Image Source: Alex Brandon/AP

Written by Azure Kwok. Published on December 18th, 2025.

“We are considering that because a lot of people want to see it — the reclassification, because it leads to tremendous amounts of research that can’t be done unless you reclassify. So, we are looking at that very strongly.”

— President Donald Trump

According to NBC News, President Trump is expected to sign an executive order as soon as this week that would fast-track moving cannabis from Schedule I to Schedule III — and, for the first time at the federal level, formally acknowledge medical benefits.

As of right now, cannabis is federally classified alongside heroin, LSD, MDMA, and methamphetamine under the Controlled Substances Act of 1970. The reported plan would ease regulatory hurdles and allow the FDA to study cannabis clinically, potentially expanding medical use for seniors, veterans, and others — even while state laws continue to vary.

What the executive order would actually do

The expected order would direct either the DEA administrator or Attorney General Pam Bondi to conclude the formal rescheduling process and publish the final rule that moves cannabis to Schedule III. That process didn’t start this week. The formal rescheduling process began under the Biden administration in 2024, and a hearing on the proposed change has been on hold for administrative reasons since the beginning of this year.

Reports also say there are drafts that could include a directive to the Centers for Medicare & Medicaid Services to allow reimbursement of CBD products under Medicare.

What does it mean for us?

Consumers probably won’t feel an overnight shift. If cannabis moves to Schedule III, dispensaries would still operate under state law, marijuana would still be illegal federally.

The businesses will be the ones to feel the immediate impact — IRS 280E, a rule that blocks cannabis businesses from taking normal federal business deductions because marijuana is still a Schedule I substance. Some dispensaries in Michigan are facing tax rates north of 70% because of this. Moving cannabis to Schedule III would effectively kill 280E for businesses, which would be a relief that could mean the difference between layoffs and reinvestment, or even staying open in an oversaturated market.

NBC reports Trump’s order could also include a directive to Congress to pass the SAFER Banking Act, which would give legal cannabis businesses access to major banks and financial institutions — because under current law, banks and creditors can face federal prosecution for serving cannabis businesses.

The Reality Check

Rescheduling can be a step. The question is whether it’s a step toward progress, or just a step toward a more profitable status quo.

Sen. Ron Wyden warned people not to be “gaslit” into thinking this makes cannabis legal, since Trump has not decriminalized cannabis or expunged records. Thousands of Americans will still sit behind bars for low-level cannabis offenses, even as the legal industry keeps raking in cash.

If rescheduling opens the door to research, fairer taxation, and safer banking, that’s a start. What we are really looking for is a door to justice. Because without addressing the deep-rooted harms of prohibition, this isn’t true reform — it’s just the reinforcement of a two-tiered system where some are profiting, and others are paying the price.