Trump Reclassifies Medical Cannabis as Less Dangerous Drug, But Federal Legalization Still Not Here
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 it to a Schedule III drug changes how it is regulated.
For example, licensed medical cannabis businesses will now get tax breaks. Researchers who study the drug’s effects will face fewer obstacles. The move supports advocates who have long argued that marijuana should not be treated the same as drugs like heroin by the federal government.
Trump told the press he had received several phone calls asking 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 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 of marijuana does not mean legalization
The reclassification focuses on medical cannabis and products approved by the Food and Drug Administration. The Trump administration has scheduled a June hearing that will create 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 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 has been classified as a Schedule I drug, in the same class as LSD and heroin. These drugs have a high potential for abuse and “no currently accepted medical use.” Reclassifying marijuana as a Schedule III drug puts it in the same category as Tylenol mixed with codeine: medically beneficial drugs with a low potential for abuse.
Although this change will not be welcomed by everyone, 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 does reclassification mean for the cannabis industry?
Businesses in states that allow medical or recreational cannabis use currently face major challenges. Even if their business is legal in their state, it is 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 standpoint, 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 at 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 provider of medical cannabis, told Healthline that the move is “a significant step for Texans who will benefit from easier access to needed medicine.”
A new dawn for cannabis research?
Scientists will also benefit from this shift in cannabis regulation. With easier access to the drug and much less red tape, it will be easier and cheaper to investigate 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 partnering with the Johns Hopkins Behavioral Pharmacology Research Unit to conduct 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, 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.”
Some caution about cannabis reclassification
Researchers and cannabis-based businesses generally seem pleased with this move, though some believe it has not gone 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 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. 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 a broader reclassification of cannabis in the United States is possible.
