Trump Orders Expedited Marijuana Rescheduling to Schedule III

President Donald Trump signed an executive order on December 18, 2025, directing the U.S. Attorney General to expedite the process of rescheduling marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act. This significant directive builds upon an initial proposal from the Biden administration in April 2024 and signals a major shift in federal drug policy, aiming to acknowledge the medical potential of cannabis and remove longstanding barriers to research.

Currently, marijuana is classified as Schedule I, alongside heroin and LSD, defined as having no accepted medical use and a high potential for abuse. Moving it to Schedule III would place it in the same category as ketamine, anabolic steroids, and Tylenol with codeine—substances recognized as having medical value and a lower potential for abuse. The executive order cites FDA findings supporting marijuana's efficacy in treating conditions like anorexia, nausea, and chronic pain, acknowledging that federal policy has historically "neglected marijuana’s medical uses."

Impact on Research and Business

The primary immediate benefit of this reclassification would be the removal of significant hurdles for scientific research. Currently, studying Schedule I substances requires cumbersome DEA registration and strict security protocols. "Switching from Schedule I to Schedule III will remove some of those barriers," said Chad Johnson, codirector of graduate studies in medical cannabis at the University of Maryland, predicting it will attract new talent to the field.

Economically, the move would be a boon for the cannabis industry. As a Schedule III substance, marijuana businesses would no longer be subject to Section 280E of the Internal Revenue Code, allowing them to deduct standard business expenses from their federal taxes—a practice currently prohibited for Schedule I traffickers.

What This Means for Legality

It is crucial to note that this executive order does not legalize marijuana for recreational use federally, nor does it immediately change its legal status. It directs the completion of the rulemaking process. While over 30,000 healthcare practitioners already recommend medical marijuana to millions of patients across 40 states, the federal shift is seen as catching up to state-level realities. The order also directs staff to work with Congress on regulations for hemp-derived cannabinoids and CBD, aiming to preserve access while ensuring safety.