — medically or recreationally — under federal law. But it moves licensed medical cannabis out of the same regulatory category as heroin and LSD, where it has sat since the Controlled Substances Act took effect in 1970, and into Schedule III, a category defined as carrying moderate to low potential for dependence. Marijuana and marijuana-derived products not distributed through a state-licensed medical program remain classified as Schedule I.
For Treasure Coast residents, the practical effects are immediate and layered. Florida is among 40 states with active medical marijuana programs, and licensed dispensaries operating in Martin, St. Lucie and Indian River counties will be eligible for a significant federal tax benefit — the ability, for the first time, to deduct ordinary business expenses on their federal returns. That change alone has the potential to alter pricing, staffing and expansion decisions at dispensaries serving patients across the region. Florida voters approved medical marijuana in 2016 with more than 71 percent of the vote, and the state now has one of the largest licensed cannabis markets in the country.
The order also requires state-licensed producers and distributors to register with the U.S. Drug Enforcement Administration under an expedited system, and explicitly protects cannabis researchers who obtain state-licensed marijuana for their work from federal penalty. Any marijuana-derived medicine already approved by the Food and Drug Administration will be similarly listed under Schedule III, officials said.
Blanche said the Justice Department was "delivering on President Trump's promise" to expand access to medical treatment. "This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information," he said in a statement.
Michael Bronstein, president of the American Trade Association for Cannabis and Hemp, called it "the most significant federal advancement in cannabis policy in over 50 years."
Critics pushed back sharply. Kevin Sabet, chief executive of Smart Approaches to Marijuana, said the order amounts to "a tax break to Big Weed" and accused the administration of "sending a confusing message about marijuana's harms to the American public." More than 20 Republican senators urged Trump last year to maintain current restrictions, officials confirmed.
Blanche sidestepped a lengthier DEA review process — which had drawn nearly 43,000 public comments under the Biden administration — by invoking a federal law provision allowing the attorney general to classify drugs regulated under international treaty. The Trump administration separately announced a hearing beginning in late June to consider broader marijuana reclassification beyond the medical context. [NEEDS VERIFICATION: precise hearing date and scope]
For Treasure Coast residents enrolled in Florida's medical marijuana program, the reclassification takes effect immediately for licensing and tax purposes. Dispensaries in Martin, St. Lucie and Indian River counties will need to complete DEA registration under the new framework before the full scope of regulatory relief applies.
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.
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