A Promise Unfulfilled: DEA’s New Direction Sidelines Marijuana Rescheduling

In a surprising turn of events, the newly appointed Drug Enforcement Administration (DEA) Administrator, Terrance Cole, has omitted Marijuana Rescheduling from his list of strategic priorities, despite explicitly pledging during his April 2025 Senate confirmation hearing that it would be “one of my first priorities.” This shift has sparked concern among cannabis industry stakeholders, advocates, and policymakers who anticipated progress on the long-stalled proposal to reclassify marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA). With the cannabis market projected to reach $71 billion by 2028, the delay in rescheduling could have significant implications for Marijuana Wholesale and Marijuana White Label businesses, as well as broader public health and economic policies. Let’s dive into the complexities of this development, its roots, and its potential impact on the evolving cannabis landscape.

The Confirmation Hearing Commitment

During his Senate Judiciary Committee hearing in April 2025, Terrance Cole, a DEA veteran with over three decades of law enforcement experience, faced pointed questions about the agency’s approach to Marijuana Rescheduling. Responding to Senator Alex Padilla (D-CA), Cole emphasized the need to move the process forward, stating, “I’m not familiar exactly where we are, but I know the process has been delayed numerous times, and it’s time to move forward.” He assured lawmakers that reviewing the rescheduling proposal would be a top priority upon his confirmation. This commitment resonated with advocates, as rescheduling could ease federal restrictions, allowing Marijuana Wholesale businesses to access tax deductions under IRS code 280E and streamline operations for Marijuana White Label brands serving state-legal markets.

Cole’s remarks came at a critical juncture. The proposal to shift marijuana to Schedule III, initiated under the Biden administration in May 2024, followed a scientific review by the Department of Health and Human Services (HHS) in August 2023, which concluded that cannabis has a “currently accepted medical use” and lower abuse potential than Schedule I or II substances. With over 43,000 public comments submitted during a 60-day period, 90% of which supported rescheduling or descheduling, the public’s demand for reform was clear. Yet, Cole’s recent actions suggest a departure from his earlier promises, raising questions about the DEA’s direction under the Trump administration.

Strategic Priorities Without Cannabis

On July 25, 2025, just days after his swearing-in on July 23, Cole released a list of eight strategic priorities focused on intensifying enforcement against drug cartels, combating the fentanyl crisis, and addressing issues like cryptocurrency and the dark web. Notably absent was any mention of Marijuana Rescheduling, despite Cole’s earlier pledge. The announcement emphasized, “Administrator Cole’s top priority is to increase the pressure on the drug cartels and combat the deadly drug crisis with urgency and resolve.” This focus aligns with Cole’s long-standing concerns about marijuana, having previously linked its use to higher suicide risk among youth and described it as a potential “gateway drug” in 2024 statements.

The omission has drawn criticism from industry groups and advocates. The National Cannabis Industry Association, representing Marijuana Wholesale and Marijuana White Label businesses, renewed its push for progress on rescheduling, highlighting its potential to unlock $2.8 billion in annual tax savings for state-licensed operators. Posts on X echoed this sentiment, with users like @MarijuanaMoment noting the stark contrast between Cole’s confirmation hearing pledge and his current priorities, labeling it a “yikes” moment for reform advocates. The absence of cannabis policy in Cole’s agenda signals a potential stall in a process already mired in bureaucratic delays.

The Stalled Rescheduling Process

The road to Marijuana Rescheduling has been fraught with obstacles. In May 2024, the Department of Justice (DOJ) proposed reclassifying cannabis, prompting a public comment period that saw overwhelming support. However, the DEA scheduled an administrative hearing for December 2, 2024, to gather additional expert input, a step many viewed as a delay tactic. This hearing was postponed to January or February 2025 after Chief Administrative Law Judge John Mulrooney II granted an interlocutory appeal on January 13, 2025, citing allegations of improper ex parte communications between the DEA and anti-rescheduling participants, including Smart Approaches to Marijuana (SAM).

The appeal, filed by pro-rescheduling groups like Village Farms International and Hemp for Victory, argued that the DEA’s role as a “proponent” of the proposed rule was tainted by bias. Mulrooney’s decision to pause hearings until the appeal is resolved has left the process in limbo, with no briefing schedule set as of July 7, 2025. The DEA’s latest joint status report, submitted to Mulrooney, confirmed that Acting Administrator Robert Murphy has made no progress on the appeal, further delaying potential reforms critical for Marijuana Wholesale markets and Marijuana White Label product development.

Implications for the Cannabis Industry

The delay in Marijuana Rescheduling carries significant consequences for the cannabis industry, particularly for Marijuana Wholesale and Marijuana White Label sectors. Rescheduling to Schedule III would remove barriers under IRS code 280E, which currently prevents cannabis businesses from deducting standard operating expenses, costing the industry billions annually. A 2024 report estimated that state-legal cannabis businesses paid $1.8 billion in excess taxes due to this restriction. For Marijuana Wholesale operators, who manage large-scale distribution, and Marijuana White Label brands, which rely on streamlined production and branding, these savings could fuel expansion and innovation.

Moreover, rescheduling would ease research restrictions, enabling Marijuana White Label companies to develop evidence-based products for medical use. Currently, cannabis’s Schedule I status limits clinical studies, despite growing evidence of its efficacy in treating chronic pain, epilepsy, and other conditions. A federally funded study in 2025 found that marijuana and CBD provide “significant symptom relief” for inflammatory bowel disease, underscoring the need for reform. Without rescheduling, these opportunities remain out of reach, stifling growth in a market projected to employ over 500,000 workers by 2027.

Political and Public Sentiment

The political landscape adds another layer of complexity. While former President Donald Trump expressed support for rescheduling during his 2024 campaign, his administration’s priorities appear focused elsewhere. The White House Office of Drug Control Policy’s 2025 report omitted cannabis reform, and U.S. Attorney General Pam Bondi, confirmed alongside Cole, has a history of opposing medical cannabis legalization. Conversely, bipartisan support for reform is growing, with 32 state attorneys general urging Congress to pass marijuana banking legislation in 2025, citing the need to support state-legal markets.

Public sentiment also leans heavily toward reform. Polls from 2024 showed 70% of likely voters in key battleground states like Michigan and Pennsylvania support legalization and rescheduling. On X, users like @SeedBankME have speculated that Cole’s leadership could favor corporate cannabis players over small operators, highlighting the stakes for Marijuana Wholesale and Marijuana White Label businesses. The disconnect between public demand and federal inaction underscores the urgency of resolving the rescheduling impasse.

The Path Forward

As the DEA navigates its leadership transition, the fate of Marijuana Rescheduling remains uncertain. Cole’s omission of cannabis from his strategic priorities, despite his confirmation hearing pledge, suggests a potential retreat from reform. For the Marijuana Wholesale and Marijuana White Label sectors, this delay perpetuates financial and regulatory challenges, hindering growth in an industry poised for expansion. Advocates remain hopeful that pressure from Congress, the public, and industry stakeholders will compel Cole to act on his promise. Until then, the cannabis community watches closely, awaiting a resolution that could reshape the future of federal drug policy.

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Reference:

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2. Madras, B. (2025). Rescheduling cannabis—medicine or politics?. Jama Psychiatry. https://doi.org/10.1001/jamapsychiatry.2025.1116

Mallinson, D. and Hannah, A. (2023). Introduction to the special issue on cannabis policy in the united states: challenges and opportunities for public administration and policy. Public Administration Quarterly, 47(3), 247-252. https://doi.org/10.37808/paq.47.3.1