On December 18, 2025, President Donald Trump signed an executive order that could mark a turning point in the decades-long federal approach to marijuana. The order directs the rescheduling of marijuana from a Schedule I drug—previously lumped in with heroin and LSD—to Schedule III, a category that includes substances like ketamine and Tylenol with codeine. The move has triggered a wave of reactions from researchers, business leaders, addiction specialists, and legal experts, each weighing in on what this change could mean for the nation's tangled relationship with cannabis.
For many, the most immediate impact of Trump’s executive order is not a sweeping legalization, but rather a significant shift in how marijuana can be studied and how cannabis businesses operate. As reported by ABC News, the executive order does not legalize marijuana under federal law. Cannabis remains illegal at the federal level, even as 40 states have approved it for medical use and 24 have sanctioned recreational use. The new classification, however, signals that the federal government now recognizes some accepted medical uses for marijuana and a lower potential for abuse than previously stated.
Chad Johnson, assistant professor in pharmaceutical sciences at the University of Maryland, explained to ABC News that the Schedule I label has been a major deterrent for researchers. "There’s a lot of people tend to stay away from those S1 substances for that reason, because it’s just too big of a hassle," Johnson said, referencing the rigorous Drug Enforcement Agency (DEA) licensing process and the strict inventory tracking that researchers must follow. Moving marijuana to Schedule III, he added, "removes those barriers ... and I think that will be a huge factor in bringing in a lot of new talent and a lot of old talent that maybe just wanted to stay away from it when it was still Schedule I."
This sentiment is echoed in analysis by Ogletree Deakins, which notes that as of December 2019, fewer than 600 researchers were registered with the DEA to study any Schedule I substance. The process, even after being streamlined in 2018, remains cumbersome and restricts researchers from accessing certain federal funding, especially for studies requiring the purchase of cannabis. With the move to Schedule III, these barriers are expected to ease, opening the door for a broader range of scientific inquiry into marijuana’s effects, risks, and potential benefits.
Yet, not everyone is celebrating unreservedly. Yasmin Hurd, director of the Addiction Institute at Mount Sinai in New York, told ABC News she had mixed feelings about the executive order. While she supports making research easier, Hurd voiced concern that the change could be misinterpreted as a blanket endorsement of marijuana as medicine. "For me, my negative about the rescheduling is mainly about the fact that it can be taken by some as a green light that cannabis [is] indeed medicine, which this does not say," she cautioned. Hurd pointed to the Centers for Disease Control and Prevention’s estimate that about 30% of cannabis users develop cannabis use disorder, a condition that can disrupt daily life. She also highlighted that, despite some prescribed medications using cannabinoids for specific conditions, a recent review in JAMA found "insufficient" evidence of broad medical benefits for cannabis or CBD.
Still, patient experience data offers a more nuanced picture. Johnson noted that while comprehensive research is lacking, there is a growing body of patient-reported outcomes documenting perceived benefits from medical and recreational cannabis use. "Patient data is very important. [It] tells about the patient experience, why the patient’s using a particular product, what product they’re using in what frequency, and what they’re using it for," he explained. While these reports don’t clarify the mechanisms at play, they do suggest that some patients find relief through cannabis products, a point Johnson feels is often overlooked.
The executive order’s impact stretches beyond the laboratory and into the boardrooms of America’s burgeoning cannabis industry. In Missouri, for example, business owners and legal experts agree that the rescheduling won’t change the fact that marijuana cannot be transported or sold across state lines, nor will it allow customers to use credit cards at dispensaries. However, as reported by local news outlets, the change will bring long-awaited tax relief. Under the previous Schedule I classification, cannabis businesses were barred from deducting many ordinary business expenses, a restriction that made it far more difficult to turn a profit.
Mark Hendren, president of Flora Farms—a company operating 12 dispensaries in Missouri—told reporters, "Obviously for a cannabis company like us, the big impact is allowing us to pay our taxes and run our businesses just like all other legal businesses." Craig Small, a Denver-based cannabis attorney, estimated that the change could "immediately increase profits by about 30%." This newfound financial flexibility, industry leaders argue, will allow cannabis companies to reinvest, scale, and innovate. Nicholas Rinella, CEO of Hippos cannabis company, said, "That shift allows us to reinvest into our operations, scale responsibly and continue delivering world-class products. It’s also meaningful to see the federal government begin to align with public sentiment in recognizing the real societal benefits of cannabis."
Missouri’s cannabis industry, in particular, is positioned to benefit from the reform. Since the state’s first legal medical marijuana sale in 2020, total cannabis sales have exceeded $4.5 billion, with $244.93 million in sales tax revenue generated in 2024 alone. Andrew Mullins, executive director of the Missouri Cannabis Trade Association, emphasized that federal rescheduling "removes barriers and creates opportunity for the 40 U.S. states, including Missouri, that have legalized medical and/or adult-use cannabis."
Despite the optimism, the executive order does not override state laws or instantly change the legal landscape for employers. According to Ogletree Deakins, the move will not affect workplace drug testing policies or employment protections under state law. Employers must still navigate a patchwork of state regulations regarding marijuana use, disability discrimination, and lawful off-duty conduct. The federal government has historically refrained from interfering with state-level legalization programs, and that stance is unlikely to change with this executive order.
The Controlled Substances Act (CSA), which has governed federal drug policy since the 1970s, created the five-schedule system based on a drug’s potential for abuse, accepted medical use, and potential for addiction. Marijuana’s placement in Schedule I for over fifty years has been a major roadblock to research and business development. The Biden administration first proposed rescheduling in 2024, but did not finalize the change. Trump’s executive order now sets the wheels in motion, with the rescheduling process expected to unfold over the course of 2026.
As the nation waits to see how these changes play out, one thing is clear: marijuana’s story in America is far from over. Whether the rescheduling will usher in a new era of research, innovation, and acceptance—or simply mark another chapter in a long, complex saga—remains to be seen. But for researchers, patients, and entrepreneurs alike, the barriers are beginning to fall, and the possibilities are expanding.
