Trump's Schedule III Executive Order: A Loss Dressed Up as a Win
So Trump is allegedly about to sign an executive order rescheduling marijuana to Schedule III, and we're supposed to celebrate this as some kind of victory for cannabis reform. Let me be crystal clear: this isn't a win for anyone except Big Pharma and the massive cannabis corporations that have been lobbying for this exact outcome for years.
This has been in the talks for months. Trump discussed it with House Speaker Mike Johnson back in December. The Biden administration spent years setting this up through the DOJ and HHS recommendations. And now Trump is going to slap his name on it, claim victory for "the biggest cannabis reform in history," and his supporters will cheer while the rest of us get screwed over.
This is classic Trump—the swamp thing claiming to drain the swamp. And if you can't see through this con, you're not paying attention.
What Schedule III Actually Means (Spoiler: Not Much)
Let's break down what moving cannabis to Schedule III actually does for regular people, small businesses, and patients. The answer? Almost nothing positive, and potentially a lot negative.
What Schedule III Doesn't Do:
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It doesn't legalize cannabis federally
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It doesn't allow you to legally possess or consume cannabis under federal law
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It doesn't stop federal law enforcement from prosecuting you
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It doesn't resolve banking issues for most cannabis businesses
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It doesn't expunge the records of the millions arrested for cannabis offenses
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It doesn't allow interstate commerce
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It doesn't remove cannabis from the Controlled Substances Act
What Schedule III Does Do:
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Removes IRS Code 280E, giving massive tax breaks to large cannabis corporations
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Requires FDA approval for cannabis products (hello, Big Pharma!)
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Subjects dispensaries and growers to the Food, Drug, and Cosmetic Act
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Creates new federal crimes including selling prescription drugs without a license, misbranding, and illegal distribution
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Effectively hands the cannabis market to pharmaceutical companies while crushing small operators
Notice who benefits here? Large corporations with the resources to navigate FDA approval processes and pharmaceutical companies that can synthesize THC and get it approved as medicine. Notice who gets screwed? Everyone else.
This Is Big Pharma's Wish Come True
Josh Kesselman, publisher of High Times and founder of RAW Rolling Papers, put it perfectly: "I, among others in the industry, are very concerned that Trump's news of rescheduling is a false flag."
He's right to be concerned. Moving THC to Schedule III allows pharmaceutical companies to dominate the market with synthetic THC products while subjecting every dispensary and grower to enforcement under the Food, Drug, and Cosmetic Act. Suddenly, selling cannabis without FDA approval becomes a federal crime. Mislabeling potency? Federal crime. Distribution without proper licensing? Federal crime.
Chris Fontes, Founder and CEO of High Spirits, confirmed what many of us have been warning about: most cannabis businesses would be unable to legally operate in a Schedule III framework without FDA approval and licensure. And who has the resources to get FDA approval? Big Pharma and massive cannabis corporations. Who doesn't? The mom-and-pop dispensaries, craft growers, and small businesses that built this industry from the ground up.
This isn't reform. This is a corporate takeover disguised as progress.
The Tax Break That Only Helps Big Players
Yes, Schedule III removes the burden of IRS Code 280E, which currently prevents cannabis businesses from deducting standard operating expenses. Some businesses are paying effective tax rates as high as 80% because of this rule. That's genuinely crushing for smaller operators.
But here's the thing: the businesses struggling most under 280E are the ones that won't survive the transition to Schedule III. Small dispensaries and growers that are barely hanging on now won't have the resources to meet pharmaceutical-grade standards, get FDA approval, or navigate the new regulatory framework.
The tax relief goes to those who can afford to comply with the new system—massive corporations that already have legal teams, compliance departments, and the capital to meet pharma-grade standards. For everyone else, this is just a different way to get crushed.
Small Businesses and Social Equity Get Crushed Again
Harrison Bard, CEO of Custom Cones USA, nailed it: "Rescheduling will further stack the odds against small operators."
The social equity programs that states have tried to implement to help communities harmed by the War on Drugs? They're about to become even more meaningless. How is someone from a community destroyed by cannabis prohibition supposed to compete in a market that requires FDA approval, pharma-grade facilities, and millions in compliance costs?
They can't. That's the point.
Schedule III ensures that the cannabis market looks like every other pharmaceutical market: dominated by a handful of massive corporations, heavily regulated, expensive for consumers, and completely inaccessible to small entrepreneurs. The people who built this industry in the shadows while risking their freedom? They're about to be priced out by the same corporations that fought against legalization until they realized they could profit from it.
The Hemp Market Contradiction
Here's where the hypocrisy gets even more blatant. While Trump is allegedly moving to reschedule marijuana to Schedule III, his administration just signed off on a ban of hemp-derived THC products set to take effect in 2026.
Joe Gerrity, CEO of Crescent Canna, pointed out the obvious: "With hemp THC products set to be effectively banned next year without new legislation, loosening marijuana restrictions while eliminating hemp is completely illogical."
Unless, of course, the logic is to funnel the entire THC market through pharmaceutical channels where Big Pharma can control it. Then it makes perfect sense. Ban the hemp products that anyone can make. Require FDA approval for marijuana products that only big corporations can afford to get approved. Consolidate the entire market under pharmaceutical control.
It's not illogical—it's corrupt.
Trump Protecting His Donors, Not the People
Let's be honest about what's happening here. Trump's base is largely anti-cannabis. He knows this. But the majority of Americans—across party lines—support full legalization. Poll after poll confirms this. We're talking 70%+ support for legal cannabis.
So what does Trump do? He picks the option that benefits his donors—the massive corporations and pharmaceutical companies that can afford to play the regulatory game—while throwing a bone to his base by not "fully legalizing weed."
This is Trump showing exactly where his allegiances lie, and spoiler alert: it's not with you. It's with the corporate interests that funded his campaign and will fund his future political endeavors. He's protecting Big Pharma's ability to control the cannabis market, protecting big cannabis corporations that can afford to comply, and screwing everyone else.
The man who campaigned on draining the swamp just handed the cannabis industry over to the swamp creatures.
This Isn't Trump's Win—It's Biden's
Let's give credit where it's due: this Schedule III proposal was Biden's doing. The Department of Health and Human Services recommended Schedule III during Biden's administration. The DOJ under Biden moved the process forward. Biden set up every piece of this puzzle.
Trump is just signing his name to it and claiming victory. A real Trump win would have been full descheduling—removing cannabis from the Controlled Substances Act entirely and treating it like alcohol or tobacco. That would have been bold. That would have been actual reform. That would have benefited everyone, not just corporate interests.
But Trump didn't do that because it's harder, more controversial, and might upset some of his base. Instead, he's taking the easy path that Biden already paved, slapping his name on it, and hoping his supporters are too dumb to notice they're getting conned.
What Real Reform Would Look Like
If Trump actually cared about cannabis reform and the will of the American people, here's what he would do:
Deschedule cannabis entirely - Remove it from the Controlled Substances Act. Treat it like alcohol or tobacco—regulated but legal.
Expunge all federal cannabis convictions - Not just pardon them, expunge them. Clear the records of everyone whose life was destroyed by the War on Drugs.
Allow interstate commerce - Let state-legal businesses operate across state lines without federal interference.
Establish reasonable federal regulations - Create a framework that prioritizes safety without requiring pharmaceutical-grade standards that only massive corporations can meet.
Protect small businesses and social equity - Implement real programs to help communities harmed by prohibition participate in the legal market.
Open banking and financial services - Allow cannabis businesses to access normal banking, insurance, and financial services.
That would be reform. That would be worth celebrating. That would show that Trump cares about the will of the people over the interests of corporate donors.
But that's not what we're getting. We're getting Schedule III—a half-measure that maintains prohibition while handing control to Big Pharma and crushing small operators.
The Sticky Bottom Line
Trump's alleged move to reschedule marijuana to Schedule III isn't a victory. It's a con. It's a way to claim he did something historic while actually maintaining the status quo and handing the cannabis market to pharmaceutical companies and massive corporations.
This is the swamp thing claiming to drain the swamp. This is Trump protecting his donors over the people. This is a loss dressed up as a win, and if you're celebrating it, you're missing what's actually happening.
The majority of Americans want full legalization. We want descheduling. We want expungement of records. We want small businesses to have a chance. We want an end to the criminalization of a plant that's safer than alcohol.
What we're getting instead is Big Pharma's wish list wrapped in reform rhetoric.
Schedule III helps massive corporations that can afford FDA approval. It helps pharmaceutical companies that want to synthesize and patent THC products. It helps Trump's donors who lobbied for this exact outcome.
It doesn't help patients. It doesn't help small businesses. It doesn't help communities destroyed by the War on Drugs. It doesn't help the average cannabis consumer. And it sure as hell doesn't represent the will of the people.
This isn't Trump draining the swamp. This is Trump being the swamp. And if you can't see that, you're exactly the kind of mark he's counting on.
A real leader would have descheduled cannabis, expunged records, and told Big Pharma to fuck off. Trump took the easy corporate-friendly path and slapped his name on Biden's proposal.
That's not winning. That's selling out. And we deserve better.
WHO ARE THE WINNERS FROM SCHEDULE 3, READ BELOW...
