Trump Considers Executive Order to Reschedule Marijuana and Expand CBD Coverage
President Trump is poised to issue an executive order reclassifying marijuana and expanding CBD coverage, potentially easing tax burdens for cannabis businesses
Key Points
- 1Trump may reclassify marijuana as a Schedule 3 substance soon
- 2The executive order could allow Medicare to cover CBD treatments
- 3DEA and health officials express skepticism about the change
- 4Anti-reform groups plan to challenge the rescheduling in court
- 5Trump's motivations include fulfilling promises and political strategy
President Donald Trump is reportedly on the brink of issuing an executive order that could significantly alter the landscape of cannabis regulation in the United States. According to multiple sources, Trump may reclassify marijuana as a Schedule 3 substance under the Controlled Substances Act as early as Monday. This move would potentially ease tax burdens for cannabis businesses by allowing them to claim standard business deductions. In addition, the executive order might include provisions for Medicare to cover certain CBD treatments, a development that could open new avenues for the CBD industry
The potential reclassification of marijuana to Schedule 3 would mark a historic shift in U.S. drug policy, aligning it with substances deemed to have moderate to low potential for dependence. This would be a departure from its current Schedule 1 status, which categorizes it alongside drugs like heroin and LSD. The anticipated move follows a report from CNBC and discussions within the White House, although the executive order has not been finalized. The process could face delays similar to those experienced during the Biden administration's rescheduling efforts, which took two years to complete
Despite the potential benefits for the cannabis industry, Trump's proposal has encountered opposition from various quarters, including within his administration. The U.S. Drug Enforcement Administration (DEA) and some health officials have expressed skepticism, with DEA Administrator Terrance Cole reportedly advocating for a comprehensive review of health and scientific data. Additionally, anti-reform groups like Smart Approaches to Marijuana are expected to mount legal challenges against the rescheduling
The White House's internal debates have been leaked to the media, reflecting the contentious nature of the issue. Notably, a meeting in the Oval Office involving Health Secretary Robert F. Kennedy Jr., Mehmet Oz, and cannabis advocates highlighted the division. Mehmet Oz, a known opponent of downgrading marijuana to Schedule 3, argued for maintaining its current classification to prevent tax deductions under Internal Revenue Code Section 280E. However, cannabis advocates, including Kim Rivers of Trulieve Cannabis Corp. and Howard Kessler of The Commonwealth Project, have been influential in pushing for the change
Trump’s motivations for considering this executive order appear to be multifaceted. Beyond fulfilling promises to cannabis industry stakeholders, the president may be seeking to divert attention from other controversies and bolster his support ahead of the upcoming midterm elections. Last year, Trump became the first major party candidate to support adult-use marijuana legalization in Florida, indicating a political strategy to appeal to pro-cannabis voters. The involvement of high-profile advocates and financiers in these discussions underscores the significant lobbying efforts aimed at influencing federal cannabis policy