ALBANY, N.Y. (WRGB) — President Donald Trump signed an executive order Thursday to reclassify marijuana as a Schedule III drug, a move aimed at facilitating medical research. Previously classified as a Schedule I drug, the change acknowledges marijuana’s medical uses.
“This reclassification order will make it far easier to conduct marijuana-related medical research,” Trump said.
Aaron Pam, a senior associate at Tully Rinckey, explained that the reclassification removes the stringent restrictions previously imposed under the Schedule I classification, making it easier to study.
“This will allow for a more even playing field when it comes to medical and science-based research, which I believe is a benefit to all if there is legalization of marijuana across America,” Pam said.
Despite the reclassification, Trump emphasized that the executive order does not alter marijuana’s legal status.
“It doesn’t legalize marijuana in any way, shape, or form, and in no way sanctions its use as a recreational drug; it has nothing to do with that,” he stated.
Pam also noted that the order will not affect laws regarding illegal possession of marijuana, with New York’s legal possession limit remaining at three ounces.
The reclassification is expected to be an economic boon for dispensaries. John Kagia, director of policy for the New York State Office of Cannabis Management, highlighted that businesses will see a 75% decrease in taxes.
“Businesses that traffic in Schedule I and Schedule II substances cannot deduct these business expenses. It means cannabis businesses have a much higher tax burden than most other businesses in the economy,” Kagia said.
Kagia anticipates that the expected higher returns will lead to fewer unregulated sellers, resulting in a safer market. He welcomed the shift in perception of cannabis products, noting that it will stimulate investment and access to research for therapeutic applications of cannabis.
