Trump orders DEA to reschedule marijuana to Schedule III

On Dec. 18, 2025, President Trump issued an executive order instructing the attorney general to expedite the process of rescheduling marijuana already underway. The DEA had already begun a formal rulemaking process in 2024 after the Department of Health and Human Services recommended rescheduling. Trump's order directs the DEA to fast-track the final stages of that process.

Trump announced signing an executive order to reschedule marijuana from a Schedule I to a Schedule III controlled substance, with legitimate medical uses. The DEA uses Schedule III for substances with a moderate to low potential for physical and psychological dependence. Other Schedule III drugs include Tylenol with codeine, testosterone, anabolic steroids and ketamine.

Moving marijuana from Schedule I to Schedule III would allow marijuana businesses to deduct business expenses on federal tax filings. Currently, marijuana businesses can't deduct ordinary expenses like rent, payroll, and utilities because of Section 280E of the tax code. The tax relief could save the cannabis industry hundreds of millions of dollars annually.

Rescheduling marijuana to Schedule III would have an immediate and meaningful positive impact on scientific and medical research. Researchers would be able to access study materials more efficiently and conduct clinical trials under a framework similar to other controlled substances with accepted medical use. Current Schedule I restrictions make marijuana research extremely difficult and expensive.

Moving the drug to a lower schedule doesn't change the fact that it remains illegal for recreational use at the federal level. Federal law would still prohibit possession, distribution, and use of marijuana for non-medical purposes. States with recreational marijuana laws would still be operating in defiance of federal law.

Trump's Dec. 18 order isn't enough to rewrite federal drug policy that has stood for more than 50 years. The Controlled Substances Act of 1970 doesn't grant any president the authority to unilaterally reschedule a drug. The DEA must still complete the rulemaking process, though the executive order directs them to expedite it.

The DEA must publish a proposed rule, accept public comment, review comments, and publish a final rule before rescheduling takes effect. Legal experts estimate the process could take several months even with expedited timelines. The cannabis industry is cautiously optimistic but waiting for the final DEA action.