12.18.25 Update: President Donald Trump signed an executive order directing agencies to move forward with the plan to reschedule cannabis from Schedule I to Schedule III.
- Moving cannabis to Schedule III officially recognizes medicinal value and lower abuse potential.
- Rescheduling cannabis will remove certain research barriers and allow state-licensed cannabis businesses to take federal tax deductions under 280E.
- The order also aims to update federal hemp laws to allow full-spectrum CBD to be covered under federal health insurance plans.
- Moving to Schedule III may result in more states proceeding with efforts to legalize medicinal or recreational cannabis.
We will provide additional details once we have had a chance to review the executive order and assess its impact on patients, consumers, and state markets.
President Donald Trump is considering a proposal to reclassify cannabis under federal drug laws, he confirmed this week, only days after a reported phone call with Speaker of the House Mike Johnson and cannabis industry executives. The White House on Wednesday fueled the reports of impending change, announcing that the president would address the issue the following day.
On Monday, Trump told reporters that he was considering a proposal to change the federal government’s stance on cannabis. Under the plan, cannabis would be removed from the Controlled Substances Act’s most strict classification, Schedule I, and placed in the less restrictive Schedule 3. Such a move would likely ease research into the plant and would remove steep tax penalties levied on state-legal cannabis businesses.
“We are considering it, because a lot of people want to see it – the reclassification – because it leads to tremendous amounts of research that can’t be done unless you reclassify, so we are looking at that very strongly,” the president said on Monday, according to a report from Cannabis Business Times.
Executive Order Expected
The president’s comments followed reports last week that he would issue an executive order directing the Department of Justice to advance the rescheduling plan initiated by the Biden administration. The executive order was forthcoming, six anonymous sources told the Washington Post, perhaps as soon as the following week.
Trump reportedly had a telephone call on Wednesday with Republican House Speaker Mike Johnson from the White House to discuss the plan to reschedule cannabis. Health Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services head Mehmet Oz were reportedly also on the call, as were executives of state-licensed cannabis businesses.
Johnson, who expressed concerns about the cannabis rescheduling proposal, shared data and research to support his position. Trump then allowed the cannabis business leaders to respond to Johnson’s arguments. As the conversation concluded, Trump appeared willing to allow the rescheduling process to proceed, the sources reported, although the decision was not yet final.
On Wednesday, the White House confirmed that the president is “currently expected to address marijuana rescheduling” on the following day. An administration spokesperson added, however, that “any details of this potential action until officially announced by the White House are speculation,” according to a report from Marijuana Moment.
The online cannabis news source also noted that sources familiar with the administration plans said that Trump would sign the rescheduling executive order at 1:00 p.m. EST on Thursday. The White House is reportedly hosting a ceremony for the signing, with plans for cannabis industry executives and stakeholders in the cannabis policy reform movement to attend.
Executive Order Reportedly Includes Banking and Clemency Provisions
NBC News reported on Tuesday that Trump’s expected executive order may also call on Congress to pass the Secure And Fair Enforcement Regulation Banking Act (SAFER Banking Act). The legislation would end restrictions on financial services companies that prevent most firms from providing basic business banking services to cannabis operators.
Two sources familiar with a draft of the executive order said it may also direct the Centers for Medicare and Medicaid Services to establish Medicare coverage for CBD products. The report also noted that the executive may include provisions to grant clemency for some cannabis-related convictions.
Democratic Sen. Ron Wyden of Oregon, a proponent of more comprehensive cannabis legalization, said that the president’s expected executive order does not go far enough, calling it “an attempt to boost his pathetic approval ratings.”
“Trump will try to gaslight everyone into believing he just made pot legal. Wrong,” Wyden wrote on the social media platform X. “He has not decriminalized cannabis or expunged the records of black and Latino Americans stuck in prison for minor drug offenses.”
Catch up on the latest cannabis news and sign up for NuggMD's Weekly Sesh newsletter for the latest consumer tips, industry updates, and product recommendations.
The information in this article and any included images or charts are for educational purposes only. This information is neither a substitute for, nor does it replace, professional legal advice or medical advice, diagnosis, or treatment. If you have any concerns or questions about laws, regulations, or your health, you should always consult with an attorney, physician or other licensed professional.
