Trump Fast-Tracks Cannabis Rescheduling in Historic Policy Shift

WASHINGTON, D.C. – December 18, 2025 – In a move poised to reshape the American cannabis industry, President Trump today issued an executive order directing the Attorney General to finalize the rescheduling of marijuana from Schedule I to Schedule III under the Controlled Substances Act. The action, which accelerates a process initiated by the previous administration, has been hailed by cannabis companies as a landmark reform, while drug policy advocates caution it is only one step on a long road to full legalization.

Cannabis industry leaders were quick to celebrate the directive. Curaleaf Holdings, a leading international cannabis company, issued a statement applauding the move as “the most impactful federal cannabis reform of the past fifty years.”

“Curaleaf thanks President Trump for acting on his commitment to move forward with cannabis reclassification and we express our deep gratitude to him for this bold move,” said Boris Jordan, Chairman and CEO of Curaleaf, in a press release. He added that the shift “acknowledges what has been known for thousands of years, that the cannabis plant has medicinal properties.”

While the executive order does not immediately reschedule cannabis, it commands Attorney General Pam Bondi to complete the ongoing administrative rulemaking process “in the most expeditious manner.” This process began in 2022 under President Biden and saw the Department of Health and Human Services (HHS) recommend the change to the Drug Enforcement Administration (DEA) in August 2023. The DEA formally proposed the rule in May 2024, but the process had since stalled. Trump's order effectively reignites the effort and pushes it toward the finish line.

The End of an Onerous Tax Era

The most immediate and tangible impact of a finalized move to Schedule III would be the financial salvation of the $32 billion state-legal cannabis industry. For decades, businesses trafficking in Schedule I or II substances have been barred by Section 280E of the IRS tax code from deducting standard business expenses like rent, payroll, and marketing.

This restriction has forced cannabis companies to pay effective tax rates often exceeding 60% of their gross revenue, crippling cash flow and deterring mainstream investment. Rescheduling to Schedule III would nullify the 280E burden overnight.

“This is the single most important federal policy change for the industry since the first states legalized,” one financial analyst noted. “It unlocks billions of dollars in capital, immediately improves margins, and makes these companies viable for traditional lending and institutional investment. It’s a complete game-changer.”

In its statement, Curaleaf highlighted this benefit, noting the move “eliminates onerous tax penalties and creates opportunities for expanded investment into state programs that will create jobs and tax revenue for local communities.” The financial relief is expected to trigger a new wave of consolidation, expansion, and market maturation as companies are finally able to operate on a more level playing field with other industries.

A Political Plant: Bipartisan Roots, Uncertain Future

The path to today's executive order is a winding one, with roots in both Democratic and Republican initiatives. While the formal review began under President Biden, President Trump’s decision to personally champion its completion is seen by many as a strategic political maneuver. With public support for cannabis legalization reaching record highs across party lines, claiming a victory on this issue holds significant appeal.

“We have people begging me to do this. People that are in great pain,” President Trump stated during the announcement, framing the action around its medical benefits and patient needs.

However, policy reform advocates stress the distinction between rescheduling and descheduling. Moving cannabis to Schedule III acknowledges its medical use but keeps it federally controlled. Possession without a prescription would remain a federal crime, and the move does nothing to resolve the fundamental conflict between federal prohibition and the 38 states with legal medical or adult-use markets.

“This is an important and long-overdue step, but it is not the end of the fight,” said a senior policy advisor at a national cannabis advocacy group. “Classifying cannabis as a Schedule III drug fails to harmonize federal law with the laws of most states. We continue to call for the complete removal of cannabis from the Controlled Substances Act to truly respect state-level legalization and end the harms of prohibition.”

From Pariah to Prescription? The Medical and Research Revolution

Beyond the financial and political implications, a shift to Schedule III represents a monumental change in the federal government’s scientific and medical stance on cannabis. For over 50 years, its Schedule I status officially declared it had “no currently accepted medical use and a high potential for abuse.”

This classification has severely hampered scientific research, creating immense regulatory hurdles and cutting off access to federal funding. A Schedule III designation, which includes substances like Tylenol with codeine and testosterone, would dismantle many of these barriers.

“For decades, researchers in the U.S. have been working with one hand tied behind their backs,” explained a public health expert. “This change will finally allow for the kind of federally-funded, large-scale clinical trials needed to fully understand the plant’s therapeutic potential and develop evidence-based treatments.”

President Trump’s executive order also hints at this new medical future, proposing a pilot program to allow seniors on Medicare to receive reimbursement for certain CBD and medical cannabis products starting in 2026. This would represent the first time a federal health program has formally recognized and covered cannabis-derived medicines, potentially paving the way for broader insurance coverage and integration into mainstream healthcare.

Despite the progress, the path forward remains complex. The final rule from the Attorney General’s office could still face legal challenges. Furthermore, critics of cannabis reform, including some former law enforcement officials, have voiced concerns that relaxing federal policy sends a conflicting message while the nation battles the opioid crisis. As the administrative process churns forward, the cannabis industry, patients, and policymakers alike are watching closely to see how the federal government will navigate this new, hazy legal landscape.