US DEA To Reclassify Marijuana As A Less Dangerous Drug

(Justin Sullivan/Getty Images)

Is the DEA sabotaging a recommendation to reclassify cannabis?

An administrative law judge canceled a hearing on cannabis rescheduling until three months from now, putting the ball in Trump’s court.

J. Edward Moreno

1/15/25 11:42AM

The federal effort to reschedule marijuana has officially been handed to the incoming Trump administration.

An in-house judge at the Drug Enforcement Administration on Monday canceled a hearing set next week following some drama between the DEA and cannabis industry groups who say the agency has shown bias against rescheduling. The Department of Justice — the DEA’s parent agency — announced in late April that it would recommend reclassifying marijuana from a Schedule I drug (like heroin and LSD) to a Schedule III drug (like Tylenol and testosterone).

The judge, John Mulrooney, said in an order on Monday that the whole thing should be postponed by at least three months when (presumably) the person who will be in charge of the DEA for the next four years takes over.

Michael DeGiglio, CEO of the cannabis operator Village Farms International, said in a statement that they view Monday’s ruling “as an imperative step in this administrative process, and a symbolic victory against a conflicted government agency which we believe has no current intention of recommending that cannabis be transferred to a Schedule III designation.”

The move would unlock access to banking and regular tax write-offs for American cannabis companies — which are not listed on major exchanges but make up the basket of some ETFs like AdvisorShares Pure US Cannabis ETF — instantly making them more profitable. The DOJ’s April announcement even gave a bump to Canadian cannabis companies like Tilray, Canopy Growth, and SNDL Inc., which don’t stand to directly benefit from the policy change in the short term.

But the process of finalizing the rescheduling proposal has dragged on, and the ball is now in President-elect Donald Trump’s court.

A “disturbing and embarrassing revelation”

It’s unclear who will lead the DEA under President-elect Donald Trump, who’s seen in the industry as a potentially business-friendly wild card. Trump nominated Chad Chronister, a county sheriff in Florida, to fill current DEA head Anne Milgram’s role, but he withdrew from consideration last week.

According to evidence presented in motions filed by VFF, Hemp for Victory, and other pro-cannabis groups, the DEA appears to be in cahoots with anti-marijuana groups.

They say the DEA refused to accept the Department of Health and Human Service’s recommendation to reschedule cannabis. The DEA instead submitted its own analysis that suggests marijuana has a high abuse potential and no accepted medical use.

The DEA’s analysis mirrors talking points from the anti-legalization group Smart Approaches to Marijuana (SAM), the pro-cannabis groups noted. They also allege that the DEA has had improper, off-the-record communications with anti-rescheduling groups like SAM and the Tennessee Bureau of Investigation (TBI).

Kevin Sabet, the head of SAM, posted on X that he had “confidential sources” within the DEA giving him updates on the proceedings. DEA Deputy Assistant Administrator Matthew Strait allegedly helped the TBI finalize its application to be part of the proceedings.

BIG: I can now say with full confidence that the Administrator of DEA, Anne Milgram, did NOT sign the rescheduling order, breaking with five decades of precedent and established law and regulations (two confidential sources inside DEA and another outside DEA with intimate…
— Kevin Sabet (@KevinSabet) May 6, 2024

The DEA also allegedly excluded input from the state of Colorado, where cannabis has been legal and regulated for a decade, while accepting input from states like Nebraska, where cannabis is not legal.

The DEA did not respond to a request for comment. While Judge Mulrooney didn’t rule on the allegations, he said they’re a “disturbing and embarrassing revelation.”

“If true, viewed in the best light, these allegations demonstrate a puzzling and grotesque lack of understanding and poor judgment from high-level officials at a major federal agency with a wealth of prior experience with the APA,” or Administrative Procedure Act, he said.

Either way, he said, since there’s a new administration coming in next week, might as well wait for them to come in rather than have him rule on the actions of the current administration.

Max Knoblauch6/15/26

Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

Electronic Arts Makes Push for Ad Dollars Tied to Sports

Millie Giles6/11/26

JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

Max Knoblauch6/8/26

Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

Paramount Offers Concessions to Head Off State Antitrust Lawsuit

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

Max Knoblauch6/8/26

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”