Biden Administration Begins Formal Rulemaking Process Downgrading Cannabis to Less Dangerous Drug

2.4 min readPublished On: May 16th, 2024By

WASHINGTON, D.C. – President Joe Biden is officially advancing plans to ease federal cannabis restrictions. Today, Biden announced his administration’s intention to reclassify cannabis from the most restrictive category on the federal list of illegal drugs to a moderately restrictive category.

“This is monumental,” Biden stated in a video posted to X regarding the reclassification, which was initially reported by POLITICO before the announcement. “Today, my administration took a major step to reclassify cannabis from a Schedule 1 drug to a Schedule 3 drug.”

This action is the next phase in the rescheduling process that Biden initiated in October 2022, following the Department of Health and Human Services’ recommendation in August to reclassify cannabis.

The reclassification would not make cannabis federally legal but would reduce the tax burden on state-legal cannabis businesses and facilitate research on the substance.

Cannabis is currently listed as a Schedule I drug under the Controlled Substances Act, the most severe classification, indicating no accepted medical use and high potential for abuse. The Department of Justice’s decision to reclassify would move cannabis to Schedule III, a category recognizing both medical benefits and some potential for abuse.

This shift represents the most significant change in federal drug policy in over 50 years and highlights Biden’s evolving stance on cannabis. As a senator, he authored the Anti-Drug Abuse Act of 1986, which increased federal penalties for possession and distribution of Schedule I substances like cannabis. In 2020, Biden was the only Democratic candidate in the crowded presidential primary to not fully endorse federal decriminalization.

During the 2020 campaign, however, Biden advocated for significant changes, asserting that no one should be imprisoned for cannabis possession, while also suggesting it could be a “gateway drug.”

As Biden campaigns for reelection, he has faced challenges in garnering support from young voters. A recent poll indicated he was leading former President Donald Trump by only 8 points among voters aged 18 to 29, a much narrower margin compared to the same point in the election cycle four years ago.

Biden’s cannabis policy changes have the potential to increase support among this critical demographic. A recent national poll revealed that 65 percent of likely voters aged 18 to 25 support the administration’s recommendation to reclassify cannabis to a less stringent category, compared to just 14 percent in opposition.

On Thursday, Biden reiterated his past statements that no one should be jailed for using or possessing cannabis.

“Far too many lives have been upended because of [our] failed approach to cannabis,” he said. “And I’m committed to righting those wrongs. You have my word on it.”

In announcing the move, the DOJ released formal guidance detailing the reclassification, along with a report from the Office of Legal Counsel explaining the rationale behind the decision.

Following the publication of the rulemaking notice in the federal register, a 60-day comment period will begin, marking the next step in the rescheduling process.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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