WASHINGTON, D.C.—President Donald J Trump is preparing to issue an executive order as early as Monday directing federal agencies to reclassify marijuana from its current Schedule I status to Schedule III under the Controlled Substances Act, according to multiple sources familiar with the discussions.
The move, first reported by The Washington Post, would mark the most significant federal easing of cannabis restrictions in decades, aligning the drug’s classification with substances like ketamine and Tylenol with codeine, which carry moderate potential for abuse but accepted medical uses.
The anticipated order comes after Trump met with cannabis industry executives in the Oval Office on Wednesday, December 10, while on a call with House Speaker Mike Johnson, a vocal opponent of marijuana reform. Sources described the conversation as a pivotal moment, with Trump weighing input from Health and Human Services Secretary Robert F. Kennedy Jr., Centers for Medicare and Medicaid Services chief Mehmet Oz, and business leaders.
“The president is expected to seek to ease access to the drug through an upcoming executive order that directs federal agencies to pursue reclassification,” the sources told the Post, speaking on condition of anonymity.
A White House spokesperson emphasized caution, stating, “No final decisions have been made on the rescheduling of marijuana.”
Yet the prospect alone electrified markets. Shares of Tilray Brands surged more than 44% to $11.17 midday Friday, while Canopy Growth rocketed 52% to $1.59, their steepest single-day gains in years.
The Amplify Seymour Cannabis ETF climbed 54%, its best performance on record, reflecting investor bets on relief from the punitive Section 280E tax code that has long hobbled the $32 billion state-legal industry by barring standard business deductions.
Tilray CEO Irwin Simon captured the sector’s buoyant mood in an interview with CNBC: “I’m a lot more optimistic than I ever have been.”
Shawn Hauser, a partner at cannabis-focused law firm Vicente, called the potential change “the beginning of a new era of public health policy” that would “dismantle nearly a century of outdated drug policies.”
Under the 1970 Controlled Substances Act, marijuana’s Schedule I placement has grouped it with heroin and LSD, denying federal recognition of its medical value despite widespread state-level acceptance. Twenty-four states now permit recreational use, and 38 allow medical access, creating a patchwork that has strained banking, research, and taxation for operators. Reclassification to Schedule III would not legalize recreational sales federally but could unlock institutional investment, streamline clinical trials, and ease tax burdens — changes industry leaders say are overdue.
Trump first broached the idea during his 2024 campaign, pledging on Truth Social in September to “unlock the medical uses of marijuana to a Schedule III drug” and pursue banking reforms for state-licensed businesses. In August, he told reporters, “We’re looking at [reclassification]. Some people like it, some people hate it,” acknowledging concerns about youth and public health.
Gallup polls show public support for legalization at 64% in 2025, down slightly from 70% in 2023 but steady overall, with sharper divides along party lines — 40% among Republicans.
The push revives a process stalled under President Joe Biden. In 2022, Biden directed a review, leading Health and Human Services in 2023 to recommend Schedule III. The Drug Enforcement Administration proposed the change in 2024 but halted proceedings in March amid legal challenges. Trump’s order could bypass administrative hearings, fast-tracking a final rule by summer, per analysts. Attorney General Pam Bondi would hold ultimate authority under the act to schedule or reschedule substances.
Opposition lingers from figures like Kevin Sabet, president of anti-legalization group Smart Approaches to Marijuana, who warned on X that rescheduling would make Trump “the most pro-drug president in modern American history.”
Author: Mario Lotmore
