The U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug as soon as Tuesday, CBS News has learned, a historic shift to generations of American drug policy that could have wide ripple effects across the country.

The DEA's proposal, which still must be reviewed by the White House Office of Management and Budget, would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation's most dangerous drugs. However, it would not legalize marijuana outright for recreational use.

• See maps of the states where medical and recreational weed are legal

The agency's move, first reported by the Associated Press and confirmed to CBS News on Tuesday by two people familiar with the matter, clears the last significant regulatory hurdle before the agency's biggest policy change in more than 50 years can take effect.

Once OMB signs off, the DEA will take public comment on the plan to move marijuana from its current classification as a Schedule I drug, alongside heroin and LSD. It moves pot to Schedule III, alongside ketamine and some anabolic steroids, following a recommendation from the federal Health and Human Services Department. After the public-comment period the agency would publish the final rule.

It comes after President Joe Biden called for a review of federal marijuana law in October 2022 and moved to pardon thousands of Americans convicted federally of simple possession of the drug. He has also called on governors and local leaders to take similar steps to erase marijuana convictions.

"Criminal records for marijuana use and possession have imposed needless barriers to employment, housing, and educational opportunities," Biden said in December. "Too many lives have been upended because of our failed approach to marijuana. It's time that we right these wrongs."

The election year announcement could help Biden, a Democrat, boost flagging support, particularly among younger voters.

Schedule III drugs are still controlled substances and subject to rules and regulations, and people who traffic in them without permission could still face federal criminal prosecution.

Some critics argue the DEA shouldn't change course on marijuana, saying rescheduling isn't necessary and could lead to harmful side effects.

On the other end of the spectrum, others argue say marijuana should be dropped from the controlled-substances list completely and instead regulated like alcohol.

Federal drug policy has lagged behind many states in recent years, with 38 having already legalized medical marijuana and 24 legalizing its recreational use.

That's helped fuel fast growth in the marijuana industry, with an estimated worth of nearly $30 billion. Easing federal regulations could reduce the tax burden that can be 70% or more for businesses, according to industry groups. It could also make it easier to research marijuana, since it's very difficult to conduct authorized clinical studies on Schedule I substances.

The immediate effect of rescheduling on the nation's criminal justice system would likely be more muted, since federal prosecutions for simple possession have been fairly rare in recent years. Biden has already pardoned thousands of Americans convicted of possessing marijuana under federal law.

Robert Legare and Willie James Inman contributed to this report.

In:
• Health
• Marijuana
• Joe Biden