Trump Administration Partially Reschedules Cannabis, Leaving Industry With Big Questions

The Trump administration has taken a limited step to change federal cannabis policy, signing an order that moves certain medical cannabis products out of Schedule I and into Schedule III. The move is narrow in scope and has generated confusion across the cannabis industry about who benefits and how rules will be applied.

What the Order Does

Acting Attorney General Todd Blanche signed an order that removes products sold under state medical cannabis programs and prospective FDA‑approved cannabis medicines from Schedule I — the classification reserved for substances with no accepted medical use — and places them into Schedule III, which includes regulated but legal drugs such as some formulations of acetaminophen with codeine and ketamine.

"While some marijuana‑related products are no longer being treated as Schedule I, it’s not accurate to say marijuana has been broadly rescheduled — this is partial rescheduling, at best," said Cat Packer, director of drug markets and legal regulation at the Drug Policy Alliance.

Limitations And Legal Rationale

The order explicitly applies to products sold under state medical programs and to future cannabis drugs that might receive FDA approval. It does not retroactively change the status of the small number of cannabis‑derived pharmaceuticals already approved by the FDA.

The administration cites the 1961 Single Convention on Narcotic Drugs — a U.N. treaty that limits production of certain controlled substances to scientific and medical purposes — as part of the justification for the narrower, medical‑focused approach.

Industry Reaction And Practical Concerns

Industry leaders and advocates warn the partial rescheduling raises urgent practical and equity questions. Ryan Hunter, chief revenue officer of Colorado’s Spherex Labs, said the order has only added uncertainty to a complex regulatory landscape.

"This is a very silly announcement. I can’t imagine who thought this was a good idea," Hunter said, noting that many businesses operate with dual medical and adult‑use licenses even though the products are indistinguishable.

Alex Gonzalez, co‑founder and president of Calyx Containers, suggested the timing may be politically motivated given upcoming elections and recent personnel changes in the administration.

Concerns About FDA, Enforcement And Equity

Cat Packer warned that the order appears to predetermine the scheduling outcome for future FDA‑approved cannabis drugs without a full, public, evidence‑based evaluation of risks and benefits. Implementation details remain vague, and key protections may not materialize until clarified.

Advocates also say the medical‑only approach could worsen racial and economic disparities in the cannabis industry. Under the order, only medical cannabis providers would be eligible to register with the Drug Enforcement Administration (DEA), which could disadvantage Black and Latino entrepreneurs who are disproportionately represented in adult‑use markets and equity programs.

Next Steps

Blanche announced the DEA will hold an administrative hearing on rescheduling on June 29. But advocates caution that full federal rescheduling or legalization remains uncertain and — even if rescheduling occurs — may fall short of broader calls for decriminalization or outright legalization.

Bottom line: The order signals a shift in federal tone toward medical cannabis, but its narrow scope, unclear implementation and potential equity impacts leave many stakeholders seeking clearer rules and protections.