Breaking Report: President Trump Signs Executive Order Directing Marijuana to Be Reclassified as Schedule III

President Donald Trump signs an executive order reclassifying marijuana as a less dangerous drug in the Oval Office of the White House, Thursday, Dec. 18, 2025, in Washington.

WASHINGTON, D.C. — In a major policy shift with far-reaching implications for healthcare, criminal justice, and the U.S. cannabis industry, President Donald J. Trump is set to move forward with the reclassification of marijuana from Schedule I to Schedule III under the federal Controlled Substances Act, according to senior administration officials.

The decision marks the most significant federal change to marijuana policy in decades. Marijuana has been classified as a Schedule I substance since 1970—alongside heroin and LSD—defined as having no accepted medical use and a high potential for abuse. Reclassification to Schedule III would formally acknowledge marijuana’s accepted medical use while maintaining federal regulation and oversight.

What Schedule III Means

Under Schedule III, marijuana would be categorized alongside substances such as ketamine, anabolic steroids, and certain prescription medications. The change would:

• Acknowledge accepted medical use at the federal level

• Expand scientific and medical research opportunities

• Reduce regulatory and administrative barriers for researchers

• Potentially ease tax burdens on state-legal cannabis businesses

• Maintain federal controls and does not legalize recreational marijuana nationwide

President Donald Trump signs an executive order reclassifying marijuana as a less dangerous drug in the Oval Office of the White House, Thursday, Dec. 18, 2025, in Washington. (AP Photo/Evan Vucci)

Economic and Industry Impact

The reclassification could have immediate and long-term economic effects. Cannabis operators may gain relief from restrictive federal tax rules that have long limited reinvestment and growth. Financial institutions and research organizations could also see increased clarity and reduced risk when engaging with cannabis-related businesses.

Industry leaders, medical professionals, and state regulators have long argued that Schedule I status was outdated and inconsistent with modern science and medical practice. This move signals a shift toward aligning federal policy with the realities already established in a majority of U.S. states.

Public Safety and Regulation

Administration officials emphasized that public safety remains a priority. Marijuana would continue to be regulated at the federal level, with controls on manufacturing, distribution, and medical use. The executive action directs federal agencies to finalize the reclassification through established regulatory procedures.

A Political Turning Point

The announcement places marijuana reform firmly into the national political spotlight, ahead of an election cycle where drug policy, criminal justice reform, and healthcare access remain key issues for voters across party lines.

If completed, the reclassification would represent a historic recalibration of federal drug policy—one that could reshape medical research, law enforcement priorities, and the future of the American cannabis industry.