Trump Rejected ‘Half-Assed’ Plan To Move Marijuana To Schedule II During ‘Insane’ Oval Office Meeting, ScottsMiracle-Grow CEO Says
Schedule III or Nothing: Inside an “Insane” Oval Office Debate
Marijuana rescheduling to Schedule III isn’t a rumor whispered in Capitol hallways anymore; it’s a presidential directive born from a two-hour, fifteen-minute brawl of ideas in the Oval Office. That’s how Scotts Miracle-Gro CEO Jim Hagedorn told it, describing a meeting so charged you could smell the ozone. He says the president led the scrimmage and dismissed the halfway plan—moving cannabis to Schedule II—as “half-assed,” an anemic compromise that wouldn’t fix much. In the end came the order: push for Schedule III, or don’t bother. It’s not legalization, not yet, but it’s a tectonic nudge in federal cannabis policy that could reshape the economics of the legal market—tax codes, research barriers, and the thin margins where growers and retailers have been white-knuckling through the turbulence.
The Stakes: 280E Relief, Research Doors, and Reality Checks
Look past the smoke and slogans, and Schedule III is mainly about brass tacks. It would free state-licensed cannabis companies from the chokehold of IRS 280E, the provision that treats them like drug traffickers for tax purposes. That’s millions—sometimes tens of millions—in operating relief for multistate operators and mom-and-pop dispensaries alike. It also pries open research—clinical trials, standardized data, the kind of rigor that’s been stranded behind red tape for decades. But don’t mistake it for a free pass: marijuana would still be federally controlled, crossing state lines would remain a no-go, and the DEA still has to run the rulemaking gauntlet. Hagedorn framed it as existential. Without a serious federal recalibration, he said his Hawthorne Gardening unit—the cannabis-facing arm of Scotts—could’ve bled out while the market waited for Washington to stop hedging. For context and his on-the-record account, see his remarks to NewsNation, where he laid out why Schedule II wouldn’t cut it and why Schedule III could keep the lights on in an industry that’s been grinding through consolidation and closures.
Watch the full NewsNation segment here.
Power Brokers, Pushback, and the Politics of Momentum
Hagedorn wasn’t alone. Other cannabis and cannabis-adjacent executives reportedly leaned in as the gears turned, urging action that could stabilize a market battered by price compression, tax burdens, and stalled banking reforms. The order itself doesn’t flip the legal switch. But politically, it plants a flag: the federal government is willing to reconsider decades-old scheduling doctrine under the Controlled Substances Act. Expect skepticism in the mix—some lawmakers questioned the narrative that there was zero internal opposition to the move—but the broader reality is simpler: public polling favors reform, and industry stakeholders are done waiting for a tidy, one-bill solution. Next up, the machinery of agencies, comment periods, and inevitable court whispers. Keep an eye on how the attorney general’s shop operationalizes the directive, and how Congress circles the wagons around what comes after rescheduling—especially proposals like Trump’s Attorney General Would Form A Marijuana Commission To Prepare For Federal Legalization Under New Senate Bill, which hints at the choreography needed if full federal legalization ever gets a real runway.
People, Not Just Policy: Normalization Without the Fairy Dust
This isn’t just a regulatory chessboard. It’s about how people actually live. The culture’s already out in front of the bureaucracy: one recent survey found that One In Three Americans ‘Pre-Game’ With Marijuana Before Family Holiday Gatherings, Survey Finds. For all the handwringing about youth exposure, federal health officials have acknowledged that Teen Marijuana Use ‘Remained Stable’ As Legalization Expands, Federal Health Officials Acknowledge. And yet the rules remain uneven. Safety-sensitive workplaces still operate under strict federal regimes; the Transportation Department was quick to remind everyone that Trump’s Marijuana Order Doesn’t Change Drug Testing For Safety-Sensitive Workers, At Least For Now, Transportation Department Says. Translation: normalization is real, but compliance hasn’t loosened where it counts. If Schedule III lands, HR policies will take time to catch up—if they do at all. The map is still a patchwork, and the stakes still vary by employer, by state, by job description.
What Schedule III Actually Changes—and What It Doesn’t
Here’s the sober read, minus the spin. Schedule III status would lower barriers to medical research, blunt the IRS 280E penalty, and provide a symbolic green light that the federal posture is thawing. It could unlock cheaper capital and attract bigger, steadier operators who’ve stayed skittish. But it won’t solve interstate commerce, won’t bless state programs with federal legality, and won’t end the compliance labyrinth that makes cannabis the strangest “legal” industry in America. Banking won’t fully normalize until Congress says so. Consumer prices won’t stabilize until taxes and local rules find equilibrium. And small growers won’t feel the relief unless states match federal momentum with sensible cannabis taxation and licensing that prioritizes sustainability over headlines. Still, for a sector that’s dodged potholes and pundits in equal measure, a clean pivot to Schedule III would be a tangible step forward—a sign that the long night is giving way to first light. If you’ve read this far and prefer your policy with a side of premium craft, consider browsing our selection here: https://thcaorder.com/shop/.
