AOC Backs Trump Cannabis Rescheduling Despite Calling It Incomplete Fix
Progressive Democrat Alexandria Ocasio-Cortez endorses Trump's marijuana rescheduling initiative while emphasizing need for comprehensive reform beyond Schedule III.
Representative Alexandria Ocasio-Cortez threw her support behind President Trump's marijuana rescheduling initiative this week, marking a rare moment of bipartisan alignment on cannabis policy. The progressive Democrat acknowledged that moving marijuana from Schedule I to Schedule III represents progress, even while characterizing the measure as falling short of comprehensive reform. Her endorsement adds Democratic credibility to Trump's regulatory push and could accelerate the rescheduling timeline.
The rescheduling process currently under DEA review would fundamentally alter the cannabis industry's financial landscape by eliminating the punitive 280E tax provision that prevents marijuana businesses from deducting standard operating expenses. Multi-state operators like Curaleaf Holdings (CURLF), Green Thumb Industries (GTBIF), and Trulieve Cannabis (TCNNF) collectively pay effective tax rates exceeding 70% under current law, severely constraining profitability and expansion capital.
Ocasio-Cortez's support carries particular weight given her progressive credentials and previous advocacy for full federal legalization. Her willingness to back incremental reform signals that Democratic lawmakers may accept rescheduling as a stepping stone rather than holding out for complete descheduling. This pragmatic approach could build the congressional momentum needed to codify rescheduling through legislation if administrative action faces legal challenges.
The cannabis industry has rallied on rescheduling optimism throughout 2024, with the AdvisorShares Pure US Cannabis ETF (MSOS) gaining over 45% year-to-date despite broader market volatility. However, institutional investment remains limited by federal prohibition and banking restrictions that Schedule III classification would not fully resolve. Major operators continue trading at steep discounts to traditional retail and pharmaceutical companies with similar revenue profiles.
Bipartisan rescheduling support creates the clearest path forward for federal cannabis reform since the Controlled Substances Act's passage in 1970. While Ocasio-Cortez emphasizes that rescheduling alone cannot address criminal justice disparities or provide comprehensive regulatory frameworks, her endorsement validates the industry's incremental strategy. Cannabis companies now face the challenge of capitalizing on potential tax relief while preparing for the increased federal oversight that Schedule III classification would bring.