The proposal to stop the Biden administration's attempts to reschedule marijuana and loosen federal regulations on the substance was adopted by the House Appropriations Committee last Tuesday technically as the RNC wraps up this week.. The Department of Justice cannot proceed with the rescheduling proposal, which seeks to transfer cannabis from Schedule I to the less restrictive Schedule III of the federal Controlled Substances Act (CSA), according to a measure that a Republican-led committee amended.
That, in conjunction with the recent Supreme Court ruling on an older Chevron case, has put marijuana legalization in jeopardy.
President Joseph Biden gave his administration instructions in October 2022 to reevaluate the federal ban on marijuana. Following this, the U.S. Department of Health and Human Services (HHS) formally suggested rescheduling cannabis under the Controlled Substance Act (CSA) in August 2023. The shift to Schedule III, which includes medications like Tylenol with codeine and testosterone, was supported by scientific evaluations, on which this suggestion was founded.
According to an HHS assessment of cannabis research conducted in January, marijuana is classified under federal drug regulations as a less dangerous substance. The FDA's (Food and Drug Administration) researchers have discovered reliable proof of marijuana's medicinal benefits, meeting the requirements for rescheduling under the CSA. After four months, marijuana was approved to be moved from Schedule I, a class of substances with no recognized medicinal use and a high potential for abuse, to Schedule III by the Drug Enforcement Administration. There is now a 60-day public comment period on a proposed regulation for this modification.
Amendment Blocks Marijuana Rescheduling Efforts
The House Appropriations Committee's adoption of the Commerce, Justice, Science, and Related Agencies (CJS) budget bill on Tuesday may put an end to the process of rescheduling marijuana. This measure contains an amendment that would prohibit the Department of Justice from rescheduling or descheduling marijuana under the Controlled Substances Act (CSA) with the use of government money. A source states that Democratic Representative Rosa DeLauro offered an amendment to strike out the parts of the measure that prevented rescheduling and other irrelevant elements, but her plan was rejected by a vote of 20 to 30.
This GOP-led effort to prevent the reclassification of marijuana would negatively impact the regulated cannabis industry. If rescheduling were to succeed, cannabis businesses would no longer be subject to tax code provisions that deny standard business deductions for companies selling Schedule I substances. David Craig, chief marketing officer of Missouri licensed cannabis company Illicit Gardens, described the committee’s approval of the amendment as "a disappointing move."
“Blocking cannabis rescheduling is a significant misstep because it hinders vital research and maintains an outdated and punitive approach to a substance that has proven benefits,” Craig wrote in an email. “We’ve seen countless states adopt cannabis programs with significant public support, and federal scheduling remains out of sync with that reality. This decision represents a missed opportunity to modernize cannabis policy in a way that aligns with both current scientific understanding and the will of many states and their citizens.”
Committee Rejects Bid To Allow State-Legal Recreational Weed
The committee also rejected an amendment from California Democratic Rep. Barbara Lee, co-chair of the Congressional Cannabis Caucus, that would have prohibited the Justice Department from spending its resources to interfere in state or tribal-regulated marijuana programs, including those that legalize recreational cannabis.
“This amendment prevents the federal government from imposing its antiquated cannabis regulations on states, and it’s time that the federal government keep up with the times and stop hindering progress,” said Lee.
Rep. David Joyce, a Republican from Ohio who also co-chairs the Congressional Cannabis Caucus, was the only GOP member of the committee to speak in favor of Lee’s amendment. JD Vance, Trump's pick for VP, also from Ohio, is not a fan of marijuana reform at the Federal level.
“We should be empowering states to regulate the product how they see fit, and this amendment would help just do that,” he said. “The disparity between state and federal policies has created a loophole that has allowed illicit operators to thrive and jeopardize public safety. It’s time to close the loophole, make sure products are safe and out of the hands of youth.”
Pennsylvania Rep. Matt Cartwright, the ranking Democrat on the CJS Appropriations Subcommittee, also called on his fellow lawmakers to back Lee’s amendment, saying that the proposal is “about aligning law enforcement efforts between state and federal entities.”
The funding bill retains language to block the Department of Justice from interfering in state-legal medical marijuana programs that have been included in the legislation for a decade. However, the committee added a new provision that permits federal law enforcement agencies to enforce a federal law that increases penalties for distributing marijuana within 1,000 feet of an elementary or vocational school, college, public housing or playground.
Potential Impacts on the Cannabis Industry and Public Opinion
With marijuana currently categorized as a Schedule I narcotic, firms in the cannabis industry have significant financial and operational obstacles, including prohibitions on conventional company deductions and limited access to banking facilities. Industry stakeholders, like David Craig, chief marketing officer of Illicit Gardens, contend that this decision stifles essential research and promotes an antiquated attitude to a product with proven therapeutic advantages. The House Appropriations Committee's decision to deny the rescheduling of marijuana has enormous repercussions for the cannabis sector and public opinion of cannabis policy.
In recent years, there has been a notable movement in public sentiment about cannabis, with an increasing percentage of Americans now favoring some kind of legalization. The growing number of states that have legalized cannabis markets, motivated by both economic and public health reasons, is indicative of this shift. The committee's rejection of amendments that would have prevented federal meddling in state-legal recreational marijuana programs, however, underscores the ongoing conflict between federal and state policy. Representative Barbara Lee and other lawmakers contend that the federal government should cease impeding growth and instead become more in line with modern ideas.
A Supreme Court ruling on a Massachusetts cannabis company's appeal may be the best option for legalization at some point.
The continued federal prohibition creates legal ambiguities that challenge state-legal markets and allow illicit operators to thrive, compromising public safety. Rep. David Joyce, one of the few Republicans advocating for progressive cannabis policies, emphasizes the necessity of federal alignment with state regulations to close these loopholes. As public support for cannabis reform grows, there is mounting pressure on federal lawmakers to modernize cannabis policy, reflecting the current scientific understanding and the realities of state-legal markets.
Bottom Line
The Republican-led House Appropriations Committee's decision to adopt a measure that blocks the rescheduling of marijuana from Schedule I to Schedule III under the Controlled Substances Act represents a significant roadblock for federal cannabis reform. This move comes despite growing public support for cannabis legalization and the scientific evaluations by the Department of Health and Human Services, which recognize marijuana's medicinal benefits and recommend its rescheduling.
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