The U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug, The Associated Press has learned, a historic shift to generations of American drug policy that could have wide ripple-effects across the country.

What You Need To Know

  • The Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug, a major shift in American drug policy

  • The DEA's proposal would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation's most dangerous drugs

  • Once OMB signs off, the DEA will take public comment on the plan to move marijuana from its current classification as a Schedule I drug, alongside heroin and LSD; it would move cannabis to Schedule III, alongside ketamine and some anabolic steroids

  • The move would not legalize marijuana outright for recreational use

The DEA's proposal, which still must be reviewed by the White House Office of Management and Budget, would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation's most dangerous drugs. However, it would not legalize marijuana outright for recreational use.

The agency's move, confirmed to the AP on Tuesday by five people familiar with the matter who spoke on the condition of anonymity to discuss the sensitive regulatory review, clears the last significant regulatory hurdle before the agency's biggest policy change in over 50 years can take effect.

"It is great news that DEA is finally recognizing that restrictive and draconian cannabis laws needs to change to catch up to what science and the majority of Americans have said loud and clear," Senate Majority Leader Chuck Schumer, D-N.Y., said in a statement of the reported decision, calling it a "historic step forward."

Once OMB signs off, the DEA will take public comment on the plan to move marijuana from its current classification as a Schedule I drug, alongside heroin and LSD. It moves pot to Schedule III, alongside ketamine and some anabolic steroids, following a recommendation from the federal Health and Human Services Department. After the public-comment period the agency would publish the final rule.

It comes after President Joe Biden called for a review of federal marijuana law in October 2022, and has moved to pardon thousands of Americans convicted federally of simple possession of the drug. He has also called on governors and local leaders to take similar steps to erase marijuana convictions.

"Criminal records for marijuana use and possession have imposed needless barriers to employment, housing, and educational opportunities," Biden said in December. "Too many lives have been upended because of our failed approach to marijuana. It's time that we right these wrongs."

The election year announcement could help Biden boost support, particularly among younger voters.

Schedule III drugs are still controlled substances and subject to rules and regulations, and people who traffic in them without permission could still face federal criminal prosecution.

“If today’s reporting proves true, we will be one step closer to ending the failed war on drugs," said Oregon Rep. Earl Blumenauer, founder and co-chair of the Congressional Cannabis Caucus. "Marijuana was scheduled more than 50 years ago based on stigma, not science. The American people have made clear in state after state that cannabis legalization is inevitable. The Biden-Harris Administration is listening.”

Some critics argue the DEA shouldn't change course on marijuana, saying rescheduling isn't necessary and could lead to harmful side effects.

On the other end of the spectrum, others argue say marijuana should be dropped from the controlled-substances list completely and instead regulated like alcohol.

Schumer called for marijuana to be removed from the list and urged Congress to pass legislation to do as much.

"Congress must do everything we can to end the federal prohibition on cannabis and address longstanding harms caused by the War on Drugs," he said.

Federal drug policy has lagged behind many states in recent years, with 38 having already legalized medical marijuana and 24 legalizing its recreational use.

That's helped fuel fast growth in the marijuana industry, with an estimated worth of nearly $30 billion. Easing federal regulations could reduce the tax burden that can be 70% or more for businesses, according to industry groups. It could also make it easier to research marijuana, since it's very difficult to conduct authorized clinical studies on Schedule I substances.

The immediate effect of rescheduling on the nation's criminal justice system would likely be more muted, since federal prosecutions for simple possession have been fairly rare in recent years. Biden has already pardoned thousands of Americans convicted of possessing marijuana under federal law.