Dec. 19, 2025 Statement from CRA Executive Director Brian Hanna
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| Dec. 19, 2025 Statement from CRA Executive Director Brian Hanna
On December 18, 2025, the President signed an Executive Order directing his administration to move expeditiously toward rescheduling marijuana to Schedule III under the federal Controlled Substances Act. While this action signals a meaningful development in federal cannabis policy, it is important to note that the U.S. Department of Justice has not yet issued a final rule.
Until such a rule is finalized and takes effect, marijuana remains classified as a Schedule I substance under federal law.
At this time, the timeline for completion of the federal rulemaking process remains unknown.
The Cannabis Regulatory Agency (CRA) is closely monitoring federal developments and reviewing available educational materials, including an overview prepared by the Cannabis Regulators Association (CANNRA), which examines the President’s Executive Order and outlines potential implications should marijuana be rescheduled to Schedule III.
The CANNRA document addresses several key questions, including:
- What remains unknown following the Executive Order
- What moving marijuana to Schedule III under the Controlled Substances Act could mean
- What may happen to state-regulated marijuana markets under Schedule III
- What a move to Schedule III could mean for the regulated marijuana industry
- What a move to Schedule III could mean for marijuana research
- What else could be potentially impacted by a move to Schedule III
- What will not change under Schedule III
- What other unknowns remain that could impact implementation of rescheduling
This CANNRA document is intended for educational purposes only and is not intended to represent a policy position of CANNRA or any of its members. CANNRA is a nonpartisan association of governments and does not lobby.
The CRA will continue to keep licensees, stakeholders, and the public informed as additional information becomes available and as federal actions translate into concrete regulatory guidance. Our focus remains on maintaining a stable, compliant, and well-regulated Michigan cannabis market while preparing responsibly for potential changes at the federal level. |
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WORCESTER – Cannabis Control Commission (Commission) Chair Shannon O’Brien, Commissioner Kimberly Roy, and Executive Director Travis Ahern issued the following statements relative to the proposed federal marijuana rescheduling as announced by the Trump Administration on Thursday.
“President Trump’s Executive Order expediting rescheduling of cannabis marks a significant step forward for public health and patient care in the United States. By aligning federal policy more closely with the science, this action will help remove long-standing barriers to medical research and open the door to safer, more effective treatments for people living with chronic and debilitating conditions,” said Commissioner Kimberly Roy, who sits in the public health seat. “ For veterans managing service-related injuries and trauma, and for older Americans coping with pain, cancer, and age-related illnesses, this change has the potential to expand access to evidence-based therapies while maintaining strong safeguards. It will also empower researchers and clinicians to better understand both the benefits and risks of cannabis, ultimately improving clinical guidance, product safety, and quality of life for patients across the country. My hope is that Massachusetts will be a global leader in this effort.”
“In the Commonwealth and many other states, licensed cannabis businesses have proven to operate safely and responsibly,” O’Brien said. “As such, they should get benefits—like access to banking, bankruptcy protections, and tax deductions—that all other legal businesses enjoy. It is exciting that rescheduling would also recognize the medicinal potential of cannabis, leading to research that improves treatment for medical patients.”
“As a member of the Cannabis Regulators Association (CANNRA), Massachusetts has been preparing for the possibility of rescheduling and will closely follow changes as the process moves forward,” Ahern said. “Potential rescheduling at the federal level comes at a pivotal time as Massachusetts prepares for an expansion of the regulated cannabis industry through three new social consumption license types.”
The order directs federal agencies to begin the process of reclassifying marijuana from a Schedule I controlled substance (considered high potential for abuse with no accepted medical use) to a Schedule III controlled substance (recognized as having medical use and lower abuse potential). While this executive order does not legalize marijuana federally, it marks a significant federal policy shift, with potential implications for the Commonwealth’s cannabis industry.
The national, nonpartisan Cannabis Regulators Association has published a helpful briefing document to assist stakeholders with understanding what rescheduling means for states. Massachusetts remains an active member with the association of government agencies under the leadership of Ahern, who participated in CANNRA’s annual meeting for voting members last week.
The Commission previously submitted a public comment to the U.S. Department of Justice that supported rescheduling cannabis from Schedule I to Schedule III and remains available to provide research and information to assist the Attorney General in these renewed efforts.
For more information, visit MassCannabisControl.com, contact the Commission by phone (774-415-0200) or email (Commission@CCCMass.com), or follow the agency on Facebook and X.
Dear INCBA Community,
Yesterday, President Trump issued an Executive Order directing completion of the rulemaking process started under the Biden Administration to move marijuana from Schedule I to Schedule III under the Controlled Substances Act “in the most expeditious manner in accordance with Federal Law.” While this is a significant policy shift that should be widely recognized, the Order largely advances an already-pending process and does not, on its own, immediately resolve many core legal and regulatory barriers facing patients, providers, or the cannabis industry.
The Order follows years of federal review acknowledging credible scientific support for medical uses of marijuana, including treatment of epilepsy, multiple sclerosis, intractable pain, including from migraines, cancer, degenerative disc disease, central pain syndrome and rheumatoid arthritis, anorexia related to certain medical conditions, and chemotherapy-induced nausea and vomiting. This Order does not itself complete the process of rescheduling cannabis, nor does it reconcile the state and federal tension around legality versus illegality by any means, but it does represent a path forward for innovation and potential access to much-needed therapeutics.
Why this matters:
- Federal recognition of accepted medical use: HHS, FDA, and DOJ have all already acknowledged that marijuana has a currently accepted medical use, with recent concurrence from the National Institute on Drug Abuse and The National Academies of Sciences, Engineering, and Medicine.
- Immediate Tax Relief: Companies burdened by Section 280E could soon see tax relief, enabling them to deduct normal business expenses and the change will also permit the federal government to extend tax credits and incentives to encourage compliance, investment, and other policy goals
- Alignment with actual practice: More than 30,000 licensed healthcare practitioners across 43 jurisdictions are already recommending medical marijuana for over 6 million registered patients through state-legal programs.
- Pathway to improved research: Rescheduling reduces barriers to research, enabling expanded infrastructure within the United States to inform doctors and patients on safety, efficacy, and appropriate utilization.
- Administrative follow-through: The Attorney General has been directed to expeditiously complete rescheduling to Schedule III, accelerating a timeline that was paused earlier this year following the new administration’s transition.
The Executive Order also directs the White House and Congress to work together to modernize the legal definition of hemp-derived cannabinoid products, with the goal of ensuring Americans have access to appropriate full-spectrum CBD products while preserving Congress’s intent to restrict products that pose serious health risks. As a result, the most recent hemp definition changes scheduled to take effect on November 12, 2026 are likely to be further refined to more clearly address issues such as serving-size limits, per-container caps, and cannabinoid ratio requirements.
As major as the Executive Order announcement is, there remain ongoing challenges. Among them:
- The DOJ’s rescheduling process has involved a proposed rule and is proceeding through administrative steps, including an administrative law hearing, before finalization.
- Congress is trying to quietly remove a long-standing budget rule that protected state-legal medical marijuana from federal interference. That means patients and businesses who followed their state’s rules could once again be fair game for federal enforcement.
- Product compliance landscape remains complex, particularly for hemp-derived cannabinoids and full-spectrum CBD products that may trigger CSA control depending on THC thresholds and forthcoming statutory updates.
Continued need for clear federal standards to safeguard patients, address labeling accuracy, and mitigate drug interaction risks, especially for seniors and vulnerable populations.
- Banking will likely remain a challenge due to the structure of state licensing schemes, which will still not align with Federal law.
While neither this Order, nor final rescheduling of cannabis to schedule III, will effect the legalization of cannabis at the federal level or the immediate cessation of countless cannabis-related arrests, INCBA applauds each step that brings these realities closer and facilitates medical research related to cannabis. INCBA is proud of the role that its members have played in advocating on behalf of numerous parties engaged in this years-long process, as well as the role that the organization has played in educating our members, and the larger community regarding the nuances of this complicated process.
INCBA will continue to monitor the developments and educate and connect cannabis industry lawyers to deliver excellent, ethical, and advanced legal assistance to the evolving cannabis industry. INCBA also offers an ethics hotline to assist those practicing or considering practicing in cannabis and/or hemp with up-to-date professional guidance without judgment.
INCBA is a 501(c)(3) whose members shape the future of cannabis law and policy, access premier education and resources, and engage with a global network of practitioners leading the industry through this historic transition. You can find more information about the organization, at incba.org. Look ahead to a special webinar focusing on the legal landscape for the legalization of medical cannabis nationwide.
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| What Happened: Well, it happened. President Trump signed an executive order directing the Attorney General to finish the federal process of moving marijuana to Schedule III. The order also tees up a CBD lane through federal health agencies, including a CMS pilot concept tied to seniors, alongside a push for research methods and clinical standards that can survive scrutiny. It quietly concedes a second problem the White House now owns: Congress just tightened the federal definition of hemp in a way that can sweep full-spectrum CBD into the wrong legal bucket, so the order tells Trump’s own staff to work with Congress on a fix. Behind the scenes, this took a year of pressure and persuasion. The industry got in the room through lobbying, donations, polling, and personal access, with Howard Kessler and Trulieve CEO Kim Rivers emerging as central power brokers in the narrative of how the decision took shape. Trump’s own remarks at the ceremony framed the push as relentless and personal, the kind of persuasion that comes from powerful people who keep showing up and speak in human terms. |
| Why It Matters: The headline will say “Trump rescheduled marijuana,” and the order does not complete that change on its own. Rescheduling still runs through DEA rulemaking: a proposed rule, public input, a record that can survive a court challenge, and the very real possibility of delay before any final rule takes effect. That matters because the financial consequences everyone cares about, especially 280E relief, follow the effective date of a final scheduling rule, not the day a Sharpie hits paper. The order also carries the unmistakable scent of politics, because the same lobbying muscle that got the assignment issued will now press for pace, guidance, and follow-through as opponents shift the fight into oversight and appropriations. The CBD pilot concept adds a different kind of pressure, since reimbursement turns into a standards fight: product definition, sourcing, testing, and liability. Congress’s new hemp definition sits in the middle of that fight, and the White House is already asking Congress to revisit language it just enacted. |
| THC Group Take: There’s an irony here that matters. Trump just ordered DOJ to finish what Biden started. Call it an intermission, or as if the longest marathon ever run has yet another starter pistol fired. But the same process that has been stuck in DEA purgatory just got a new lease on life.
That bureaucracy is where this gets won or lost. DEA still has to carry a rule to the finish line, build a record that can survive a court challenge, and answer the kind of comments that come from serious stakeholders with sharp pens and sharper incentives. A signing ceremony creates momentum. It makes for a great photo, especially with white coats and veterans in the frame. It does not create an effective date.
The pushback will come from two directions that do not coordinate but often rhyme. On Trump’s political right, expect familiar warnings about kids, impairment, and “normalizing” drug use, plus a fixation on the tax consequences once 280E relief becomes real. On the left, some Democrats will say it is not enough, too procedural, or too late, and a slice will refuse to validate anything with Trump’s signature. That cross-pressure is useful to the White House. It lets Trump sit in the lane most voters already occupy, then cast critics as stuck on the fringes.
Here is where Congress becomes dangerous without having to be decisive. Republicans do not need to repeal anything to make this harder. They can grind the gears through hearings, appropriations language, and demands for data that reshape the narrative. A “hospital cost” study sounds neutral. It works as a weapon. And because rescheduling still runs through DEA procedure, those tools can slow the pace, shape the record, and stretch a clean headline into months of friction.
The CBD track is the one to watch. A pilot sounds gentle until you remember what reimbursement means. The federal government would be putting its name and money behind a product class, which forces definitions, standards, and accountability all at once: what qualifies, what testing counts, what contaminants are unacceptable, what supply chains are trusted, and who carries liability if something goes wrong. Those questions land at the exact moment Congress rewired hemp in a way that can make full-spectrum CBD legally radioactive by late 2026. The executive order admits the shutdown overkill by telling Trump’s own staff to go back to Congress and fix it.
So the forecast is straightforward. The next year rewards the grownups who can show their work. Disciplined sourcing. Clean lab controls. Age-gating that actually functions. Low-dose models that can be defended in daylight. The converted and synthetic lane will keep handing opponents easy talking points, and those talking points will bleed into how hard Congress presses on the rescheduling process itself.
And that is the real meaning of this moment. The market heard “Schedule III” and started spending the tax savings in its head. Washington heard “Schedule III” and started sharpening definitions, drafting oversight letters, and deciding who gets to be the face of “medical” when the first bad headline hits. The winners will be the people who treat this like policy and not a pep rally: show up, stay sober, and make the record so clean that even your opponents have to reckon with it. |
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Federal cannabis rescheduling to Schedule III marks a meaningful shift in how the industry is viewed at the national level.
It doesn’t solve every challenge operators face, but it does begin to reset the federal framework in ways that will matter for tax strategy, capital planning, and long-term positioning.
To support operators through what comes next, we’ve created a three-part series breaking down how rescheduling may affect the industry. That includes implications for 280E, ongoing uncertainty around timing and implementation, and how to think strategically about the changes ahead. This isn’t a finish line. It’s a shift that will shape tax planning, cash flow, and risk decisions moving forward.
At Verdant Strategies, our job to translate policy into practical insight, so operators can plan with confidence rather than react to speculation.
As the national conversation enters a new phase, the decisions operators make around tax planning, capital allocation, compliance, and growth will shape their ability to benefit from this shift.
Click the link below to start preparing for whats next and stay tuned for part two as we continue to see these changes develop.
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Yesterday’s executive action to move marijuana from Schedule I to Schedule III marks a historic step in U.S. drug policy. It recognizes medical utility, unlocks research pathways, and (once finalized) delivers meaningful business relief. Here’s what matters for operators right now.
What The Order Does (and the timeline)
- Directs DOJ/DEA to expedite rescheduling to Schedule III. DEA must still complete its rulemaking process before changes take effect; benefits begin when the final rule is published and effective.
- Signals parallel moves on CBD/hemp policy, including a reported Medicare pilot for certain CBD products, subject to program design and compliance.
Immediate Business Implications (post‑finalization)
- 280E Tax Relief: Once cannabis is in Schedule III, businesses can deduct ordinary expenses (payroll, rent, marketing), materially improving cash flow and valuations. Estimates suggest hundreds of millions annually for leading operators and billions industry‑wide over time.
- Research & Innovation: Schedule III eases barriers to clinical trials and FDA‑style development, accelerating evidence generation and standardized therapeutics.
- Banking Momentum (Not Automatic): Rescheduling improves risk perception, but broad banking access still requires legislation, e.g., the SAFER Banking Act. Expect renewed congressional attention; prepare for gradual, compliance‑heavy progress.
What Does Not Change Today
- No federal legalization; interstate commerce remains restricted. State programs still govern licensing, distribution, and enforcement; shipping product across state lines remains off‑limits absent FDA approval or new federal law.
- Whole‑plant products remain “unapproved” under FDA law; expect tighter scrutiny and clinical‑grade expectations where federal pathways are pursued.
State & Compliance Ripple Effects to Anticipate
- Modernization of tracking and quality systems: As research pathways open, inventory control, labeling, and data integrity expectations will rise—especially for products used in medical contexts.
- Insurance tailwinds, with scrutiny: Improved profitability and governance can attract more carriers, but underwriting will remain rigorous across product liability, D&O, and property lines
Important Note: While this announcement is a major step forward, the DEA must still complete its formal rulemaking process before rescheduling becomes official. This includes public comment periods and final publication in the Federal Register. Benefits such as 280E relief will take effect only once the rule is finalized.
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Checkout the Complete Breakdown of This Update and the Strategy to Stay Ahead with It
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Advocacy
NCIA’s Statement on Decision to Reclassify Cannabis as a Schedule III Substance
The National Cannabis Industry Association (NCIA) welcomes President Trump’s decision to officially direct the Attorney General to reclassify cannabis as a Schedule III substance. Medical professionals, patients, and millions of Americans have long understood that cannabis has accepted medical use and does not belong in the same category as the most dangerous controlled substances. By taking this step, the Administration is recognizing the realities of today’s regulated markets and the work states have done to responsibly oversee them.
NCIA was honored to participate in the Drug Enforcement Administration’s public hearings on rescheduling earlier this year, where we emphasized the importance of supporting state-licensed cannabis programs and the small businesses that form the backbone of this industry which employs hundreds of thousands of workers and contributes billions of dollars to the economy. Moving cannabis to Schedule III will finally lift the crushing burden of §280E, allowing operators to reinvest in their employees, strengthen compliance, and allow them to continue delivering safe, regulated products to consumers. This change acknowledges something that researchers, advocates, and patients have known for years: that the cannabis plant has medicinal value.
This is meaningful progress, but it cannot be the final word. NCIA urges lawmakers to build on today’s decision by establishing a framework that respects states’ rights, supports responsible operators, and provides clear federal enforcement guidelines in order to provide certainty to the thousands of businesses operating openly and in compliance with state law. NCIA will continue working to ensure that this industry can thrive under policies that are fair, consistent, and reflective of modern realities.
President Trump signed an Executive Order yesterday federally rescheduling cannabis. This directive will begin the transferring of the plant from Schedule I to Schedule III of the Controlled Substances Act (CSA).
Cannabis rescheduling is a step forward, but not justice. At SSDP, we’re fighting for full federal legalization and real repair of the harms caused by prohibition. That’s why SSDP is a founding member of the Cannabis Unity Coalition, the largest bipartisan coalition of cannabis justice advocates ever assembled.
While we support progress, we want decriminalization. No one should be in prison for cannabis, and rescheduling is not enough. Join us in the fight for legalization. Use our simple online tool to contact lawmakers to let them know that rescheduling is not enough.
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- Cannabis is no longer officially defined as having “no medical value”
- Federal agencies (DEA, HHS, FDA) must treat cannabis more like a regulated medicine
- Researchers face fewer barriers to studying cannabis
- Some federal penalties ease, especially around sentencing and enforcement priorities
- Cannabis businesses may get access to tax relief like 280E reform if Schedule III applies
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- It does not make cannabis federally legal
- It does not stop arrests.
- It does not legalize adult-use cannabis sales
- It does not automatically free people incarcerated for cannabis offenses
- It does not end federal prohibition
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Use our simple Action Form to tell your lawmakers that cannabis reform cannot wait!
Urge them to support federal legislation that legalizes cannabis, frees the thousands of people still incarcerated for cannabis offenses, and begins the long-overdue work of healing the damage caused by more than a century of prohibition.
Together, we can turn progress into justice—and momentum into lasting change.
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