![](\"https:\/\/cannabiscultivatornews.com\/home\/wp-content\/uploads\/2026\/05\/MM_Bill_Tracker_V5_blank-7.jpg\"){kind=tracking}
<\/p>\n <\/p>\n
Congressional researchers are laying out the scope and limitations of the Trump administration\u2019s marijuana rescheduling action<\/a>\u2014explaining that while certified patients who possess medical cannabis from state-licensed dispensaries now have certain protections, the industry as a whole isn\u2019t \u201cimmediately\u201d considered to be in \u201cfull compliance\u201d with federal law, particularly as it concerns recreational products.<\/p>\n In a report published by the Congressional Research Service (CRS) last week, analysts described the parameters of the recent final order issued by the Justice Department that moved medical marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA) and scheduled a hearing for later this summer to consider broader rescheduling.<\/p>\n CRS emphasized that the order \u201cdoes not immediately bring the state-legal marijuana industry into compliance with federal law, but it appears to make it possible for some entities handling medical marijuana to come into compliance with the CSA.\u201d<\/p>\n By placing medical cannabis in Schedule III, the federal government is acknowledging that the plant and its constituents hold currently accepted medical value that can be used for therapeutic purposes. That \u201copens the possibility that manufacturers, distributors, dispensers, and end users of covered marijuana products may be able to comply with the CSA,\u201d the report said.<\/p>\n Additionally, DOJ\u2019s order specifically directed the Drug Enforcement Administration (DEA) to create \u201cexpedited procedures to register holders of state medical marijuana licenses and to approve early applications within six months.\u201d<\/p>\n To the end, DEA last week launched an online form that allows state-legal medical cannabis businesses to apply for federal protections<\/a>.<\/p>\n However, the CSA generally stipulates that controlled substances that are available as prescription drugs \u201cmay only be dispensed via a valid prescription,\u201d and \u201cmarijuana is not\u201d a pharmaceutical controlled substance by that standard, CRS explained. The rescheduling order does, however, permit the dispensing of medical marijuana with a doctor\u2019s certification under state programs \u201cas long as the certifications satisfy certain requirements.\u201d<\/p>\n \u201cThus, the order appears to authorize end users to possess marijuana for medical use without a CSA-compliant prescription,\u201d the congressional report said. As it concerns non-end users participating in the state-legal cannabis industry, however, \u201cthe final order may make it possible for them to comply with the CSA, but may not bring them into full compliance with federal law.\u201d<\/p>\n That said, outside of the CSA, the Federal Food, Drug, and Cosmetic (FD&C) Act makes clear that it\u2019s \u201cunlawful to introduce an unapproved drug into interstate commerce.\u201d And while the Food and Drug Administration (FDA) has approved certain cannabis-derived drugs such as Epidiolex, \u201cmarijuana itself is not an FDA-approved drug.\u201d<\/p>\n That means certain legal liabilities, including possible criminal penalties, could still come into play for marijuana businesses regardless of the scheduling change under the CSA.<\/p>\n That\u2019s especially true as it concerns recreational marijuana, CRS said, which was excluded from the immediate policy change under the DOJ order\u2014and it would still be the case even if broader rescheduling takes place following hearings later this year.<\/p>\n \u201cWith respect to the manufacture, distribution, and possession of recreational marijuana, even if marijuana were completely moved to Schedule III, such activities would remain illegal under federal law and potentially subject to federal prosecution regardless of their status under state law,\u201d CRS said.<\/p>\n The congressional analysis also briefly discusses a longstanding appropriations rider that\u2019s prevented DOJ from using its funds to interfere in the implementation of state-legal medical marijuana laws. It said that rescheduling cannabis \u201c<\/strong>does not directly alter the medical marijuana appropriations rider, but may render it redundant for state-legal medical marijuana businesses that register with DEA.\u201d<\/p>\n \u201cTo the extent those businesses now comply with the CSA, they do not need the rider to shield them from prosecution,\u201d it said<\/a>.<\/p>\n Further, as congressional researchers noted in prior reports before the rescheduling action was finalized, certain \u201ccriminal penalties for CSA violations depend on the schedule in which a substance is classified.\u201d<\/p>\n \u201cTo the extent marijuana is moved to Schedule III, applicable penalties for some offenses would be reduced. However, CSA penalties that apply to marijuana specifically, such as the quantity-based mandatory minimum sentences discussed above, would not change as a result of rescheduling. The CSA does not require DEA to set annual production quotas for Schedule III controlled substances, but the final order states that DEA will continue to apply quota requirements to marijuana as required by the Single Convention.\u201d<\/p>\n Although there are notable limitations to the rescheduling move, CRS highlighted two key impacts that advocates and stakeholders have long awaited as different administrations reviewed the classification of marijuana under federal law: Reduced research barriers and the ability of state-licensed cannabis businesses to take federal tax deductions under an Internal Revenue Service (IRS) code known as 280E.<\/p>\n \u201cWith respect to research, CSA registration requirements for Schedule III controlled substances are generally less stringent than the requirements for Schedule I controlled substances,\u201d the report says, adding that legislation enacted under the Biden administration \u201ccreated specialized procedures for DEA approval of marijuana research and manufacture of marijuana for research purposes.\u201d<\/p>\n \u201cSubstance-specific registration requirements continue to apply to marijuana following rescheduling, which might limit the impact of rescheduling on marijuana research,\u201d it said. \u201cHowever, the final order appears to seek to facilitate marijuana research by allowing researchers to use state-legal marijuana rather than relying on existing DEA-registered sources.\u201d<\/p>\n Concerning 280E, CRS said: \u201cBecause the provision applies only to activities involving substances in Schedule I or II, to the extent marijuana is moved from Schedule I to Schedule III, marijuana businesses can deduct business expenses on federal tax filings. Other collateral legal consequences may continue to attach to marijuana-related activities to the extent they violate the CSA or other federal laws.\u201d<\/p>\n The U.S. Department of the Treasury and Internal Revenue Service (IRS) recently said they plan to issue new tax guidance for the marijuana industry<\/a> following the rescheduling announcement.<\/p>\n At the same time that stakeholders have celebrated the rescheduling action, the White House has separately given certain mixed signals about marijuana in the weeks since.<\/p>\n For example, the White House Office of National Drug Control Policy (ONDCP) released a new National Drug Control Strategy on Monday that raises alarm about \u201chigh-potency\u201d marijuana<\/a> and expresses concerns that international cartels and crime groups \u201cexploit\u201d state cannabis legalization laws.<\/p>\n It also discussed the forthcoming federal recriminalization of hemp THC products that is scheduled for later this year under a law signed by President Donald Trump.<\/p>\n \u2014 While\u00a0the president recently called on Congress to take action to alter the hemp cannabinoid ban language<\/a>\u00a0he signed into law in order to allow continued sales of full-spectrum CBD products, it\u2019s not clear how far he wants to scale back the scope of the scheduled federal restrictions and what kinds of revised THC rules and limitations he would prefer to sign into law.<\/p>\n ONDCP Director Sara Carter Bailey<\/a>\u00a0has previously\u00a0voiced support for medical cannabis, while stating that she doesn\u2019t have a \u201cproblem\u201d with legalization<\/a>, even if she might not personally agree with the policy.<\/p>\n White House Press Secretary Karoline Leavitt said that the administration is moving forward with marijuana rescheduling because\u00a0cannabis reform is \u201coverwhelmingly popular\u201d with voters<\/a>\u00a0and because doing so will help people who need access to the drug for medical purposes.<\/p>\n During a press event in the Oval Office, Trump spoke about the medical benefits of marijuana<\/a>.<\/p>\n \u201cA lot of people are suffering from big problems, which this seems to be the best answer,\u201d he said. \u201cThey\u2019re very happy about it. So the rescheduling is starting, and that\u2019s a big thing, rescheduling.\u201d<\/p>\n The president noted that his administration\u2019s actions on cannabis rescheduling came after his friend Howard Kessler told him about how he used medical marijuana.<\/p>\n \u201cHe had some medical difficulties, and he came upon this by accident, in a way,\u201d he said. \u201cHe had to go through a lot of different medications, and he said this was the one that was much better than anything else. And so he experienced that. He didn\u2019t benefit by it, other than from the standpoint that he lives a much better life now.\u201d<\/p>\n \u201cSo hopefully you don\u2019t need it,\u201d Trump said. \u201cBut if you do need it, I hear it\u2019s the best of all the alternatives.\u201d<\/p>\n Days earlier, Trump had complained that\u00a0federal officials were \u201cslow-walking\u201d following through on his cannabis rescheduling order<\/a>.<\/p>\n Photo courtesy of Chris Wallis \/\/ Side Pocket Images.<\/em><\/p>\n The post Congressional Report Explains Implications\u2014And Limitations\u2014Of Trump\u2019s Marijuana Rescheduling Move For Users And Industry<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n
Congressional researchers are laying out the scope and limitations of the Trump administration\u2019s marijuana rescheduling action\u2014explaining that while certified patients who possess medical cannabis from state-licensed dispensaries now have certain protections, the industry as a whole isn\u2019t \u201cimmediately\u201d considered to be in \u201cfull compliance\u201d with federal law, particularly as itContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":459,"featured_media":85959,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18,81],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/85958"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/459"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=85958"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/85958\/revisions"}],"predecessor-version":[{"id":85960,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/85958\/revisions\/85960"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media\/85959"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=85958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=85958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=85958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nMarijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills<\/a> in state legislatures and Congress this year. Patreon supporters<\/a> pledging at least $25\/month get access to our interactive maps, charts and hearing calendar so they don\u2019t miss any developments.<\/strong>
\n![\"\"](\"https:\/\/cannabiscultivatornews.com\/home\/wp-content\/uploads\/2026\/05\/MM_Bill_Tracker_V5_blank-6.jpg\"){kind=tracking}
<\/a>
\nLearn more about our marijuana bill tracker<\/a> and become a supporter on Patreon<\/a> to get access.
\n\u2014<\/strong><\/p>\n
\n
\nRead More: Congressional Report Explains Implications\u2014And Limitations\u2014Of Trump\u2019s Marijuana Rescheduling Move For Users And Industry<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"