President Donald Trump is weighing marijuana rescheduling after million-dollar donors pushed the administration toward a policy shift that could unleash billions in tax relief for the cannabis industry.
Story Snapshot
- Trump told high-dollar donors he would “look at” moving marijuana from Schedule I to Schedule III classification.
- The White House Chief of Staff has compiled agency positions on rescheduling as the internal review continues.
- Cannabis industry executives at a $1 million-per-plate fundraiser in Bedminster urged immediate action on rescheduling.
- A policy change would provide massive tax relief through the elimination of restrictive 280E provisions.
High-Stakes Fundraiser Drives Policy Discussion
President Trump signaled openness to marijuana rescheduling during an August 1 fundraiser at his Bedminster golf club, where donors paid $1 million per plate for access.
Cannabis industry executives, including Trulieve CEO Kim Rivers, attended the event and directly lobbied for federal rescheduling action.
Trump told attendees, “We need to look at[ moving marijuana from its current Schedule I classification to the less restrictive Schedule III category.
The fundraiser setting allowed industry leaders unprecedented direct access to influence administration policy on an issue worth billions to their sector.
Report: Trump considers reclassifying marijuana as less dangerous drug: report
Trump is weighing whether to remove marijuana from the list of Schedule I controlled substances and make it a Schedule III drug.https://t.co/7lR1g8rR05
— The Truthful American (@TTA_NewsNetwork) August 11, 2025
Federal Classification System Under Review
Marijuana currently sits alongside heroin and LSD in Schedule I, the most restrictive tier under the Controlled Substances Act, designated for substances with high abuse potential and no accepted medical use.
Schedule III classification would recognize medical applications while maintaining federal oversight, similar to prescription medications like codeine.
The Biden administration initiated this rescheduling process through HHS and DEA reviews, but left office before completing the transition.
White House Chief of Staff Susie Wiles has now compiled agency positions from HHS, DOJ, and the Domestic Policy Council as the Trump administration evaluates whether to advance the reclassification.
Massive Tax Relief Implications for the Cannabis Industry
Rescheduling to Schedule III would eliminate the punitive 280E tax provision that currently prevents cannabis businesses from deducting normal business expenses, dramatically improving industry profitability.
Multi-state operators and large cannabis companies stand to gain the most from this tax relief, potentially saving millions annually in federal obligations.
The policy change would also ease research restrictions, allowing expanded clinical studies and FDA-regulated therapeutic pathways.
However, rescheduling alone would not resolve banking restrictions or interstate commerce limitations, which require separate congressional action to fully normalize the industry.
Administration Weighs Popular Reform Against Political Risks
White House spokeswoman Abigail Jackson stated the president’s decision will be guided by “what is in the best interest of the American people” as internal deliberations continue.
Reports indicate adviser divisions within the administration, with some urging fulfillment of Trump’s campaign pledge while others warn of potential moral and political backlash from traditional conservative constituencies.
The issue polls strongly across party lines, with roughly 40 states permitting medical use and 24 allowing recreational cannabis, creating significant pressure for federal alignment with state-level reforms.
Sources:
Trump considers reclassifying marijuana as less dangerous drug
Trump Considers Giving Big Gift to Marijuana Enthusiasts
White House confirms Trump weighing marijuana reclassification
