US Reclassifies Marijuana as Schedule III Drug This Week

After years of debate and state-level legalization, the federal government is finally catching up to what millions of Americans already know: marijuana isn't heroin.

The Justice Department will officially reclassify marijuana as a Schedule III drug as soon as Wednesday, removing it from the same category as heroin and LSD. This marks the most significant federal shift in cannabis policy in over 50 years.

Schedule III drugs include substances like ketamine and Tylenol with codeine, recognized as having moderate to low potential for dependence and accepted medical uses. The move acknowledges what dozens of states have already established through their medical marijuana programs, which treat conditions like chronic pain.

The reclassification follows a 2023 FDA study that examined marijuana's medical benefits and abuse potential. That study, ordered by President Biden in 2022, found sufficient evidence to support the lower classification. President Trump signed an executive order in December directing the Justice Department to complete the rescheduling "in a most expeditious manner."

While this change won't legalize marijuana at the federal level, it removes major obstacles that have held back progress for decades. Medical researchers will now find it far easier to study cannabis and its potential therapeutic benefits without navigating mountains of red tape.

The Ripple Effect

The impact extends well beyond research labs. Cannabis companies currently face crushing tax rates of about 60% of gross revenue because Schedule I drugs can't claim standard business deductions. Moving to Schedule III will dramatically reduce that burden, allowing these businesses to operate like any other legitimate company.

This tax relief could strengthen an industry that employs hundreds of thousands of Americans and generates billions in state tax revenue. More resources mean better products, safer testing standards, and expanded medical access for patients who rely on cannabis treatment.

The reclassification also represents a rare moment of bipartisan progress, with the initiative starting under Biden and completing under Trump. When political rivals can agree on meaningful reform, real change becomes possible.

For the millions of Americans living in states with legal medical marijuana, Wednesday's announcement validates what they've experienced firsthand: cannabis has legitimate therapeutic value and deserves to be treated accordingly.