Trump Reclassify Weed Under Federal Law
Trump reclassify weed under a major federal policy shift announced on Thursday, December 18, 2025, when U.S. President Donald Trump signed an executive order directing federal agencies to move marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act.
The decision marks the most significant change to U.S. marijuana policy in more than 50 years, formally removing cannabis from the same legal category as heroin and LSD. While marijuana remains a controlled substance, the reclassification acknowledges its accepted medical use and lowers its federal restriction level.
Trump Reclassify Weed: What Does Reclassification Mean?
When Trump reclassify weed, it does not legalize marijuana federally for recreational use. Instead, the move changes how cannabis is regulated, researched, taxed, and prescribed at the federal level.
Under Schedule III classification:
- Marijuana remains regulated under federal law
- Federal prohibition is partially softened
- Medical and pharmaceutical access expands
- States continue to control recreational legalization
This means state marijuana laws remain unchanged, but federal agencies will treat cannabis differently in research, healthcare, and business policy.
What Is a Schedule III Drug?
To understand why Trump reclassify weed matters, it is important to understand what a Schedule III drug is.
A Schedule III drug is defined as having:
- A moderate to low potential for physical or psychological dependence
- Accepted medical use in the United States
Examples of Schedule III drugs include:
- Ketamine
- Testosterone
- Anabolic steroids
- Tylenol with codeine
Doctors can legally prescribe Schedule III substances, and licensed pharmacies can dispense them. This is a major shift from Schedule I drugs, which are legally defined as having “no accepted medical use.”
Why Trump Reclassify Weed Is a Major Policy Shift
The executive order to Trump reclassify weed has wide-ranging implications across healthcare, research, taxation, and financial markets.
1️⃣ Medical Research Expansion
Cannabis research has long been restricted due to Schedule I classification. By moving marijuana to Schedule III, the federal government reduces:
- Bureaucratic approval barriers
- Research licensing costs
- Restrictions on FDA-regulated clinical trials
This change is expected to accelerate medical research into cannabis-based treatments.
2️⃣ Tax Relief for Cannabis Businesses
One of the most immediate impacts of Trump reclassify weed is the removal of IRS Code 280E restrictions.
Previously, cannabis businesses were unable to deduct normal operating expenses. With reclassification:
- Profitability improves
- Compliance increases
- Institutional investors gain confidence
This could significantly reshape the legal cannabis industry in the U.S.
3️⃣ CBD Access for Seniors
The executive order also launches a Medicare pilot program through the Centers for Medicare & Medicaid Services (CMS) to provide free, purity-tested CBD products to seniors.
The program targets conditions such as:
- Chronic pain
- Arthritis
- Neurological disorders
This initiative reflects growing federal acceptance of cannabis-derived medical products.
How the Stock Market Reacted After Trump Reclassify Weed
Cannabis-related stocks reacted immediately after news broke that Trump reclassify weed under federal law.
Tilray Brands (TLRY)
- Shares jumped more than 6% following the announcement
- Traded between $13.45 and $15.69
- Closed at $14.54 on December 18, 2025
Tilray has gained significant momentum throughout December, rising from approximately $8 earlier in the month as investors anticipated policy reform.
The broader cannabis ETF (MSOS) also experienced volatility as traders locked in profits.
Is Marijuana Legal Nationwide Now?
No.
Even though Trump reclassify weed, marijuana is not federally legal for recreational use.
What changes:
- Federal recognition of medical use
- Reduced criminal penalties
- Expanded research and tax flexibility
What does not change:
- State marijuana laws
- Recreational legality at the federal level
States retain full authority over legalization decisions.
A Historic Shift in U.S. Drug Policy
The decision to Trump reclassify weed reflects growing bipartisan acknowledgment that cannabis no longer belongs in the most restrictive drug category.
While debates over full legalization continue, this move signals a long-term shift toward regulated acceptance rather than outright prohibition.
This remains a developing story, and further regulatory guidance and implementation steps are expected throughout 2026.
