Trump Administration Reclassifies Medical Cannabis to Schedule III, Easing Federal Restrictions

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Trump Administration Reclassifies Medical Cannabis as Schedule III

The Trump administration has reclassified state-licensed medical cannabis as a Schedule III drug, marking a significant shift in federal drug policy. While this change does not legalize cannabis under federal law, it introduces major regulatory and economic benefits for businesses and researchers.

Acting Attorney General Todd Blanche signed the executive order on April 23, reclassifying medical marijuana to a less restrictive category. The move follows President Donald Trump’s directive in December to expedite cannabis reclassification.

Key Changes Under the New Classification

• Tax Breaks for Businesses: Licensed medical cannabis businesses will now qualify for federal tax deductions, previously denied under Schedule I restrictions.
• Easier Research Access: Researchers studying cannabis will face fewer federal barriers, enabling more comprehensive studies on its medical benefits.
• Reduced Stigma: The reclassification aligns cannabis with drugs like Tylenol with codeine, recognizing its medical value and lower abuse potential.

Reclassification Does Not Legalize Cannabis Federally

Despite the policy shift, cannabis remains illegal at the federal level. The reclassification specifically applies to state-licensed medical cannabis and FDA-approved products. The administration has scheduled a June hearing to further evaluate broader cannabis policy changes.

Currently, 48 states permit some form of legal cannabis use—either medical, recreational, or both. Only Idaho and Kansas maintain complete prohibition. This means individuals and businesses operating legally under state laws still risk federal prosecution.

Public Support for Cannabis Reform Grows

The reclassification reflects shifting public opinion. A 2025 Gallup poll found that support for cannabis legalization in the U.S. has nearly doubled since 2005, rising from 36% to 64%.

"The Department of Justice is delivering on President Trump’s promise to expand Americans’ access to medical treatment options. This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information."

What This Means for the Cannabis Industry

For businesses in legal cannabis states, the reclassification offers tangible benefits:

• Access to federal tax deductions, reducing operational costs.
• Simplified banking and financial services, as Schedule III drugs face fewer restrictions.
• Increased investment opportunities due to reduced regulatory uncertainty.

However, challenges remain. Cannabis is still classified as a controlled substance, and federal banking restrictions (such as those under the SAFE Banking Act) have not been fully resolved. The June hearing may address these broader issues.

Next Steps: Federal Cannabis Policy Under Review

The Trump administration’s reclassification is a step toward federal cannabis reform, but the process is ongoing. The scheduled June hearing will explore additional changes, including potential pathways for recreational cannabis legalization or further easing of restrictions.

For now, cannabis businesses and researchers must navigate a complex legal landscape, balancing state legality with federal prohibition. The reclassification, however, signals a historic shift in how the federal government views medical cannabis.