The Dawn of Sanity: Trump's Cannabis Rescheduling Order Brings Missouri Businesses Long-Overdue Relief

The Facts: What Rescheduling Actually Means

President Trump’s executive order to reschedule marijuana from Schedule I to Schedule III represents the most significant federal cannabis policy shift in decades. This move acknowledges what 40 states including Missouri have recognized - that cannabis possesses legitimate medicinal value and should not be classified alongside heroin, LSD, and ecstasy as having “no accepted medical use.” The rescheduling process, expected to occur during 2026, will fundamentally change how Missouri’s $4.5 billion cannabis industry operates from a taxation perspective.

Currently, cannabis businesses operate under Section 280E of the Internal Revenue Code, which prohibits them from deducting ordinary business expenses such as rent, travel, advertising, and professional services. This punitive tax treatment has forced legitimate businesses to operate at a severe disadvantage compared to other industries. The rescheduling will eliminate this discriminatory practice, potentially increasing profits by approximately 30% according to industry experts.

Missouri’s cannabis industry has demonstrated remarkable resilience despite these challenges. Since the first legal medical marijuana sale in 2020, the state has generated over $4.5 billion in total cannabis sales, with 2024 alone contributing $244.93 million in sales tax revenue to state and local governments. Industry leaders like Mark Hendren of Flora Farms, Nicholas Rinella of Hippos, and advocacy representatives like Andrew Mullins of the Missouri Cannabis Trade Association have emphasized that this reform represents a crucial step toward normalizing their operations.

The Context: Fifty-Four Years of Failed Policy

The classification of cannabis as a Schedule I substance dates back to the Controlled Substances Act of 1970, a period of drug policy characterized by fearmongering rather than scientific evidence. For over half a century, the federal government maintained the fiction that cannabis had no medicinal value despite overwhelming evidence to the contrary and centuries of documented medical use worldwide.

This rescheduling decision comes at a time when public sentiment has dramatically shifted. Forty states have legalized medical and/or adult-use cannabis, creating a patchwork of state laws that conflict with federal prohibition. The resulting regulatory chaos has created numerous challenges for legitimate businesses, including banking restrictions that prevent credit card use at dispensaries and prohibit interstate commerce.

The timing is particularly fortuitous for Missouri, which Andrew Mullins describes as “one of the most successful cannabis industries in the entire country.” The state’s strategic position allows it to capitalize on this reform more effectively than perhaps any other state. Recent innovations like Hippos’ THC oral spray demonstrate how the industry is evolving despite federal constraints.

Opinion: A Long-Overdue Step Toward Sanity

This rescheduling represents more than just tax relief—it signifies a fundamental shift in how our government views personal liberty, states’ rights, and scientific evidence. The classification of cannabis as Schedule I has been one of the most persistent failures of federal drug policy, causing immeasurable harm to patients, entrepreneurs, and constitutional principles.

The tax relief provided by this rescheduling is not merely an economic issue—it’s a matter of basic fairness. For years, legitimate businesses have been punished for operating in an industry that states have legalized and regulated. These entrepreneurs have created jobs, generated tax revenue, and provided medicine to patients while operating under a tax code that treats them like criminal enterprises. The resilience demonstrated by these businesses is a testament to American entrepreneurship and the enduring spirit of free enterprise.

However, we must recognize that rescheduling alone does not solve the fundamental constitutional issues created by federal cannabis prohibition. The continued conflict between state and federal law creates uncertainty that undermines the rule of law and disrespects the democratic decisions made by states like Missouri. The federal government’s role should be to respect states’ rights under the Tenth Amendment, not to impose one-size-fits-all policies that ignore regional differences and democratic processes.

The Path Forward: Beyond Rescheduling

While rescheduling provides important tax relief, it falls short of the comprehensive reform needed to resolve the constitutional crisis created by the conflict between state and federal cannabis laws. Several critical issues remain unaddressed:

The banking crisis continues to plague the industry, forcing businesses to operate largely in cash and creating security risks for employees and communities. The inability to use credit cards or access traditional banking services undermines the legitimacy of these businesses and creates unnecessary dangers.

Interstate commerce restrictions prevent efficient market operations and force each state to recreate entire supply chains rather than leveraging regional comparative advantages. This inefficiency increases costs for consumers and reduces economic efficiency.

Research barriers, while reduced by rescheduling, still limit scientific understanding of cannabis’s medicinal properties and potential benefits. The federal government should actively promote research rather than merely reducing obstacles.

The fundamental issue of individual liberty remains unresolved. Adults in Missouri and other states have democratically decided that cannabis should be legal for medical and recreational use. The federal government should respect these decisions rather than maintaining a prohibition that contradicts the will of the people.

Conclusion: Toward a More Perfect Union

President Trump’s rescheduling order represents progress, but it must be viewed as a step toward more comprehensive reform rather than a final solution. The movement from Schedule I to Schedule III acknowledges scientific reality and provides economic relief to legitimate businesses, but it does not resolve the fundamental tension between state legalization and federal prohibition.

As defenders of constitutional principles, we must advocate for policies that respect states’ rights, individual liberty, and free enterprise. The current patchwork of state legalization with federal prohibition creates uncertainty, undermines the rule of law, and disrespects the democratic process.

The Missouri cannabis industry’s success demonstrates that regulated legalization works—creating jobs, generating tax revenue, and providing medicine to patients while reducing the harms associated with prohibition. The federal government should build on this success by creating a coherent national framework that respects state decisions, promotes research, and ensures public safety.

Nicholas Rinella’s observation that future generations may struggle to understand cannabis prohibition reminds us that progress often seems inevitable in retrospect. Let us hope that this rescheduling represents the beginning of the end for one of the most persistent failures of federal policy and a return to constitutional principles that respect liberty, states’ rights, and scientific evidence.