Marijuana Reclassification Decision Postponed Until After Election

The process has been in the works for years. Still, the nation will have to wait until after November to find out whether marijuana gets rescheduled from a Schedule I substance to a less dangerous Schedule III substance. In May, the Drug Enforcement Administration (DEA) published its formal proposal for marijuana rescheduling, opening the 60-day comment period. After receiving a record 43,000 public comments, many cannabis enthusiasts hoped the rule change would occur soon after. Unfortunately, that isn’t going to be the case.

The DEA instead scheduled a hearing on the proposal to reclassify marijuana under federal drug laws for December 2nd. Politics-minded readers will notice this date is conspicuously after the November presidential election.

DEA Delays Marijuana Reclassification Decision Until After the Election

It was back in 2022 that President Joe Biden pardoned thousands of people with simple marijuana possession convictions and asked that the federal government review the reclassification of marijuana. By August of 2023, the U.S. Department of Health and Human Services issued their recommendation to the DEA that marijuana be reclassified from a Schedule I controlled substance down to a Schedule III substance. The fate of marijuana has been in the hands of DEA officials ever since.

Influential members of Congress, state governors, the marijuana industry, and the public have been pushing the DEA to decide on marijuana. Things finally seemed to be moving positively when the agency announced earlier this year that they agreed to reschedule cannabis and would open the 60-day public comment period on May 21st. A data firm analysis of the public comments posted to the DEA found that 92.45 percent of comments were in favor of reclassifying marijuana. Nearly 62 percent of those comments expressed the option that the DEA should reschedule cannabis completely. Another 38 percent argued for a less strict classification than the proposed Schedule III.

After what has felt like a long and arduous process, those in the cannabis industry and public advocates are expressing frustration at the DEA’s decision to delay its rescheduling decision until December, conveniently after the November election.

Markets Respond to Uncertainty

On the heels of the DEA announcement, marijuana stocks dived. Many in the cannabis industry expressed frustration at the decision to postpone marijuana reclassification. Reclassifying cannabis has strategic tax implications for legal marijuana businesses. Some say that waiting until after the election is just a way to kick the can down the road and avoid making what many perceive as an easy decision, especially when an overwhelming majority of the public comments expressed virulent support for reclassifying or declassifying marijuana.

However, the decision to wait until after the election may hold even more significant implications. For one thing, would reclassifying marijuana mean voters turn out more favorably for the candidates that have expressed a desire to change American drug policy, supporting legalized cannabis or cannabis reclassification? It is no secret that the majority of those supporting cannabis and overall drug reform tend to lean more liberal. You need only to review the voting record in Congress to see that progressive drug reform policies put in front of the Senate and especially the House died at the hands of Republican lawmakers.

Frustration in the Cannabis Industry

Would a ruling give one party more momentum than the other heading into a critical November election? What about the other side of the argument? An agency that has expressed concern about marijuana and American drug policy and has seemed to resist committing to marijuana reform may be delaying a decision to wait for a new administration to reverse course potentially.

In an email to Forbes, Lauran Fontein, chief compliance officer and founder of California licensed dispensary firm The Artist Tree, writes, “It means that cannabis businesses may be subject to one additional year of taxation under 280E, which makes a tremendous difference to the bottom line for cannabis companies, many of which are already struggling financially given the overall industry conditions. The delay also makes rescheduling less certain since a new presidential administration could possibly reverse course and oppose rescheduling, though it appears there’s generally bipartisan support at the moment.”

Other marijuana industry leaders expressed the same concerns, putting cannabis reform in a holding pattern to meet political agendas even though reform is overwhelmingly popular with the public. For many, it felt like cannabis reclassification was nearly a done deal. Now, things feel up in the air again because there is no telling what a new administration may want to do in terms of marijuana policy and rescheduling.

The Political Calculus

Cannabis enthusiasts and those in the marijuana industry say no matter what, it is vital to continue working on fair and sensible cannabis legalization at the state and federal levels. However, despite public support and what many claim as bipartisan support in Congress, many pieces of marijuana legislation died in the House or failed to be brought up for a vote by Speaker of the House Rep. Mike Johnson (R), an individual staunchly against cannabis reform.

One GOP Senator suggested that the SAFER Banking Act, with bipartisan support in the Senate, was unlikely to go anywhere in the House. Vice Presidential contender U.S. Senator JD Vance (R-OH) voted against the SAFER Banking Act, seems to oppose federal cannabis legalization, and at a campaign event in Wisconsin claimed that “fentanyl is in our marijuana bags that our teenagers are using.”

There is similar uncertainty on the other side of the political spectrum since Democratic nominee Vice President Kalama Harris has a checkered past with marijuana, opposing a 2010 California ballot initiative to legalize marijuana. She has since shifted her views, saying she supports cannabis legislation and advocating for the expungement of nonviolent marijuana-related offenses.

Whether there is political motivation behind the DEA’s decision to postpone the reclassification of marijuana is anyone’s guess. One thing is certain. Advocates and those in the marijuana industry are frustrated that their priorities are again placed on the back burner.

Stay Up-to-Date with Cannabutter Digest

You can stay informed before the November election and anytime by bookmarking Cannabutter Digest. We have all the cannabis-related news, recipes, and product reviews you need to stay ahead of the game.