- An executive order signed by the Trump administration reclassifies medical cannabis as a less dangerous drug.
- Although this does not legalize cannabis under federal law, it marks a significant shift in policy.
- The change will provide significant tax breaks for businesses that sell cannabis and ease barriers for researchers who possess the drug in order to study it.
Acting Attorney General Todd Blanche signed an order on April 23 to reclassify state-licensed medical marijuana as a less dangerous drug.
This major shift in policy does not legalize cannabis for recreational or medical use under federal law. However, reclassifying cannabis as a Schedule III drug changes how it’s regulated.
For instance, licensed medical cannabis businesses will receive tax breaks. Researchers studying the drug’s effects will run into fewer roadblocks.
The move aligns with advocates who’ve long said the substance shouldn’t be held in the same regard as drugs like heroin by the federal government.
Trump told the press that he had received several phone calls pleading for restrictions to be lifted. In December, he told his administration to move quickly on reclassifying cannabis.
“The Department of Justice is delivering on President Trump’s promise to expand Americans’ access to medical treatment options,” Blanche said in a statement issued by the U.S. Department of Justice (DOJ).
“This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information.”
The move to reclassify marijuana focuses on medical cannabis and products approved by the Food and Drug Administration (FDA).
The Trump administration has scheduled a June hearing that will provide a pathway for evaluating broader changes to cannabis status under federal law. For now, cannabis remains illegal at the federal level.
Most states allow recreational use, medical use, or both. Only
This means that anyone researching or selling cannabis in a state where it was legal was subject to federal prosecution.
Currently, cannabis has been classified as a Schedule I drug in the same class as LSD and heroin, which have significant potential for abuse and “no currently accepted medical use.”
Reclassifying marijuana as a Schedule III drug puts it in the same bracket as Tylenol mixed with codeine: Medically beneficial drugs with low potential for abuse.
Although this change will not be welcomed in all quarters, public sentiment is broadly aligned.
A 2025 Gallup poll, for instance, showed that support in the United States for cannabis legalization had almost doubled from 36% in 2005 to 64%.
Currently, businesses in states that allow medical or recreational cannabis use face significant headaches.
While their business may be entirely legal in their state, it is illegal at the federal level, making banking and tax compliance challenging. This new legal change will make a significant difference.
Terry Mendez, CEO of Safe Harbor Financial, a company that works with the cannabis industry, called the order “the most significant federal action on cannabis policy in more than 50 years.”
From a business standpoint, changes in how taxes are collected will have the greatest impact. Now, for the first time, state-licensed medical cannabis companies will be able to deduct business expenses on their federal taxes.
On the same point, Anthony Coniglio, CEO at NewLake Capital Partners, Inc, said that this “is a material shift not only for operators and patients, but also for investors, lenders, and real estate partners evaluating the cannabis sector.”
Similarly, Nico Richardson, CEO of Texas Original, a provider of medical cannabis, told Healthline that the move is “a significant step for Texans who will benefit from easier access to needed medicine.”
Industry aside, scientists will benefit from this shift in cannabis regulation.
With easier access to the drug and a significant reduction in red tape, it will be much easier (and cheaper) to investigate cannabis for the treatment of health conditions.
Sasha Kalcheff-Korn is the executive director of Realm of Caring, a nonprofit that provides information about cannabinoid therapies, conducts research, and awards research grants.
“Rescheduling will make it easier to complete this research and conduct future studies,” Kalcheff-Korn told Healthline. “Helping build the scientific foundation behind what many patients already experience: cannabinoid therapies may offer meaningful relief for a range of symptoms and conditions.”
In agreement, Steven Gregoire, president of Quiet Monk CBD, told Healthline, “Under the current classification, Schedule I, it is very restrictive in how, when, and if research can be conducted.”
“When reclassified to a schedule III,” he continued, “it increases the supply for research, allowing for more studies and research on the drug and its benefits.”
Researchers and cannabis-based businesses seem, in general, pleased with this new move — although some believe it hasn’t gone far enough. Others we contacted, however, are more cautious.
“This decision underscores just how quickly the policy landscape around marijuana is changing,” said Pam Jenkins, CEO of Shatterproof, a nonprofit dedicated to reversing the addiction crisis.
“As states evaluate access to these products, we have a responsibility to ensure that young people are protected, that clinicians have clear guidance, and that the public understands the real risks — especially when it comes to youth mental health,” Jenkins told Healthline.
“We’ve seen what can happen when public health lags behind access,” she continued. “We cannot afford to repeat those mistakes.”
Kevin Sabet, the chief executive of Smart Approaches to Marijuana, believes this change in the law will “send a confusing message” to the public about the safety of cannabis.
“With this move, we are now confronted with the most pro-drug administration in our history,” he said. “Policy is now being dictated by marijuana CEOs, psychedelics investors, and podcasters in active addiction.”
The government hearing in June will show whether there can be a broader reclassification of cannabis in the United States.
