Will Trump Reclassify Marijuana? What To Know As He Considers Making It A Less Serious Drug

Topline

President Donald Trump said his administration is considering reclassifying marijuana as a less serious drug, appeasing industry lobbyists and business leaders who have cozied up to the president as they seek the move that could substantially cut taxes for the cannabis industry.

President Donald Trump speaks during a press conference at the White House in Washington, D.C., on Aug. 11, 2025. (Photo by Hu Yousong/Xinhua via Getty Images)

Xinhua News Agency via Getty Images

Key Facts

Trump told reporters Monday his administration is “looking at reclassification” and said it would likely come to a conclusion “over the next few weeks” whether to make marijuana, currently a Schedule 1 drug, a Schedule 3 drug.

The statement confirms a report in the Wall Street Journal last week that Trump told attendees, including the CEO of marijuana company Trulieve, Kim Rivers, at a $1 million-a-plate fundraiser earlier this month that he was interested in the move amid heavy lobbying from the industry.

As a Schedule 1 drug, marijuana, along with other substances such as heroin and LSD, are described as “drugs with no currently accepted medical use and a high potential for abuse.”

Reclassifying marijuana to Schedule 3 would put it in the same category as Tylenol and Codeine, make it easier to conduct research, secure funding and investments and allow the industry to tap into more tax incentives, though the drug would still be technically illegal under federal law.

Trump’s softened stance on marijuana comes as the industry has tapped into his orbit, including through the American Rights and Reform PAC, which is financially backed by the industry and has advertised on its behalf, while also giving $1 million to Trump’s PAC, the Wall Street Journal reported.

The PAC has a poll on its website commissioned by Trump pollster Tony Fabrizio that shows more than half of Republicans favor legalizing cannabis, along with video advertisements that blame the Biden administration for its continued classification as a Schedule 1 drug (the Biden administration attempted to reschedule the drug, but ultimately did not move forward with the proposal).

Crucial Quote

Calling it “a very complicated subject base,” Trump said Monday he’s “heard great things having to do with medical and bad things having to do with just about everything else.” Trump has previously expressed some openness to loosening restrictions on marijuana. He said in a Truth Social post last year he planned to vote for a Florida amendment to legalize marijuana, though it ultimately failed with voters. In the same social media post he said that, as president, he would “continue to focus on research to unlock the medical uses of marijuana to a Schedule 3 drug.”

What To Watch For

The Controlled Substances Act charges the attorney general’s office with initiating the rulemaking process to change the drug’s classification. The Justice Department then typically assigns the Drug Enforcement Administration to make a determination about drug scheduling.

Chief Critic

“The only way to fully resolve the myriad of issues stemming from the federal conflict with state law is to remove cannabis from the Controlled Substances Act and regulate the product in a manner similar to alcohol,” National Cannabis Industry Association CEO Aaron Smith said in a statement to ABC News in 2023, when the Biden administration announced it was rethinking the classification.

Tangent

Cannabis stocks surged Monday in the wake of Trump’s announcement, according to CNBC, which reported Canopy Growth stock jumped more than 26%, Tilray Brands was up 41% (its best day since 2021), and Cronos Group spiked 16% for a 52-week high. The uptick started in the immediate aftermath of the Wall Street Journal report last week revealing Trump had told people at a recent fundraiser he was seriously considering reclassifying the drug.

Key Background

Rescheduling marijuana could attract more investors to the industry and give banks more confidence to back cannabis companies. As a Schedule 1 drug, cannabis businesses cannot deduct business expenses under Internal Revenue Code Section 280E. The effort to reclassify the drug was stalled during the Biden administration amid resistance from the Drug Enforcement Agency, the New York Times reported.