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Congressional researchers say DEA is ‘likely’ to reschedule marijuana, with ‘broad implications’ for taxes, housing, immigration and more

September 14, 2023 by Kyle Jaeger

Researchers say that it is “likely”, the Drug Enforcement Administration will follow the federal health agency’s recommendation to reschedule cannabis. This would have “wide-ranging implications” for federal policies in areas like taxes, housing and immigration, military eligibility as well as gun rights, among others.

Analysts with the Congressional Research Service published a report on Wednesday that gave an overview of the cannabis schedule review conducted by President Joe Biden in the past year and evaluated the impact of moving marijuana to Schedule III of Controlled Substances Act, as recommended by U.S. Department of Health and Human Services.

The DEA may have stated that it is bound by HHS’s medical and scientific findings, but it has the right to make a scheduling decision in conflict with those findings. CRS stated that “if the past is any indication, it’s likely that DEA would reschedule cannabis according to HHS recommendations.”

The article cited an example where DEA followed HHS’s advice on scheduling when it came to Marinol (a synthetic cannabinoid), which was put in Schedule III in 1998.

CRS stated that rescheduling marijuana to Schedule III would have a wide range of implications for federal policy. This move will have major implications for medical marijuana users and state medical marijuana programs, but less for recreational marijuana users and state recreational marijuana programs.

Experts disagree on the extent to which would reschedule cannabis and how that might affect state-level programs. CRS stated that such an action could make it legal for “manufacture and distribute medical marijuana” and to possess the drug. But other experts say this would not be true without FDA approval and manufacturers obtaining DEA licensing.

CRS also stated, that a Schedule III reclassification could mean that state medical cannabis programs “may be able now to comply with CSA, and still be subjected to CSA/DEA criminal and regulated control, federal public-health laws such the Federal Food, Drug, and Cosmetic Act, and agriculture laws such the Agricultural Marketing Act of 1947.”

The scope and demand for FDA supervision of medical marijuana and products related to it may increase considerably. FDA may have to update or generate a large amount of technical data to clarify its regulatory strategy for marijuana to relevant stakeholders in the short-term. “Given that marijuana is an extremely complex substance that contains many pharmaceutical components, and that it is available in a variety of formats to consumers, FDA may need to allocate resources over the long term to ensure that marijuana products meet regulatory standards.”

CRS stated that Schedule III would allow medical cannabis patients to be eligible for non-immigrant and immigrant visas and “purchase and possess firearms”. CRS added that adult cannabis users would not be entitled to the same rights.

It’s still not clear exactly what steps are needed to bring state medical cannabis laws – and people who act under them – into full compliance with the rules for Schedule III drug. Colorado Gov. Jared Polis, a Democrat, sent Biden a letter recently requesting ” FDA Enforcement Guidance to Minimize Economic Disruption and Promote State-Federal Collaboration, while Protecting the Public’s Health” in accordance with current state laws.

According to the new CRS report, under Schedule III “marijuana retailers and producers would be able deduct their costs of selling the product (e.g. payroll, rent, advertisement) for federal income tax returns.” The reclassification, it was added, would also allow research on cannabis.

It said that “DEA will no longer set production quotas for marijuana.” “Those who use marijuana for medical purposes may face fewer obstacles to federal employment or eligibility to serve in military.”

The report ends by stating that Congress can “choose” to independently address any number issues related to a potential rescheduling marijuana, including by rescheduling it or descheduling it or placing in an entirely different schedule.

CRS stated that if the administrative scheduling process continues, Congress could consider allocating additional resources to FDA or the U.S. Department of Agriculture to ensure the quality and safety of the various products available on many state markets.

Marijuana Moment tracks more than 1,000 cannabis and drug policy bills that have been introduced in state legislatures, and Congress. Patreon supporters who pledge at least $25/month gain access to our interactive charts, maps and hearing calendar.

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Administrator Anne Milgram Milgram made it clear to that the DEA’s review of cannabis scheduling will be based on science.

Biden has not personally commented on HHS’s recommendation to reschedule marijuana. However, the White House Press Secretary did state last month that President Obama has “always” supported the legalization for medical marijuana.

Biden’s “always” supporting cannabis reform is not true. As a Senator, he pushed for several pieces of legislation to intensify the war on drugs.

The recommendation of the top health agency has been praised by lawmakers from both parties. has described the recommendation as an important step on the road to federal legalization. has claimed credit, pointing out their years of activism around marijuana reform.

Not everyone is happy about the news. A coalition of Republican Congressmen urged DEA this week to “reject”, the HHS recommendation that marijuana be rescheduled and to instead keep it on Schedule I.

A second GOP member, Rep. Greg Murphy of North Carolina, sent a separate letter to HHS Sec. Xavier Becerra in which expressed concern over the agency’s rescheduling recommendations. He also asked the official several questions regarding how the decision was made.

A Republican congressman who supports legalization has recently expressed his concern that moving marijuana from Schedule III to Schedule IV may accidentally lead to the pharmaceutical industry overtaking the cannabis industry .


Nebraska Activists Kick Off 2024 Medical Marijuana Ballot Campaign As Governor Raises Concerns About Children

The post Congressional researchers say DEA ‘likely’ to reschedule marijuana, with ‘broad implications’ for taxes, housing, immigration and more first appeared on Marijuana moment.

Kyle Jaeger
Author: Kyle Jaeger

About Kyle Jaeger

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