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Trump reclassifies cannabis under federal law
President Donald Trump signed an executive order Thursday directing the U.S. attorney general to reclassify cannabis from a Schedule I to a Schedule III narcotic, marking the most substantial change in federal drug policy in decades.
What the reclassification means
Under the new designation, cannabis will join drugs like ketamine and anabolic steroids, which the U.S. Drug Enforcement Agency (DEA) considers to have a "moderate to low potential for physical and psychological dependence." While cannabis will remain federally illegal, the shift allows for expanded research into its potential medical benefits.
Tax and industry implications
The reclassification removes certain tax barriers for state-licensed cannabis dispensaries, which were previously barred from specific deductions due to the drug's Schedule I status. Industry advocates estimate the change could benefit the roughly 425,000 workers in the U.S. cannabis sector.
"This represents a fundamental shift in how government and society view cannabis," said Tim Barash, chairman of the Coalition for Cannabis Scheduling Reform. "It will attract new investment, talent, and awareness to an industry that positively impacts millions of lives."
Political and public reaction
Trump framed the move as a response to public demand, particularly from patients suffering from chronic pain, cancer, seizures, and veterans with service-related injuries. During Thursday's signing ceremony, he compared cannabis to prescription painkillers, acknowledging their legitimate uses but warning of "irreversible damages."
However, the order faced immediate pushback from Republican lawmakers. A group of 22 GOP senators argued in a letter that the change could undermine efforts to "re-industrialize America," citing concerns about health risks, impaired judgment, and lack of concentration linked to cannabis use. Nine House Republicans separately urged Attorney General Pam Bondi in August to reject the reclassification, calling it "objectively wrong" and warning it could mislead children about the drug's safety.
Broader context and next steps
While 24 states have legalized recreational cannabis and most permit some medical use, federal law has classified it as a Schedule I substance-defined as having no accepted medical use and high abuse potential-since 1971. The Biden administration proposed a similar reclassification in 2024, but the DEA's rule change stalled amid administrative and legal challenges.
Trump's order also directs White House officials to collaborate with Congress on expanding access to cannabidiol (CBD) and tasks health agencies with developing models to study its real-world benefits and risks. A senior administration official called the move a "commonsense action" to improve research and understanding of cannabis and CBD.
Public support for legalization remains high, with 64% of Americans favoring it in a November Gallup poll, though Republican support has declined by 13 points in recent years.
