Trump administration reclassifies medical marijuana as less dangerous drug.

President Donald Trump's administration reclassified medical marijuana as a less dangerous drug on Thursday, a move that drew praise from leaders in the cannabis industry.

Acting Attorney General Todd Blanche signed orders rescheduling medical marijuana in states where it is legal — including Florida — from Schedule 1, which includes drugs such as heroin, to Schedule III and setting in motion efforts to fully reclassify recreational marijuana in the coming months.

The medical-marijuana reclassification order went into effect immediately and will allow operators in the 40 states where medicinal cannabis is authorized to take advantage of federal tax breaks. The federal tax changes could draw significant resources to an industry where investment capital has withered amid a prolonged campaign to reclassify marijuana as its medical and recreational use blossomed.

Kim Rivers, the CEO of Tallahassee-based Trulieve Cannabis Corp., called Blanche’s order “the first ever meaningful policy shift related to cannabis in the history of America.”

Trulieve is the largest of Florida’s 25 licensed medical-marijuana operators in a state with more than 926,000 active patients. The industry has mushroomed since voters approved a 2016 constitutional amendment authorizing medical cannabis for patients with a broad swath of medical conditions. 

“Today is historic!” Rivers said in a post on X thanking Blanche and Trump for delivering on the president’s campaign promise to reclassify marijuana.

“Thank you not only for listening to the millions of Americans who benefit from medical marijuana but for acting decisively and comprehensively ushering in a new era for medical marijuana research in this country. Promises made, promises kept!” Rivers’ post said.

Blanche’s order rescheduled FDA-approved products containing marijuana and marijuana products regulated by a state medical-marijuana license to Schedule III of the Controlled Substances Act and initiated an expedited administrative hearing process to consider the broader reclassification of marijuana. The hearing is set to begin in June.

“These actions will enable more targeted, rigorous research into marijuana's safety and efficacy, expanding patients' access to treatments and empowering doctors to make better-informed healthcare decisions,” Blanche posted on X.

The order allows state-licensed medical-marijuana operators to begin deducting business expenses on federal taxes, a provision long sought by cannabis companies.

The inability to deduct operating expenses from federal taxes has been “the single biggest drag” on the medical-marijuana industry since its inception, according to John Lockwood, an attorney who specializes in the cannabis industry. 

“If you’re a wealthy investor, you’ve either lost money in the cannabis world or you knew somebody who lost money in the cannabis world,” Lockwood told State Affairs.

Alleviating operators’ tax burden “is massive,” he added.

“That’s going to attract investors that are sitting on the sidelines,” Lockwood predicted.

The reclassification also could draw new patients to the highly regulated medical-marijuana industry facing fierce competition from over-the-counter hemp intoxicating products sold at convenience stores and other retail outlets.

“For consumers and investors, marijuana just doesn’t seem as scary as it was yesterday, all of a sudden. It’s no longer lumped in with heroin and a lot of other drugs,” Lockwood said.

Reclassification “absolutely is an important part of the removal of that stigma” surrounding marijuana, physician Barry Gordon told State Affairs.

“I think it’s another small step in the ever-evolving process” toward normalizing medical use of marijuana, said Gordon, who owns the Venice-based Compassionate Cannabis Clinic.

Marijuana was essentially outlawed by the federal government in the Marihuana Tax Act of 1937 and classified as a Schedule I drug in 1970.

Blanche’s order noted that medical marijuana has undergone a transformation since California became the first state in the nation to authorize its use in 1996.

“Today the vast majority of States maintain comprehensive licensing frameworks governing cultivation, processing, distribution, and dispensing of marijuana for medical purposes,” Blanche’s order said. 

The states’ efforts, “taken as a whole,” demonstrate “a sustained capacity to achieve the public-interest objectives ... including protecting public health and safety and preventing the diversion of controlled substances into illicit channels.”

The order sets up an expedited process for state-licensed medical-marijuana companies and distributors to register with the U.S. Drug Enforcement Administration.

In a separate order Thursday, Blanche set a June 26 hearing for the DEA to consider a broader rescheduling of recreational marijuana, an effort initiated by former President Biden’s administration but which has not advanced.

Blanche’s order requires the DEA to complete the rescheduling process “in the most expeditious manner” under federal law. 

The orders sparked intense scrutiny on social media Thursday, with some proponents of recreational marijuana questioning how long it will take for cannabis to be reclassified across the board.

“Hearing starts June 29th: My best guess is hearing process is done and final rule to reschedule all marijuana issued before end of year, likely in Q3. Seems fast to me!” Rivers posted on X.

Dara Kam is a senior Statehouse reporter for State Affairs Florida. Reach her at dkam@stateaffairs.com or on X @TheDaraKam.