On December 18, 2025, President Donald Trump signed an executive order that reclassifies marijuana, moving it from Schedule I, which includes drugs like heroin and LSD, to Schedule III, which encompasses substances recognized for medical use with a lower potential for abuse, such as ketamine and Tylenol with codeine. This significant shift in U.S. drug policy is intended to facilitate research into the medicinal applications of cannabis, particularly for patients suffering from chronic conditions, including veterans and seniors.

The executive order does not legalize marijuana at the federal level, as it remains illegal for recreational use, but it aims to reduce regulatory barriers that have historically hindered research and development in the cannabis sector. The order mandates that Attorney General Pam Bondi finalize the rescheduling process, which has faced delays due to legal and administrative challenges.

During the signing ceremony, Trump emphasized the need for further understanding of medical marijuana and CBD (cannabidiol) to better inform healthcare providers and patients. The Centers for Medicare and Medicaid Services, led by Dr. Mehmet Oz, is expected to initiate a pilot program in April that will allow certain Medicare-covered seniors to access free, doctor-recommended CBD products, contingent on compliance with local regulations.

The response from the cannabis industry has been mixed, with some companies seeing stock price increases while others experienced declines. Industry leaders have expressed optimism that the reclassification will open up avenues for banking access and institutional investment, which have been limited under the previous classification.

Despite the growing acceptance of cannabis in various states, some lawmakers, particularly among conservative factions, have voiced opposition to the reclassification, citing concerns over insufficient scientific evidence and potential public health implications, especially among youth. The executive order comes amid a broader national conversation about marijuana legalization, which has garnered support from both political parties, often highlighting its potential medical benefits and the need for social equity in drug policy.

As the discourse surrounding marijuana continues, the implications of this executive order raise questions about the intersection of public health, social equity, and the evolving landscape of drug policy in the United States.