Cannabis Rescheduling May Sound Like a Win. Here’s Why It’s Complicated

If you’ve been following the news, you’ve probably seen the headlines: President Donald Trump is reportedly considering moving cannabis out of Schedule I and into Schedule III under federal law.

That single sentence has sparked confusion, hope, anger, excitement and a lot of very good questions.

So let’s slow it down.

Here’s what we actually know, what we don’t, and what this potential shift would and would not change for growers, businesses, patients and everyday consumers.

Answering High Times’ followers’ questions.

First, what is actually happening?

Multiple outlets have reported that Trump is weighing an executive move that would direct the Justice Department to advance cannabis rescheduling to Schedule III.

The White House has not confirmed a final decision.

This matters because we’ve heard versions of this before. The Biden administration launched a rescheduling review in 2022. Federal health officials later acknowledged cannabis has accepted medical use. And yet, the process stalled.

So for now, this is credible reporting, not enacted policy.

Can Trump do this without Congress?

Yes, but with limits.

Under the Controlled Substances Act, rescheduling does not require Congress. The authority sits with the attorney general, typically delegated to the DEA, with scientific input from Health and Human Services.

Trump cannot personally reschedule cannabis with a tweet or executive order alone. But he can direct the Justice Department to move the process forward and potentially bypass stalled administrative steps.

Congress would only be required for full legalization or descheduling, not rescheduling.

Didn’t Biden already try this?

Yes.

In 2022, President Biden ordered a formal review of cannabis’ classification. In 2023, Health and Human Services concluded that cannabis has accepted medical use and recommended Schedule III.

The DEA process dragged on. Hearings were delayed. Legal challenges loomed. Nothing was finalized.

That’s why skepticism is fair. This has been promised before.

What does Schedule III actually mean?

Schedule I drugs are defined as having no accepted medical use. That’s where cannabis still sits, alongside heroin.

Schedule III drugs are recognized as having medical value but remain controlled. Examples include ketamine, anabolic steroids and certain prescription painkillers.

Moving cannabis to Schedule III would be a formal federal acknowledgment of medical use. It would not legalize cannabis.

Does this legalize cannabis?

No.

Cannabis would still be federally illegal.

State-legal markets would continue to exist in a gray zone. Interstate commerce would remain prohibited. Federal criminal laws would still apply.

Rescheduling changes classification, not prohibition.

What happens to dispensaries and state markets?

Nothing changes overnight.

States like California and Oregon would continue running their own regulated systems. Dispensaries would not suddenly shut down. Licenses would not vanish.

The core contradiction remains: state-legal cannabis would still conflict with federal law.

Rescheduling does not resolve that tension. It only shifts it.

Will this help small, local businesses and growers?

It could. But it’s not guaranteed.

The biggest potential benefit is taxes.

As long as cannabis is Schedule I or II, businesses are subject to IRS rule 280E, which blocks normal deductions like rent, payroll and utilities. That has crushed many small operators.

If cannabis moves to Schedule III, 280E would no longer apply. That alone could be a lifeline for independent dispensaries and growers.

At the same time, rescheduling does not fix licensing costs, access to capital or consolidation. Bigger companies still have structural advantages.

Is this a Big Pharma or Big Cannabis takeover?

Not automatically.

Rescheduling could make it easier for pharmaceutical companies to develop FDA-approved cannabinoid medicines. That does not mean they suddenly control flower, dispensaries or state markets.

Still, critics are right to be cautious. In the U.S., open markets tend to reward scale, capital and lobbying power.

Legalization opens the door. Regulation decides who gets the keys.

Will cannabis be sold at Walmart?

No.

Rescheduling does not put dispensary weed on retail shelves.

Any FDA-approved cannabis-derived medicines would move through pharmacy channels, not big-box retail. State-legal cannabis would continue operating separately.

Will this change drug testing?

No.

Most drug tests look for THC metabolites, not drug schedules. Employers can still test. Federal and DOT-regulated jobs would still follow their own rules unless those policies change.

Does this affect home grow?

No.

Rescheduling does not create a federal right to grow cannabis at home. Home cultivation remains governed by state law.

Will seeds, clones or genetics become illegal?

There is no indication of that.

Rescheduling does not target seeds or genetics directly. Enforcement and interpretation matter more than theory.

Does this stop arrests or fix criminal justice?

No.

Rescheduling does not decriminalize cannabis, erase records or stop arrests. Those outcomes require legislation.

So is this progress or a problem?

It can be both.

Rescheduling would be a meaningful shift. Acknowledging medical use matters. Ending 280E would help real businesses survive.

But it leaves prohibition largely intact. That’s why some advocates see progress, while others worry it could harden the system under a different name.

Rescheduling is movement. It is not freedom.

The bottom line

This moment deserves attention, not celebration or panic.

If cannabis moves to Schedule III, it will ease some pressure and raise new questions. The future of cannabis will be decided by the rules that follow.

And those rules are still unwritten.

Photo: Shutterstock

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