The Trump administration is expected to move marijuana out of its current drug classification as soon as Wednesday, a step that has been years in the making and carries real consequences for researchers, cannabis businesses, and patients across the country.
What Is Happening
The Justice Department is preparing to officially reschedule marijuana from Schedule I to Schedule III under federal law, according to reports from Axios and Forbes. The move follows an executive order President Trump signed last December, directing the attorney general to handle the reclassification as quickly as possible.
This is not legalization. Under federal law, marijuana would still be a controlled substance. The change would not alter the sentences of people who are already in prison for marijuana-related crimes.
What Do the Schedules Actually Mean?
Right now, marijuana sits in the Schedule I category alongside heroin, LSD, ecstasy, and peyote. Schedule I drugs are defined by the DEA as having no accepted medical use and a high potential for abuse.
Moving to Schedule III would put marijuana in the same category as ketamine, anabolic steroids, and products containing low doses of codeine, like Tylenol with codeine. Schedule III substances are recognized as having moderate to low potential for physical and psychological dependence.
Why This Matters
The biggest immediate impact would be felt in medical research. Currently, the DEA places significant barriers on studying Schedule I substances. Reclassifying marijuana would make it far easier for researchers to study its potential medical applications, something that has been difficult to do thoroughly under the existing rules.
Cannabis companies would also likely see financial relief. Under current law, because marijuana is Schedule I, cannabis businesses cannot deduct standard business expenses on their federal taxes. That leaves them facing an effective tax rate of around 60% of gross revenue before any deductions kick in. Rescheduling would change that picture considerably.
How Did We Get Here?
This process actually started under President Biden. In 2022, Biden directed the Department of Health and Human Services to study whether marijuana’s Schedule I classification still made sense. The FDA completed that review in 2023 and recommended moving the drug to Schedule III, pointing out that dozens of states had already legalized marijuana for medical use in some form to treat conditions like chronic pain.
Biden supported the move, but it stalled before crossing the finish line. Trump picked it back up last December, signing an executive order citing the 2023 FDA study and instructing then-Attorney General Pam Bondi to complete the rescheduling process without delay.
At the time, Trump said the change “has been requested by American patients suffering from extreme pain, incurable diseases, aggressive cancers, seizure disorders, neurological problems, and more.”
What This Does Not Do
It is worth being clear about what rescheduling will not change. Marijuana would remain illegal under federal law. People in prison for marijuana possession would not see their sentences altered. And recreational use would remain a federal offense regardless of what individual states allow.
The change is significant, but it is a shift in classification, not a sweeping policy overhaul.