U.S. Administration Moves to Redefine Cannabis and Hemp, Setting the Stage for Major Changes in New Jersey
A federal decision to redefine cannabis and hemp could have lasting implications on New Jersey’s cannabis economy, medical research sector, and hemp farmers. Last December, President Donald Trump signed an executive order instructing federal agencies to classify cannabis as less harmful but keeping it illegal.
Cannabis is no longer classified as a Schedule I substance, which previously included substances with little medicinal use and a significant abuse risk. Cannabis is now Schedule III. Cannabis is now recognized for medical purposes and less toxic under federal standards. This does not legalize cannabis nationwide, but industry analysts say it could influence future federal decisions.
In addition, the executive order expands scientific research. Universities and huge medical corporations would have more access to cannabis for research, which was previously limited. This is especially important for New Jersey, which has several major pharmaceutical industries. The state could conduct most of the national cannabis policy research with less federal impediments.
New Jersey joined nearly half of U.S. states in legalizing recreational cannabis in 2021. Federal law still hinders research, banking, and large-scale investment. The new federal position represents a clear movement away from the long-standing notion that cannabis has no medical usefulness, which has hampered reform efforts for decades, say legal experts.
Supporters say legalizing medicinal cannabis matches federal policy with the experiences of many Americans who use it to treat chronic pain and other illnesses. Even without legalization, they believe rescheduling is a crucial step toward more realistic and science-based drug policy.
The executive order also urges federal agencies to study hemp definition, which has previously sparked federal-state friction. Hemp growers protested Congress’ tightening of the statutory definition of intoxicated hemp. New Jersey enacted hemp legislation that has cleared both chambers of the Legislature, following the federal model.
Critics of New Jersey’s hemp bill say the definition is too tight and might disqualify local hemp growers who were previously compliant. Some also think the federal rescheduling of cannabis could make hemp definitions obsolete, requiring lawmakers to reexamine the matter sooner than planned. Governor Phil Murphy’s office has set a mid-January deadline for his decision on the bill.
Cannabis advocates and industry observers worry that stricter hemp laws are not accidental. They claim that huge cannabis corporations profit from keeping hemp growers out of the regulated cannabis market. Critics argue New Jersey’s approach is more restrictive than New York’s, which allows hemp growers to convert into cannabis.
Who gains most from the federal rescheduling is also disputed. Schedule III classification encourages medical research and controlled commercial activities without allowing competition, therefore campaigners believe major businesses and pharmaceutical firms benefit most. Taking cannabis off the federal schedule would open the market, something well-capitalized players may not want.
Rescheduling requires a thorough administrative examination. Regulatory procedures and political opposition delayed similar endeavors under earlier administrations. Legal scholars say the current administration’s leadership style could accelerate the process, boosting the likelihood of a change.
The federal change offers New Jersey opportunity and worry. Potential results include increased research, economic growth, and state-federal policy alignment. Meanwhile, hemp legislation and market access remain unclear, worrying farmers and small enterprises. The Garden State and beyond will follow these developments as federal agencies review them.
Sources
U.S. Department of Justice
U.S. Drug Enforcement Administration
The White House (Executive Office of the President)
New Jersey State Legislature