MICHEL MARTIN, HOST:
The Trump administration is easing rules on medical marijuana, a step that's been discussed in Washington for years. The news was just announced this morning. NPR's Bill Chappell has been covering this story and he's with us now. Good morning, Bill.
BILL CHAPPELL, BYLINE: Good morning.
MARTIN: So marijuana has been a Schedule I drug for decades. So first, tell us what that means. And how would today's announcement change that?
CHAPPELL: Right. Schedule I is very strict. That puts marijuana in the same class as heroin and LSD. The idea is that these drugs don't have an accepted medical use and they're prone, highly prone, to be abused. But lots of states have legalized marijuana, both medical and recreational. And today, acting Attorney General Todd Blanche said he's immediately moving medical marijuana to Schedule III. That includes things like ketamine, Tylenol with codeine and anabolic steroids. And the administration says this is going to strengthen medical research but also maintain some of those strict federal controls that have been there for years.
And we'll note, this does not immediately change things for recreational marijuana. The new policy applies to two types of products, marijuana that's FDA-approved or marijuana-derived products that are FDA-approved, and ones that are regulated by a state medical marijuana license program. And, you know, it could clear way for research, though, because marijuana researchers won't have to go through as onerous a process of obtaining a Schedule I license to do the work. That process is super rigorous. And it even includes things like lots of laboratory regulations to even study marijuana.
MARTIN: So, researchers, immediate impact there. What about marijuana businesses? How might this change affect those?
CHAPPELL: It could be huge. Cannabis firms that have been registering in medical marijuana programs would get a huge tax relief. Here's Sam Brill. I talked to him a while ago. He's the CEO of Ascend Wellness Holdings. That's a dispensary company that operates in several states.
SAM BRILL: I'm paying a full-taxed bill on my gross margin, which no other company does, except for people in our industry.
CHAPPELL: And that's everything from the cost of his employees to rent, things that most businesses take for granted. And in the past, most financial institutions just haven't - have refused to provide even basic banking services to state-authorized marijuana businesses because of potential liability. And companies like Brill's have largely been operating in cash.
BRILL: The lack of the use of a credit card is really, I would say, one of the biggest challenges for customers. Friday, by far, is the biggest day every single week because this is a cash business.
MARTIN: And what about consumers? What do you think the impact might be there?
CHAPPELL: Well, for a lot of people, they might not notice a lot of changes very drastically at first, unless they're medical marijuana customers. Somewhere along the line, we're probably going to see some changes in policy ripple through. Things like federal drug testing requirements, the new announcement doesn't mention the possibility of that changing. But I'll note, you know, in lots of states, THC, the active ingredient in marijuana, is already very easy to purchase. Even in states that don't have legalized marijuana programs, you can walk into grocery stores and big chain stores like Total Wine and find rows of THC drinks. It's a category that's been created by a loophole covering hemp back in the 2018 Farm Bill. And since then, it's blossomed into a huge market.
MARTIN: So anyway, the government is still - the federal government is still playing catch-up to what states and consumers are doing. But this has been long-awaited, as you've told us. Are there other questions sort of hanging out there, as briefly as you can?
CHAPPELL: So the Trump administration has got to balance things between moving quickly and trying to make sure they can defend these moves in court.
MARTIN: That is NPR's Bill Chappell. Bill, thank you.
CHAPPELL: Sure thing, Michel. Transcript provided by NPR, Copyright NPR.
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