The US Department of Justice has announced a major shift in federal marijuana policy that could ease regulations for state-licensed medical cannabis businesses across the country.
Under a new order signed by acting Attorney General Todd Blanche, many state-approved medical marijuana products will move from Schedule I to Schedule III under federal drug classifications.
The change could significantly affect marijuana businesses in states such as Missouri, where both medical and recreational cannabis sales are legal under state law.
The story was reported by the Missouri Independent.
What the change means
Schedule I drugs are considered by the federal government to have a high potential for abuse and little accepted medical use. That category currently includes substances such as heroin.
Schedule III drugs, by contrast, include regulated prescription medicines recognized as having legitimate medical applications.
The Justice Department said the change applies specifically to state-licensed medical marijuana products.
Supporters say the shift could:
- expand scientific research into cannabis;
- reduce tax burdens for medical marijuana businesses; and
- signal broader federal acceptance of medical cannabis programs already operating in much of the country.
“The Department of Justice is delivering on President Trump’s promise to expand Americans’ access to medical treatment options,” Blanche said in a statement. “This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information.”
Potential impact on Missouri cannabis businesses
Missouri’s marijuana industry has grown rapidly since voters approved recreational cannabis legalization in 2022.
Medical marijuana operators in Missouri and elsewhere have long faced unusual financial obstacles because marijuana remained federally classified alongside the most heavily restricted drugs.
One major issue has involved taxes.
Under current federal law, many marijuana businesses cannot deduct ordinary business expenses because cannabis remains a Schedule I substance.
The rescheduling order could provide significant financial relief for medical marijuana companies by allowing them to claim standard federal business deductions.
Researchers may also gain easier access to cannabis products for scientific studies.
Previously, only marijuana produced through federally authorized facilities could typically be used in research projects.
Recreational marijuana still unchanged
The order does not immediately affect recreational marijuana, which remains illegal under federal law even in states where voters have approved adult use.
That distinction may create complications for businesses operating both medical and recreational cannabis programs.
Industry groups welcomed the federal shift but said uncertainty remains.
“It’s historic because the federal government, historically, has denied the existence of medical cannabis, even as a concept,” Paul Armentano told States Newsroom. “The order finally acknowledges and recognizes not only the legitimacy of marijuana as a medicine, but also the legitimacy of these state programs.”
The Drug Enforcement Administration is also expected to begin hearings later this summer on broader marijuana reclassification questions that could eventually affect recreational cannabis as well.
Despite the changes, marijuana businesses are still likely to face banking restrictions because federal money laundering laws continue applying to cannabis sales that remain illegal under federal law.
Still, the move represents one of the largest shifts in federal marijuana policy in decades and reflects changing public attitudes toward medical cannabis across much of the United States.
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