Overview

• President Trump confirmed on August 11 that his administration is “looking at” reclassifying cannabis from Schedule I to Schedule III and expects a decision in the next few weeks.
• Cannabis-linked stocks jumped sharply after a Wall Street Journal report on his New Jersey fundraiser discussion and his public comments, with Tilray Brands and Canopy Growth among the biggest gainers.
• Reclassification to Schedule III would not legalize recreational use nationwide but could lift IRS Section 280E tax restrictions, expand research permissions and draw new investment.
• Any scheduling change must go through formal Department of Justice and DEA rulemaking, including public comment, and the Biden-era proposal has been stalled since March 2025.
• The plan faces organized resistance from the National Sheriffs’ Association and conservative and public-health groups warning of youth exposure, impaired driving and mental-health risks.