Washington, D.C., : The President Donald Trump is strongly considering reclassifying marijuana from Schedule I to Schedule III, a dramatic shift in federal drug policy that could reshape the nation’s $30 billion cannabis industry. According to sources speaking to Axios, Trump is being advised by Health Secretary Robert F. Kennedy Jr. (RFK Jr.) and DEA Administrator Anne Milgram, both of whom argue that reclassification aligns with Trump’s “America First” economic and public safety goals.
Under current law, marijuana’s Schedule I classification places it in the same legal tier as heroin, severely restricting medical research and preventing cannabis businesses from claiming standard federal tax deductions. A move to Schedule III would open the door to clinical trials for chronic pain, PTSD, epilepsy, and other conditions, while enabling legal cannabis companies to deduct expenses under IRS code 280E—potentially unleashing billions in investment.
Trump reportedly teased the reform at the Congressional Ball, praising bipartisan cooperation on cannabis policy. RFK Jr. has publicly criticized what he calls the federal government’s “overreach of nanny-state policies,” while Senate Majority Leader Chuck Schumer—a co-sponsor of a bipartisan cannabis reform bill—has urged the White House to act “without delay.”
Economic analysts say reclassification could generate $4 billion in new annual tax revenue, increase legal job creation, and ease overcrowded prisons, where more than 40,000 Americans remain incarcerated for cannabis-related offenses. Supporters, including the ACLU, call the reform “decades overdue,” noting that 70% of Americans now support legal marijuana, according to Gallup.
Not everyone is convinced. Conservative groups such as the Heritage Foundation warn the policy could spur a 15% rise in teen marijuana use, citing CDC projections. Critics also argue that federal alignment with state legalization could complicate international drug treaties under the UN framework.
If implemented via executive order, the reclassification process could begin as early as Q2 2026, affecting everything from medical research funding and interstate commerce to banking access for dispensaries, which still struggle under federal banking prohibitions.
The move comes amid Trump’s broader deregulatory push, including new AI constraints and tariff policies that he claims have reduced the U.S. trade deficit by 64%. In a recent speech, Trump declared, “Nobody has EVER seen… We haven’t even started yet,” signaling more aggressive policy changes ahead.
Should this cannabis reform proceed, it would mark one of the most significant federal drug policy shifts in more than half a century, with sweeping implications for the economy, public health, criminal justice, and global regulatory norms.
