President Donald Trump confirmed Monday that his administration is weighing whether to reclassify marijuana as a less dangerous drug, potentially reducing criminal penalties and providing significant tax relief to cannabis companies.
Speaking during a White House press conference, Trump said the administration will “make a determination over, I’d say, the next few weeks” on whether to move marijuana from Schedule I to Schedule III under the Controlled Substances Act.
Rep. Greg Steube, R-Fla., announced this week he is reintroducing his Marijuana 1-to-3 Act, which would accomplish the same reclassification through congressional action. Steube called the current system illogical, noting that marijuana is classified alongside heroin and LSD while cocaine receives a less restrictive Schedule II designation.
“This is a common-sense change that will finally allow real scientific research into its medicinal value,” Steube said, urging the Trump administration to support the effort.
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Under federal law, marijuana is currently a Schedule I substance, defined as having “no currently accepted medical use and a high potential for abuse.” Schedule III drugs, by contrast, are considered to have “moderate to low risk of physical or psychological dependence” and include ketamine, anabolic steroids and certain prescription medications.
Related: Is Trump Moving Forward with Marijuana Rescheduling?
The reclassification would not make marijuana federally legal for recreational use, but would significantly benefit the cannabis industry. Companies would no longer be subject to Section 280E of the federal tax code, which prevents businesses dealing with Schedule I and II controlled substances from claiming standard business deductions.
The push comes after cannabis industry executives attended a $1 million-per-plate fundraiser at Trump’s New Jersey golf club earlier this month, where they discussed potential policy changes with the president.
Related: DEA Nominee Views Cannabis Reclassification as Priority, Stops Short of Guarantee
Tilray CEO Irwin Simon told CNBC he expects the reclassification process to take about a year if implemented. “Trump gets things done,” Simon said. “He wouldn’t be talking about it if he’s not going to get something done.”
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