President Donald Trump's acting attorney general on Thursday signed an order reclassifying state-licensed medical marijuana as a less-dangerous drug, marking a major policy shift long sought by advocates who argued cannabis should never have been treated like heroin by the federal government.
Details of the Reclassification Order
The order, signed by Todd Blanche, does not legalize marijuana for medical or recreational use under federal law. However, it changes how the substance is regulated, moving licensed medical marijuana from Schedule I—reserved for drugs with no medical use and a high potential for abuse—to the less strictly regulated Schedule III. This shift provides licensed medical marijuana operators with a significant tax break and eases some barriers to conducting research on cannabis.
The Trump administration also announced it was jump-starting the process for broader reclassification of marijuana, scheduling a hearing to begin in June. This move follows Trump's directive in December to expedite the reclassification process. On Saturday, while signing an unrelated executive order about psychedelics, Trump expressed frustration over the delay.
Impact on Medical Marijuana Programs
Blanche stated on Thursday that the Department of Justice was "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," he said. The order largely legitimizes medical marijuana programs in the 40 states that have adopted them, establishing an expedited system for state-licensed medical marijuana producers and distributors to register with the U.S. Drug Enforcement Administration.
It also clarifies that cannabis researchers will not be penalized for obtaining state-licensed marijuana or marijuana-derived products for their work. Additionally, state-licensed medical marijuana firms gain a financial windfall by being allowed, for the first time, to deduct business expenses on their federal taxes.
A Significant Policy Shift
This order represents a major policy shift for the U.S. government, which has maintained its longstanding marijuana prohibition—dating back to the Marihuana Tax Act of 1937—even as nearly all states have approved some form of cannabis use. Currently, 24 states plus Washington, D.C., have authorized adult recreational use of marijuana, 40 have medical marijuana systems, and eight others allow low-THC cannabis or CBD oil for medical use. Only Idaho and Kansas still ban marijuana entirely.
Michael Bronstein, president of the American Trade Association for Cannabis and Hemp, called the reclassification "the most significant advancement in cannabis policy in 50 years." He added, "This recognizes what Americans have long known: cannabis is medicine."
