Trump Administration Considers Marijuana Rescheduling Ahead of Midterms
President Trump is reportedly considering rescheduling marijuana to a Schedule 3 substance, a move that could bring significant tax relief to cannabis companies
Key Points
- 1President Trump may reschedule marijuana to Schedule 3 before midterms
- 2Rescheduling could provide tax relief under Section 280E
- 3Rep. Guy Reschenthaler optimistic about policy change
- 4Further reforms like the SAFER Banking Act are needed
- 5Timing of announcement linked to political strategy
In recent months, speculation has been growing over President Donald Trump's plans to reschedule marijuana under federal law, potentially moving it to a Schedule 3 substance. This move could bring significant tax relief to cannabis companies, which currently face restrictions under Internal Revenue Code Section 280E. The president's intentions were hinted at during a high-profile fundraiser at his New Jersey golf club, where he expressed interest in advancing a proposal initiated during the Biden administration
Pennsylvania Republican U.S. Rep. Guy Reschenthaler, a key figure in the House, has voiced cautious optimism about the potential rescheduling. Speaking at the IgniteIt’s Cannabis Capital & Policy Summit, Reschenthaler noted that despite a decline in support for marijuana legalization among Republicans, Trump appears open to the change. He highlighted that rescheduling aligns with the president's 'America First' agenda and the Republican emphasis on states' rights
The potential reclassification of cannabis could alleviate financial burdens on the industry, but experts suggest further reforms are necessary. The SAFER Banking Act, which would allow cannabis businesses access to banking services, remains a critical piece of legislation awaiting approval. Reschenthaler also pointed to cannabis as a viable alternative to opioids, a stance gaining traction amidst the opioid crisis
Reports from The Marijuana Herald, citing an unnamed senior adviser to the president, suggest that the administration is close to announcing the rescheduling. The adviser indicated that the timing of the announcement is contingent on finding the right moment. This has fueled speculation that the change could occur before the upcoming midterm elections, a move that could have significant political and economic implications
President Trump's previous endorsements of medical marijuana and adult-use legalization initiatives have already stirred interest and speculation within the industry. His recent actions, including sharing pro-rescheduling content on his social media, have further fueled expectations. As the administration weighs its options, stakeholders remain hopeful that a formal announcement will soon clarify the future of federal cannabis policy