The Trump administration on Wednesday took a major step toward reshaping federal cannabis policy, with Acting Attorney General Todd Blanche signing an order reclassifying marijuana from Schedule I to Schedule III under federal law. The move marks the most significant federal shift on cannabis in decades and could have immediate implications for Nevada’s multibillion-dollar industry.
Marijuana is a Schedule I drug alongside heroin and LSD, the most restrictive category. Moving it to Schedule III would recognize medical use and reduce regulatory barriers, though it would not legalize cannabis federally.
The change may ease the impact of IRS Code 280E, a tax rule that has prevented state-legal cannabis businesses from deducting standard expenses. Industry leaders say that has forced companies to pay taxes on gross revenue rather than profit.
Nevada’s cannabis market has generated over $861 million in sales in 2022 and supports tens of thousands of jobs.
The order begins a formal federal process that includes regulatory review and potential legal challenges before the change is final. Supporters say the shift could also expand medical research into cannabis, particularly for conditions like chronic pain and PTSD.
Opponents have already signaled they may challenge the move in court.
The Old Blog in the Desert 
Leave a comment