What Todd Blanche’s Senate Responses Tell Cannabis Operators—And What They Don’t

The U.S. Department of Justice has offered its clearest written explanation yet of the Trump administration’s April 23 decision to immediately move FDA-approved cannabis products and state-licensed medical marijuana from Schedule I to Schedule III. But for cannabis operators, the latest responses leave some of the industry’s biggest business questions unresolved.

The written responses, submitted by Acting Attorney General and Attorney General nominee Todd Blanche to follow-up questions from Sen. Alex Padilla (D-Calif.) during his Senate confirmation process, were shared with IgniteIt by the United States Cannabis Roundtable.

DOJ Defends the Schedule III Order

Asked why the Department bypassed the Controlled Substances Act’s traditional notice-and-comment process and administrative hearing, Blanche framed the decision as fulfilling President Trump’s commitment to expand access to medical treatment.

According to Blanche, the policy will facilitate additional research into cannabis safety and efficacy while providing patients and physicians with better information.

The Biggest Business Question Remains Unanswered

Perhaps the most significant question for operators involved Internal Revenue Code Section 280E.

Padilla asked whether the DOJ’s position—that 280E no longer applies to state-licensed medical marijuana businesses—also extends to companies that operate both medical and adult-use licenses.

Blanche did not directly answer. Instead, he reiterated only that Section 280E applies to businesses trafficking Schedule I or II controlled substances, leaving unanswered how dual-license operators or vertically integrated businesses should interpret the new policy.

No New Signal on Adult-Use Cannabis

When asked whether he supports rescheduling marijuana for adult use or reducing federal penalties for possession and sales, Blanche declined to take a position, saying he would consider the issue after consulting relevant stakeholders, including the DEA, if confirmed.

Why It Matters

For cannabis businesses, the responses largely reinforce what operators already know: the administration continues to frame Schedule III as a medical cannabis policy rather than a broader legalization effort.

At the same time, the lack of clarification around 280E treatment for businesses operating both medical and adult-use licenses leaves one of the industry’s most pressing tax questions unanswered—an issue likely to remain closely watched as Blanche’s nomination moves through the Senate.

The questions surrounding Schedule III implementation, Section 280E, federal enforcement and the future of cannabis policy will be among the key topics discussed at IgniteIt’s upcoming Cannabis Capital & Policy Summit in Washington, D.C., this November. Bringing together regulators, policymakers, industry executives and investors, the event will examine the next phase of federal cannabis reform and what it means for operators navigating an evolving regulatory landscape.