Attorney General Shakeup Could Stall Cannabis Rescheduling — Here's What's at Stake

Cannabis rescheduling just got more complicated. President Trump announced that Attorney General Pam Bondi will be leaving her post, with reports indicating EPA Administrator Lee Zeldin may take over at the Department of Justice. The transition raises immediate questions about the fate of marijuana rescheduling — a process that was already moving at bureaucratic speed.

Where Rescheduling Stands

The push to move cannabis from Schedule I to Schedule III has been winding through the federal system since the DEA initiated the rulemaking process. Schedule III classification would mean the federal government officially recognizes cannabis as having medical value — a seismic shift that would unlock banking access, change tax treatment under Section 280E, and open doors for research.

Under Bondi, the DOJ hadn't actively accelerated or blocked the process. The rescheduling timeline has been driven primarily by the DEA and FDA, with the AG's office playing a supervisory role. But a new Attorney General brings new priorities, and cannabis policy could easily slip down the list.

The Zeldin Question

Lee Zeldin's record on cannabis is mixed. As a congressman from New York, he voted against several cannabis reform measures, including the SAFE Banking Act and the MORE Act. However, he also expressed support for state-level cannabis programs and has spoken about the economic potential of the hemp industry in his role at the EPA.

The concern isn't that Zeldin would actively kill rescheduling — it's that a leadership transition at the DOJ naturally slows everything down. A new AG means new staff, new priorities, and a review period where pending actions get parked while the incoming team gets up to speed. For a process already measured in months and years, any additional delay is significant.

What's Actually at Risk

280E Tax Relief

The most immediate financial impact of rescheduling would be relief from Section 280E of the tax code, which prevents cannabis businesses from deducting ordinary business expenses. Cannabis companies collectively owe the IRS over $1.6 billion in 280E-related back taxes, and the IRS has shown no signs of backing down.

Schedule III classification would eliminate the 280E burden going forward, dramatically improving profit margins across the industry. Every month of delay costs cannabis operators real money.

Banking Access

While the SAFE Banking Act has stalled repeatedly in Congress, rescheduling to Schedule III would reduce the compliance risk that makes banks reluctant to serve cannabis businesses. Financial institutions could potentially service cannabis companies without the same level of suspicious activity reporting and regulatory exposure.

Research

Schedule III would significantly reduce barriers to clinical cannabis research. Currently, researchers must navigate a complex DEA licensing process to study a Schedule I substance. Reclassification would put cannabis in the same category as drugs like ketamine and anabolic steroids — controlled but accessible for legitimate research.

What This Means for the Industry

The honest assessment: rescheduling was never going to be fast, and this development makes it slower. The cannabis industry has learned not to count on federal timelines, and most operators have built their businesses to function without federal accommodation.

But the direction of travel hasn't changed. The FDA's CBD enforcement guidance this week, the Medicare coverage pilot, the White House stakeholder meetings — these all point toward a federal government that is gradually normalizing cannabis products, even if the formal rescheduling process takes longer than anyone wants.

For Hightree vendors and shoppers, the practical impact is limited in the near term. State-level markets continue to operate and expand regardless of federal scheduling. But rescheduling remains the single most impactful federal action for the industry's long-term trajectory, and any uncertainty around it is worth watching.

We'll continue tracking the AG transition and its impact on the rescheduling timeline as developments unfold.

Source: Marijuana Moment