President Trump Signs Executive Order to Reclassify Marijuana as Schedule III Drug

On December 18, 2025, President Donald Trump signed an executive order directing the reclassification of marijuana from a Schedule I to a Schedule III controlled substance under federal law. This change acknowledges the medical use of marijuana and aims to ease restrictions on research and the cannabis industry.

"I’m pleased to announce that I will be signing an Executive Order to reschedule marijuana from a Schedule I to a Schedule III controlled substance with legitimate medical uses," President Trump stated during the signing.

The reclassification aligns marijuana with substances like ketamine and certain prescription medications, indicating accepted medical use and a lower potential for abuse. While this move does not legalize marijuana for recreational use at the federal level, it is expected to facilitate medical research and reduce regulatory burdens on the cannabis industry.

The executive order also initiates a Medicare pilot program to reimburse patients for products containing cannabidiol (CBD), a non-psychoactive compound derived from cannabis. This program aims to provide alternative treatments for patients, particularly those managing chronic pain.

The reclassification process requires formal rule-making by the Drug Enforcement Administration (DEA) and is subject to public input. The Department of Health and Human Services (HHS) has been directed to develop research methods utilizing real-world evidence to study the long-term health effects of medical marijuana and hemp-derived cannabinoid products.

Public opinion on marijuana legalization has evolved, with 64% of Americans supporting legalization, according to recent surveys. However, the reclassification has faced opposition from some lawmakers and anti-drug groups who argue it could undermine public safety.

Industry leaders have welcomed the move, anticipating that it will reduce tax burdens and improve access to banking services for cannabis businesses. Paul Armentano, deputy director of the National Organization for the Reform of Marijuana Laws (NORML), stated that the order "validates the experiences of tens of millions of Americans, as well as those of tens of thousands of physicians, who have long recognized that cannabis possesses legitimate medical utility."

The executive order marks a significant shift in federal drug policy, reflecting growing recognition of marijuana's medical applications and the need for updated regulations to support research and industry growth.