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Trump Expected to Direct Agencies to Reclassify Marijuana to Schedule III

No decision is final pending DOJ and DEA rulemaking.

Overview

  • Multiple outlets, led by the Washington Post, report the president is preparing an executive order telling federal agencies to pursue rescheduling, though the White House says plans are not finalized.
  • Trump discussed the plan in an Oval Office call with House Speaker Mike Johnson, Health Secretary Robert F. Kennedy Jr., CMS chief Mehmet Oz, and marijuana industry executives, with Johnson expressing skepticism, according to reports.
  • The reported shift would move cannabis from Schedule I to Schedule III, which would not legalize or decriminalize it but could ease research barriers and reduce some tax and financing burdens for regulated businesses.
  • Legal experts note a president cannot unilaterally reclassify the drug and can only direct the Justice Department and DEA to expedite the administrative process.
  • Cannabis stocks rallied on the reports, with Tilray, Canopy Growth, and sector ETFs jumping sharply on Friday as investors bet on improved operating conditions for the industry.