Where Things Stand Now

Last week, Republican lawmakers in Congress took a major step to block President Donald Trump’s potential move to reschedule marijuana. The GOP-controlled House Appropriations Committee approved a spending bill that would prohibit the Department of Justice (the “DOJ”) from using federal funds to reschedule or deschedule marijuana under the Controlled Substances Act. This move comes as the Trump administration signals it is considering reclassifying cannabis from Schedule I to Schedule III, a change that would have significant implications for the industry and for federal-state relations.

The bill, advanced by the House Appropriations Committee, includes explicit language: “None of the funds appropriated or otherwise made available by this Act may be used to reschedule marijuana… or to remove marijuana from the schedules established under section 202 of the Controlled Substances Act.” This provision, if enacted, would effectively freeze the ongoing federal review process and reserve the authority to change marijuana’s status exclusively for Congress, rather than the executive branch.

While some GOP lawmakers and Trump himself have expressed openness to reform—especially as a way to appeal to younger voters—others remain staunchly opposed, citing concerns about public health, youth access, and the influence of the cannabis industry. The committee’s action follows a letter from nine House Republicans urging the DOJ to halt any rescheduling proposal, warning that it could send the wrong message to youth and benefit large cannabis companies.

The move to block rescheduling comes at a critical moment. The process Trump would inherit began under President Biden, whose DOJ proposed in May 2024 to move cannabis to Schedule III. That proceeding stalled in January when an administrative law judge from the Drug Enforcement Administration (the “DEA”) retired after staying hearings amid allegations DEA colluded with opponents. Trump’s newly confirmed DEA Administrator, Terrance Cole, told senators that reviewing the rescheduling docket would be an early priority, though it didn’t appear on DEA’s published strategic priorities. The agency could restart hearings, resolve the pending appeal, or issue a final rule premised on the attorney general’s scheduling authority.

The procedural waters muddied further this week: the DOJ moved to withdraw dozens of pending rules, including a hemp-analytic testing proposal that shares an identifier with the cannabis rescheduling hearing notice. The White House clarified this should not be read as withdrawing rescheduling itself, but it underscores the confusion around mechanics and timing.

While industry and allies continue to point to economic relief and research gains that could come from rescheduling, and some high-profile figures like Mike Tyson and Roger Stone have publicly urged Trump to move forward, the Republican-led congressional action has thrown the future of federal cannabis reform into uncertainty. Prohibitionist groups are rallying opposition, warning that rescheduling would amount to a windfall for “Big Marijuana.” Reform advocates at Drug Policy Alliance are also pressing—but in the opposite direction—petitioning Trump to fully deschedule rather than settle for Schedule III.

What’s at Stake with Schedule III?

If the Trump administration were to move marijuana to Schedule III, it would acknowledge accepted medical use and a lower abuse potential than drugs in Schedules I/II. This change would end IRS 280E penalties, allowing state-licensed operators to take normal business deductions, and could ease some aspects of medical research and encourage more clinical trials. It might also broaden access to banking and capital by reducing perceived risk, though it would not fully solve those issues.

However, Schedule III would not federally legalize state marijuana markets or permit interstate commerce. Dispensary products would not automatically appear in pharmacies without Food and Drug Administration approval, and many cannabis-specific research hurdles would remain unless Congress acts. It would also not expunge records or address criminal justice disparities—those changes would require separate legislative action.

The Republican-led appropriations bill aims to prevent even these incremental changes by blocking the DOJ from using funds to implement rescheduling, keeping the current federal prohibition in place.

What to Watch Next

The coming weeks will be critical. The White House says a decision is coming soon, but the House GOP’s move to block rescheduling has added a major obstacle. Whether the Senate will go along with the House provision remains to be seen, and the fate of rescheduling may ultimately depend on negotiations between the chambers or further executive action. The DOJ could still attempt to move forward, but any final rule is likely to draw litigation from both opponents and those pushing for descheduling.

Republican lawmakers have thrown a wrench into the Trump administration’s potential plans to reschedule marijuana, highlighting the deep divisions within the party and the country on cannabis reform. The future of federal marijuana policy is still uncertain, with the outcome hinging on congressional negotiations, executive decisions, and the courts. For now, the GOP’s move to block rescheduling is the biggest development—and the biggest hurdle—facing cannabis reform in Washington.