On December 18, 2025, President Donald Trump signed an executive order titled "Increasing Medical Marijuana and Cannabidiol Research," directing the Attorney General to expedite the rescheduling of marijuana from Schedule I to Schedule III under the Controlled Substances Act.

This move follows years of administrative review and is framed by the administration as a "common-sense" shift to prioritize medical research and patient access.

What This Change Means
While the order does not instantly legalize marijuana federally, it sets a mandate for the Department of Justice (DOJ) to finalize the reclassification. Here is a breakdown of the impact:

Recognition of Medical Use: Moving to Schedule III officially acknowledges that marijuana has a "currently accepted medical use" and a lower potential for abuse than substances like heroin (Schedule I).

Tax Relief (Section 280E): This is the biggest win for the industry. Once finalized, cannabis businesses will no longer be barred by IRS Section 280E, allowing them to deduct standard business expenses (rent, payroll, marketing) like any other company.

Research Expansion: Schedule III status removes several "Catch-22" bureaucratic hurdles, making it significantly easier for scientists to conduct clinical trials and study the plant’s efficacy.

CBD and Medicare: The executive order also includes a pilot program allowing Medicare beneficiaries to receive up to $500 annually for hemp-derived CBD products when recommended by a doctor.