After decades of treating cannabis as a substance with no medical value, the president signed an executive order instructing the Attorney General and the DEA to move forward with rescheduling and to expand research into medical marijuana and CBD. The action set the federal government on a path to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act, though the process is still ongoing. While rescheduling wouldn’t legalize cannabis nationwide, it does signal a meaningful change in how the plant is viewed at the federal level and how it can be researched, and we’ll continue to share updates as things take shape.
What Is Federal Drug Scheduling
Under federal law, drugs are grouped into five schedules based on medical use and potential for abuse. Schedule I is the strictest category. It’s categorized as substances with no accepted medical use and a high potential for abuse. Cannabis has been stuck there since 1970, alongside drugs like heroin and fentanyl.
Advertising is heavily restricted, leading to censorship across social platforms, shadow bans and sudden account removals. Education, harm-reduction messaging and basic product information often get caught in those same filters.
Schedule III substances are recognized as having accepted medical use and a lower risk of abuse. This category includes medications such as ketamine and certain steroids. Moving cannabis to Schedule III is a formal acknowledgment that it has legitimate medical value (something we’ve already known forever).
How Rescheduling Could Affect Cannabis Pricing and Access
Today, state legal cannabis businesses are subject to Section 280E of the Internal Revenue Code. Because cannabis is classified as Schedule I, licensed dispensaries and cultivators cannot deduct normal business expenses like rent, payroll or utilities.
If cannabis is moved to Schedule III, those restrictions no longer apply. Over time, this could mean healthier businesses, greater market stability and potentially more competitive pricing for consumers.
More Cannabis Research
Rescheduling will also make it easier to conduct credible medical and scientific research. Schedule I status has long created hurdles for universities, hospitals and researchers who want to study cannabis. Many institutions avoid it altogether due to cost and regulatory complexity.
With a Schedule III classification, those barriers are reduced. This opens the door to better research on dosage, effects, interactions and long-term use. Meaning clearer guidance and better informed choices.
Cannabis Is Still Federally Illegal
Cannabis would still be illegal at the federal level. Adult use remains governed by state law, and interstate cannabis sales are still prohibited. You will continue to purchase from licensed dispensaries, follow state possession limits and consume cannabis in accordance with New Jersey law. Oversight still comes from the New Jersey Cannabis Regulatory Commission (CRC).
Rescheduling also does not automatically clear past convictions or eliminate federal enforcement on its own. Those outcomes require separate action by Congress (and here are some resources for getting records expunged in NJ).
What’s Next
Federal cannabis rescheduling does not change how you buy or use cannabis in New Jersey. What it does change is the direction of federal policy. It supports better research, eases financial strain on legal businesses and begins to unwind decades of stigma embedded in federal law. Stay tuned for more updates.
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