BREAKING: Trump Signs Historic Executive Order to Reschedule Marijuana
December 18, 2025 | Marching Dogs Cannabis Advocacy
In a historic moment for cannabis policy reform, President Donald Trump signed an executive order on December 18, 2025, directing Attorney General Pam Bondi to expedite and complete the rescheduling of marijuana from Schedule I to Schedule III of the Controlled Substances Act. This marks the most significant federal shift in cannabis policy in over five decades—the first time since 1970 that cannabis would no longer be listed alongside drugs considered to have no medical value.
"Today I'm pleased to announce that I will be signing an executive order to reschedule marijuana from a Schedule I to a Schedule III controlled substance, with legitimate medical uses," Trump declared from the Oval Office, flanked by medical professionals and cannabis industry executives. "We have people begging for me to do this. People who are in great pain."
What the Executive Order Accomplishes
The executive order contains four primary directives that will reshape the cannabis landscape:
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Directs the Attorney General to expedite completion of marijuana rescheduling to Schedule III, bypassing the administrative law judge hearing that stalled the Biden-era effort
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Addresses CBD and hemp access by directing White House staff to work with Congress to ensure patient access to full-spectrum CBD products
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Urges Congress to update the definition of hemp to restore full-spectrum CBD accessibility, responding to the recent spending bill's restrictive 0.4mg per container limit
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Directs HHS to develop research methods using "real world evidence" to improve CBD access and inform standards of care
Trump emphasized the narrow scope of his action: "I want to emphasize that the order I am about to sign is not the legalization of marijuana in any way, shape, or form—and in no way sanctions its use as a recreational drug... It's never safe to use powerful controlled substances in recreational manners."
Understanding Schedule III: What Changes and What Doesn't
Moving marijuana from Schedule I to Schedule III represents a fundamental shift in federal classification. Schedule I—currently shared with heroin, LSD, and ecstasy—defines substances as having "no currently accepted medical use and a high potential for abuse." Schedule III—which includes Tylenol with codeine, ketamine, and testosterone—acknowledges medical applications and lower abuse potential.
Financial Impact for Cannabis Businesses
The most immediate impact falls on cannabis businesses struggling under punitive taxation. IRS Code 280E currently bars Schedule I businesses from deducting ordinary business expenses, creating effective tax rates of 70% or higher. Rescheduling eliminates this burden.
NORML Executive Director Paul Armentano noted: "This change will also likely benefit cannabis consumers by resulting in lower overall prices for retail products, further incentivizing them to abandon the underground market."
What Rescheduling Does NOT Do
Critically, rescheduling does not legalize cannabis. Manufacturing, distribution, and possession remain technically illegal under federal law. The 40 states with medical cannabis programs and 24 states with recreational legalization remain in technical conflict with federal law. Banking access also remains uncertain without separate Congressional action on the SAFER Banking Act.
Adam Smith, Executive Director of the Marijuana Policy Project, offered measured praise: "Schedule 3 is a compromise position that was initially from the previous administration that wanted to appear as if they were backing reform without actually addressing the problem. Certainly, any progress is progress."
The Glaring Omission: Criminal Justice Reform
The executive order contains no provisions for pardons, clemency, expungements, or any form of criminal justice reform—a glaring omission that advocacy groups immediately condemned. Despite early reports suggesting possible clemency action, the White House briefing made no mention of it.
Senator Ron Wyden (D-OR) issued a sharp rebuke: "Trump will try to gaslight everyone into believing he just made pot legal. Wrong. He has not decriminalized cannabis or expunged the records of black and Latino Americans stuck in prison for minor drug offenses."
Adrian Rocha, Policy Director at the Last Prisoner Project, urged Trump to "couple it with clemency for people imprisoned for cannabis-related offenses," noting thousands remain incarcerated since the 1990s War on Drugs. Nearly 29 million Americans have been arrested for marijuana violations since 1965, and while states have expunged over 2 million conviction records, federal prisoners receive no relief under this order.
Historical Context: The Political Origins of Schedule I
Placing cannabis in Schedule I was one of the foundational acts of the modern drug war. Former Nixon administration officials later acknowledged it was designed to suppress youth and minority voters during the Vietnam War and Civil Rights era. The designation carried cascading consequences—parents who used marijuana were treated like heroin users by child welfare systems, banks servicing cannabis businesses were viewed as criminal enterprises, and millions lost access to housing, education, employment, or financial services.
The stark irony: Fentanyl, linked to 48,422 overdose deaths in 2024 alone, remains a Schedule II drug. Cannabis has no known lethal overdose threshold.
Armentano reflected on the significance: "It's a recognition from the federal government that marijuana has medical value. Claims that cannabis poses unique harms to health, or that it's not useful for treating chronic pain and other ailments, have now been rejected by the very federal agencies that formerly perpetuated them."
Implementation Timeline and What Happens Next
Industry analysts expect the DEA to finalize the rescheduling rule by summer 2026. The Attorney General possesses statutory authority under 21 U.S.C. 811(a) to schedule, reschedule, or decontrol drugs, and Trump's directive to "complete" the process appears designed to circumvent further bureaucratic delays.
However, legal challenges are expected. Armentano warned: "I think this will be tied up in litigation for quite some time." Anti-cannabis group Project SAM and 26 House Republicans have already voiced opposition, with Congressional members arguing that rescheduling would "send a message to kids that marijuana is not harmful."
Cannabis stocks surged on the news. Canopy Growth jumped 19.36%, Tilray rose 12.5%, and SNDL gained 9.18% during trading on December 18.
Industry Reactions: Cautious Optimism
The cannabis industry cautiously welcomed the development while acknowledging its constraints. Shawn Hauser of Vicente LLP called rescheduling "the beginning of a new era of public health policy" that "dismantles nearly a century of outdated drug policies." However, she characterized it as a "partial victory" requiring continued advocacy for full legalization.
On fears of pharmaceutical dominance, Adam Smith of MPP offered reassurance: "That plant material itself is not going to be a pharmaceutical product." Pharmaceutical companies cannot simply sell plant-based cannabis through pharmacies—they would still need FDA approval for specific drugs derived from federally approved sources.
NORML Political Director Morgan Fox noted the political implications: "Having a Republican administration backing this effort will likely embolden more Republican lawmakers, many of whom have privately endorsed marijuana policy reform, to now do so publicly."
The Bigger Picture: Hemp Already Changed the Game
Today's rescheduling order may carry legal and symbolic weight, but hemp legalization has already reshaped the marketplace. THC-A flower ships nationwide. Delta-8 drinks line shelves in prohibition states. In that context, rescheduling arrives late, after federal hemp policy quietly opened the floodgates.
For longtime advocates, however, even partial movement matters. As Armentano stated: "No matter what happens, the battle for nationwide cannabis law reform is far from over."
Marching Dogs: Our Commitment to Advocacy and Truth
At Marching Dogs, we recognize this executive order for what it is: a significant but incomplete step toward cannabis justice. While we celebrate the federal government's long-overdue acknowledgment of marijuana's medical value, we cannot ignore the thousands of Americans who remain incarcerated for cannabis offenses, the communities devastated by decades of racially disparate enforcement, and the continued federal prohibition that leaves state-legal markets in legal limbo.
Our mission remains unchanged: to be a pillar of transparent, truthful information and advocacy. We will continue to:
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Educate our community about the evolving cannabis landscape and what these changes mean for patients, consumers, and businesses
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Advocate for complete reform including descheduling, expungement, and equitable access for all Americans
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Support home cultivation as a fundamental right for patients and enthusiasts through our partnership with Hey Abby
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Champion transparency in all cannabis policy discussions, separating fact from political spin
The Bottom Line
Rescheduling acknowledges medical reality. It does not end prohibition. The fight for decriminalization and full legalization continues.
For cannabis businesses drowning under 280E tax burdens, relief is finally coming. For researchers locked out of studying a plant used by millions of Americans, new doors are opening. But for the 6,000+ Americans serving federal time for cannabis offenses, for the millions with conviction records, and for the communities devastated by the War on Drugs—this executive order offers nothing.
The road to full cannabis justice remains long. But today marks one significant step forward.
Cited Sources
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CBS News. "Trump signs executive order reclassifying marijuana as a Schedule III drug." December 18, 2025. cbsnews.com
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High Times. "Trump Reschedules Marijuana. But, Wait… There's A Catch." David Downs. December 18, 2025. hightimes.com
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Marijuana Moment. "Trump's Marijuana Executive Order Details Leaked Ahead Of Announcement." Kyle Jaeger. December 18, 2025. marijuanamoment.net
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NBC News. "Trump expected to sign an order moving to reclassify cannabis and open up medical potential." December 18, 2025. nbcnews.com
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CNN. "White House is considering reclassifying marijuana to ease restrictions on the drug." December 15, 2025. cnn.com
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Cannabis Business Times. "Trump Prepares to Reschedule Cannabis to Schedule III." December 2025. cannabisbusinesstimes.com
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CNBC. "Trump expected to sign executive order to reclassify marijuana; pot stocks surge." December 12, 2025. cnbc.com
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NORML. "Cannabis Rescheduling: Separating Fact From Fiction." December 16, 2025. norml.org
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Marijuana Moment. "Bipartisan Congressional Lawmakers Give Mixed Reactions To Marijuana Rescheduling News." December 2025. marijuanamoment.net
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Fox News. "House Republicans demand Trump reverse course after 'strongly considering' marijuana executive order." December 2025. foxnews.com
Marching Dogs | Cannabis Advocacy & Education Committed to Truth, Transparency, and Justice in Cannabis Reform