Rep. Greg Steube to Reintroduce ‘Marijuana 1-to-3 Act’ Following Trump’s Cannabis Comments

A renewed push to reschedule cannabis at the federal level is taking shape in Washington, D.C., as both the legislative and executive branches signal movement on the long-standing issue.

On Aug. 11, Republican U.S. Rep. Greg Steube of Florida announced that he will reintroduce his Marijuana 1-to-3 Act this week legislation that would reclassify cannabis from a Schedule I to a Schedule III substance under the Controlled Substances Act (CSA). His announcement came just hours after President Donald Trump made his first public remarks on cannabis policy since taking office nearly eight months ago.

Trump, speaking at a White House press conference, said that while “some people like it” and “some people hate the whole concept” of cannabis, his administration will decide “over the next few weeks” whether to pursue rescheduling.

A Renewed Legislative Effort

Steube’s Marijuana 1-to-3 Act is not new to Congress. He has filed the measure in each of the past three congressional sessions, positioning it as a “common-sense” reform to update outdated federal drug laws.

Under the CSA, cocaine is currently listed as a Schedule II substance, alongside prescription opioids like OxyContin and fentanyl, as well as medications such as Adderall and Ritalin—all considered to have accepted medical uses. By contrast, cannabis remains in Schedule I, which is reserved for substances with “no currently accepted medical use” and a high potential for abuse.

“This week, I’m reintroducing my Marijuana 1-to-3 Act to move marijuana from Schedule I to Schedule III under the Controlled Substances Act,” Steube said. “This is a common-sense change that will finally allow real scientific research into its medicinal value and ensure our drug laws reflect reality. I urge my colleagues and the Trump administration to get it done.”

What Schedule III Would Mean

Reclassifying cannabis to Schedule III would not make it legal at the federal level, but it would have notable implications. Criminal penalties for possession, manufacturing, and distribution could be less severe. Research restrictions though still present would be reduced compared to Schedule I status.

However, legal experts caution against overstating the research benefits. The Medical Marijuana and Cannabidiol Research Expansion Act, signed into law in December 2022, created specific requirements for cannabis research that remain in place regardless of its scheduling. According to the nonpartisan Congressional Research Service, these requirements may unintentionally maintain some of the same barriers researchers currently face.

Even if cannabis is rescheduled, federal researchers would still be barred from sourcing high-THC cannabis from state-licensed producers.

Business and Tax Implications

While research gains may be limited, the most significant advantage for cannabis businesses under a Schedule III classification would be relief from Section 280E of the Internal Revenue Code. This provision, tied to Schedule I and II substances, prevents businesses from deducting ordinary operating expenses like payroll, rent, and utilities. Removing this restriction could significantly improve profitability for state-licensed cannabis operators.

Schedule III status would also relax certain federal marketing restrictions under 21 U.S.C. §843(c), which currently prohibits advertising Schedule I substances in print publications. However, cannabis marketing remains heavily regulated on a state-by-state basis.

Importantly, rescheduling would not address other major industry challenges such as banking limitations, interstate commerce barriers, or federal prohibition itself. Legislation like the SAFE Banking Act would still be needed to address financial services access.

Federal Policy in Flux

The push to change cannabis’s status at the federal level has been ongoing since October 2022, when then-President Joe Biden directed his administration to review the drug’s scheduling. That process, conducted by the U.S. Department of Health and Human Services (HHS) and the Drug Enforcement Administration (DEA), led HHS to recommend moving cannabis to Schedule III in August 2023.

However, the DEA has yet to finalize a decision, and with a new administration in power, policy priorities may shift. Trump’s comments mark the first public acknowledgment from the White House on cannabis since his return to office.

State Momentum vs. Federal Delay

Since California became the first state to legalize medical cannabis in 1996, 40 states have followed suit. Additionally, 24 states and Washington, D.C., have legalized cannabis for adult use. Despite this widespread state-level legalization, federal law has remained unchanged for decades.

The mismatch between state and federal policies creates legal and economic uncertainties for businesses, patients, and consumers. State-licensed cannabis businesses operate in a gray area, complying with state regulations while remaining in violation of federal law.

Rescheduling to Schedule III would not eliminate this conflict, but it could be a step toward broader reform. For proponents like Steube, it represents a politically feasible move that could garner bipartisan support in a divided Congress.

Steube’s bill faces an uphill battle in Congress, where cannabis reform efforts have repeatedly stalled. Even relatively narrow proposals like the SAFE Banking Act have struggled to pass both chambers. Opposition often comes from lawmakers wary of appearing to endorse broader legalization, as well as from those who believe rescheduling doesn’t go far enough.

The timing of Steube’s announcement immediately after Trump’s remarks suggests he hopes to align legislative and executive action. If the White House moves forward with rescheduling through administrative channels, it could build momentum for congressional support.

However, the two approaches administrative rescheduling by the DEA and legislative rescheduling by Congress are separate processes. Even if the DEA reclassifies cannabis, Congress could still consider, amend, or block such action through legislation.

For now, the cannabis industry, researchers, and advocates are watching closely as developments unfold. With both a presidential decision and a congressional bill potentially arriving within weeks, the coming months could mark the most significant federal cannabis policy shift in decades.

Whether that shift brings meaningful change or simply another layer of complexity remains to be seen.