US President Donald Trump is reportedly considering a major shift in federal drug policy: reclassifying marijuana from a Schedule I to a Schedule III controlled substance. The news, first reported by The Wall Street Journal on August 10, 2025, has sent ripples through both the cannabis industry and political circles. If enacted, the move would mark the most significant federal change to marijuana’s legal status in decades, potentially opening doors for research, business growth, and a new chapter in the nation’s relationship with cannabis.
Trump’s interest in the reclassification surfaced earlier this month at a high-profile, $1 million-a-plate fundraiser held at his New Jersey golf club. According to sources cited by The Wall Street Journal, the president told attendees he was actively exploring the idea. Among those present was Kim Rivers, the chief executive of Trulieve—one of the country’s largest cannabis companies—who reportedly encouraged Trump to champion the change and expand federal support for medical marijuana research.
Currently, marijuana is classified as a Schedule I drug under US law, lumped in with heroin and LSD. This category is reserved for substances deemed to have a high potential for abuse and no accepted medical use. Reclassifying marijuana as Schedule III would move it alongside prescription drugs like anabolic steroids, acknowledging its medical potential while keeping it under regulation. For the cannabis industry, this could be a game changer. Schedule III status would ease certain federal restrictions, making it easier for companies to access banking services, claim tax deductions, and, crucially, expand research into medical uses.
The proposal isn’t entirely new. The Biden administration had previously explored reclassification, but the effort stalled before reaching fruition. Multiple bills have also been introduced in Congress over the years, backed by members from both sides of the aisle, seeking to either reclassify marijuana or remove it from the controlled substances list altogether. Despite growing public support—at least 40 US states have legalized medical marijuana, and 24 states plus Washington, D.C. have legalized recreational use—federal legislation has repeatedly failed to cross the finish line.
Trump’s position on marijuana has shifted over time. During his first term, he was notably skeptical, reportedly telling associates that marijuana use “does cause an IQ problem; you lose IQ points,” a sentiment he expressed in a 2018 conversation with Republican donors Lev Parnas and Igor Fruman. At that time, the two donors were seeking Trump’s help to break into the legal marijuana market in states where recreational use was permitted. The episode later took a dramatic turn when Parnas and Fruman were indicted and convicted on campaign finance violations, accused of funneling Russian oligarch money into Republican campaigns to further their business interests.
More recently, Trump has shown a willingness to reconsider his stance. He publicly supported a Florida ballot measure to legalize recreational marijuana, though the initiative ultimately failed to pass. According to The Wall Street Journal, Trump now appears to recognize the economic and political advantages of supporting changes to marijuana policy, especially as the legal cannabis market continues to boom and public opinion shifts decisively in favor of reform.
Industry insiders and political observers alike are watching closely. The potential reclassification has significant implications for the multibillion-dollar cannabis industry, which has long chafed under federal restrictions that make banking, taxation, and research unnecessarily complicated. According to The Wall Street Journal, cannabis companies have invested millions into political advocacy groups supporting Trump and have hired Washington lobbyists to push for reform. Executives from other major industries—such as pharmaceutical giant Pfizer and leading cryptocurrency firms—were also present at the New Jersey fundraiser, underscoring the broad interest in federal cannabis reform.
Kim Rivers, CEO of Trulieve, has been particularly vocal. At the fundraiser, she reportedly urged Trump to move forward with reclassification and to support the expansion of medical marijuana research. Her company stands to benefit directly from any loosening of federal restrictions, as do countless others operating in the rapidly growing sector. For these businesses, Schedule III status would not mean full legalization but would represent a significant reduction in legal risk and red tape.
Trump’s campaign advisers have been quick to clarify the scope of the proposed change. Alex Bruesewitz, a Trump campaign adviser, told The Wall Street Journal that the move would not equate to full legalization, but rather, “knocking it down a few notches on the criminal scale.” Marijuana would remain regulated, but the threat of severe federal penalties would be reduced, and the pathway for research and medical use would widen.
Still, the political context is complicated. The Biden administration’s own efforts to reclassify marijuana were well-publicized, but ultimately, the process was left unfinished. Trump’s willingness to pick up where Biden left off could be seen as a pragmatic move—one that appeals to both business interests and younger voters, two key constituencies in a closely contested election year. According to White House spokeswoman Abigail Jackson, “all policy and legal requirements are being considered,” and decisions are guided by “what is in the best interest of the American people.”
Public opinion has shifted dramatically in recent years. National surveys consistently show majority support for some form of marijuana legalization, whether for medical or recreational use. With at least 40 states permitting medical marijuana and nearly half the country allowing recreational use, the federal government’s stance has increasingly appeared out of step with the rest of the nation. For many Americans, the question is not if, but when, federal policy will catch up.
Yet, significant hurdles remain. Congressional gridlock, entrenched opposition from some lawmakers, and the complexities of federal drug scheduling all present obstacles. Even if marijuana is reclassified to Schedule III, it will remain regulated and illegal under certain circumstances. The move would not resolve all the legal ambiguities facing cannabis businesses, but it would mark a decisive step toward modernization of US drug policy.
As the debate continues, all eyes are on the White House and Capitol Hill. The outcome will affect not just the cannabis industry, but also medical researchers, law enforcement, and millions of Americans who use marijuana for health or recreational reasons. The story is still unfolding, but one thing is clear: the conversation around marijuana in the United States has reached a turning point, and the decisions made in the coming months could shape policy for years to come.
