Trump Orders Cannabis Reclassified to Less Dangerous Drug

President Trump orders the DEA to reclassify cannabis as a less dangerous drug, easing tax burdens and research barriers for the industry.

President Trump has ordered the Drug Enforcement Administration (DEA) to initiate the process of reclassifying cannabis from its current status as a Schedule I drug to a less dangerous schedule. This executive action, directing a review under the Controlled Substances Act, does not federally legalize marijuana but represents the most significant shift in federal cannabis policy in over 50 years. The move aims to ease tax burdens for state-legal cannabis businesses by removing restrictions tied to Schedule I and to facilitate more research into the plant's medical applications.

This administrative rescheduling contrasts with the congressional inaction on full federal legalization. The order represents a targeted regulatory change using existing executive authority. Initiating this formal DEA review process is the critical deliverable that sets the complex bureaucratic machinery in motion. This matters because it directly addresses two major industry pain points the crippling 280E tax code and the severe barriers to clinical research potentially unleashing capital and scientific inquiry while leaving the core legalization question to the states.

For cannabis operators, research institutions, and financial services firms, the implications are immediate and transformative. This development necessitates strategic planning for a post-280E financial landscape and preparing research protocols for federal approval. The forecast is for a multi-year process with potential legal challenges, but a clear directional shift. Decision-makers must model new profitability scenarios and engage in the DEA's public comment period. The next imperative for the administration is to ensure the scientific and medical evaluation by the DEA and FDA is conducted transparently and expeditiously, culminating in a final rule that provides the regulatory certainty needed for the legal cannabis industry to mature.