The Drug Enforcement Administration (DEA) is reportedly drafting a rule to reschedule cannabis. This move aims to speed up the process. A Trump administration insider shared this news. It follows President Trump’s executive order from December 18, 2025. This order directed the Attorney General to expedite the rescheduling process. The goal is to move marijuana from Schedule I to Schedule III. This marks a significant shift in federal drug policy.
Background on Rescheduling Efforts
President Biden initiated a review in October 2022. He asked the Department of Health and Human Services (HHS) and the DEA to examine cannabis scheduling. In August 2023, HHS recommended moving cannabis to Schedule III. This recommendation was based on scientific and medical evaluation. Then, in May 2024, the DEA proposed a rule to enact this change. The proposal garnered over 42,000 public comments. A hearing was scheduled for January 2025. However, an appeal related to alleged agency bias stalled the process. A retired administrative law judge also complicated matters.
Trump’s Executive Order and the “ASAP” Factor
President Trump’s December 18, 2025, executive order injected new urgency. It specifically directed the Attorney General to complete the rescheduling process as quickly as possible. A Trump insider suggested the DEA is now drafting the rule “ASAP”. This suggests the administration views rescheduling as a priority deliverable. It aims to signal that the administration is actively pursuing this policy shift. The order aims to acknowledge cannabis’s medical value. It also seeks to improve access to CBD products. This news is particularly relevant given the current date of January 29, 2026.
Implications of Schedule III Reclassification
Moving cannabis to Schedule III carries several potential consequences. Schedule I drugs have no accepted medical use and high abuse potential. Examples include heroin and LSD. Schedule III drugs have accepted medical uses and lower abuse potential. Examples include Tylenol with codeine and testosterone. Rescheduling would mean federal law acknowledges cannabis has medical value. It would also indicate a lower potential for abuse than Schedule I substances. This could reduce criminal penalties. Possession of Schedule I drugs is often a felony. Schedule III drug possession may be a misdemeanor.
Research and Business Impacts
Rescheduling could ease research barriers. Schedule III substances face less stringent DEA registration requirements than Schedule I. This could facilitate studies on cannabis’s therapeutic benefits. Businesses might also see a major tax benefit. Section 280E of the Internal Revenue Code currently disallows ordinary business expense deductions for cannabis companies. Rescheduling to Schedule III could remove this restriction. This could improve cash flow and business valuation. However, rescheduling does not legalize state-legal cannabis markets federally. Congress would need to pass separate legislation for that. Federal law would still consider cannabis a controlled substance. Patients might need prescriptions. Businesses would need to follow federal controlled-substance rules. These requirements differ from most state programs.
Broader Cannabis News Landscape
This trending news fits into a wider context of cannabis developments. In other news, Brazilian regulators are expanding permitted uses of cannabis-based therapies. A study suggests cannabis sativa extract holds potential as an anti-breast cancer therapeutic. Humboldt County, California, considered a tax repeal for cannabis cultivation. This news impacts the current cannabis lifestyle and regulatory landscape. The DEA stated on January 6, 2026, that the rescheduling process is still pending. It requires administrative steps before becoming legally effective. The process faced delays due to appeals and a retired judge. Despite these hurdles, the executive order signals strong federal momentum towards rescheduling. This is crucial news for the evolving cannabis industry.
