In a landmark move, President Donald Trump on Thursday announced an executive order directing federal agencies to loosen restrictions on cannabis, signaling official recognition of its medical uses and reshaping the regulatory landscape.

The order instructs the attorney general to move marijuana from Schedule I — reserved for drugs with no accepted medical use and high abuse potential — to Schedule III, a less restrictive category under the Controlled Substances Act (CSA). The policy shift builds on a process initiated under the Biden administration but stalled in recent months.

Executive Action and Medical Justification

“Today I’m pleased to announce that I will be signing an executive order to reschedule marijuana from a Schedule I to a Schedule III controlled substance with legitimate medical uses,” Trump said during the Oval Office signing ceremony.

Trump emphasized the human impact: “We have people begging for me to do this, people that are in great pain… including veterans and older Americans with chronic medical problems.”

Legal experts note that while rescheduling does not legalize recreational cannabis, it offers critical financial relief to the industry by lifting punitive tax policies that currently burden state-regulated marijuana companies.

“Unless a drug is recommended by a doctor for medical reasons, just don’t do it,” Trump added. “At the same time, the facts compel the federal government to recognize marijuana’s legitimate medical applications when carefully administered.”

Financial and Research Implications

Schedule III classification would allow cannabis businesses to deduct ordinary operating expenses, a benefit long denied due to Schedule I restrictions. Brian Vicente, cannabis attorney and founding partner of Vicente LLP, called the change “a game-changer” for thousands of state-legal businesses nationwide.

The order also addresses the hemp industry, instructing Congress and the White House to explore ways to allow CBD products derived from non-psychoactive hemp while preserving patient access.

Trump highlighted that rescheduling could improve medical research access, though analysts caution that past legislative attempts, such as the 2022 Medical Marijuana and Cannabidiol Research Expansion Act, imposed new research restrictions that would persist post-rescheduling.

Background and Federal Review

Marijuana has been classified as Schedule I since 1970, alongside heroin and many psychedelics. In contrast, Schedule III drugs — such as ketamine, anabolic steroids, and Tylenol with codeine — are recognized for medical use and have lower abuse potential.

The process toward rescheduling began under Biden in October 2022, with federal health regulators recommending the shift to Schedule III in August 2023. The Department of Justice formally supported rescheduling in May 2024, concluding that CSA and international treaty obligations do not require keeping cannabis in Schedule I.

Following a notice of proposed rulemaking, the DEA received over 42,000 public comments. An administrative law judge canceled six weeks of planned hearings in January 2025 to address allegations of agency bias, leaving the proposal in limbo until Thursday’s executive action.

The Trump Marijuana Rescheduling initiative represents a historic pivot in federal cannabis policy, opening the door for broader medical use, easing tax burdens, and potentially stimulating research while maintaining federal restrictions on recreational use.