President Donald Trump signed an executive order on Thursday directing the U.S. Attorney General to expedite the process of reclassifying marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act. This directive aims to accelerate a regulatory review initiated during the Biden administration but which has faced bureaucratic delays. While the order does not legalize recreational marijuana at the federal level, it represents a pivotal step toward acknowledging the medical potential of cannabis and easing the heavy regulatory and financial burdens on the industry.

During the signing, President Trump framed the action as "an honor," emphasizing that the move—which he noted polls at 82 percent public approval—would "help many of those patients live a far better life." The order specifically instructs Attorney General Pam Bondi to complete the rulemaking process "in the most expeditious manner" allowed by law, effectively putting pressure on the Drug Enforcement Administration (DEA) to finalize the change.

Since 1970, marijuana has been classified as a Schedule I substance, a category reserved for drugs with "no currently accepted medical use and a high potential for abuse." This places cannabis alongside heroin, LSD, and ecstasy (MDMA). This classification has long been a point of contention for advocates and researchers, who argue it ignores the widespread medical use of cannabis in 40 states and the District of Columbia.

Moving marijuana to Schedule III would fundamentally alter its legal status. Schedule III drugs are defined as having a moderate to low potential for physical and psychological dependence and a currently accepted medical use. This category includes substances like Tylenol with codeine, ketamine, anabolic steroids, and testosterone. The reclassification acknowledges that while marijuana may have some potential for abuse, it does not carry the same extreme risks as Schedule I drugs and has legitimate medical applications.

One of the most significant impacts of this reclassification would be on scientific research. The current Schedule I status creates immense hurdles for scientists. "A Schedule I illegal drug means that it has no medical value... so there is no ability to research and figure out why it actually works for people," explained Wanda James, CEO of Simply Pure Dispensary. Researchers currently face rigorous DEA licensing requirements, expensive security protocols (like double-locked doors and bolted safes), and restrictions on obtaining research materials.

Chad Johnson, co-director of graduate studies in medical cannabis at the University of Maryland, believes the move to Schedule III will remove many of these barriers. "I think you'll be able to attract a lot of talented folks to come together and generate some high-quality research that we're lacking," he said. The executive order explicitly states that the federal government must "improve the research infrastructure for medical marijuana to better serve Americans," aiming to fill the gap where patients and doctors currently lack adequate guidance on prescribing and utilization.

For the cannabis industry, the most immediate and tangible benefit of rescheduling would be tax relief. Currently, cannabis businesses are subject to Section 280E of the Internal Revenue Code. This provision prohibits businesses trafficking in Schedule I or II substances from deducting standard business expenses—such as payroll, rent, marketing, and electricity—from their federal taxes. This has resulted in an effective tax rate that can exceed 70% for some dispensaries, crippling growth and profitability.

Reclassifying marijuana to Schedule III would render Section 280E inapplicable to state-legal cannabis businesses, allowing them to write off expenses just like any other standard business. "Marijuana rescheduling has the potential to bring long-needed clarity, stability, and legitimacy to the broader cannabinoid marketplace," noted Paula Savchenko, founding partner of Cannacore Group. Additionally, industry leaders like Stosh Wasik of The Fire Station anticipate this could pave the way for broader banking access, potentially allowing dispensaries to accept debit and credit cards instead of operating as cash-only businesses.

The executive order also touches on the regulation of cannabidiol (CBD), a non-psychoactive compound found in cannabis. It directs the White House to work with Congress to research and enable access to "appropriate full-spectrum CBD products." This comes in the wake of restrictive language inserted into a recent appropriations bill by Senator Mitch McConnell, which tightened legal definitions around CBD. The President's order sets a goal of restoring access to these products while still restricting those that pose serious health risks, a move seen by some as a rebuke to the recent legislative restrictions.

It is crucial to understand the limitations of this executive action. It does not legalize recreational marijuana federally. The President cannot unilaterally reschedule drugs; the process requires a scientific review by the Department of Health and Human Services (HHS) and a rulemaking process by the DOJ/DEA, which includes public comments and potential administrative hearings. The order simply directs agencies to prioritize and speed up this existing legal process.

Furthermore, the change does not override state laws. In states like South Dakota or Indiana where recreational use remains illegal, federal rescheduling will not automatically decriminalize possession or sale. As Kyle Boyar of the American Chemical Society’s Cannabis Chemistry Subdivision emphasized, "Nothing about the legality of any cannabis products in the US changes immediately."

The path to rescheduling involves several steps. The HHS has already recommended the move to Schedule III, and the Justice Department issued a proposed rule in May 2024. This proposal received over 43,000 public comments, with overwhelming support for reform. The next major step is an administrative hearing.

While the timeline remains uncertain, the executive order is a powerful signal. "It’s nice to see that there is forward movement, and that there is a nod from President Trump to make sure that we finally start to address this issue," said Nikki Fried, chair of the Florida Democratic Party. However, she also warned that Americans must keep "laser eyes focused" to ensure large pharmaceutical companies do not monopolize the market or slow down the FDA process as regulations evolve.

With daily marijuana use now surpassing daily alcohol use for U.S. adults, the pressure to modernize federal drug policy has never been higher. Trump's order may be the catalyst needed to finally align federal law with the reality of cannabis use and research in America.

President Donald Trump signed an executive order on Thursday directing the U.S. Attorney General to expedite the process of reclassifying marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act. This directive aims to accelerate a regulatory review initiated during the Biden administration but which has faced bureaucratic delays. While the order does not legalize recreational marijuana at the federal level, it represents a pivotal step toward acknowledging the medical potential of cannabis and easing the heavy regulatory and financial burdens on the industry.

During the signing, President Trump framed the action as "an honor," emphasizing that the move—which he noted polls at 82 percent public approval—would "help many of those patients live a far better life." The order specifically instructs Attorney General Pam Bondi to complete the rulemaking process "in the most expeditious manner" allowed by law, effectively putting pressure on the Drug Enforcement Administration (DEA) to finalize the change.

Since 1970, marijuana has been classified as a Schedule I substance, a category reserved for drugs with "no currently accepted medical use and a high potential for abuse." This places cannabis alongside heroin, LSD, and ecstasy (MDMA). This classification has long been a point of contention for advocates and researchers, who argue it ignores the widespread medical use of cannabis in 40 states and the District of Columbia.

Moving marijuana to Schedule III would fundamentally alter its legal status. Schedule III drugs are defined as having a moderate to low potential for physical and psychological dependence and a currently accepted medical use. This category includes substances like Tylenol with codeine, ketamine, anabolic steroids, and testosterone. The reclassification acknowledges that while marijuana may have some potential for abuse, it does not carry the same extreme risks as Schedule I drugs and has legitimate medical applications.

One of the most significant impacts of this reclassification would be on scientific research. The current Schedule I status creates immense hurdles for scientists. "A Schedule I illegal drug means that it has no medical value... so there is no ability to research and figure out why it actually works for people," explained Wanda James, CEO of Simply Pure Dispensary. Researchers currently face rigorous DEA licensing requirements, expensive security protocols (like double-locked doors and bolted safes), and restrictions on obtaining research materials.

Chad Johnson, co-director of graduate studies in medical cannabis at the University of Maryland, believes the move to Schedule III will remove many of these barriers. "I think you'll be able to attract a lot of talented folks to come together and generate some high-quality research that we're lacking," he said. The executive order explicitly states that the federal government must "improve the research infrastructure for medical marijuana to better serve Americans," aiming to fill the gap where patients and doctors currently lack adequate guidance on prescribing and utilization.

For the cannabis industry, the most immediate and tangible benefit of rescheduling would be tax relief. Currently, cannabis businesses are subject to Section 280E of the Internal Revenue Code. This provision prohibits businesses trafficking in Schedule I or II substances from deducting standard business expenses—such as payroll, rent, marketing, and electricity—from their federal taxes. This has resulted in an effective tax rate that can exceed 70% for some dispensaries, crippling growth and profitability.

Reclassifying marijuana to Schedule III would render Section 280E inapplicable to state-legal cannabis businesses, allowing them to write off expenses just like any other standard business. "Marijuana rescheduling has the potential to bring long-needed clarity, stability, and legitimacy to the broader cannabinoid marketplace," noted Paula Savchenko, founding partner of Cannacore Group. Additionally, industry leaders like Stosh Wasik of The Fire Station anticipate this could pave the way for broader banking access, potentially allowing dispensaries to accept debit and credit cards instead of operating as cash-only businesses.

The executive order also touches on the regulation of cannabidiol (CBD), a non-psychoactive compound found in cannabis. It directs the White House to work with Congress to research and enable access to "appropriate full-spectrum CBD products." This comes in the wake of restrictive language inserted into a recent appropriations bill by Senator Mitch McConnell, which tightened legal definitions around CBD. The President's order sets a goal of restoring access to these products while still restricting those that pose serious health risks, a move seen by some as a rebuke to the recent legislative restrictions.

It is crucial to understand the limitations of this executive action. It does not legalize recreational marijuana federally. The President cannot unilaterally reschedule drugs; the process requires a scientific review by the Department of Health and Human Services (HHS) and a rulemaking process by the DOJ/DEA, which includes public comments and potential administrative hearings. The order simply directs agencies to prioritize and speed up this existing legal process.

Furthermore, the change does not override state laws. In states like South Dakota or Indiana where recreational use remains illegal, federal rescheduling will not automatically decriminalize possession or sale. As Kyle Boyar of the American Chemical Society’s Cannabis Chemistry Subdivision emphasized, "Nothing about the legality of any cannabis products in the US changes immediately."

The path to rescheduling involves several steps. The HHS has already recommended the move to Schedule III, and the Justice Department issued a proposed rule in May 2024. This proposal received over 43,000 public comments, with overwhelming support for reform. The next major step is an administrative hearing.

While the timeline remains uncertain, the executive order is a powerful signal. "It’s nice to see that there is forward movement, and that there is a nod from President Trump to make sure that we finally start to address this issue," said Nikki Fried, chair of the Florida Democratic Party. However, she also warned that Americans must keep "laser eyes focused" to ensure large pharmaceutical companies do not monopolize the market or slow down the FDA process as regulations evolve.

With daily marijuana use now surpassing daily alcohol use for U.S. adults, the pressure to modernize federal drug policy has never been higher. Trump's order may be the catalyst needed to finally align federal law with the reality of cannabis use and research in America.