Trump Administration Reclassifies Medical Marijuana as Less Dangerous Drug

President Donald Trump’s acting attorney general Todd Blanche signed an order Thursday reclassifying state-licensed medical marijuana as a less-dangerous drug, marking a significant shift in federal drug policy that advocates have long sought.

The order moves licensed medical marijuana from Schedule I—reserved for drugs without medical use and with high potential for abuse—to the less strictly regulated Schedule III. While this change doesn’t legalize marijuana for medical or recreational use under federal law, it represents a substantial regulatory adjustment that provides licensed medical marijuana operators with major tax benefits and reduces barriers to cannabis research.

“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,” Blanche said in a statement, noting that the Department of Justice was “delivering on President Trump’s promise” to expand Americans’ access to medical treatment options.

The policy shift largely legitimizes the medical marijuana programs operating in 40 states across the country. It creates an expedited system for state-licensed medical marijuana producers and distributors to register with the U.S. Drug Enforcement Administration. Additionally, it clarifies that cannabis researchers won’t face penalties for obtaining state-licensed marijuana for their work.

One of the most significant aspects of the order is the financial relief it provides to state-licensed medical marijuana companies, allowing them for the first time to deduct business expenses on their federal taxes. The order also extends the Schedule III classification to any marijuana-derived medicine approved by the Food and Drug Administration.

Michael Bronstein, president of the American Trade Association for Cannabis and Hemp, called the move “the most significant federal advancement in cannabis policy in over 50 years,” adding that “this action recognizes what Americans have long known, cannabis is medicine.”

Not everyone supports the change. Kevin Sabet, chief executive of Smart Approaches to Marijuana, criticized the decision, arguing that while marijuana research is necessary, the reclassification essentially gives “a tax break to Big Weed and sends a confusing message about marijuana’s harms to the American public.”

“With this move, we are now confronted with the most pro-drug administration in our history,” Sabet said. “Policy is now being dictated by marijuana CEOs, psychedelics investors, and podcasters in active addiction.”

The reclassification comes as the federal government’s stance on marijuana has become increasingly at odds with state-level policies. Nearly all states have approved cannabis use in some form, with 24 states and Washington, D.C., authorizing adult recreational use, 40 establishing medical marijuana systems, and eight others permitting low-THC cannabis or CBD oil for medical purposes. Only Idaho and Kansas maintain complete marijuana prohibitions.

The Trump administration also announced it is initiating the process for reclassifying marijuana more broadly, with hearings set to begin in late June. This follows President Trump’s December directive to expedite marijuana reclassification. At a recent signing of an unrelated executive order on psychedelics, Trump appeared to express frustration with the pace of the process.

Blanche’s order bypassed the standard review process by using a provision of federal law that allows the attorney general to determine appropriate drug classifications required by international treaties. This approach sidestepped the ongoing review of nearly 43,000 formal public comments submitted in response to the Biden administration’s earlier proposal to reclassify marijuana.

The regulation of medical marijuana has evolved significantly since California became the first state to adopt it in 1996. “Today the vast majority of States maintain comprehensive licensing frameworks governing cultivation, processing, distribution, and dispensing of marijuana for medical purposes,” Blanche wrote in the order.

The implications for operations in states where licensed recreational marijuana shops also serve medical patients remain unclear. In Washington state, for example, 302 of 460 licensed stores have endorsements allowing them to sell tax-free cannabis products to registered patients.

The reclassification has faced opposition from many Republicans, with more than 20 Republican senators signing a letter last year urging the president to maintain current restrictions.

While pursuing this marijuana policy change, Trump has simultaneously maintained a hardline approach to other drugs, particularly fentanyl, making anti-drug enforcement a feature of his second term, including ordering military actions against vessels suspected of drug trafficking and signing an executive order declaring fentanyl a weapon of mass destruction.