Trump Signs Executive Order to Reclassify Cannabis to Schedule III
Key Takeaway
President Trump signed an executive order directing Attorney General Bondi to expeditiously finalize moving cannabis from Schedule I to Schedule III of the Controlled Substances Act. The order, signed on December 18, 2025, included a separate Medicare provision covering up to $500 annually for CBD products starting April 2026. The executive order was the most significant federal cannabis policy action in 50 years and represented a dramatic reversal from the DEA's earlier procedural stalling. The order did not itself reschedule cannabis but directed DOJ and DEA to complete the administrative rulemaking process already underway. For cannabis operators, the order signaled that federal tax relief from Section 280E could finally arrive within a reasonable timeline.
What This Means for Cannabis Businesses
Federal policy changes ripple across the entire cannabis industry. Whether it's rescheduling progress, banking legislation, or court rulings, these developments shape the operating environment for businesses in every legal state. Operators should monitor these developments closely and consult with their legal counsel to understand the implications for their specific markets and operations.
Related Guides
Find Help
Related News
Congressman Presses DOJ and DEA on Cannabis Rescheduling Timeline
New Congressional Research Report on Cannabis Rescheduling Published
Congressional Research Service Releases Comprehensive Cannabis Rescheduling Report
Federal Government Warns About Cannabis and Hemp in Drug Tests
This analysis is based on reporting by Cannabis Business Times. Read the original article. CannaBizGuide provides original commentary and analysis - this is not legal or tax advice.