Federal Cannabis Rescheduling: What Trump’s Executive Action Means and Why the Fight Continues

The landscape of federal cannabis policy is shifting in a historic way. On December 18, 2025, President Donald Trump signed a landmark executive order directing federal agencies to reschedule marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA) — a major development that cannabis advocates have been urging for decades.

This move represents one of the biggest federal policy changes in over 50 years of cannabis prohibition — but it’s not the finish line. In fact, for patients, activists, and state-legal businesses, rescheduling is only the first step in the ongoing fight for sensible reform.

What the Executive Order Actually Does

1. Moves Cannabis Out of Schedule I

Since 1970, cannabis has been classified as a Schedule I controlled substance — the category reserved for drugs with no accepted medical use and high potential for abuse. The executive order now directs the Attorney General and other agencies to finalize rescheduling to Schedule III, a category that recognizes some medical value and lower abuse potential.

This follows a 2023 recommendation by the U.S. Department of Health and Human Services (HHS) — the first federal health agency to formally say cannabis should be rescheduled.

2. Expanded Medical and CBD Access

The Trump Administration also announced policy changes intended to expand access to regulated plant-derived CBD products, and even proposed a Medicare reimbursement pathway (up to $500 annually) for qualifying hemp-derived CBD therapies beginning in April 2026.

These steps signal an administrative recognition of cannabis’s medical applications, especially for seniors and patients who benefit from cannabinoid-based therapies.

3. Benefits for Patients, Veterans, and Researchers

According to NORML Deputy Director Paul Armentano, this policy shift “validates the experiences of tens of millions of Americans” who use cannabis for medical reasons, and could dramatically boost evidence-based research.

It may also create new opportunities for scientific studies previously hindered by Schedule I restrictions — research that may shed more light on cannabis’s therapeutic benefits and risks.

Big Wins — But Not Full Legalization

Even as this executive order represents progress, it does not federally legalize cannabis.

Here’s what it doesn’t do:

• Does not make cannabis legal under federal law — unapproved possession, distribution, or sales still violate federal statutes unless FDA-approved.

• Does not automatically expunge past convictions — individuals with prior cannabis convictions remain affected unless separate legislation is passed.

• Does not grant full banking access or interstate commerce protections — these still require congressional action.

While the executive order directs agencies to act, the actual process to reschedule cannabis — including rulemaking, review, and possible legal challenges — will take time before it is officially implemented.

Federal vs. State Law: Still a Clash

Rescheduling serves an important purpose — but it does not resolve the conflict between federal cannabis prohibition and the reality of state-level legalization.

• 24+ states have legalized medical or adult-use cannabis, yet federal law still treats the plant as a controlled substance.

• State-licensed businesses still operate in legal gray areas, facing barriers like tax burdens under IRS Section 280E and difficulties accessing banking services.

This lingering discord reinforces the need for federal legislative reform that goes beyond rescheduling.

Voices From the Reform Community

NORML leaders applauded the executive order as a significant step forward, but they also stressed that it doesn’t go far enough:

• The policy legitimizes the medical use of cannabis under federal law.

• It delegitimizes outdated myths about the plant’s dangers.

• But it still fails to harmonize federal and state policies — a necessary component of true legalization

NORML’s political director noted that bipartisan momentum for reform continues — and a Republican administration backing rescheduling could encourage lawmakers nationwide to support federal legislative change.

What Comes Next?

Here’s what to watch in the coming months:

Rulemaking and Review

The Attorney General and DEA will proceed with the required rulemaking process to finalize rescheduling. Interested parties may challenge this legally, potentially slowing implementation.

Ongoing Advocacy

Advocates insist that rescheduling is a milestone — not the destination. Full descheduling, federal legalization, expungement for past convictions, banking reform, and social justice provisions remain policy priorities.

State Impact

States like Florida — where voter support for cannabis reform continues to grow — will continue pushing for laws that reflect their citizens’ priorities, even as federal policy evolves.

A Big Step, But the Road Ahead Is Long

President Trump’s executive order to reschedule cannabis marks a historic federal shift — but it’s only the opening chapter of a much larger story. While this action acknowledges cannabis’s medical value and eases certain barriers, meaningful reform will require comprehensive federal legislation to resolve the entrenched conflict between state and federal cannabis law.

For the cannabis community, patients, activists, and state regulators alike, this moment is both a celebration and a call to action: stay informed, stay engaged, and continue advocating for common-sense policies that reflect public will and scientific evidence.