On Thursday, Dec. 18, 2025, President Trump signed an executive order directing the federal government to reschedule marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA).

  • Schedule I currently lists drugs with “no accepted medical use” and a high potential for abuse (e.g., heroin, LSD). Moving marijuana to Schedule III reflects a judgment that it has accepted medical use and lower abuse potential similar to substances like certain steroids and ketamine. 

Why It Matters?

  • Medical research: A Schedule III classification could remove barriers to scientific studies on cannabis, easing research requirements and potentially accelerating medical understanding and new treatments. The executive order’s reclassification of marijuana makes it easier for researchers to pursue federally funded medical trials on marijuana and its potential therapeutic uses. It does not change the status of marijuana, which remains illegal in the U.S. under federal law. However, 40 states have enacted laws that allow the sale of marijuana products for medicinal purposes, and nearly two dozen permit recreational use.

  • Regulatory and economic effects: The change may lead to reduced regulatory burdens and could help cannabis businesses by opening up banking access, lowering tax burdens (including relief from some restrictions of tax code Section 280E), and improving investor confidence. 

  • CBD access: The order also addresses broader access to cannabidiol (CBD) products and their inclusion in health programs, possibly enabling Medicare coverage in certain cases. 

Process and Enforcement

  • The executive order directs the Attorney General / Department of Justice to implement the rescheduling, effectively urging the Drug Enforcement Administration (DEA) to finalize the administrative change more quickly than a stalled rulemaking that began under the prior administration.

  • Even after the order, formal regulatory steps (e.g., DEA rulemaking and FDA oversight adjustments) are needed before the shift fully takes legal effect.

There is still a lot to be done on this front with rescheduling and will need DEA, FDA and the Attorney General's Office to actually get this process moving.