President Donald Trump has signed an executive order directing federal agencies to move forward with the rescheduling of marijuana under federal law, a step that could ease financial pressure on the legal cannabis industry while stopping short of nationwide legalization.
The order instructs the Justice Department and the Drug Enforcement Administration to advance a review that would move marijuana from Schedule I of the Controlled Substances Act to Schedule III. Marijuana’s current classification places it alongside heroin and LSD, despite its legalization for medical use in most states and recreational use in nearly half the country. Reclassification of marijuana could move from Schedule I to Schedule III.
Cannabis Regulatory Agency Executive Director Brian Hanna, in a press release, said the CRA is reviewing the president’s executive order.
“While we are still assessing the details of the order, this development has the potential to move the federal marijuana policy debate forward after years of advocacy by patients, businesses, and states across the country,” Hanna said.
“Rescheduling marijuana carries important implications – but also clear limitations – for state-regulated markets. That distinction is critical for policymakers, media, and the public to understand as this process continues.
“In July 2024, the CRA submitted formal comments to the U.S. Drug Enforcement Administration during the rescheduling rule making process,” Hanna added. “In those comments, we emphasized the need for federal policy to reflect the realities of state-regulated markets like Michigan’s, where hundreds of thousands of patients and adult-use consumers rely on cannabis safely and responsibly, and where a regulated industry contributes billions of dollars to the economy. We also underscored the importance of a whole-of-government approach to rescheduling, including clear guidance on implementation, oversight, banking, taxation, public safety, and research.
“As our July 2024 public comment makes clear, simply changing a designation within the Controlled Substances Act – without coordinated, practical implementation – will not, on its own, resolve the challenges faced by patients, businesses, financial institutions, or state regulators. Rescheduling does not automatically align federal law with existing state cannabis programs,” Hanna said.
We look forward to completing our review of the executive order and continuing to work with our federal partners to ensure that any change in classification is accompanied by clear guidance and thoughtful implementation that meaningfully addresses long-standing barriers – particularly in banking, research, social equity, and taxation – while preserving the authority, safety, and integrity of state-regulated systems like Michigan’s.”
