President Trump Signs Executive Order to Expedite Cannabis Rescheduling to Schedule III, Boosting Research and Offering Tax Relief
President Trump signed a key executive order. This happened on December 18, 2025. The order speeds up cannabis rescheduling. It aims to move marijuana to Schedule III. This marks a major policy shift. The order does not reschedule marijuana itself. It directs federal agencies to start the formal process. This includes scientific review. The FDA and DEA will also have input. The order also covers hemp-derived products. It asks for updates to definitions for CBD products.
Shifting Stance on Cannabis
President Trump’s views on cannabis have evolved. He previously supported states deciding legality. He even voted for a Florida recreational cannabis measure. The Biden administration had already started rescheduling discussions in April 2024. A proposed rule was issued in May 2024. The Department of Health and Human Services recommended Schedule III in August 2023. This was based on medical evidence. It also considered abuse potential. The administration had signaled a decision was coming soon.
Unlocking Medical Research Potential
Rescheduling cannabis offers major benefits for research. Schedule I status severely limits studies. It imposes strict rules and red tape. Researchers face licensing hurdles and sourcing issues. Moving to Schedule III eases these barriers. Scientists can explore therapeutic effects more freely. More clinical trials are expected. This will clarify cannabis’s efficacy and safety. New FDA-approved treatments could emerge. Research into various cannabinoids will also grow. This executive order specifically aims to boost research.
Economic Boost Through Tax Relief
A significant impact is potential tax relief for cannabis firms. Current law, Section 280E, penalizes businesses dealing with Schedule I or II drugs. These businesses cannot deduct normal operating expenses. This drastically hurts their profits. They often pay taxes on total revenue, not net earnings. Reclassification to Schedule III should end 280E’s application. Businesses can then deduct standard expenses. This offers a financial boost. Companies can reinvest and expand operations. It also helps legal businesses compete better. Federal trademarking for cannabis brands may also become easier.
Future Outlook and Challenges
This rescheduling is a crucial step. However, it does not legalize cannabis federally. Recreational use remains illegal nationwide. Interstate commerce is still restricted without new laws. State cannabis programs will operate independently. The rescheduling process is lengthy. It requires formal DEA rulemaking. This could take over a year. Legal challenges are also expected. Some groups are already preparing lawsuits. This trending news signals a major shift. It reshapes federal policy toward marijuana. The cannabis industry faces significant future changes.
