- The Trump administration issued an order to reclassify cannabis to expand medical research.
- Trump signed an executive order to speed up psychedelic drug development for mental health treatment.
- An opponent of the cannabis order says it's a tax break for "Big Weed."
The Trump administration issued an order Thursday reclassifying marijuana under federal law, which could open the door for more research into medical uses of the drug.
The move doesn’t legalize cannabis at the federal level, but shifts it from a Schedule I drug to a Schedule III drug under the Controlled Substances Act.
It comes on the heels of President Donald Trump’s executive order last week to speed up the development of psychedelic drugs for the treatment of mental illness
The Department of Justice said in a press release Thursday that it will immediately move FDA-approved products containing marijuana along with items regulated by a state medical marijuana license to Schedule III. It also announced an expedited hearing process starting in late June to consider the formal reclassification of cannabis to Schedule I.
Those actions, according to the DOJ, will provide immediate and long-term clarity to researchers, patients, and providers while maintaining strict federal controls against illicit drug trafficking.
The order recognizes the longstanding regulation of medical marijuana by state governments and the need for a common-sense approach to that reality, per the DOJ.
“The Department of Justice is delivering on President Trump’s promise to expand Americans’ access to medical treatment options,” said acting Attorney General Todd Blanche. “This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information.”
Trump issued an executive order in December 2025 marijuana from a Schedule I drug to the less severe Schedule III as means to expand medical research.
Under federal law, a Schedule I drug has no accepted medical use and a high potential for abuse. Drugs in that category include heroin, LSD, ecstasy, peyote and marijuana. Schedule III drugs, such as codeine, ketamine, anabolic steroids and testosterone, have a moderate to low potential for dependence.
At least, 40 states, three U.S. territories and the District of Columbia allow the medical use of cannabis products.
Significant shift in marijuana policy
Rescheduling marijuana, which began in the Biden Administration, would mark a major shift in U.S. drug policy.
“Today marks a pivotal moment for the United States. With President Trump’s action to reschedule cannabis, federal policy is finally aligning with science, medicine, and most importantly, patient needs,” Irwin Simon, chairman and CEO of Tilray Brands, said in a statement.
“This is about people: patients fighting cancer, seniors managing chronic pain, veterans navigating PTSD, and children with epilepsy whose families have long sought safe, effective options. For decades, they have turned to medical cannabis.
Tilray, one of the world’s largest cannabis producers, and other companies in the industry, are expected to benefit from the measure.
U.S.-listed shares of cannabis companies jumped following the decision. Shares of Tilray, Cronos Group, Aurora Cannabis and Canopy jumped between 6% and 13%, per Reuters.
Kevin Sabet, chief executive of Smart Approaches to Marijuana, said that while marijuana research is necessary, “there are many ways to increase our knowledge without giving a tax break to Big Weed and sending a confusing message about marijuana’s harms to the American public.”
“With this move, we are now confronted with the most pro-drug administration in our history,” Sabet said in a text message to PBS. “Policy is now being dictated by marijuana CEOs, psychedelics investors, and podcasters in active addiction.”
Executive order on psychedelics
The order on psychedelics Trump issued last Saturday aims to speed up research on drugs like psilocybin, MDMA and ibogaine, which have been embraced by combat veterans.
It calls for federal agencies including the Food and Drug Administration, Department of Justice and the Drug Enforcement Administration to expedite consideration of psychedelics that meet certain criteria. It also directs the Department of Health and Human Services to allocate $50 million to support and partner with state governments that have enacted or are developing programs to advance psychedelic drugs for mental illnesses.
“One of the bottlenecks to getting controlled substances approved once they show convincing clinical data was the rescheduling process,” former FDA Commissioner Scott Gottlieb told CNBC’s “Squawk Box,” per The Hill. “So the president gave a nudge to FDA and DEA working together.”
Psychedelics have been banned since the 1970s and are classified as a Schedule I drug.
The order does not legalize psychedelics but expands clinical trials and “Right to Try” access for patients with serious mental health conditions.
Trump said his directive would “dramatically accelerate” medical research and access to potential treatments. He said it would help a lot of people but particularly veterans.
“If these turn out to be as good as people are saying,” he said, “it’s going to have a tremendous impact.”