Washington, December 19, 2025 (Agencies) – In a landmark policy shift, President Donald Trump has signed an executive order reclassifying marijuana from a Schedule I drug to Schedule III under the U.S. Controlled Substances Act, placing it in the same category as Tylenol with codeine.
The move marks the most significant federal cannabis reform since 1970, formally recognizing marijuana’s potential medical applications while maintaining federal oversight. Schedule I drugs, such as heroin and LSD, are defined as having no accepted medical use and a high potential for abuse. Schedule III substances, by contrast, are considered to have legitimate medical uses with moderate to low risk of dependence.
“Marijuana can be legitimate in terms of medical applications when carefully administered,” President Trump said while announcing the decision. He added, “Prescription pain killers have legitimate uses, but also can do damage.”
The reclassification is expected to ease restrictions on medical research, allow cannabis businesses greater access to banking and insurance services, and remove punitive tax burdens under IRS code 280E. Analysts say the change could also pave the way for pharmaceutical companies to enter the cannabis market.
The administration has also announced plans for a Medicare pilot program covering CBD-based treatments, potentially expanding access for seniors.
Industry experts describe the decision as a historic turning point, opening new opportunities for medical innovation while reshaping the regulatory landscape of cannabis in the United States.