BREAKING: Trump Signs Executive Order to Reschedule Marijuana from Schedule I to Schedule III

Breaking: Historic Marijuana Policy Shift

President Donald Trump has signed an executive order directing federal agencies to fast-track the reclassification of marijuana from Schedule I to Schedule III under the Controlled Substances Act. This marks the most significant federal marijuana policy change in over 50 years.

The executive order, signed on December 18, 2025, instructs the Drug Enforcement Administration (DEA) and Department of Health and Human Services (HHS) to expedite the rescheduling process that began under the Biden administration Reuters.

What Does Schedule III Mean for Marijuana?

Current Status: Schedule I

Currently, marijuana is classified alongside heroin, LSD, and ecstasy as a Schedule I controlled substance, meaning the federal government considers it to have:

• High potential for abuse
• No currently accepted medical use
• Lack of accepted safety for use under medical supervision

New Status: Schedule III

Under Schedule III, marijuana would join substances like ketamine, anabolic steroids, and Tylenol with codeine. Schedule III drugs are recognized as having:

• Moderate to low potential for physical and psychological dependence
• Currently accepted medical use in the United States
• Abuse potential lower than Schedule I and II drugs

What Changes With Rescheduling?

For Medical Marijuana Patients

• Federal Recognition — Medical use officially acknowledged by federal government
• Research Access — More clinical trials and studies on effectiveness
• Medicare Pilot — New CBD reimbursement program announced
• State Programs — Continue operating under existing frameworks

For Cannabis Businesses

The rescheduling addresses one of the industry's biggest challenges: Section 280E of the Internal Revenue Code.

Before Rescheduling:

• Cannabis businesses cannot deduct ordinary business expenses
• Effective tax rates often exceed 70%
• Limited access to banking services
• Difficulty securing loans and investments

After Rescheduling:

• Standard business deductions become available
• Effective tax rates normalize
• Improved banking access expected
• Greater access to institutional investment Reuters

For Medical Research

The reclassification is expected to dramatically expand research opportunities:

• Reduced DEA licensing requirements for researchers
• Easier access to research-grade cannabis
• Increased federal funding eligibility
• Faster FDA approval pathways for cannabis-derived medications Reuters

Medicare CBD Pilot Program Announced

In conjunction with the rescheduling order, President Trump announced a Medicare pilot program that would reimburse patients for CBD (cannabidiol) treatments. This groundbreaking initiative, developed by the Centers for Medicare and Medicaid Services, aims to provide alternative treatment options for conditions such as:

• Chronic pain
• Epilepsy and seizure disorders
• Anxiety
• Inflammation-related conditions

This represents the first time Medicare would cover any cannabis-derived treatment outside of FDA-approved medications like Epidiolex.

Stock Market Response

Cannabis stocks surged on news of the impending executive order:

• Tilray Brands (TLRY): +5.2%
• Canopy Growth (CGC): +5.8%
• AdvisorShares Pure US Cannabis ETF (MSOS): +6.5%

Investors are optimistic about reduced regulatory burden and improved financial operations for cannabis companies Reuters.

What This Does NOT Change

It's important to understand the limitations of rescheduling:

Still Federally Regulated

• Marijuana remains a controlled substance requiring DEA oversight
• Not the same as full legalization or decriminalization
• Recreational use still federally prohibited

State Laws Unchanged

• Your state's medical marijuana program continues as normal
• Qualifying conditions remain state-determined
• MMJ cards still required for legal medical use
• Dispensary regulations unchanged

No Immediate Retail Changes

• Dispensaries won't suddenly open nationwide
• Prescriptions still go through state programs
• THC limits and possession laws unchanged at state level

Timeline: What Happens Next?

The executive order accelerates but doesn't immediately complete the rescheduling:

1. Immediate: Executive order signed directing fast-track review
2. 30-60 Days: DEA and HHS issue implementation guidance
3. 60-90 Days: Public comment period (expedited)
4. Q1-Q2 2026: Final rule expected to take effect

The normal rescheduling process takes 1-2 years. This executive order aims to complete it within 6 months CBS News.

Impact on Your State MMJ Program

Will I Still Need a Medical Marijuana Card?

Yes. Even after rescheduling:

• State medical marijuana programs remain active
• MMJ cards provide legal protection and access
• Medical patients receive tax advantages over recreational users
• Your certification from MMJ.com remains fully valid

Does This Help My Application?

Rescheduling doesn't change state qualifying conditions, but it:

• Validates medical marijuana as legitimate medicine
• May encourage more states to expand programs
• Strengthens legal protections for patients
• Could lead to more covered conditions over time

Historical Context

This executive order builds on years of shifting marijuana policy:

• 1970: Controlled Substances Act places marijuana in Schedule I
• 1996: California becomes first medical marijuana state
• 2023: HHS recommends Schedule III reclassification
• 2024: DEA begins formal review process
• December 2025: Trump signs order to fast-track rescheduling

Expert Reactions

Cannabis industry leaders have praised the decision:

"This is the most significant federal cannabis policy change since 1970. Rescheduling acknowledges what 39 states already know—marijuana has legitimate medical applications."

Medical professionals emphasize the research implications:

"Schedule III status will finally allow us to conduct the rigorous clinical trials needed to optimize cannabis-based treatments for patients."

What This Means for MMJ.com Patients

Immediate Benefits

• Validation: Your medical marijuana use now federally recognized as legitimate
• Protection: Stronger legal standing for medical patients
• Research: Better treatments coming from expanded studies

Your MMJ Card Remains Essential

Even with federal changes, your state MMJ card from MMJ.com provides:

• Legal access to dispensaries
• Tax savings vs. recreational prices (up to 34% in some states)
• Higher possession limits
• Reciprocity in other medical states
• Employment protections in many states

Get Certified Today

If you've been waiting for federal acceptance to get your medical marijuana card, now is the time. With federal recognition of marijuana's medical value, the path forward is clearer than ever.

Get Your Medical Marijuana Card →

• $149 evaluation fee
• 100% money-back guarantee if not approved
• Same-day certification
• Licensed physicians in 21 states

Frequently Asked Questions

Is marijuana now legal federally?

No. Rescheduling to Schedule III means marijuana is still a controlled substance, but it's recognized as having medical value and lower abuse potential than Schedule I drugs.

Do I still need a prescription or MMJ card?

Yes. You still need certification from a licensed physician and must register with your state's medical marijuana program.

When does this take effect?

The executive order was signed December 18, 2025. Full implementation is expected within 6 months as agencies complete the regulatory process.

Will my insurance cover medical marijuana?

The new Medicare CBD pilot program may cover certain CBD treatments. Coverage for THC products remains unlikely in the near term, though this could change as the regulatory landscape evolves.

Does this affect my job?

Federal rescheduling doesn't change employer drug testing policies. However, it may strengthen legal arguments for medical marijuana patients facing employment discrimination. Check your state's employment protection laws.

Conclusion

President Trump's executive order to reschedule marijuana from Schedule I to Schedule III represents a historic shift in federal drug policy. While it doesn't fully legalize marijuana, it:

• Recognizes marijuana's legitimate medical applications
• Removes major tax barriers for cannabis businesses
• Opens the door for expanded medical research
• Validates the 4+ million Americans using medical cannabis

Your state medical marijuana program and MMJ.com certification remain essential for legal access, tax benefits, and patient protections. This federal change strengthens—not replaces—the importance of getting properly certified.

This article will be updated as more details emerge. Last updated: December 18, 2025, 12:00 PM EST.

Sources:

• Reuters: What will change if the US reclassifies marijuana
• Reuters: Cannabis stocks rise ahead of Trump order
• Reuters: Trump expected to address marijuana regulations
• CBS News: Trump order reclassifying marijuana expected