On Tuesday, the House Appropriations Committee approved legislation that would prevent the Biden administration from proceeding with its current efforts to reschedule marijuana and reduce federal restrictions on the drug. The Republican-led panel passed an amendment to a funding bill that prohibits the Department of Justice from acting on the rescheduling plan, which aims to move cannabis from Schedule I to Schedule III of the federal Controlled Substances Act (CSA).

President Joseph Biden initiated a review of the federal government's marijuana prohibition in October 2022. Consequently, in August 2023, the U.S. Department of Health and Human Services (HHS) formally recommended rescheduling cannabis under the CSA based on a review of the scientific evidence supporting its medicinal use. The recommendation proposed classifying marijuana as a Schedule III drug, alongside substances such as Tylenol with codeine and testosterone.

In January, a federal review of cannabis research by HHS determined that marijuana has legitimate medical uses and meets the criteria for rescheduling under the CSA. The U.S. Food and Drug Administration (FDA) researchers concluded that credible evidence demonstrates marijuana's medical applications and justifies its reclassification. Four months later, the Drug Enforcement Administration indicated that it would approve the effort to remove marijuana from Schedule I, a category reserved for drugs with no accepted medical value and a high potential for abuse, and place it under Schedule III. The proposed rule to implement this change is currently in a 60-day public comment period.

Amendment Blocks Marijuana Rescheduling​

However, the House Appropriations Committee's approval of the CJS funding bill amendment could halt this process. The amendment, if passed, would block the Department of Justice from using federal funds to reschedule or deschedule marijuana under the CSA. An attempt by Democratic Rep. Rosa DeLauro to remove the provisions blocking rescheduling and other unrelated sections of the bill was defeated by a vote of 20-30, according to a report from cannabis news source Marijuana Moment.

The GOP-led attempt to prevent the reclassification of marijuana would be a significant setback for the regulated cannabis industry. If rescheduling succeeds, cannabis companies would no longer be subject to provisions of the tax code that deny standard business deductions for companies that sell Schedule I substances. David Craig, chief marketing officer of Illicit Gardens, a Missouri licensed cannabis company, described the committee's approval of the amendment as "a disappointing move."

"Blocking cannabis rescheduling is a significant misstep because it hinders vital research and maintains an outdated and punitive approach to a substance that has proven benefits," Craig writes in an email. "We've seen countless states adopt cannabis programs with significant public support, and federal scheduling remains out of sync with that reality. This decision represents a missed opportunity to modernize cannabis policy in a way that aligns with both current scientific understanding and the will of many states and their citizens."

The committee also rejected an amendment from California Democratic Rep. Barbara Lee, co-chair of the Congressional Cannabis Caucus, which sought to prohibit the Justice Department from interfering in state or tribal regulated marijuana programs, including those that legalize recreational cannabis.

"This amendment prevents the federal government from imposing its antiquated cannabis regulations on states, and it's time that the federal government keep up with the times and stop hindering progress," said Lee.

Rep. David Joyce, a Republican from Ohio who also co-chairs the Congressional Cannabis Caucus, was the only GOP member of the committee to speak in favor of Lee's amendment.

"We should be empowering states to regulate the product how they see fit, and this amendment would help just do that," he said. "The disparity between state and federal policies have created a loophole that has allowed illicit operators to thrive and jeopardize public safety. It's time to close the loophole, make sure products are safe and out of the hands of youth."

Pennsylvania Rep. Matt Cartwright, the ranking Democrat on the CJS Appropriations Subcommittee, also called on his fellow lawmakers to back Lee's amendment, saying that the proposal is "about aligning law enforcement efforts between state and federal entities."

The funding bill retains language to block the Department of Justice from interfering in state-legal medical marijuana programs that has been included in the legislation for a decade. However, the committee added a new provision that permits federal law enforcement agencies to enforce a federal law that increases penalties for distributing marijuana within 1,000 feet of an elementary or vocational school, college, public housing, or playground.