Trump Reschedules Cannabis, Leaving Opening for Hemp Industry

On Thursday, President Trump signed an executive order, Increasing Medical Marijuana and Cannabidiol Research, that moves cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA). Schedule I drugs are defined as drugs with no currently accepted medical use, a high potential for abuse, and a lack of accepted safety for use of the drug under medical supervision.  Schedule III drugs are classified as having a potential for abuse less than the drugs in Schedules I and II, a currently accepted medical use in treatment in the United States, and a potential for moderate or low physical dependence or high psychological dependence.

But as its title indicates, it also opens a door for the hemp industry, which has been on its back foot since Congress last month included a hemp ban in its bill ending the federal government shutdown. That ban threatens to virtually wipe out a multi-billion industry that has grown up around hemp-derived cannabinoids. 

The executive order had its genesis in the Biden administration, which ordered a review of medical marijuana's status, leading to a 2023 Food & Drug Administration (FDA) finding that there was scientific support for certain medical uses of the plant. The Department of Health and Human Services (HHS) then recommended to the Drug Enforcement Agency (DEA) that marijuana be controlled under Schedule III of the CSA. DEA had yet to act on that recommendation, but now the president has. 

"Decades of Federal drug control policy have neglected marijuana’s medical uses," the order says. "That oversight has limited the ability of scientists and manufacturers to complete the necessary research on safety and efficacy to inform doctors and patients…. The federal Government’s long delay in recognizing the medical use of marijuana does not serve the Americans who report health benefits from the medical use of marijuana to ease chronic pain and other various medically recognized ailments. Americans who often seek alternative relief from chronic pain symptoms are particularly impacted. " 

The order also addresses cannabinoids, the phytochemicals that interact with the human body's endocannabinoid system to produce both physical and psychoactive effects. The most prevalent products derived from American hemp crops are the cannabinoids, particularly cannabidiol (CBD) and tetrahydrocannabinol (THC). CBD is widely used in pain relief. "Full-spectrum" CBD products also contain THC derived from the hemp plant. 

The order notes that while hemp-derived cannabinoids are currently not controlled substances under the CSA, "some full-spectrum CBD products will once again be controlled as marijuana under the CSA when section 781 of Public Law 119-37 [the hemp ban] goes into effect because they contain THC levels above the per-container threshold set by that law." It also notes that some CBD products have been inaccurately labeled, "posing safety risks for consumers."

"It is the policy of my Administration to increase medical marijuana and CBD research to better inform patients and doctors, the order states. "It is critical to close the gap between current medical marijuana and CBD use and medical knowledge of risks and benefits, including for specific populations and conditions.  Research methods and models should include real-world evidence and should facilitate affordable access in order to rapidly assess the health outcomes of medical marijuana and legal CBD products while focusing on long-term health effects in vulnerable populations like adolescents and young adults.

The order mandates that the attorney general complete rulemaking for rescheduling marijuana expeditiously and that White House officials "work with the Congress to update the statutory definition of final hemp-derived cannabinoid products to allow Americans to benefit from access to appropriate full-spectrum CBD products while preserving the Congress’s intent to restrict the sale of products that pose serious health risks."

That effort will include developing guidance on an upper limit on milligrams of THC per serving, per container limits, and on CBD to THC ratios. It will be led by the Secretary of Health and Human Services, the Commissioner of Food and Drugs, the Administrator of the Centers for Medicare and Medicaid Services, and the Director of the National Institutes of Health.

In a fact sheet accompanying the order, the administration notes that "President Trump is paving the way for enhanced research and better information on hemp-derived cannabinoid products, helping to inform patients and doctors about their potential role in managing common health conditions." 

The fact sheet also says that one in five American adults and nearly 15 percent of seniors have reported using CBD in the past year, but that the recent hemp ban, "including recent changes that affect full-spectrum CBD products, leaves American patients and doctors without adequate guidance or product safeguards." To improve access and inform standards of care, what is needed are "legislative solutions and innovative research methods."

The hemp industry is liking what it is seeing today from the White House. 

"The US hemp industry is deeply grateful to President Trump for issuing his strong pro-hemp executive order today," the US Hemp Roundtable said in a statement.  "While the headlines of the announcement will focus on marijuana rescheduling – which is a positive in itself, for any cannabis reform benefits the entire plant – we are especially pleased to see the provisions that direct the White House staff and urge Congress to ensure access to hemp-derived, full-spectrum CBD products, a lifeblood of the industry," the group continued.

"We consider this executive order to be a direct rebuke to the hemp ban that was malignly attached to legislation that reopened government," the Roundtable added. "This also gives strong impetus to efforts to extend the ban’s moratorium an additional 18 months to allow proper time for Congress and the Trump Administration to develop the regulatory framework that ensures the safe provision of hemp products while cracking down on the bad actors peddling the unsafe products that the executive order calls out."

"This executive order provides us the political and PR air cover we need to push Congress for a two-year extension on the existing ban," said Hemp Industry and Farmers of America (HIFA) executive director Brian Swensen in a message to supporters. "It allows us a stronger hand when we lobby and push members of Congress for the extension. The hemp industry has a fighting chance thanks to the Trump administration's executive order. The order is a clear indication for Americans and lawmakers that a ban is not the answer."

As of today, the hemp industry has less than 11 months to get the hemp ban undone and a new regulatory regime in place. But if those calls for a moratorium on enforcement of the ban, whether for 18 months or two years, are heeded, there will be a little more breathing room. The industry will need all the time it can get. The issues are complex, and so is the congressional process.