Trump Drug Czar: Schedule III Won't Legalize Cannabis

Trump's newly appointed drug policy chief made clear this week that marijuana rescheduling won't change federal enforcement priorities, telling Newsmax that cannabis "is still illegal" even if moved to Schedule III.

ONDCP director Sara Carter Bailey emphasized that Schedule III classification only covers medical use and research—a narrow interpretation that signals the administration's approach to the DEA's ongoing rescheduling review. "It's still illegal," Bailey said during the interview, pushing back against industry expectations that rescheduling would ease federal restrictions.

Bailey's comments come as the DEA weighs whether to move marijuana from Schedule I to Schedule III, a process initiated under the Biden administration last year. The move would acknowledge cannabis's accepted medical use but maintain federal prohibition for recreational markets.

The Administration's Concerns

But Bailey didn't stop at clarifying the legal framework. She pivoted quickly to three specific concerns: cannabis potency levels, foreign cultivation operations, and THC-infused hemp products flooding the market.

The focus on potency echoes long-standing ONDCP talking points about high-THC products, particularly concentrates and vapes that can exceed 90% THC. Foreign grows likely refers to illegal cultivation operations—often tied to organized crime—that have proliferated in states like Oklahoma and Maine. And the hemp THC issue addresses the booming market for delta-8 and delta-9 products derived from hemp, which exist in a legal gray area under the 2018 Farm Bill.

"These are the issues that keep us up at night," one federal official told reporters last month, speaking on background about enforcement priorities.

Industry Reaction

The cannabis industry has viewed Schedule III rescheduling primarily through a tax lens. Moving marijuana off Schedule I would eliminate the 280E tax code restriction that prevents state-legal cannabis businesses from deducting normal business expenses. That change alone could save the industry hundreds of millions annually.

But Bailey's comments suggest the Trump administration sees rescheduling differently—as a narrow carve-out for medical research, not a green light for the $30 billion legal cannabis market.

"This is consistent with what we've been hearing from Trump appointees," said one industry lobbyist who requested anonymity to speak candidly. "They're not interested in expanding access. They're interested in control."

The ONDCP director's emphasis on foreign grows and hemp THC also signals potential enforcement actions ahead. The hemp-derived THC market has exploded since 2018, with products now available in gas stations and convenience stores nationwide—including in states without legal cannabis programs.

What Comes Next

The DEA's rescheduling decision remains pending, with no clear timeline for a final rule. The agency received more than 43,000 public comments during its initial review period and held a hearing last December that featured testimony from medical researchers, law enforcement officials, and industry representatives.

Schedule III would place cannabis alongside drugs like ketamine and anabolic steroids—substances with accepted medical uses but significant abuse potential. It would not change state-level legalization programs, which operate in defiance of federal law regardless of scheduling.

Bailey's appointment as ONDCP director came in January, and her comments this week represent the administration's first substantive statement on cannabis policy since taking office. Trump himself has sent mixed signals on marijuana, expressing support for medical use while opposing recreational legalization.

The interview with Newsmax suggests the administration plans to maintain—or possibly increase—federal oversight of cannabis markets, even as more states move toward legalization. Thirty-eight states now allow medical marijuana, and 24 permit adult-use sales.

For an industry that's grown accustomed to operating in legal limbo, Bailey's message was clear: don't expect rescheduling to change the federal government's enforcement posture.

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This article is based on original reporting by hightimes.com.