Topline
The Drug Enforcement Administration is reportedly planning to reclassify marijuana so it is no longer categorized as one of the most dangerous and addictive drugs—a decision that would fall short of legalizing marijuana nationally, but could significantly lessen regulations on the drug while opening the door to more widespread medical use.
FILE - Marijuana plants are pictured at a growing facility in Oklahoma City, Feb. 26, 2020. (AP ... [+]
Key Facts
The DEA plans to follow a recommendation from the Department of Health and Human Services that would end marijuana’s decades-long classification as a Schedule I drug to a less stringently regulated Schedule III drug, the Associated Press and NBC News both reported, citing multiple sources.
The federal government considers Schedule I drugs to be substances with no accepted medical use and a “high potential for abuse,” like heroin or LSD, while a Schedule III drug can be used with a prescription and is believed to have a “low to moderate potential for physical and psychological dependence,” like anabolic steroids, ketamine or Tylenol with codeine.
The change, if finalized, would mark the first time marijuana’s classification has been changed in 50 years and the first time the U.S. government would acknowledge marijuana has potential medical benefits—according to NBC, the change would allow marijuana’s potential medical uses to be studied, and would allow pharmaceutical companies to be involved in selling marijuana in states that have legalized it.
The change would also eliminate a federal tax law that impacts marijuana businesses: Because marijuana is still a Schedule I drug at the federal level, marijuana businesses in states where the drug is legal are considered to be illegally trafficking the drug, and can’t deduct certain expenses that other businesses can, even in states where marijuana is legal.
Cannabis groups like the U.S. Cannabis Council praised the reports, calling the proposed change “the most significant federal cannabis reform in modern history” that would place the U.S. on the path to federal legalization.
The DEA referred Forbes to the Department of Justice, which declined to comment.
What We Don’t Know
It’s not clear when the change would take effect—the DEA’s proposal still needs approval from the White House’s Office of Management and Budget, according to the Associated Press. Beyond that, the proposal would then have to go through a public comment period before the DEA could publish the final rule.
What To Watch For
There’s still a lot that can happen before the change takes effect. The public comment period could push the DEA to change course, Brett Schuman, a co-chair of the Goodwin law firm’s cannabis practice, told Forbes in an email. Additionally, the new policy “likely will be challenged by someone, somewhere in a lawsuit, and of course could be reversed depending on the outcome of the November 2024 election,” Schuman said.
Contra
Not everyone is in favor of the change—it would require cannabis dispensaries across the U.S. to register with the DEA like pharmacies do, and many cannabis owners are opposed to doing so, the Associated Press reported.
Key Background
Marijuana has been a Schedule I drug since the Controlled Substance Act first took effect in 1971. In recent years, however, there has been a growing discrepancy between federal and state laws on marijuana—while it’s still considered illegal at the federal level and regulated as a dangerous drug, it’s been legalized for recreational use in 24 states, and federal authorities have opted against cracking down on regulated cannabis businesses. The discrepancy has created challenges for cannabis businesses hoping to operate in legal states but worried about running afoul of the U.S. government, according to the American Bar Association.
Big Number
54%. That’s the share of Americans who live in any of the states where recreational use of marijuana is legal, according to Pew Research.
