The Department of Justice plans to issue a notice of proposed rulemaking that would reclassify marijuana to a less restrictive category

The Department of Justice is set to announce a proposed rule on Thursday that would reclassify marijuana to a less restrictive category, according to two Biden administration officials familiar with the decision.

This move is part of the rescheduling process initiated by President Joe Biden in October 2022 and is expected to be the most significant shift in federal drug policy in decades.

The proposed reclassification follows a recommendation by the Department of Health and Human Services in August to reclassify marijuana, which is currently listed as a Schedule I drug under the Controlled Substances Act, placing it in the same category as heroin. The DOJ's decision would move cannabis to Schedule III, a category that acknowledges its medical benefits and potential for abuse, similar to ketamine.

This change reflects significant shifts in cannabis policy across the country. In the past 12 years, 24 states have legalized marijuana possession for adults, and 38 states have established medical marijuana programs. With more than half of Americans now residing in states where marijuana is legal for recreational use at the state level, the move to reclassify marijuana is seen as a response to these evolving state laws.

The DOJ has not commented on the plans to release guidance, which were first reported by POLITICO. Once the proposed rule is published in the federal registry, it will undergo a 60-day public comment period.

Reclassifying marijuana to Schedule III will facilitate research, addressing a long-standing demand from scientists and public health officials. It will also exempt state-legal marijuana businesses from section 280E of the federal tax code, which currently prevents them from deducting most basic business expenses, making profitability challenging. However, reclassification will not alter federal criminal law concerning marijuana.