Trump mulls classification of marijuana as less hazardous substance, according to a news report
The marijuana industry is on the cusp of a significant shift, as both the Biden administration and President Donald Trump have expressed interest in reclassifying the drug, according to reports from The Wall Street Journal.
During his time in office, the Biden administration pursued the reclassification of marijuana, but the change was not enacted before the administration left office. Now, Trump's administration is reviewing the potential reclassification, which could affirm or accelerate the move to Schedule III controlled substances.
Trump indicated a decision could come within weeks, and he has expressed a positive view towards medical marijuana, acknowledging the complexities involved. Meanwhile, Republican Representative Greg Steube has reintroduced legislation—the Marijuana 1-to-3 Act—aiming to reschedule cannabis from Schedule I to III through Congress.
If the reclassification were to take place, it would have significant implications for the marijuana industry. The potential reclassification would make it easier to buy and sell cannabis, providing regulatory and financial relief that could boost business.
Easier access to federal tax deductions currently barred for Schedule I and II substances, reduced legal risks and criminal penalties for marijuana-related activities, and simplified scientific and medical research due to less stringent restrictions are among the benefits expected for the industry.
However, it's important to note that no final Congressional or executive decision has been made. As of August 2025, marijuana reclassification efforts in Congress are actively underway but not yet finalized. The DEA proposed moving marijuana from Schedule I (highest restriction) to Schedule III based on Health and Human Services (HHS) scientific findings from 2023, but a key hearing on this proposal was delayed due to a legal appeal.
In addition to the legislative efforts, several bills have been introduced in Congress by Democrats and Republicans to lower the classification of marijuana or remove it from the list of controlled substances. As of now, at least 40 states have legalized medical marijuana, while 24 states and Washington, D.C., have legalized recreational marijuana.
Kim Rivers, CEO of one of the largest marijuana companies (Trulieve), attended a $1 million-a-plate fundraiser at Trump's New Jersey golf club and urged Trump to make the change and expand medical marijuana research. The potential reclassification could lead to increased medical marijuana research, making it a promising time for the industry.
While no measures to reclassify marijuana or decriminalize it have been signed into law, the simultaneous legislative and executive efforts to reschedule marijuana from Schedule I to III are active, with strong implications for federal regulatory reform and significant benefits expected for the cannabis industry once changes take effect.
The current political landscape surrounding marijuana is marked by policy-and-legislation efforts, as both the Biden and Trump administrations have shown interest in reclassifying marijuana, with Trump's administration reviewing the potential reclassification to Schedule III controlled substances in politics.
Meanwhile, general news reports suggest that if the reclassification were to occur, it would have wide-ranging implications for the marijuana industry, including easier access to federal tax deductions, reduced legal risks, and simplified scientific and medical research.
