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President Biden Announces Federal Government Will Reschedule Cannabis in ‘Monumental’ Announcement

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President Joe Biden announced that the U.S. Department of Justice will officially reschedule cannabis, moving it from Schedule I, reserved for dangerous drugs with no medical value, to Schedule III. The news follows the historic announcement on April 30, that the U.S. Drug Enforcement Administration (DEA), will move to reclassify cannabis under Schedule III, the Associated Press reported.

Biden, along with Vice President Kamala Harris, both recorded videos of the announcement and posted them on social media.

“This is monumental,” Biden said in a video that was posted on X. “Today my administration took a major step to reclassify marijuana from a Schedule I to a Schedule III drug. It’s an important move towards reversing longstanding inequities.”  

“Today’s announcement builds on the work we’ve already done to pardon a record number of federal offenses for simple possession of marijuana. And it adds to the action we’ve taken to lift barriers to housing, employment, small business loans, and so much more for tens of thousands of Americans.”

Biden continued, “No one should be in jail just for using or possessing marijuana.”

“Today’s announcement builds on the work we’ve already done to pardon a record number of federal offenses for simple possession of marijuana. I’m committed to writing those historic wrongs,” he said. “You have my word.

“Currently marijuana is classified on the same level as heroin and more dangerous than fentanyl,” Harris said in another video. “We are finally changing that. But I want to thank all of the advocates and everyone out there for helping to make this possible and we are on the road to getting it done.” 

“This recommendation validates the experiences of tens of millions of Americans, as well as tens of thousands of physicians, who have long recognized that cannabis possesses legitimate medical utility,” NORML Deputy Director Paul Armentano said. “But it still falls well short of the changes necessary to bring federal marijuana policy into the 21st century. Specifically, the proposed change fails to harmonize federal marijuana policy with the cannabis laws of most U.S. states, particularly the 24 states that have legalized its use and sale to adults.”

“Nevertheless, as a first step forward, this policy change dramatically shifts the political debate surrounding cannabis,” Armentano added. “Specifically, it delegitimizes many of the tropes historically exploited by opponents of marijuana policy reform. Claims that cannabis poses unique harms to health, or that it’s not useful for treating chronic pain and other ailments, have now been rejected by the very federal agencies that formerly perpetuated them. Going forward, these specious allegations should be absent from any serious conversations surrounding cannabis and how to best regulate its use.”

A 60-day comment period will soon begin to allow input on the pros and cons of Schedule III.

Questions and Shortcomings of Schedule III

Industry leaders pointed out that reclassifying cannabis under Schedule III won’t absolve the discord between federal law and dozens of medical adult-use cannabis laws at the state level. For some, the reclassification announcement leads to more questions.

“For me, it raises more questions than solving any problems that we have,” said Christopher Louie, Co-Founder & CEO of Made in Xiaolin, a legacy cannabis operator in Colorado and soo in New York. “What does this mean from here? Great, marijuana now has medical benefits in the eyes of the government. Does this mean that in order to obtain it you need a prescription and in order to distribute or manufacture it I would need a medical license? It seems this could help out pharmaceutical companies and big businesses affiliated in the medical field, but I’m not sure how this benefits companies like ours.”

Others commended the small step towards legalization that signals a shift in the way cannabis is viewed in the eyes of the federal government.

“We commend the POTUS’s efforts to reschedule cannabis to Schedule III. While the fight isn’t over to legalize cannabis nationally, this is a much-needed wind in our sails that we haven’t felt in over 50 years at the federal level,” said Vince Ning, co-founder and CEO of Nabis, a leading wholesale marketplace. “As far as public commentary goes, we will certainly be providing our thoughts on how to improve this change to push for the full legalization of this controlled substance, and how to provide safe access of quality tested cannabis products to the patients in need through existing regulatory frameworks that currently exist today.”

“President Biden characterized rescheduling as a means of reversing longstanding inequities,” said Brian Vicente, founder of Vicente LLP. “One dominating inequity cannabis businesses face is the inability to deduct regular business expenses, since they sell a Schedule 1 substance.  We work with hundreds of licensed cannabis businesses, and the ability to deduct ordinary operating costs under the Schedule 3 proposal would be a game-changer for them. This proposal will release cannabis businesses from the crippling tax burden they are currently shackled with and allow these businesses to grow and prosper.”

“On behalf of thousands of legal businesses operating across the country, we commend President Biden for taking this important first step toward a more rational marijuana policy. Now it’s time for Congress to enact legislation that would protect our industry, uphold public safety, and advance the will of the voters who overwhelmingly support making cannabis legal for adults,” said Aaron Smith, NCIA CEO & co-founder. “Rescheduling alone does not fix our nation’s state and federal cannabis policy conflict. Only Congress can enact the legislation needed to fully respect the states and advance the will of the vast majority of voters who support legal cannabis.”

There will then be a 60-day public comment period before the rule is potentially finalized.





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Analysis: Don’t hold your breath for legalization under Trump 2.0

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The fog of the inauguration has cleared, and prospects for weed law reform look dim in Washington D.C. under the second Trump Administration. 

But don’t get bummed—experts say voters have the power to dictate their fate at the level where it most impacts them: their city and state.

According to veterans of the country’s weed wars for decades, no executive order, DEA ruling, or Congressional bill is on tap to deliver the legalization that 70% of US voters want. But a series of state battles are brewing, where regular folks can defend and advance their freedoms.

“No one is coming to save us. There’s no hero here,” said cannabis investor Emily Paxhia, co-founder at Poseidon Investment Management. Paxhia is a veteran of the major reform group Marijuana Policy Project. “Every victory has been at the state level, and I think there’s still hope.”

Before we dive into the weed reform battles brewing in California, Ohio, Montana, Nebraska, and Texas, let’s run down prospects in the three branches of government: a distracted Executive; a hostile Legislative; and a wild card Judicial.

Conflicting White House priorities

Cannabis enjoy 90% support for medical legalization and 70% support for adult-use laws. (David Downs/Leafly)
Populist plant: Cannabis enjoys 90% support for medical legalization and 70% support for adult-use laws. (David Downs/Leafly)

Many experts don’t see legal weed as a priority at a Republican White House. 

During the election, the famously straight-edge candidate said he supported Florida legalization Amendment 3, rescheduling, and a State’s Rights approach to pot policy. Since then—silence. Some take the President at his word, including the major lobbying group the US Cannabis Council.

“President Trump has clearly stated his position on cannabis reform. He supports rescheduling, banking access, and state-level legalization,” the USCC wrote to Leafly. “We have every expectation that he will follow through on his commitments, and we look forward to working with his administration to move our nation forward.”

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Conversely, Paul Armentano—Deputy Director of America’s most notable reform group, the National Organization for the Reform of Marijuana Laws (NORML)—doubts the President will lift a finger for potheads.

“There is really nothing in Trump’s history that would lend one to believe that this is an issue that he wishes to prioritize.”

Paxhia said industry and experts have briefed the President, and he understands legal cannabis is about taxation and regulation, not underage use.

“He’s been very receptive, but the biggest question is where the priority lies for his new presidency.”

A dead end at HHS and DEA

President Biden’s bungling of rescheduling showed how the White House can’t just snap its fingers and take marijuana off the Controlled Substances Act. It requires the Drug Enforcement Administration or an act of Congress. The folks at both of those places are no friend to grass.

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President Trump nominated pro-pot Robert F. Kennedy Jr. as Health and Human Services Secretary, but then RFK. Jr. promptly demurred to the DEA.

Moreover, President Trump then nominated a longtime drug warrior to run the DEA—Terry Cole. That’s bad news for those hoping the DEA would give rescheduling marijuana a fair hearing.

“Cannabis prohibition is in the DNA of the DEA. What are you going to do—strip it out?”

Emily Paxhia, co-founder, Poseidon Asset Management

Armentano said from years of experience that rescheduling is a catch-22: “There is no way you’re ever going to get a level playing field in that process.”

So legalizing administratively looks like a dead-end. What about Congress?

Congress: Dim and dimmer

Congressional Republicans promise to do less on weed law reform than the do-nothing Democrats that preceded them.

For example, former Senate majority leader Chuck Schumer never brought even a modest pot banking bill to the Senate floor. The first Republican pot bill this session would retain prohibition-era taxes on any cannabis business deemed legal.

Congress rewards seniority, and the shot-callers in both houses are veterans of prohibition, said Armentano.

“The older the lawmaker, the more wedded they are to the sort of war on drugs mentality of the 1980s.”

Paul Armentano, Deputy Director, NORML

The Supreme Court: Joker’s wild

One bright spot might turn out to be the judicial branch. The highest court in the land now envisions a less powerful federal government. That vision could net a win for state weed programs.

The Supreme Court has taken a more federalist turn after several Trump appointments. Specifically, the new conservative majority could narrow the reach of 1970’s Controlled Substances Act, and thus protect state-legal cannabis systems. 

In particular, a pending case questions the application of the US Constitution’s inter-state Commerce Clause to quash intra-state weed commerce. 

“This is an avenue that doesn’t get enough attention,” she said.

The real action: Back in the States

Cannabis fans can score real wins defending the weed rights they’ve already won and advancing new ones at the state level this year.

It’s an opportunity to hold your elected representatives accountable for real change. Take a look:

Protecting Montana

For example: Montanans must rally to protect legalization there. It’s under threat by a new bill to charge each recreational smoker $200 and make them register with the state. Another bill caps THC at 15% across the board—a giveaway to street dealers and the illicit market.

“They are really after us this time,” David Liberman, general manager at Lionheart Cannabis. Montana’s 100,000 or so cannabis consumers can get engaged here.

Tax equality for Californians

Meet your lawmaker during California Lobby Day March 24. (Courtesy CA NORML)
Meet your lawmaker during California Lobby Day March 24. Photo from 2024. (Courtesy CA NORML)

Californians can meet their representative Sacramento Lobby Day on March 24 to stop another tax hike. Cali weed smokers pay 150 times the taxes on a joint compared to a glass of wine, and 60 times more taxes than beer drinkers.

Defending Ohio, Nebraska, and South Dakota

Ohio, Nebraska, and South Dakota have legalized adult-use, or medical cannabis, but politicians didn’t get the memo. Supporters in each state will have to defend their voter-approved measures against Republican efforts to undo the people’s will.

Pennsylvania’s push

Furthermore, Pennsylvania’s Governor Josh Shapiro wants to enact majority-supported adult-use legalization there, but he’ll need voters to lean on their representatives.

“Legalizing adult-use cannabis will make Pennsylvania more competitive, bring in more money to help our communities, and create real opportunity for small businesses all across our Commonwealth,” he wrote Feb. 24.

Freedom to grow in Washington state

Talk about a bellwether: one of the nation’s oldest adult-use cannabis states—Washington—will still lock you up for growing a single weed plant. Will voters speak up to help pass House Bill 1449? Weigh in here.

Find your voice

With 41 medical states, and super-majority US support for legalization—no voter should fear raising the cannabis issue with their state representative, or state senator, said Armentano. There are about 34 million regular cannabis users in America. It’s high time elected officials heard from them.

For example, weed voters defeated an Ohio legalization attack in 2023 with 7,500 emails to legislators.

There are about 34 million regular cannabis users in America. It’s high time elected officials heard from them.

“We have seen when a lot of cannabis consumers push this issue, politicians will respond,” he said.

Even better, defeating many state freedoms often requires politicians to just skip or abstain from a committee vote. And politicians love to do nothing.

“Typically it’s easier to defeat legislation than it is to pass legislation,” Armentano said. “We have that home-field advantage in a lot of these instances.”

So don’t pout, doom scroll, or hold your breath for some savior. Lend your voice to stir up change that’ll percolate up from the states. Indeed, that’s how lasting change happens.



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Industry remains cautious about DEA chief due to past statements

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This week, a new acting chief Derek Maltz was named to the Drug Enforcement Administration, and despite previous negative comments from Maltz, the cannabis industry’s response remains cautious.

Many in the industry viewed departing Chief Anne Milgram negatively, blaming her for slow walking the rescheduling of cannabis. She didn’t move quickly, but she also allowed the process to continue moving forward. But at the same time, she continued to treat cannabis as her predecessors did: as a Schedule I substance.

Hoping for the best

Acting DEA Chief Derek Maltz

Despite Maltz’s past comments linking school shootings to obsessive cannabis use and being generally anti-cannabis, many industry participants are clinging to one of his somewhat positive comments: “If there’s scientific evidence to support [cannabis rescheduling], then so be it. But you’ve got to let the scientists evaluate it.”

The appointment of Maltz wasn’t a particular concern for some, who noted that policy likely will be driven by the president.

“President Trump is off to a fast start as the 47th POTUS with border security and the horrible implications of cartels and drug trafficking on America as an area of major importance, so we are not surprised by the recent appointment of Derek Maltz as the acting administrator of the U.S. DEA.,” Morgan Paxhia, managing director of Poseidon, said. “…We think it is better to focus less on any appointee’s dated/biased views on cannabis and more so on POTUS as the primary input for potential legislative reform and as it pertains to the scheduling of cannabis.”

David Culver, senior vice president of public Affairs of the US Cannabis Council, agreed, saying, “President Trump supports moving cannabis to Schedule III, and he is nominating officials who are committed to enacting his agenda. We look forward to working with the new administration to finalize this historic shift away from the failed policies of the past.”

Other pointed out that public sentiment toward cannabis legalization remains high, and that will likely influence the direction taken with regard to the plant and its derivatives.

“With the overwhelming public support for cannabis policy change at a national level, we remain hopeful that newly appointed DEA Chief Derek Maltz and his team will prioritize a modern, science-based approach to cannabis regulation,” Socrates Rosenfeld, CEO and co-founder of Jane Technologies, said. “The future of cannabis in America depends on balanced leadership, continued progress toward federal reform, and addressing the deep societal harm caused by prohibition.”

Todd Friedman, director of strategic partnerships of DAG Facilities, added, “Derek Maltz has an impressive record as a DEA special agent, recognized for his efforts in combating drug trafficking, particularly fentanyl. … It is hoped that Maltz will recognize that a regulated cannabis industry can contribute to public safety and generate revenue for research and education, ultimately benefiting the community.”

Not too thrilled

Others were dismayed with the choice, dismissing the position that the president likely will continue to lead the charge.

“Although President Trump expressed support for cannabis legalization during his campaign, his second nominee to lead the DEA, Derek Maltz, does not align with pro-cannabis priorities,” said Paula Savchenko, founding partner of Cannacore Group and PS Law Group. “While Maltz undeniably brings extensive expertise to the role – having spent over two decades tackling drug cartels and the fentanyl crisis as a career special agent at DEA – his previous statements raise concerns about his ability to fairly oversee the already fragile cannabis rescheduling process.

“His outspoken opposition has led many industry stakeholders to view his appointment as the final blow to a contentious rescheduling process – one that has already faced accusations of being undermined by the DEA,” she added.

Many are hesitant to dismiss Maltz’s past statement and actions.

“The new acting DEA administrator is a lifelong drug war hawk whose outdated attitudes toward cannabis are out of step with those of most Americans. At a time when most Americans are demanding long overdue changes in federal cannabis policy, Derek Maltz epitomizes the failed policies and approaches of the past,” Paul Armentano, deputy director of NORML, said.

Marc Beginin, founder and CEO of Prodigy Processing Solutions, also expressed concern. “Maltz’s vocal opposition to rescheduling cannabis risks stalling critical progress at a time when alignment with both science and public opinion is urgently needed,” he said. “Rescheduling to Schedule III would bring federal policy in line with scientific evidence, unlock funding for vital research, and ensure consistent safety and quality standards under FDA oversight.”

What’s next?

Maltz was named acting administrator and, as such, does not need congressional approval, unlike a formal nomination as the permanent administrator of the DEA.

Without that formal nomination to a permanent post, Maltz can serve in the acting capacity without congressional approval for an unlimited amount of time.



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Trump’s new DEA chief not a supporter of cannabis rescheduling

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President Donald Trump wasted no time on Tuesday announcing his pick to lead the U.S. Drug Enforcement Administration, and it the new DEA czar has vocally opposed federal marijuana rescheduling begun under President Joe Biden.

Special Agent Derek Maltz of the DEA was named to be acting administrator of the agency, following the resignation last week of Administrator Anne Milgram.

Although he retired from the DEA in 2014, Maltz has remained active in the private sector as the executive director of PenLink. Prior to that, Maltz ran the Department of Justice’s Special Operations Division from 2005 to 2014 and spent almost two decades working with the DEA in New York, for a total of 28 years at the DEA.

“DEA will continue to be relentless in our pursuit of the cartels who threaten this great nation,” Maltz said in a press release, adding that the appointment is the “honor of my lifetime.”

What’s not immediately clear is how Maltz’s views may play into federal cannabis reform. Last year, he told the Associated Press that the marijuana rescheduling process begun by President Joe Biden was proof that the DOJ had “hijacked the rescheduling process, placing politics above public safety.”

“If there’s scientific evidence to support this decision, then so be it. But you’ve got to let the scientists evaluate it,” Maltz said of the Biden administration’s push to reclassify cannabis as a Schedule III drug.

Maltz also in 2022 suggested that smoking marijuana may be a cause of school shootings, Marijuana Moment reported, and made plenty of other anti-cannabis statements.

“For all the irresponsible politicians trying to get votes by legalizing marijuana, maybe it’s time to understand the NEGATIVE IMPACTS from smoking this crap!” Maltz posted on X that year.

Maltz has also raised concerns about Chinese nationals running illegal marijuana operations in the U.S. and has asserted that fighting homelessness and the fentanyl crisis should be bigger priorities than legalizing or rescheduling marijuana.

Maltz’s positions contrast with the stated policy position of Trump himself, who wrote on social media last September that he supported finishing federal marijuana rescheduling and implementing other reforms, such as banking access for marijuana businesses.



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