Trump’s marijuana rescheduling: What it means for you

What is rescheduling?  Understanding the basics:

The federal government regulates drugs by placing them into five schedules under the Controlled Substances Act. These schedules reflect three primary factors: accepted medical use, potential for abuse, and safety under medical supervision. Congress established this system in 1970, and it continues to shape criminal enforcement, research access, and regulatory oversight today.

Here is the DEA’s explanation of the schedules:

Schedule I
Schedule I drugs, substances, or chemicals are defined as drugs with no currently accepted medical use and a high potential for abuse.

Schedule II
Schedule II drugs, substances, or chemicals are defined as drugs with a high potential for abuse, with use potentially leading to severe psychological or physical dependence. These drugs are also considered dangerous.

Schedule III
Schedule III drugs, substances, or chemicals are defined as drugs with a moderate to low potential for physical and psychological dependence. Schedule III drugs abuse potential is less than Schedule I and Schedule II drugs but more than Schedule IV.

Schedule IV
Schedule IV drugs, substances, or chemicals are defined as drugs with a low potential for abuse and low risk of dependence.  Some examples of Schedule IV drugs are: Xanax, Soma, Darvon, Darvocet, Valium, Ativan, Talwin, Ambien, Tramadol

Schedule V
Schedule V drugs, substances, or chemicals are defined as drugs with lower potential for abuse than Schedule IV and consist of preparations containing limited quantities of certain narcotics. Schedule V drugs are generally used for antidiarrheal, antitussive, and analgesic purposes.  Examples of Schedule V drugs are: cough preparations with less than 200 milligrams of codeine or per 100 milliliters, Lomotil, Motofen, Lyrica, Parepectolin.

While the schedules themselves are only one part of a much larger legal structure, they remain the starting point for how drugs are treated by the federal government.

What changes with schedule III

Rescheduling marijuana from Schedule I to Schedule III creates significant shifts in two main areas: business operations and research access.

Tax relief for cannabis businesses

The most immediate financial impact involves Section 280E of the Internal Revenue Code. This provision states: “No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.”

State-legal cannabis dispensaries currently can’t deduct rent, payroll, utilities, or other standard costs, only the direct cost of goods sold. Moving marijuana to Schedule III would eliminate this restriction because the statute explicitly references only Schedule I and II substances. Cannabis businesses could then deduct normal operating expenses like any other company, representing significant tax savings for the industry.

Expanded research opportunities

The CSA currently restricts Schedule I controlled substances to federally approved scientific studies and imposes regulatory requirements designed to prevent abuse and diversion. Researchers must obtain a Schedule I research registration from the DEA and comply with stringent storage, security, and reporting requirements. As neuroscientist Staci Gruber told NPR, scientists face “very stringent requirements, for example, for storage and security and reporting all of these things.” These barriers also extend to limited supply chains that constrain research access.

Rescheduling to Schedule III would ease some of these burdens. The CSA imposes less demanding registration requirements for Schedule III substances, and researchers would no longer need the onerous Schedule I registration. However, the impact may be more limited than it initially appears. Congress passed the Medical Marijuana and Cannabidiol Research Expansion Act in 2022, which already established streamlined procedures specifically for marijuana research. Even after rescheduling, these marijuana-specific registration requirements would remain in place, potentially dampening the regulatory relief that Schedule III status would otherwise provide.

The most significant research impact may come from Schedule III’s formal recognition of accepted medical uses under federal law. HHS documented that more than 30,000 licensed healthcare practitioners across 43 jurisdictions already recommend medical marijuana to over 6 million registered patients for at least 15 medical conditions. This federal recognition could open new FDA approval pathways for cannabis-derived medications and generate more robust scientific evidence as expanded research validates or refines current medical applications.

How rescheduling impacts federal criminal law

Marijuana-specific statutes remain unchanged

CSA penalties that apply specifically to marijuana activities, such as quantity-based mandatory minimum sentences, will not change with rescheduling. Federal criminal penalties for marijuana trafficking appear in 21 U.S.C. § 841 and target marijuana specifically rather than relying on scheduling classifications.

For example, trafficking more than 1,000 kg of marijuana (or more than 1,000 plants) carries a penalty of at least ten years in prison and a fine of up to $10 million. Trafficking between 100 kg and 999 kg of marijuana (or 100 to 999 plants) carries a prison sentence of 5 to 40 years and a fine of up to $5 million. These penalties and their mandatory minimums focus on marijuana itself, not its schedule placement.

Simple possession of marijuana under 21 U.S.C. § 844 works slightly differently but also does not rely on scheduling to determine criminal penalties. Federal possession law targets possession of any “controlled substance” as defined in 21 U.S.C. § 802(6). That definition includes all drugs on Schedules I, II, III, IV, and V. A first-offense possession charge under federal law carries a maximum penalty of one year incarceration and a fine between $1,000 and $10,000. This remains true regardless of marijuana’s schedule placement.

Limited reduction in schedule-dependent penalties

A few criminal penalties for CSA violations depend on the schedule in which a substance falls. These offenses are rare and do not constitute the vast majority of federal criminal charges involving marijuana. Nevertheless, the rescheduling does impact certain potential criminal charges.

The most notable examples involve advertising restrictions under 21 U.S.C. § 843(c). Section 843(c)(1) prohibits placing advertisements that seek or offer to illegally distribute a Schedule I controlled substance, while § 843(c)(2) prohibits knowingly or intentionally using the internet to advertise the sale of Schedule I or II controlled substances (with an explicit exemption for Schedule III, IV, or V substances). Both provisions currently apply to marijuana as a Schedule I substance.

If marijuana moves to Schedule III, neither advertising prohibition will apply to marijuana. Section 843(c)(1) targets only Schedule I substances, so it will no longer cover marijuana advertisements. Similarly, § 843(c)(2) explicitly exempts Schedule III substances from its internet advertising ban, so marijuana would fall outside its scope. Other CSA provisions will continue to restrict unauthorized distribution and advertising, but these specific advertising offenses will no longer apply. These changes stem not from marijuana’s unique characteristics, but from its movement out of Schedule I.

This represents a narrow category of offenses compared to the marijuana-specific statutes under 21 U.S.C. §§ 841 and 844 that dominate federal prosecutions.

What marijuana rescheduling means for Wisconsin criminal cases: