According to The Associated Press, the Drug Enforcement Administration (DEA) has announced a significant decision to reclassify cannabis as a Schedule III drug under the Controlled Substances Act (CSA). This comes after eight months since the U.S. Department of Health and Human Services (HHS) recommended rescheduling the plant in response to President Joe Biden's directive in October 2022. The HHS and DEA were instructed to review the federal law's scheduling of cannabis. The AP received confirmation from five anonymous sources familiar with the matter on April 30, and the DEA is currently seeking approval from the White House Office of Management and Budget.

The reclassification to Schedule III is a much faster process than previous examinations, which have taken multiple years. In 2016, the DEA rejected a study that recommended keeping cannabis as a Schedule I substance after five years of evaluation. Despite this, the plant remained in Schedule I, and the state and federal laws regarding legalization maintained their divide. However, many were hopeful that this time would be different, as the recommendation for rescheduling came from a federal agency and was directed by a sitting president.

Representative Earl Blumenauer, founder and co-chair of the Congressional Cannabis Caucus, praised the potential reclassification, stating that it would be a step towards ending the "failed war on drugs." He noted that marijuana was classified over 50 years ago, based on stigma rather than science, and the American people have made it clear through state-level legalization that federal reform is necessary. However, the Department of Justice (DOJ) declined to comment on the matter.

Lawmakers have been pushing for transparency from the DEA and updates on the review process. In January, 12 U.S. Senate Democrats urged the DEA to deschedule cannabis instead of rescheduling it. Additionally, 21 U.S. lawmakers, including Senators Elizabeth Warren and John Fetterman, sent a letter in April, urging the DEA to act on President Biden's commitments to reschedule cannabis. Despite requests and a lawsuit, it took the HHS nearly five months to confirm their recommendation for rescheduling.

In a report released in response to a Freedom of Information Act (FOIA) lawsuit, the HHS cited evidence and recommended that cannabis be rescheduled from Schedule I to Schedule III. This would mean that it has a potential for abuse that is lower than substances in Schedules I and II, an accepted medical use, and a low physical or high psychological dependence. The National Institute on Drug Abuse (NIDA) concurred with this recommendation.

The report also recognized cannabis's medical benefits for certain conditions and stated that it does not pose a significant risk to public health. It compared cannabis to other substances on the CSA, including Schedule I drugs like heroin and Schedule II drugs like fentanyl, oxycodone, and cocaine. Despite this, cannabis has been classified as a Schedule I drug for over 50 years, making it illegal, dangerous, and as addictive as heroin in the eyes of the federal government. This is despite the fact that many states have legalized cannabis for medical purposes and implemented regulations for its sale.

The DEA's potential reclassification comes after almost half of U.S. states have legalized cannabis for adults, with Colorado's market launching a decade ago. In the weeks following the HHS recommendation, six Democratic governors sent a letter to President Biden, urging him to ensure that the DEA reschedules cannabis before the end of 2023. Senator Kirsten Gillibrand also called for the DEA to reclassify cannabis as Schedule III. On the other hand, some lawmakers, including Representative Andy Harris, have voiced opposition to rescheduling. A group of former attorneys general also cautioned against rescheduling, citing concerns about the potential dangers of cannabis.

If cannabis is rescheduled to Schedule III, it would be classified alongside drugs like ketamine and acetaminophen products containing codeine, which are typically prescribed and sold through licensed pharmacies. This means that it would have recognized medical value, but there could be limitations and regulations on its use and possession. However, this would also open up opportunities for cannabis businesses, such as access to capital and banking, research, bankruptcy protection, and less burdensome taxes.

There is still uncertainty about the next steps and how this reclassification would affect the existing state-legal cannabis markets. The DEA will have a 60-day public participation period and allow interested parties to request hearings on the record before writing a final rule. This rule must be published in the federal register for 30 days before it becomes effective. While some are optimistic about the potential benefits of rescheduling, others have concerns about potential legal challenges and how it could disrupt the industry.