WASHINGTON — President Donald Trump said Monday his administration is “strongly considering” reclassifying marijuana as a Schedule III drug under federal law, signaling a potential shift in long-standing U.S. drug policy while stopping well short of full legalization.
Speaking in the Oval Office, Trump said reclassification is being evaluated primarily because it would open the door to expanded medical research that has long been restricted under current federal rules. Marijuana has been classified as a Schedule I substance since 1971, the same category as heroin and LSD, a designation reserved for drugs deemed to have no accepted medical use and a high potential for abuse.
The possible move would build on efforts initiated during the Biden administration, which began the formal process to reclassify marijuana in 2024 but failed to complete it before leaving office. Trump endorsed rescheduling during the campaign and again in August, saying a decision would come “within weeks,” though no action followed at the time.
A shift to Schedule III would place marijuana alongside substances such as ketamine, anabolic steroids, testosterone and Tylenol with codeine. While the change would not legalize marijuana at the federal level or eliminate criminal penalties for possession, it would significantly reduce barriers to scientific research and provide financial relief to the legal cannabis industry.
Under current federal tax law, businesses involved with Schedule I or II substances are barred from deducting ordinary business expenses. Reclassification would lift those restrictions, potentially improving cash flow for cannabis operators and attracting institutional investors that have largely stayed on the sidelines due to legal uncertainty.
Industry analysts say the move could dramatically alter the financial landscape for cannabis companies, particularly if reclassification also enables broader access to banking services and public stock exchanges. Some investors estimate the sector’s valuation could double or triple if institutional capital enters the market.
At the same time, the proposal has drawn political criticism. Sen. Ron Wyden (D-Ore.) accused Trump of overstating the impact of reclassification, arguing that it does little to address criminal justice concerns such as expungements or decriminalization for low-level offenses. Others have raised concerns that rescheduling could ultimately benefit large pharmaceutical firms more than existing state-licensed dispensaries.
Trump is also reportedly considering an executive order authorizing a limited Medicare pilot program covering certain cannabis-derived products, particularly cannabidiol, or CBD, for seniors. The proposal has sparked additional debate among health experts and regulators, who caution that clinical evidence for many cannabis treatments remains limited and that safety risks, particularly for older patients taking multiple medications are not fully understood.
Despite the controversy, momentum for change continues to grow. Forty-two states and Washington, D.C., have legalized medical marijuana, and 24 states permit recreational use. A recent analysis of decades of data found that more Americans now report using marijuana daily or near-daily than alcohol, a cultural shift that continues to pressure federal policymakers.
Whether Trump proceeds with reclassification, and how aggressively his administration acts remains unclear. But even a limited move would mark a historic departure from decades of federal policy and set the stage for broader battles over cannabis regulation, public health, and the future of a rapidly expanding industry.
- NMD Staff
News@NewMediaDetroit.com