President Trump signed an order Dec. 18, 2025, to reschedule cannabis from Schedule I (drugs with a high abuse risk) to Schedule III (drug with moderate to low potential for abuse). In this context, controlled and scheduled have the same meaning. Let’s examine what is next in this process, who supports and opposes this change, and how it marijuana reclassified as Schedule III will affect the industry once it’s set in stone.
The Process Involving Reclassification of Marijuana
Foremost, rescheduling did not automatically revoke federal laws that target cannabis, and interstate commerce of the drug remains illegal.
“The Controlled Substances Act [of 1970] does not grant any president the authority to unilaterally reschedule a drug,” said Gillian Schauer, executive director of the nonpartisan Cannabis Regulators Association, which includes agencies from 46 states.
Historically, these types of changes have been made through either a rulemaking process or an act of Congress. Trump’s order directs Attorney General Pam Bondi to “take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III” of the Controlled Substances Act “in the most expeditious manner in accordance with Federal law.”
Supporters and Opposers of Cannabis Rescheduling News
Ilana Braun, a cancer psychiatrist and medical cannabis researcher at the Dana Farber Cancer Institute, backs the cannabis rescheduling news.
“This research reflects the best of federal investment helping people not only live longer, but live better,” said Farber.
Nora Volkow, director of the National Institute on Drug Abuse, also defended the move to reschedule cannabis.
“We cannot close our eyes to research and the opportunity that we are hearing from patients that, for some of them, cannabis can solve their problem,” Volkow said. “And so, what we need to do is do research.”
Key lawmakers who pleaded with Trump not to reclassify marijuana include House Speaker Mike Johnson, Sen. John Barasso, the majority whip, and U.S. Rep. Andy Harris, chair of the far-right Freedom Caucus and key author of the House language banning hemp-derived THC.
Sen. Rick Scott said he also opposes Trump’s rescheduling executive order, claiming cannabis is a “gateway drug” and saying his position is informed by his brother’s death from a drug overdose.
More than 45 Republican lawmakers signed letters asking the president not to execute reclassification of marijuana. Republican voters have also signaled dissatisfaction with marijuana legalization. Only 40% of self-identified Republican voters said cannabis should be legal, according to a November Gallup poll, compared to 85% of Democrats and 66% of independents.
Industry Thoughts on Marijuana Reclassified
What does the reclassification of marijuana mean to the industry? Immediately, not much, though we should all keep an eye on cannabis rescheduling news. Sara Carter Bailey has been chosen as director of the Office of National Drug Control Policy and will play a central role in implementing the administration’s drug policy agenda, including the reclassification of marijuana. Carter has voiced support for medical cannabis, while stating she doesn’t have a “problem” with legalization.
Most pertinent in the move from Schedule I to Schedule III would be for tax purposes, as the change would effectively end the Section 280E disallowance of deductions and credits for the cannabis industry. Removal of Section 280E would increase gross income for cannabis businesses, as deductions would then be possible for necessary expenses, like rent, wages, utilities and marketing costs, as well as general business credits.
Meanwhile, large U.S. banks are still refusing to do business with the industry. Without formal reclassification as a Schedule III drug, “it’s still too early to reconsider our position, and we will not change our stance” to begin offering cannabis businesses banking services, a top executive at JP Morgan Chase & Co. said in a memo. For this change to happen, it must come through a congressional bill such as the SAFER Banking Act, which specifically protects banks that do business with state-legal cannabis operators.
In more cannabis rescheduling news, the Drug Enforcement Administration (DEA) said Jan. 5, 2026, that its marijuana reclassified appeal process “remains pending” despite the president’s executive order. However, when Trump issued the rescheduling order, he also directed Congress to reevaluate the policy to ensure continued access to full-spectrum CBD products. A federal agency will also be moving to cover such products for specific patients under Medicare and Medicaid.
Courtesy of Cannacon.org
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