Marijuana rescheduling hits a roadblock

A Drug Enforcement Administration (DEA) judge canceled an upcoming hearing on the Biden administration’s proposed marijuana rescheduling pending appeals, giving a glimpse into the process in the Trump administration.

Advocates of more lenient marijuana laws alleged that DEA officials had colluded with rescheduling opponents and hope the process will move forward under President-elect Trump.

The first hearing to consider the Biden administration’s proposal to reschedule marijuana from Schedule I to Schedule III under the Controlled Substances Act began on January 21.

But those plans have been canceled by DEA Administrative Law Judge John Mulrooney.

Proponents of rescheduling — Village Farms International, Hemp for Victory and the Connecticut Office of the Cannabis Ombudsman — have called for DEA Administrator Anne Milgram to be removed as a proponent of rescheduling in the process. of hearing

The groups alleged that at least one high-level DEA official had communicated with opponents of marijuana rescheduling, helping them improve their chances of being chosen as participants in the hearings.

Mulrooney denied the parties’ request, writing, “I can no more remove or reassign the administrator than I can hold the parties in contempt and fine them. The strangeness of this unsupported approach is amplified by the fact that the appointment of a new DEA administrator by a different political party is imminent.”

The judge also wrote that if the allegations are true, even in the best light, they would represent “a baffling and grotesque misunderstanding and poor judgment on the part of senior officials of a major federal agency with extensive prior experience with the (Administrative Procedure Law).”

According to DEA regulations, parties may file an appeal if their request is denied. Mulrooney found in his ruling that allowing the parties to appeal could “potentially avoid exceptional delay, expense or prejudice to (designated participants) and the Government by injecting certainty of appeal into the equation at this stage of the proceedings “.

The procedure is now paused pending this resource. The DEA declined to comment on the pending proceedings when reached by The Hill.

For those in the cannabis industry, the delay was cause for some concern, as rescheduling to Schedule III is help their businesses take deductions or add credit to their annual federal taxes, which companies that deal in Schedule I or Schedule II substances cannot.

Jordan Tritt is founder and CEO of the Panther Group, a commercial cannabis bank and advisory firm that aims to help business owners obtain financial backing. Tritt told The Hill that bumps in the road were expected.

“We’re not surprised by that,” he said. “Ultimately, I think rescheduling is going to happen, and I think it’s probably good that a new administration is coming in.”

Tritt noted that there didn’t seem to be much support from the current DEA when it came to rescheduling marijuana. Trump’s initial pick to lead the agency was withdrawn from considerationand has yet to name a new candidate.

Judge Mulrooney hinted in his ruling this week that the DEA may not be a “perpetual cheerleader” when it comes to this proposal and acknowledged that the current DEA administrator may have ” reservations” about the rescheduling proposal. He wrote that this should encourage. parties to present their “best case” for marijuana rescheduling.

Karen O’Keefe, director of state policy for the Marijuana Policy Project, echoed that the incoming administration could present a fresh start for marijuana legalization efforts.

“For the first time in decades, we have an incoming president of the United States who believes cannabis should be legal,” O’Keefe said. “More than two-thirds of Americans support legalization, and most live in a state where cannabis is legal. Yet every cannabis user and every worker who serves it is still a federal criminal. If President Trump does make federal reform a priority, we could be on the cusp of historic progress.”

During his 2024 campaign, President-elect Trump voiced his support for rescheduling and decriminalizing marijuana.

“I think it’s time to end the unnecessary arrests and incarcerations of adults for small amounts of marijuana for personal use. We also need to implement smart regulations, while providing adults with access to a safe and proven product Trump said wrote in Social Truth in September

He added that he planned to vote “yes” on Amendment 3 in Florida, a ballot measure that would have legalized adult marijuana. Ultimately, the measure failed despite roughly 56% voting “yes,” as it needed a 60% supermajority to pass.

O’Keefe said Trump could “defend the Second Amendment rights of cannabis users, deschedule cannabis and otherwise lead on this popular issue of personal freedom, limited government, fiscal responsibility and rights of the states”.

Under federal law, someone who illegally uses a controlled substance like marijuana while possessing a gun or ammunition is considered to have committed a crime.

Michael Teller, chief operating officer of the Panther Group, said the Trump administration may support more marijuana legalization as part of its pro-states rights and pro-business stance.

“I think Trump will totally look at it from a dollars and cents tax revenue (perspective). Because whatever it is, it makes money,” Teller said. “I don’t think I’m going to push for federal legalization at any point, but I think rescheduling and whatever it takes to allow the states to make the decisions … will pave the way.”

Michael DeGiglio and Robert Head, leaders of Village Farms and Hemp for Victory respectively, wrote in one op-ed published in Marijuana Moment this week that the recess rescheduling hearing was a good thing for the cannabis industry. They acknowledged they were “frustrated” by the delay but said the goal of the rescheduling needed to be achieved.

“Had we not intervened, the hearing would have proceeded with the DEA openly tipping the scales against rescheduling and setting the stage for an incumbent career official to formally reject the move to schedule III,” they wrote.

“Instead, the matter will likely be handled in the near future by the incoming Justice Department and has yet to be appointed as DEA administrator under President-elect Donald Trump, who publicly approved the rescheduling of the campaign.”

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