WASHINGTON — The Trump administration signed an order Wednesday reclassifying state-licensed medical marijuana from Schedule I to Schedule III under the Controlled Substances Act, officially recognizing it as a less dangerous drug with accepted medical uses.
The move follows President Donald Trump’s December 18, 2025 executive order directing the Department of Justice and Drug Enforcement Administration to complete the rescheduling process in the most expeditious manner. Schedule III drugs, which include substances like ketamine and certain opioid combinations, carry a lower potential for abuse and accepted medical applications under federal law.
The change is expected to deliver immediate relief to the medical marijuana industry. State-licensed operators in 40 states plus the District of Columbia will now be able to deduct ordinary business expenses on federal tax returns — a benefit previously blocked under Schedule I rules. It will also ease certain research restrictions and potentially improve banking and financial services access for legitimate medical programs. Recreational marijuana use remains illegal under federal law.
The reclassification does not alter state licensing or regulatory authority. No immediate changes to patient access or dispensary operations were announced, though officials say the step helps close the gap between widespread state-level medical use and federal scientific recognition. The formal rulemaking process, which began with a 2024 proposed rule and received tens of thousands of public comments, is now advancing under the White House directive.
The administration described the action as a practical step to support patients and doctors while maintaining strict federal oversight of non-medical use.
The Trump Administration made the change
The Trump Administration made the change
