Trump Administration Reclassifies Medical Marijuana to Schedule III

The Trump administration moved Thursday to reclassify state-licensed medical marijuana as a less dangerous drug, shifting it from the strictest federal category to one that acknowledges medical value and eases regulatory burdens. Acting Attorney General Todd Blanche signed the Justice Department order, which reassigns licensed medical cannabis from Schedule I, alongside heroin and LSD, to Schedule III. The change does not legalize marijuana under federal law but opens the door to tax deductions for dispensaries, streamlined research protocols, and potentially even exports to foreign markets.

President Donald Trump has framed the policy as a pragmatic adjustment, calling it a “common sense” response to a substance many Americans view as less harmful than alcohol. A Drug Enforcement Administration administrative hearing scheduled for June 29 could extend similar treatment to recreational marijuana, a step that industry lawyers described as a clear signal of the administration’s intentions. Jesse Alderman, a Boston-based cannabis attorney at Foley Hoag, said the order indicates the White House “means business on getting this done.”

The move arrives more than three decades after California became the first state to approve medical marijuana in 1996. Today, 40 states and the District of Columbia permit medical cannabis programs, while 24 states plus Washington, D.C., allow adult recreational use. Only Idaho and Kansas have rejected both. Legal sales now generate billions in state tax revenue, yet federal prohibition has left the industry in a regulatory no-man’s-land, subject to banking restrictions and punitive taxation under the Internal Revenue Service code that treats cannabis businesses like illicit enterprises.

Industry representatives welcomed the reclassification as long overdue. Businesses selling state-approved medical marijuana will face fewer federal hurdles and may claim tax breaks previously unavailable. Researchers could also find it easier to study the drug’s therapeutic potential without the extreme security and paperwork required for Schedule I substances.

Yet the policy shift collides with conflicting signals from the public. A Gallup poll conducted last year found that a slim majority of Americans now believe marijuana harms most users and damages society overall, a noticeably more negative assessment than in 2022 even as commercial cannabis expanded. Republican leaders have expressed reservations as well. Some prominent voices within Trump’s own party continue to warn that reclassification risks normalizing a drug whose long-term effects on adolescents and mental health remain contested.

The administration’s action on marijuana is not occurring in isolation. On Saturday, Trump signed an executive order directing the Food and Drug Administration to fast-track review of psychedelic therapies that have received Breakthrough Therapy designations. The directive commits $50 million in federal matching funds to states establishing ibogaine research programs, clears the path for the first domestic clinical trials of the substance, and expands access through the Right to Try program. Ibogaine, derived from an African plant and currently remaining on Schedule I, has drawn attention for its potential to treat traumatic brain injuries and PTSD among veterans.

The order was announced alongside conservative podcaster Joe Rogan and retired Navy SEAL Marcus Luttrell. Trump said the goal was to give Americans suffering “debilitating symptoms” a realistic chance to “reclaim their lives.” Advocates, including veterans’ families, have long criticized the FDA for blocking research into ibogaine despite centuries of traditional use and anecdotal evidence from unregulated clinics in Mexico, where many former service members have sought treatment.

Taken together, the marijuana reclassification and the ibogaine executive order represent the most significant federal retreat from strict drug prohibition in decades. Critics argue the moves benefit a rapidly growing cannabis industry that spent millions on lobbying while doing little to address persistent concerns about youth usage, impaired driving, and psychiatric side effects. Supporters counter that the changes simply align federal policy with scientific reality and the overwhelming majority of state governments that have already rejected blanket prohibition.

Legal challenges are expected. Opponents may argue the executive branch lacks authority to rewrite scheduling categories without further congressional action, and some lawmakers have signaled they will fight any expansion to recreational markets. For now, the practical impact will be felt most by state-licensed medical operators who can begin exploring new banking relationships and tax strategies.

The developments highlight a striking evolution in Republican thinking on drugs. Once defined by “Just Say No” campaigns and mandatory minimum sentences, significant parts of the party now appear willing to accept regulated markets for both cannabis and certain psychedelics when framed around veterans’ health, states’ rights, or economic opportunity. Whether that shift survives broader political scrutiny or future election cycles remains uncertain. Public opinion, as the Gallup data suggests, is moving in the opposite direction from policy in several key respects, creating a tension that neither the administration nor the cannabis industry can easily dismiss.