Trump Signs Order Directing Federal Move of Marijuana to Schedule III

President Trump signed an executive order Thursday directing the federal government to reclassify marijuana from Schedule I to Schedule III of the Controlled Substances Act, according to CNBC and Al Jazeera. The order directs Attorney General Pam Bondi to speed up a rescheduling process run through the Drug Enforcement Administration, Al Jazeera reported. CNBC reported that the change takes effect only after the DEA finalizes it.

Schedule I, the most restrictive tier, also includes heroin and LSD. Schedule III covers drugs with accepted medical use and lower abuse potential, and includes ketamine, both outlets reported. Trump said the action “doesn’t legalize marijuana in any way, shape or form,” CNBC reported; Al Jazeera quoted him saying it is not legalization and “in no way sanctions its use as a recreational drug.” CNBC reported that Trump said patients in extreme pain, people with incurable diseases and veterans with service-related injuries had asked for the change.

Research is a main argument for the move. Al Jazeera reported that studies on Schedule III substances require much less approval than those on Schedule I substances, and CNBC reported that experts say reclassification could enable more research into marijuana and CBD, a cannabis-derived compound. CNBC noted that the Food and Drug Administration has approved only one CBD-based drug, Epidiolex, for rare forms of epilepsy, and that studies cited by the outlet found inconsistent benefits for targeted conditions.

CNBC also reported financial effects. Reclassification would exempt marijuana businesses from a section of the tax code, 280E, that has barred them from deducting ordinary expenses such as rent and payroll, and analysts expect it to open the door to banking and institutional investment, CNBC reported. Cannabis stocks fell on the announcement day, CNBC reported, with Trulieve down about 23 percent and Green Thumb Industries down more than 16 percent; investors were reportedly worried about competition from international companies and from large pharmaceutical firms.

CNBC reported that the Centers for Medicare and Medicaid Services, led by Dr. Mehmet Oz, is expected to launch a pilot in April offering certain Medicare-covered seniors doctor-recommended CBD products. It covers CBD only, not marijuana, CNBC said.

The order does not make recreational use legal nationwide. Al Jazeera reported that many states have legalized marijuana for medical or recreational use, creating a patchwork that conflicts with federal law, under which the drug remains illegal. Al Jazeera also reported that the Biden administration began the Schedule III process but did not finish it before leaving office in January 2025, and that President Joe Biden issued a mass pardon in 2023 for people convicted of simple federal possession.

There is opposition inside Trump’s own party. Al Jazeera reported that earlier in 2025, 20 Republican senators signed a letter urging Trump to keep the stricter restrictions, arguing that marijuana remains dangerous and that reclassification would undermine efforts to “Make America Great Again.” Al Jazeera cited Gallup polling showing support for legalizing recreational use rose from 36 percent in 2005 to 68 percent in 2024.

Neither outlet gave a timeline for the DEA to complete its work.