WASHINGTON—The Trump Administration on Thursday formally moved to reclassify state-licensed medical marijuana as a less-restricted drug under federal law, a significant policy shift that could create new lending, payments and compliance considerations for credit unions serving cannabis-adjacent businesses in states with medical programs.
Acting Attorney General Todd Blanche signed an order moving licensed medical marijuana from Schedule I to Schedule III under the Controlled Substances Act, stopping short of full federal legalization but easing restrictions on research, creating a faster registration path for state-licensed medical marijuana operators with the Drug Enforcement Administration, and opening the door to more favorable federal tax treatment for those businesses, the Associated Press reported.
The administration also said it is restarting the broader marijuana rescheduling process, with a hearing set to begin in late June, as President Trump presses officials to move more quickly on cannabis policy changes he directed in December, AP noted.
For credit unions, the immediate shift does not erase federal legal or regulatory complexity around serving marijuana-related businesses, particularly on the recreational side, but it does further legitimize the 40-state medical marijuana framework and could improve the operating profile of licensed medical cannabis businesses by allowing them to deduct ordinary business expenses and by reducing barriers to research and product development.
In announcing the move, Blanche said the Justice Department is “delivering on President Trump’s promise” to expand access to medical treatment options, arguing the change will support research into the safety and efficacy of cannabis and give physicians and patients more reliable information, while the Administration said the order reflects the growth of robust state medical-marijuana licensing systems designed to protect public health and limit diversion, AP said.
DCUC Responds
The Defense Credit Union Council said the decision by Trump is a meaningful step toward aligning federal policy with economic reality.
"But let’s be clear, it is not the finish line," stated DCUC Chief Advocacy Officer Jason Stverak. "For too long, credit unions have been caught in the middle of a broken system , serving legal businesses under state law while facing uncertainty at the federal level. This action begins to reduce that tension and could open the door for more institutions to responsibly serve cannabis-related businesses while maintaining their standing with the National Credit Union Administration."
However, rescheduling alone does not eliminate the compliance burden, regulatory risk, or examiner uncertainty that has kept many credit unions on the sidelines, noted Stverak.
"Until Congress passes the SAFE Banking Act or similar protections, most institutions will remain cautious," he said. "This is progress but real certainty, and real access to financial services, will only come when lawmakers provide clear, durable protections for the credit unions serving this space.”
ACU Reacts
America’s Credit Unions’ Senior Vice President of Advocacy Greg Mesack said that without comprehensive marijuana banking legislation, credit unions still face operational risks and restrictions to serving this burgeoning industry "regardless of its drug classification. Congress must pursue solutions like the SAFER Banking Act to provide credit unions with safe harbor protections, compliance framework, and reduced operational risks. These guarantees would allow credit unions the security to provide the cannabis industry with financial services. America's Credit Unions continues to urge Congress to provide credit unions with certainty that serving the cannabis industry will not incur unnecessary risk and consequences from regulators."