President Trump Signs Executive Order Directing Rescheduling of Cannabis Under the Federal Controlled Substances Act
December 19, 2025
On December 18, 2025, President Donald J. Trump issued an executive order entitled “Increasing Medical Marijuana and Cannabidiol Research” that directs the rescheduling of marijuana from a “Schedule I” substance to a “Schedule III” substance under the Controlled Substances Act of 1970 (“CSA”). The CSA divides substances into five schedules, based on the potential for abuse and medical value of the substance. “Schedule I” substances under the CSA have no currently accepted medical use and a high potential for abuse. “Schedule III” substances have a moderate to low potential for physical and psychological dependence and less abuse potential than a Schedule I substance.
The executive order directs the U.S. Attorney General to “take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the CSA in the most expeditious manner in accordance with Federal law.” Rescheduling marijuana does not make it legal under federal law; however, President Trump’s decision to loosen the federal restrictions on marijuana is a welcome change for many, including medical patients and marijuana businesses. The most notable change for regulated marijuana businesses will be the inapplicability of Section 280E of the Internal Revenue Code, which currently prohibits these businesses from deducting ordinary business expenses. In addition, industry participants may see increased access to traditional banking and financial services that were previously “off limits” due to the perceived risk of marijuana. Patients are likely to benefit from enhanced clinical research involving marijuana and access to marijuana-based medicine.
When signing the executive order, President Trump noted that for decades, patients—including those suffering from pain and incurable disease—have requested this change. To ensure patients have access to the products they need and want, the executive order also directs Congress to update the definition of “final hemp-derived cannabinoid products” to allow individuals to benefit from access to full-spectrum cannabidiol (“CBD”) products. In addition, the executive order directs the Secretary of Health and Human Services, the Commissioner of Food and Drugs, the Administrator of the Centers for Medicare and Medicaid Services, and the Director of the National Institutes of Health to develop research methods and models utilizing “real-world evidence” to improve access to hemp-derived CBD products in accordance with federal law and to inform standards of care.
President Trump’s executive order builds off of the efforts of President Joseph R. Biden, who signed the “Medical Marijuana and Cannabidiol Research Expansion Act” into law in December 2022.
The Regulated Substances Blog is intended to keep readers current on developments regarding medical marijuana and hemp regulation and is not intended to be legal advice. Members of the Regulated Substances team at Eckert Seamans are following developments closely. If you have any questions or would like to know more about the executive order, please contact Steve Pemberton at spemberton@eckertseamans.com, Benjamin Sheppard at bsheppard@eckertseamans.com , or Sarah Stoner at sstoner@eckertseamans.com.
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