Acting Attorney General Todd Blanche signed an order Thursday reclassifying state-licensed medical marijuana as a less dangerous drug, moving it from Schedule I to Schedule III under the Controlled Substances Act. The change represents a major policy shift that affects how cannabis is regulated at the federal level.

The reclassification moves licensed medical marijuana from Schedule I, which includes drugs like heroin and LSD considered to have no medical use and high abuse potential, to Schedule III alongside drugs like ketamine and anabolic steroids. This change does not legalize marijuana for medical or recreational use under federal law, but it significantly alters how it is regulated.

The order provides several practical benefits for state-licensed medical marijuana operators. For the first time, these businesses can deduct expenses on their federal taxes, representing a substantial financial windfall. The change also eases barriers to cannabis research by clarifying that researchers won't be penalized for obtaining state-licensed marijuana products for their work.

Blanche's action largely legitimizes medical marijuana programs in the 40 states that have adopted them by establishing an expedited system for state-licensed producers and distributors to register with the Drug Enforcement Administration. The order noted that the vast majority of states now maintain comprehensive licensing frameworks for medical marijuana that protect public health and prevent diversion to illegal channels.

The Trump administration indicated it is accelerating the broader marijuana reclassification process, setting a hearing for late June. Trump had directed his administration in December to work quickly on reclassifying marijuana, and expressed frustration over the pace during a Saturday event focused on psychedelic research.

The policy shift drew criticism from marijuana legalization opponents, with some arguing it sends confusing messages about marijuana's potential harms. However, advocates have long argued that cannabis should never have been classified alongside heroin at the federal level, particularly as nearly all states have approved some form of cannabis use.