Tipsheet

Trump Just Made a Game-Changing Move on Marijuana

President Donald Trump on Thursday signed an executive order downgrading cannabis from the most restrictive drug category.

While marijuana is still illegal at the federal level, this move will ease restrictions on the plant.

From The New York Times:

The move also authorizes a pilot program to reimburse Medicare patients for products made with CBD, a popular compound of cannabis that is not psychoactive.

Mr. Trump’s order would move marijuana from a Schedule I drug, the same category as heroin, to a schedule III drug, the same category as ketamine. But it does not legalize the drug, as some states have done, and would not affect law enforcement’s approach to making arrests connected to marijuana, according to senior administration officials who spoke on condition of anonymity to describe the order.

Marijuana’s classification as one of the most dangerous and habit-forming substances has long drawn criticism, and re-categorizing the drug is an acknowledgment by the federal government that cannabis has some medicinal value and lower potential for abuse.

Mr. Trump’s order follows steps taken by the Biden administration to reclassify the drug, signaling a shift from both Republican and Democratic administrations in how the federal government views the substance.

But there is opposition to Mr. Trump’s move. Eighteen G.O.P. senators and 26 House Republicans recently wrote letters to the president opposing the reclassification. CatholicVote, a conservative nonprofit group, has also lobbied the president against the change.

“In light of the documented dangers of marijuana, facilitating the growth of the marijuana industry is at odds with growing our economy and encouraging healthy lifestyles for Americans,” the senators wrote. “We urge you to continue your strong leadership of our country and our economy, and to turn away from

“Today, I’m pleased to announce that I will be signing an executive order to reschedule marijuana from a schedule one to a schedule three controlled substance with legitimate medical uses,” Trump said on Thursday.

We have people begging for me to do this, people that are in great pain. For decades, this action has been requested by American patients suffering from extreme pain, incurable diseases, aggressive cancers, seizure disorders, neurological problems, and more, including numerous veterans with service-related injuries and older Americans who live with chronic medical problems that severely degrade their quality of life.

Rescheduling cannabis means the federal government will treat the plant as less dangerous than before, when it was ranked in the same category as heroin, cocaine, and other drugs.

For those who consume marijuana, this move means that the government finally recognizes its medicinal use, which makes it easier for scientists and doctors to study the plant, develop prescription medications, and possibly expand access to medical products under Medicare and other programs.

For cannabis companies, this move will make a tremendous difference. It means they are no longer subject to the ridiculously harsh IRS 280E rule, which means they can deduct normal business expenses. The rescheduling will also attract more investors, improve access to banking for these companies, and make it easier for them to raise capital.