ALBUQUERQUW, NEW MEXICO – President Donald Trump signed an executive order Thursday to reclassify marijuana as a Schedule III drug, moving it out of the same category as heroin and LSD and placing it alongside drugs like Tylenol with codeine.
The change could have major implications for New Mexico’s cannabis industry. Advocates say it will ease tax restrictions under IRS Code 280E, allowing businesses to deduct everyday expenses like gloves and scissors—something they can’t do now. Matt Kennicott, Executive Director of the Cannabis Association of New Mexico, called the move “the most significant policy change in 56 years in cannabis,” adding that it could provide financial relief for local operators.
The reclassification may also open doors for medical research. “Hopefully, this will loosen up grants on the medical side of things and allow deeper and better research to take place,” Kennicott said.
Medical marijuana is already legal in New Mexico, and recreational use is allowed statewide. But marijuana possession remains illegal under federal law. Full legalization would still require congressional approval, and no timeline has been announced for when the federal change will take effect.
