Trump reschedules cannabis, in a historic move that cannabis advocates have awaited for decades. President Donald Trump signed an executive order on December 18, 2025, directing federal agencies to reschedule cannabis from Schedule I to Schedule III of the Controlled Substances Act. This landmark decision represents the most significant shift in federal marijuana policy since the drug was first classified in 1970, and marks a new era for patients, consumers, and cannabis businesses nationwide.
The executive order directs Attorney General Pam Bondi to expedite the formal rescheduling process, bringing marijuana into the same classification as drugs like ketamine, Tylenol with codeine, and testosterone. While Trump emphasized that this action does not legalize recreational marijuana use, the implications for the cannabis industry are profound and far-reaching.
What Does Marijuana Rescheduled to Schedule III Actually Mean?
Since 1970, cannabis has been classified as a Schedule I substance alongside heroin, LSD, and ecstasy—drugs considered to have “no currently accepted medical use” and a “high potential for abuse.” This classification created enormous barriers for research, banking, and standard business operations within the cannabis industry.
Now that Trump has moved to reschedule cannabis to Schedule III, the federal government officially recognizes that marijuana possesses legitimate medical applications. As Trump stated during the signing ceremony, “The facts compel the federal government to recognize that marijuana can be legitimate in terms of medical applications when carefully administered.”
This policy change builds on momentum that began during the Biden administration in 2022, when the Department of Health and Human Services first recommended rescheduling. The Trump administration is now fast-tracking the completion of that process, signaling bipartisan acknowledgment of cannabis’s medical utility.
Why This Matters for Cannabis Customers
Enhanced Medical Research and Safer Products
For consumers, particularly the more than 6 million registered medical marijuana patients across the United States, the rescheduling of marijuana opens doors to unprecedented research opportunities. Schedule I classification made it extraordinarily difficult for scientists to study cannabis—as of 2019, fewer than 600 researchers were registered with the DEA to study any Schedule I substance.
With Trump’s executive order to reschedule cannabis, researchers will face fewer bureaucratic hurdles. This means faster development of evidence-based treatments, better understanding of dosing recommendations, and safer, more effective cannabis products for consumers. The FDA will now be able to study medical applications more comprehensively, potentially leading to standardized cannabis pharmaceuticals covered by insurance.
Medicare Pilot Programs for CBD
The Trump administration is also launching a Medicare pilot program for CBD products—a first-of-its-kind initiative that could bring cannabis-derived therapies into federally insured healthcare. For seniors and veterans dealing with chronic pain, this development offers hope for affordable, legal access to treatments that many already use but pay for out of pocket.
Potential Price Reductions
As cannabis businesses gain relief from punitive tax burdens under the new classification, those savings may translate to lower prices at dispensaries. With marijuana rescheduled, companies can finally deduct standard business expenses like rent, payroll, and equipment—costs that were previously non-deductible under IRS Code Section 280E. Industry analysts expect these tax savings to eventually benefit consumers through competitive pricing.
What This Means for Cannabis Brands
Financial Relief and Legitimacy
For cannabis businesses, the decision by Trump to reschedule cannabis represents nothing short of a financial lifeline. The elimination of Section 280E restrictions alone could transform unprofitable operations into sustainable businesses. Companies will now be able to operate with the same tax structure as any other legitimate enterprise in America.
Banking access, while not fully resolved by this executive order, becomes more attainable as federal stigma decreases. Financial institutions that previously refused to work with cannabis companies may reconsider their positions now that marijuana rescheduled status removes the most significant federal hurdle.
New Competition on the Horizon
However, brands should prepare for increased competition. Stock prices for major cannabis companies actually fell following the announcement, with Trulieve dropping 23% and the AdvisorShares Pure US Cannabis ETF sliding 27%. Why? Investors recognize that rescheduling opens doors for pharmaceutical companies and international operators to enter the U.S. market more easily.
How Cannabis Brands Can Leverage This Moment
1. Invest in Medical Credibility Now
With marijuana rescheduled for medical use, cannabis brands that establish themselves as medically credible will have first-mover advantage. Partner with healthcare professionals, invest in clinical studies, and develop educational content that positions your products as legitimate therapeutic options. The brands that can speak the language of medicine—not just recreational culture—will capture the emerging medical market.
2. Capitalize on the News Cycle
The search volume for terms like “Trump reschedule cannabis” and “marijuana rescheduled” is surging. Brands should create timely content that captures this traffic—blog posts explaining what rescheduling means for customers, social media campaigns celebrating the milestone, and email marketing highlighting how your products align with this new medical legitimacy. The window for organic visibility on these terms is now.
3. Strengthen Your Brand Before Big Pharma Arrives
Pharmaceutical companies will eventually enter this market with FDA-approved products and massive marketing budgets. Independent cannabis brands must differentiate now by building community loyalty, emphasizing craft quality, and establishing authentic relationships with customers. Position yourself as the artisan alternative to corporate cannabis before that narrative becomes necessary.
4. Optimize Your Tax Strategy Immediately
Work with cannabis-specialized accountants to prepare for Section 280E relief. The savings you’ll realize should be strategically reinvested in growth initiatives—whether that’s expanding product lines, enhancing customer experience, or building marketing infrastructure. Companies that redeploy tax savings intelligently will outpace competitors who simply take the profit.
5. Prepare for Interstate Commerce
Industry leaders anticipate that federal rescheduling is just the beginning. As Green Thumb CEO Ben Kovler noted, “The next transformation will happen when interstate commerce barriers between states are removed.” Brands should begin planning for a national market—developing scalable operations, building brand recognition beyond their home state, and creating products that can compete on a broader stage.
The Bottom Line
The Trump administration’s decision to reschedule cannabis marks a turning point in American drug policy. For customers, it means better research, safer products, and potentially lower prices. For brands, it represents both opportunity and urgency—the chance to establish legitimacy in a maturing industry before larger players reshape the competitive landscape.
With 64% of Americans supporting legal cannabis use, according to Gallup, and now bipartisan executive action advancing that goal, the industry is entering its most transformative period. The brands that move decisively in this moment—investing in medical credibility, optimizing their financial positions, and building lasting customer relationships—will define the next chapter of cannabis in America.
Now is the time to act. The marijuana rescheduled era has begun.
