Trump Advisor Says Internal Resistance Stalling Cannabis Rescheduling

A presidential advisor claims someone within the Trump administration is blocking the completion of marijuana rescheduling, more than 90 days after President Donald Trump directed the Department of Justice to finalize the regulatory change.

The delay raises questions about internal conflicts over cannabis policy at the federal level, even as Trump has publicly supported moving marijuana from Schedule I to Schedule III of the Controlled Substances Act. The executive order, issued in January, set in motion what many industry observers expected to be a swift regulatory process.

But the numbers tell a different story. Three months have elapsed since the directive, yet DOJ has not published a final rule. The timeline matters because each day of delay represents millions in potential tax savings for cannabis businesses operating under the punitive 280E tax code—which prohibits standard business deductions for Schedule I substances.

The Political Calculus

The holdup suggests competing interests within the administration. While Trump campaigned on cannabis reform and signed the executive order early in his term, various agencies and advisors hold divergent views on federal marijuana policy. Some officials favor maintaining stricter controls, while others push for alignment with the 38 states that have legalized medical cannabis.

Market watchers note that this internal resistance mirrors patterns from previous administrations. The Biden DOJ initiated rescheduling proceedings in 2022 after a formal review, but the process dragged through multiple comment periods and regulatory reviews. Trump's executive order was meant to accelerate that timeline.

The pharmaceutical and alcohol industries have historically lobbied against cannabis rescheduling, citing concerns about competition and regulatory oversight. Federal law enforcement agencies have also resisted policy changes, despite shifting public opinion—recent polling shows 70% of Americans support legalization.

Industry Impact

Cannabis companies are watching closely. Rescheduling to Schedule III would allow businesses to deduct normal operating expenses on federal tax returns, potentially saving the industry $1.5 billion annually according to estimates from cannabis financial analysts.

Publicly traded cannabis operators have seen stock volatility around rescheduling news. Multi-state operators like Curaleaf, Trulieve, and Green Thumb Industries would benefit immediately from tax relief, improving margins that currently run 10-15 percentage points below comparable consumer packaged goods companies.

But the delay creates uncertainty for capital allocation decisions. CFOs can't finalize budgets or expansion plans without knowing whether 280E relief is coming this quarter or next year. Some companies have put acquisition plans on hold pending regulatory clarity.

What's Next

The DOJ has not publicly commented on the timeline for completing the rescheduling rule. The agency must navigate the Administrative Procedure Act, which requires public comment periods and interagency coordination before finalizing major regulations.

Legal experts suggest the process could take weeks or months depending on internal opposition. If the resistance comes from within DOJ itself, Trump could potentially replace key officials or issue more forceful directives. If it's coming from other agencies like the Drug Enforcement Administration or Department of Health and Human Services, resolution becomes more complex.

Industry advocates are preparing for multiple scenarios. Some are lobbying for congressional action as a backup if the executive branch remains gridlocked. Others are working state-level angles, pushing for banking reform and interstate commerce provisions that don't depend on federal scheduling changes.

The situation highlights the gap between campaign promises and bureaucratic reality in cannabis policy. Even with presidential support, federal marijuana reform faces institutional resistance that can slow or derail regulatory changes. For an industry that's operated in legal limbo for years, it's a familiar pattern—but no less frustrating for companies trying to plan for the future.

This article is based on original reporting by www.marijuanamoment.net.