President Donald Trump just shook up America’s drug policy with a bold executive order. He moved cannabis from the strict Schedule 1 category to the milder Schedule 3, opening doors for medical research and business growth. This historic step recognizes marijuana’s potential benefits, but it stops short of full legalization. What does this mean for users, companies, and the future?
Trump signed the executive order on Thursday, fast-tracking the change that puts cannabis in the same group as drugs like codeine. This shift means federal agencies now view marijuana as having some medical value and lower abuse risk than heroin or LSD.
Under Schedule 3, cannabis stays illegal federally, but restrictions ease up a lot. That opens the way for more studies by the Food and Drug Administration. Doctors could prescribe it more easily, and researchers get better access to funding.
The order directs the Attorney General to speed up the process, which could cut red tape that has held back the industry for years. Industry experts say this could boost the $30 billion cannabis market by making banking and taxes simpler for legal operators.
One key change? Businesses might finally deduct normal expenses on taxes, something blocked under the old rules. A recent report from the Congressional Research Service in 2024 highlighted how Schedule 1 status crippled growth.
Why Now? The Push Behind the Policy Change
Trump’s decision comes after years of pressure from states and advocates. More than half of U.S. states already allow medical or recreational cannabis, creating a clash with federal law.
The president mentioned during his campaign that he wanted to look at reclassifying marijuana. This order follows through, aligning with a 2023 Health and Human Services recommendation to downgrade it.
Advocates point to growing evidence of cannabis benefits for pain, epilepsy, and anxiety. A 2025 study by Johns Hopkins University found that medical marijuana reduced opioid use by 20% in some patients.
But critics worry about risks. They argue easier access might increase youth use or impaired driving. Federal data from the National Institute on Drug Abuse shows marijuana-related emergency visits rose 15% from 2019 to 2024.
Trump’s team stressed the order expands research without decriminalizing recreational use. It could even pave the way for Medicare to cover some cannabis treatments, saving costs for older Americans.
Impacts on Business and Everyday People
This reclassification could transform the cannabis industry. Stocks in marijuana companies jumped after the news, with some up 10% in a day.
Legal operators gain big. Banks have shied away from cannabis due to federal rules, but Schedule 3 might change that. A 2024 survey by the American Bankers Association showed 70% of banks want clearer guidelines to serve the sector.
For everyday users, it means potential access to safer, regulated products. Patients with chronic conditions might get prescriptions covered by insurance, cutting out-of-pocket costs.
Here’s a quick look at key differences:
- Schedule 1: No medical use, high abuse potential (like heroin).
- Schedule 3: Accepted medical use, moderate abuse risk (like certain painkillers).
- Outcome: Easier research, possible tax breaks, but still federal penalties for unauthorized use.
Small businesses in states like California and Colorado stand to benefit most. They could expand without fearing federal crackdowns as much.
One owner in Denver told reporters the change feels like a lifeline after years of high taxes and limited loans.
Challenges Ahead: Not a Full Victory Yet
While exciting, this isn’t the endgame for reform advocates. Full legalization would need Congress, and that’s not on the table now.
Some worry Big Pharma might swoop in, dominating the market with patented products. Independent growers could get squeezed out.
Enforcement remains tricky. The order doesn’t touch state laws, so recreational use stays illegal in many places. Federal agents could still target large operations.
A 2025 analysis by the Brookings Institution predicts the shift could add $10 billion to the economy over five years through jobs and taxes. But it warns of uneven rollout if agencies drag their feet.
Experts urge caution. Reclassification requires a formal process, including public comments, which might take months.
This move echoes past efforts, like the Biden administration’s stalled push in 2024. Trump’s quicker approach sets a new tone.
In a surprising twist, the order also pushes for more access to hemp-derived CBD, which could hit store shelves easier.
As America grapples with drug policy, this step highlights a divide. Supporters see hope for safer alternatives to opioids, while opponents fear normalized use.
Trump’s order marks a turning point, blending caution with progress in a debate that’s raged since the 1970s. It gives the industry breathing room, but the road to broader acceptance is still long.