The United States Department of Justice has officially moved medical marijuana from the most restrictive category of controlled substances to a less tightly regulated one, in one of the most significant shifts in American drug policy in decades. Acting Attorney General Todd Blanche signed an order on Thursday immediately reclassifying FDA-approved marijuana products and state-licensed medical marijuana from Schedule I — a category that includes heroin and LSD, denoting a high potential for abuse and no accepted medical use — to Schedule III, which covers substances such as ketamine, testosterone, and Tylenol with codeine. Blanche also called for a formal hearing, set to begin on 26 June, to consider a broader reclassification of all marijuana under federal law.
The action fulfils a commitment made by President Donald Trump, who signed an executive order in December directing the Justice Department to begin the reclassification process. Trump announced that move surrounded by patients, doctors, military veterans, and cannabis industry entrepreneurs, pledging it would benefit people suffering from chronic pain, aggressive cancers, neurological disorders, and post-traumatic stress. The shift comes just days after Trump signed a separate executive order to accelerate research into ibogaine, a powerful psychoactive compound, for the treatment of trauma-related conditions.
The reclassification does not legalise marijuana at the federal level, and it does not alter the legal landscape for recreational use. Despite the federal prohibition that has been in place since 1970, around 40 US states have already legalised cannabis for medical purposes and 25 for recreational use, creating a fragmented patchwork of regulations. Legal cannabis sales are projected to exceed $47 billion in 2026. The move is expected to deliver significant benefits to the cannabis industry by easing tax burdens — companies will now be able to deduct a wider range of business expenses — and making it easier for firms to access financing. Shares in companies such as Canopy Growth, Tilray Brands, and Aurora Cannabis rose between 6 and 13 percent following the announcement.
The practical impact most widely cited by supporters is on scientific research. Until now, researchers faced an extensive bureaucratic process to study marijuana precisely because of its Schedule I status. Reclassification is expected to lower those barriers substantially, allowing more rigorous study of the drug's safety and medical efficacy. Advocates note there is already strong evidence that heavy, chronic use — particularly among young people — can harm brain development and mental health, making better-funded research all the more important. Critics of the move, while broadly welcoming it, argue it does not go far enough: drug policy reform advocates say the only real solution is to remove marijuana from the controlled substances schedule entirely and establish a coherent federal regulatory framework.
The change represents a formal acknowledgement by Washington that marijuana has therapeutic value, something that has effectively been recognised by state law across much of the country for over a decade. The Biden administration had begun a similar reclassification effort in 2022, following a recommendation from the Department of Health, but the process stalled and was abandoned before completion. Once the current rule change is published in the Federal Register, it takes effect after 30 days — though legal challenges are widely expected, potentially delaying implementation for months or years.