On Thursday, December 18th, President Trump signed an executive order instructing federal agencies to reclassify marijuana, marking one of the most influential shifts in U.S. marijuana policy in over half a century.
Once the executive order receives final approval from the Drug Enforcement Administration (DEA), marijuana will be moved from a Schedule I controlled substance (the most stringent category under the Controlled Substances Act, alongside heroin and LSD) to a Schedule III controlled substance. This category includes substances with recognized medical uses and a lower potential for abuse, such as ketamine and Tylenol containing codeine.
“This action is taken in response to the demands of American patients, including those suffering from severe pain, incurable conditions, aggressive cancers, epilepsy, neurological disorders, among others, including many veterans with service-related ailments, and elderly Americans suffering from chronic conditions that significantly impact their quality of life,” Trump stated in the Oval Office on Thursday.
Trump emphasized that “this order… will in no way legalize marijuana in any form, nor endorse its use for recreational purposes.”
Also on Thursday, the Centers for Medicare and Medicaid Services (CMS) led by Dr. Mehmet Oz announced plans to launch a pilot program in April next year, allowing certain elderly Medicare beneficiaries to access doctor-recommended free CBD (cannabidiol) products. According to senior White House officials, these products must comply with all local and state quality and safety laws. The products must also be legally sourced and undergo third-party testing to determine CBD content and contaminants.
Many on Wall Street anticipate that these changes along with the Medicare pilot program will attract major pharmaceutical companies to enter the field to compete for federal insurance revenue.
Here are some of the impacts related to the marijuana executive order compiled by Reuters.
Reclassifying marijuana from a Schedule I to a Schedule III controlled substance under the Controlled Substances Act is one of the most significant changes in marijuana policy in decades, but it does not mean marijuana is legalized under federal law. According to the DEA, Schedule I substances (like heroin) are considered by the government to have no recognized medical benefit and the highest potential for abuse, while Schedule III substances have a “moderate” potential for abuse.
Experts suggest that reclassifying marijuana may lower tax revenue and improve avenues for marijuana businesses to receive investor funding, but since the substance remains strictly regulated at the federal level, the change for consumers may be minimal.
Congress would need to pass new laws or federal agencies would need to issue new regulations to truly alter how people access marijuana.
No. Marijuana can still only be purchased in the 38 states where medical marijuana is legalized or in the 24 states that also permit recreational use.
In general, no, because according to federal law, marijuana remains illegal.
The Transportation Security Administration (TSA) stated on its website that they do not actively search for illegal drugs, but if illegal drugs are discovered during security checks, they will report it to law enforcement.
Trump’s executive order does not mean individuals can carry marijuana across state lines.
It is possible. Marijuana prices are high, partly due to businesses being unable to access traditional banking services and facing hefty taxes because the federal government still categorizes them as drug trafficking entities.
Reclassifying marijuana could potentially reduce the tax burden, allowing some companies to save costs and ultimately benefit consumers.