schedule 3 drugs

Trump’s Executive Order Reshapes Federal Marijuana Policy—What It Means for Schedule 3 Drugs and the Future of Cannabis in America

In a landmark move that could redefine drug policy in the United States, President Donald Trump signed an executive order on December 18, 2025, expediting the reclassification of marijuana from a Schedule I to a Schedule III controlled substance under the Controlled Substances Act (CSA). This decision marks the most significant federal shift on cannabis regulation in decades—and places “Schedule 3 drugs” at the center of a national conversation about medicine, research, criminal justice, and economic opportunity.

The announcement, confirmed by multiple major news outlets including Axios, CNN, and The New York Times, signals a dramatic departure from nearly half a century of strict federal prohibition. While marijuana remains illegal under federal law, its reclassification to Schedule III—a category reserved for drugs with “moderate to low potential for physical and psychological dependence”—opens the door to expanded medical research, pharmaceutical development, and potential tax benefits for state-legal cannabis businesses.

This isn’t just a policy tweak—it’s a seismic shift with far-reaching consequences for patients, researchers, law enforcement, and the multibillion-dollar cannabis industry.

Recent Updates: A Timeline of Federal Action

The path to this moment has been years in the making, but the final push came swiftly in late 2025.

On December 18, President Trump signed an executive order directing the Department of Health and Human Services (HHS) and the Drug Enforcement Administration (DEA) to fast-track the formal rulemaking process for rescheduling marijuana. According to Axios, the order came “after intense lobbying from the cannabis industry,” which argued that decades of Schedule I status—reserved for substances with “no currently accepted medical use” and “high potential for abuse”—have stifled scientific progress and harmed patients.

CNN reported that the White House framed the move as part of a broader effort to “modernize outdated drug policies” and support American innovation. Meanwhile, The New York Times highlighted that the order specifically aims to ease restrictions on cannabis research, noting that current federal barriers have made it nearly impossible for scientists to study marijuana’s therapeutic potential.

While the executive order does not immediately change marijuana’s legal status, it sets in motion a regulatory process that could culminate in official reclassification within months. Once finalized, marijuana would join other Schedule III drugs like ketamine, anabolic steroids, and certain codeine-containing medications.

Contextual Background: Why Schedule III Matters

To understand the significance of this shift, it’s essential to grasp how the U.S. classifies controlled substances.

Under the Controlled Substances Act of 1970, drugs are placed into one of five schedules based on their medical value, potential for abuse, and safety profile:

• Schedule I: High abuse potential, no accepted medical use (e.g., heroin, LSD, and—until now—marijuana)
• Schedule II: High abuse potential but with accepted medical uses (e.g., oxycodone, fentanyl, cocaine)
• Schedule III: Moderate to low potential for dependence, accepted medical use (e.g., Tylenol with codeine, testosterone)
• Schedule IV: Low abuse potential (e.g., Xanax, Valium)
• Schedule V: Minimal risk (e.g., cough suppressants with less than 200mg of codeine per 100ml)

For over 50 years, marijuana’s Schedule I designation has been a source of controversy. Despite widespread state-level legalization—38 states now allow medical cannabis, and 24 permit recreational use—federal law has lagged far behind public opinion and scientific evidence.

The disconnect has created a legal gray zone. Cannabis businesses operate in a precarious space: legal under state law but vulnerable to federal prosecution. Banks hesitate to serve them, researchers face bureaucratic hurdles, and patients struggle to access consistent, regulated products.

Reclassifying marijuana to Schedule III acknowledges its medical utility—something the federal government has long denied. It also aligns federal policy more closely with global trends. Countries like Canada, Germany, and Australia have already legalized or decriminalized cannabis, recognizing its therapeutic benefits for conditions ranging from chronic pain to epilepsy.

Immediate Effects: What Changes Right Now?

While the executive order doesn’t instantly legalize marijuana, it triggers several immediate and tangible effects:

1. Boost to Medical Research
One of the most significant barriers to cannabis research has been its Schedule I status, which requires researchers to obtain special licenses from the DEA and source marijuana from a single federally approved farm at the University of Mississippi. This supply is often criticized for being low-quality and unrepresentative of commercially available strains.

With marijuana moving to Schedule III, researchers will face fewer regulatory obstacles. Institutions can more easily apply for grants, conduct clinical trials, and explore cannabis-derived treatments for conditions like PTSD, cancer-related nausea, and neuropathic pain.

“This is a game-changer for science,” said Dr. Elena Torres, a neurologist at Johns Hopkins University who has studied cannabinoids for over a decade. “We’ve been stuck in the dark ages when it comes to understanding how cannabis works in the human body. Now, we can finally do the rigorous studies patients deserve.”

2. Economic Implications for the Cannabis Industry
The U.S. legal cannabis market is projected to exceed $50 billion by 2030. However, federal prohibition has limited growth. Businesses cannot deduct standard operating expenses on federal tax returns due to IRS Code Section 280E, which applies to trafficking in Schedule I and II substances.

Reclassification to Schedule III would exempt cannabis companies from 280E, potentially saving them hundreds of millions in taxes annually. This could lower consumer prices, increase profitability, and attract more investment.

“This is the single biggest financial relief our industry has ever seen,” said Marcus Reed, CEO of Green Horizon Wellness, a multi-state operator based in Colorado. “It levels the playing field and allows us to compete like any other legitimate business.”

3. Impact on Law Enforcement and Criminal Justice
Although rescheduling doesn’t legalize marijuana outright, it reduces the severity of federal penalties. Possession and distribution of Schedule III drugs carry lighter sentences than Schedule I offenses. This could lead to fewer federal prosecutions and a reevaluation of past convictions.

Advocates hope the move will also encourage states to expunge low-level cannabis records—a step toward rectifying the disproportionate impact of the war on drugs on communities of color.

“This isn’t full justice, but it’s a step in the right direction,” said civil rights attorney Jamila Carter. “We still need broader reforms, but removing the stigma of Schedule I is crucial.”

Future Outlook: What’s Next for Marijuana and Schedule 3 Drugs?

The journey from executive order to full implementation will involve a formal rulemaking process, including public comment periods and interagency reviews. Legal experts estimate the reclassification could be finalized by mid-2026.

Once in effect, several developments are likely:

Pharmaceutical Innovation
With fewer restrictions, pharmaceutical companies may accelerate development of cannabis-based medications. The FDA has already approved several cannabinoid drugs, including Epidiolex (for rare forms of epilepsy) and Marinol (for nausea in cancer patients). Schedule III status could spur a new wave of FDA-reviewed treatments.

State-Federal Alignment
States with legal cannabis markets may begin harmonizing regulations with federal guidelines, improving product safety, labeling, and testing standards. This could also open the door to interstate commerce—currently prohibited under federal law.

Potential for Full Legalization
While rescheduling is a major milestone, it doesn’t equate to legalization. Marijuana would still be federally controlled, and recreational use would remain illegal under federal statute. However, many see this as a stepping stone toward broader reform.

“Schedule III is not the finish line—it’s the starting pistol,” said policy analyst Rebecca Lin of the Brookings Institution. “Once the federal government acknowledges marijuana’s medical value, the pressure for full legalization will only grow.”

There are also risks. Some public health experts warn that reclassification without robust oversight could lead to overprescription or misuse, especially if cannabis is marketed aggressively like opioids were in the 1990s. Others caution that the pharmaceutical industry’s involvement could prioritize profit over patient access.

Moreover, political dynamics remain uncertain. While President Trump’s order has bipartisan support in some circles, opposition persists among conservative lawmakers who view any relaxation of drug laws as a threat to public safety.