A guide to what’s changing — and when : NPR

President Trump's long-awaited executive order easing marijuana restrictions in the US promises to bring immediate relief to cannabis businesses – but only in some ways. And while changing its status as a low-risk drug has been touted as ushering in a new era in cannabis research, experts say it's not as simple as flipping a switch.

“It’s hard to see the big headlines: ‘Marijuana has moved to [Schedule] III; marijuana research will begin,” says Jillian Schauer, executive director of the nonpartisan Association of Cannabis Regulators, which includes agencies in 46 states. “You know, at this point, that’s not true.”

This is because in itself Trump's December 18 order not enough to rewrite federal drug policies that have been in place for more than 50 years.

“Controlled Substances Act [of 1970] does not give any president the right to unilaterally revise the drug list,” Schauer says. Such changes historically created either through the rulemaking process or an act of Congress.

Many details will determine how the administration handles Trump's order, affecting the timing and scope of easing marijuana restrictions. But when that happens, the delay will not automatically repeal federal marijuana laws and interstate commerce will remain illegal, Schauer says.

It remains to be seen how other policies might change.

“We don't know what will happen to federal drug testing requirements,” Schauer says, until the agencies issue guidelines.

Here is a summary of other key issues raised by the restructuring order:

The timing depends on which path the Justice Department chooses.

Trump's order directs Attorney General Pam Bondi to “take all necessary steps to complete the rulemaking process related to the listing of marijuana as Schedule III” of the Controlled Substances Act “in the most expeditious manner consistent with federal law…”

The directive is reminiscent of a process that began under former President Joe Biden. Under his leadership both Department of Health and Human Services And Ministry of Justice put forward a proposal to move marijuana from Schedule I, meaning it has no medical use and a high potential for abuse, to low-risk Schedule III, which includes ketamine, Tylenol with codeine and anabolic steroids.

The Trump administration could restart the process that was already underway under Biden. However, the new order's mention of Section 811 of the Controlled Substances Act hints at a potential shortcut.

“This allows the attorney general to reschedule the drug on what he or she determines is the best schedule without going through the usual steps required to reschedule the drug,” Schauer says.

The streamlined process was intended to ensure that the U.S. could do things like comply with international drug treaty obligations. But historical precedent also links it to cannabis: in 2018, it was used for planning CBD drug for epilepsy Epidiolexmonths after it became the first to be approved in the US purified medicine derived from marijuana. The drug was placed on Schedule V, the least restrictive list.

Will the DOJ require public comment?

The Trump administration's approach to administrative hearings and public comment periods will also help determine the pace of rescheduling.

“I expect that if they take advantage of this [expedited] the option is that we won’t see a comment period,” explains Schauer, shortening the process.

But rescheduling could take longer if the Justice Department follows the traditional and lengthy notice-and-comment process.

Again, Bondi has options that can speed up the process. For example, it could make a final decision after a public comment period or do so without a comment period.

“Some calculations may make legal sense,” Schauer says. Noting that some anti-marijuana groups promising to sue To block a delay, she adds that the Justice Department will likely have to balance Trump's call for expediency with the need to defend its actions in court.

If the rule is published for comment, interest is likely to be very high: in 2024. previously proposed DEA restructuring rule The marijuana issue received over 43,000 comments.

Cannabis firms to get tax breaks, but credit cards still banned

Sam Brill, CEO of Ascend Wellness Holdings, a multi-state dispensary company, says the rescheduling could bring a cascade of positive changes to his industry. But one benefit may be immediate, he says.

“The biggest thing that happened overnight was 280E, the restrictive, punitive tax code that was put in place for us,” will no longer apply to marijuana businesses, he says.

Like other businesses, Brill's company is required to pay taxes on its income. But since their main product is a Schedule I drug, the IRS says that under Internal Revenue Code Section 280Ethey are prohibited from claiming general tax deductions, which exposes them to a higher effective tax rate.

Section 280E “doesn't allow us to essentially deduct ordinary expenses that everyone else can deduct,” Brill says. “I cannot deduct the rent for my stores, the cost of maintaining my employees in those stores, the interest expense.”

Brill says some cannabis companies, including his, say 280E shouldn't apply to them, but the tax office does not agree. As a result, Brill says his company builds up a large reserve fund in case the IRS hits them.

“For 2024 alone, the value of that reserve” was about $38 million, Brill says, “including interest and penalties.”

Brill hopes the change in marijuana's status could eventually lead to the lifting of other restrictions, particularly the inability of cannabis businesses to accept credit cards. Most financial institutions refuse to provide basic banking services to government-authorized marijuana businesses. due to potential liability.

“Not having a credit card option is really one of the biggest challenges for customers,” he says. Citing the importance of payday, Brill says, “For us, Friday is by far the most important day of every week because it's a cash business.”

Medical research

Scientists welcome news in 2023 that the Biden administration is moving to reclassify marijuana, and Trump says his move will stimulate medical research. But then, as now, there are caveats.

One advantage of the new rules is that they will not require researchers to use marijuana. undergo the cumbersome Schedule I licensing process, and relax strict laboratory regulations.

“You have very strict requirements for, for example, storage, security and reporting of all these things,” says neuroscientist Stacey Gruber of McLean Hospital in Massachusetts and Harvard Medical School. told NPR last year.

But another obstacle promises to be more stubborn: finding marijuana to study. The US requires researchers to obtain marijuana from multiple sources, which in itself is an improvement over the decades they have been obtaining marijuana. forced to use one remedy based at the University of Mississippi.

And, as Schauer notes, federal rules for purchasing marijuana were adopted separately from the list of controlled substances.

“It makes the research a little easier,” Schauer says of ongoing efforts to revise the timeline. “However, much of cannabis research will continue to be challenging unless we see agency policies change and adjust.”