Trump Signs Order to Reclassify Medical Marijuana, But Full Legalization Remains on Hold
Acting Attorney General Todd Blanche signed an order on April 23 that reclassifies state-licensed medical marijuana as a less dangerous substance.
This major policy shift does not make cannabis legal for recreational or medical use under federal law. However, moving cannabis to Schedule III changes how it is regulated.
For example, licensed medical cannabis businesses will now qualify for tax breaks. Researchers studying the drug will also face fewer obstacles.
The move supports advocates who have argued for years that cannabis should not be treated the same as drugs like heroin by the federal government.
Trump told the press he had received many phone calls asking for restrictions to be lifted. In December, he directed 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 from the U.S. Department of Justice.
“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.”
Reclassification Does Not Equal Legalization
The reclassification focuses on medical cannabis and products approved by the Food and Drug Administration (FDA).
The Trump administration has scheduled a June hearing that will create a path 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 two states — Idaho and Kansas — do not have any legal cannabis programs at all.
This means anyone researching or selling cannabis in a state where it was legal could still face federal prosecution.
Currently, cannabis is classified as a Schedule I drug, in the same category as LSD and heroin. These drugs are considered to have a high potential for abuse and “no currently accepted medical use.”
Reclassifying cannabis as a Schedule III drug places it in the same group as Tylenol mixed with codeine: medicines that are medically useful and have a low risk of abuse.
Although not everyone will welcome this change, public opinion largely supports it. A 2025 Gallup poll showed that support for cannabis legalization in the United States nearly doubled from 36% in 2005 to 64%.
What This Means for the Cannabis Industry
Businesses in states that allow medical or recreational cannabis currently face major challenges. Even though their operations are legal in their state, they are illegal at the federal level. This makes banking and tax compliance difficult. The new legal change will make a big 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 perspective, changes in how taxes are collected will have the biggest impact. For the first time, state-licensed medical cannabis companies will be able to deduct business expenses on their federal taxes.
Anthony Coniglio, CEO of NewLake Capital Partners, Inc., said 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 medical cannabis provider, told Healthline that the move is “a significant step for Texans who will benefit from easier access to needed medicine.”
A New Era for Cannabis Research
Beyond business, scientists will also benefit from this change in cannabis regulation. With easier access to the drug and much less red tape, it will be simpler and cheaper to study cannabis for treating 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.
Realm of Caring is currently working with the Johns Hopkins Behavioral Pharmacology Research Unit on a national medicinal cannabis use registry.
“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.”
Steven Gregoire, president of Quiet Monk CBD, agreed. “Under the current classification, Schedule I, it is very restrictive in how, when, and if research can be conducted,” he told Healthline.
“When reclassified to a schedule III,” he added, “it increases the supply for research, allowing for more studies and research on the drug and its benefits.”
Some Experts Urge Caution
Most researchers and cannabis businesses appear pleased with this move, though some think it does not go far enough. Others we contacted are more cautious.
“This decision underscores just how quickly the policy landscape around marijuana is changing,” said Pam Jenkins, CEO of Shatterproof, a nonprofit focused on 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, chief executive of Smart Approaches to Marijuana, believes this change 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 determine whether a broader reclassification of cannabis is possible in the United States.
