What Changes Could Occur If Marijuana Is Legalized, Rescheduled In 2026

To date, marijuana, also known as weed, is a Schedule I drug along with heroin, LSD, and ecstasy.

Given the changes that occurred at the state levels in favor of marijuana, there is a chance the drug will become rescheduled to a lower level or legalized, with President Donald Trump being an unlikely champion.

After Trump announced on Truth Social that he would vote yes on an amendment to legalize marijuana in Florida, he is standing on that promise by recently considering a plan to reschedule marijuana to a Schedule III drug on the federal level. The move has been on the docket for several years, with the Department of Health and Human Services (HHS) recommending the Drug Enforcement Administration (DEA) reschedule marijuana in 2023, The Hill reports.

To date, marijuana, also known as weed, is a Schedule I drug along with heroin, LSD, and ecstasy. Listing it as Schedule III would put it in a group with ketamine, testosterone, and codeine-laced Tylenol. While Trump said in that Truth Social post that he believes “it is time to end needless arrests and incarcerations of adults for small amounts of marijuana for personal use,” rescheduling marijuana wouldn’t make it legal for recreational use nationwide, keeping it a controlled substance.

Instead, the change would highlight the medical uses of cannabis by recognizing that it has a smaller chance of abuse than other dangerous drugs. Becoming a Schedule III drug would make marijuana research easier and cut federal taxes paid by research companies.

The research aspect was touched on during a press briefing, stating that the president was “focused on increasing medical research for medical marijuana and CBD — cannabidiol” by signing an executive order to speed up the rescheduling process.

“Unless a doctor recommends a drug for medical reasons, just don’t do it. At the same time, the facts compel the federal government to recognize that marijuana can be legitimate in terms of medical applications when carefully administered,” Trump said.

But marijuana experts feel there is more to the story than what the administration is projecting. While Trump’s order instructs Attorney General Pam Bondi to “take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III” of the Controlled Substances Act,” executive director of the Cannabis Regulators Association, Gillian Schauer, points out that “The Controlled Substances Act [of 1970] does not grant any president the authority to reschedule a drug unilaterally.”

“It’s hard to see the big headlines of, ‘Marijuana rescheduled to [Schedule] III; marijuana research will open,’” Schauer said, according to NPR.

“You know, those things are not true as of now.”

The suggested changes either have to go through an act of Congress or a rulemaking process.

However, other experts feel the changes will bring positive financial changes to the industry, like no longer seeing restrictive punitive tax codes applying to marijuana businesses. Under Internal Revenue Code Section 280E, Ascend Wellness Holdings and other cannabis companies are obligated to pay taxes on income; however, because their core product is a Schedule I drug, the IRS denies them standard tax deductions, resulting in a higher effective tax rate, says Sam Brill, CEO of Ascend.

Brill feels 280E shouldn’t apply to them, so the company is putting aside a large reserve fund, just in case the IRS comes after it. But he hopes that marijuana being rescheduled will lead to restrictions being taken off, especially being able to accept credit cards.

“The lack of use of a credit card is really one of the biggest challenges for customers,” Brill said, touching on the importance of payday to the industry.

“For us, Friday by far is the biggest day every single week because this is a cash business.”