U.S. President Donald Trump is expected to sign an executive order as soon as this week that would accelerate the reclassification of cannabis under federal law and formally recognise its medical value for the first time, according to people familiar with the plans. The move would mark a significant shift in U.S. drug policy, though it would stop short of full federal legalisation.
Cannabis is currently classified as a Schedule I drug under the Controlled Substances Act, placing it alongside heroin and LSD and deeming it to have no accepted medical use. Reclassifying it to Schedule III would ease regulatory barriers, allow broader Food and Drug Administration research and potentially enable cannabis-derived products to be prescribed as pharmaceuticals, regardless of state-level legal frameworks.
Trump confirmed earlier this week that the administration is actively considering the change, citing the need to unlock medical research that is currently restricted by cannabis’s classification. The executive order is expected to instruct either the Drug Enforcement Administration or Attorney General Pam Bondi to complete the long-running rescheduling process and publish a final rule moving cannabis to Schedule III. That formal review began under the Biden administration in 2024 but has been stalled for administrative reasons this year.
While the order would not legalise cannabis federally, it could include additional directives with material implications for the industry. One option under consideration is a call for Congress to pass the bipartisan SAFER Banking Act, which would allow licensed cannabis businesses access to the U.S. banking system. Another potential provision would direct federal health agencies to permit Medicare reimbursement for CBD-based products.
The policy push follows a series of high-level meetings between Trump and cannabis industry executives, as well as discussions involving senior health officials including FDA Commissioner Marty Makary, Health and Human Services Secretary Robert F. Kennedy Jr., and CMS administrator Mehmet Oz.
Politically, the move aligns with Trump’s 2024 campaign pledge to expand access to medical marijuana and highlights his willingness to break with parts of the Republican establishment. While recreational legalisation remains off the table at the federal level, a Schedule III designation would represent the most consequential shift in U.S. cannabis policy in decades.
This article was written by Eamonn Sheridan at investinglive.com.