Overview
- The order instructs the Justice Department and DEA to expedite rescheduling to Schedule III through the existing administrative process, which still includes public comment and potential hearings before any change takes effect.
- The action does not legalize marijuana at the federal level or alter criminal penalties, and state regulatory regimes remain in place.
- If finalized, the move is expected to end IRS Section 280E limits on deductions for state-licensed cannabis businesses, improving profitability even as access to traditional banking and payments may advance only gradually.
- Federal agencies are directed to expand avenues for medical and scientific research under a less restrictive schedule, with experts anticipating easier study approvals and greater participation in clinical research.
- The order also targets CBD policy by seeking updated hemp-derived product definitions and supports a CMS pilot that could provide some Medicare patients access to CBD as early as April 2026, while opponents signal legal challenges.