Trump’s Move to Reclassify Marijuana Marks Major Shift in U.S. Federal Drug Policy
In a dramatic turn in U.S. drug policy, President Donald Trump signed an executive order on December 18, 2025, directing his administration to move forward with reclassifying marijuana under federal law—a significant step that could reshape how cannabis is regulated, researched, and taxed across the nation.
The action instructs the attorney general to expedite efforts to reclassify marijuana from a Schedule I to a Schedule III substance under the federal Controlled Substances Act (CSA)—a move that acknowledges the plant’s medical uses while stopping short of full legalization. Schedule I currently places marijuana alongside drugs like heroin and LSD, defined as having a high potential for abuse and no accepted medical value. Schedule III drugs, by contrast, are considered to have “moderate to low potential for dependence” and recognized medical applications.
“This reclassification order will make it far easier to conduct marijuana-related medical research,” Trump said, framing the policy change as a common-sense update to outdated federal classifications. He also emphasized that the move does not legalize recreational marijuana at the federal level.
Policy and Process
Under federal law, the Drug Enforcement Administration (DEA) ultimately determines how controlled substances are scheduled—but only after review and recommendation by the Department of Health and Human Services. A shift from Schedule I to Schedule III had been in motion for more than a year: HHS recommended rescheduling in 2023 based on scientific evaluations, and the DEA issued a proposal in mid-2024 that received tens of thousands of public comments. Trump’s executive order now instructs the attorney general to accelerate that process.
While the president’s directive signals clear federal support for rescheduling, it does not immediately change the law. Formal reclassification still requires regulatory rulemaking and approval by the DEA.
Supporters See Opportunity for Research and Tax Relief
Cannabis advocates and some state officials greeted the move as a historic step, particularly for medical research access, business taxation, and regulatory clarity. Under Schedule III, researchers will face fewer bureaucratic hurdles, potentially unlocking more federal studies into cannabis’s therapeutic effects.
Businesses also anticipate financial relief. Currently, marijuana companies face prohibitive tax rules under Internal Revenue Code Section 280E, which denies typical business deductions because cannabis is federally illegal under Schedule I. Rescheduling could allow these operators to deduct ordinary business expenses, improving cash flow and competitiveness.
Critics and Evolving Challenges
However, rescheduling has not quelled all controversy. Civil liberties groups, like the American Civil Liberties Union, have cautioned that without broader reform measures, reclassification alone won’t correct systemic inequities in cannabis enforcement or address lingering criminal justice issues tied to past marijuana convictions.
Legal and financial experts also note that reclassification does not guarantee access to traditional banking services. Major banks remain wary of handling cannabis funds due to lingering federal legal risk, maintaining a reliance on smaller lenders that often charge higher fees. Advocates continue to urge congressional action on measures like the SAFER Banking Act to secure clearer protections for financial institutions.
A Broader Policy Shift
Trump’s order reflects broader public and political changes: marijuana is now legal for medical use in 40 states and for adult recreational use in 24 states, even as federal law lags behind.
While the executive action does not equate to victory for full federal legalization, it represents the most consequential federal marijuana policy change in decades and could accelerate future reforms. For patients, researchers, businesses, and lawmakers alike, the rescheduling debate remains central to how America will regulate cannabis in the years ahead.