Should The Biden Administration Reschedule Cannabis By Year-End? Six Governors Say Yes

Governors of Colorado, Illinois, New York, New Jersey, Maryland and Louisiana have collectively urged President Biden to reschedule cannabis to Schedule III of the Controlled Substances Act by year-end.

This move, they argue, will align government policy with public opinion, where 88% of Americans favor legalization for medical or recreational use.

Governors’ Collective Voice: A National Call For Change

As KDVR reported, the letter, led by Colorado Governor Jared Polis highlights the economic and public health benefits of such a rescheduling. "Rescheduling cannabis aligns with a safe, regulated product that Americans can trust," the governors stated, emphasizing the established state markets and regulatory systems in 38 states.

Economic And Public Health Benefits Of Rescheduling

Economic incentives are a significant driving factor behind this push. Moving cannabis to Schedule III would alleviate Section 280E restrictions of the Internal Revenue Code, enabling cannabis businesses to make standard business deductions. This change is estimated to potentially save $1.8 billion annually, shifting cannabis companies from an effective tax rate of up to 80% to the standard federal corporate rate of 21%.

Governor Polis’s office noted that rescheduling would alleviate financial and safety concerns for businesses, allowing the industry to fully integrate into the American business environment. Additionally, regulated cannabis products provide far safer alternatives to illicit markets, the governors argue, underscoring the persistent consumer demand for cannabis.

Federal Agencies And The Rescheduling Debate

This plea follows the Department of Health and Human Services‘ recommendation to reschedule marijuana as a Schedule III drug. However, the DEA, which holds final jurisdiction over the Controlled Substances Act has the authority to disregard this advice. According to Marijuana Moment, the government has released HHS’s recommendation in a highly redacted form, withholding key details.

Facing Opposition: Challenges To Rescheduling

Six former DEA heads and five former White House drug czars have voiced their disagreement, challenging the relationship between drug schedules and criminal penalties. In addition, as noted in Colorado Politics, a coalition of GOP senators and 14 Republican congressional lawmakers opposes the rescheduling, urging for cannabis to remain in the most restrictive category under the CSA.

Meanwhile, advocates and lawmakers marked the one-year anniversary of Biden's mass marijuana pardon by urging further action, including federal legalization support.

A Defining Moment In Cannabis Policy

This development, strategically timed before year-end, suggests a calculated effort to influence policy amid favorable public opinion. Upcoming elections and the need for federal alignment with evolving state-level cannabis regulations also mark the ongoing debate over legalization in the United States.