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Trump Signs Order to Reclassify Marijuana to Schedule III

The move does not legalize recreational use at the federal level.

Overview

  • Trump’s directive tells the Justice Department and DEA to pursue moving cannabis from Schedule I to Schedule III under federal law.
  • Reclassification is intended to open more clinical research and could allow standard tax deductions now barred for state-licensed cannabis businesses.
  • Any change still requires DEA rulemaking and a public comment process, leaving the timeline for final action uncertain despite the push to accelerate it.
  • More than 20 Republican senators led by Ted Budd urged keeping marijuana on Schedule I, while Trump framed the shift as a response to patients seeking relief.
  • Cannabis shares jumped on reports ahead of the signing, then traded mixed after the announcement as investors locked in gains.