Trump Signs Order to Reschedule Cannabis

President Donald Trump just shook up America’s drug policy with a bold move on cannabis. On December 18, 2025, he signed an executive order pushing marijuana from Schedule I to Schedule III, opening doors for medical research and easing some federal rules. But what does this mean for everyday people and the booming industry? Dive in to find out the real impacts.

Trump’s choice came after a key meeting in the Oval Office. He sat down with cannabis industry leaders, Health Secretary Robert F. Kennedy Jr., and Centers for Medicare and Medicaid Services chief Mehmet Oz. Sources say this private chat sealed the deal for rescheduling.

This executive order directs U.S. Attorney General Pamela Bondi to speed up the process, aiming for completion by early 2026. It marks the biggest shift in U.S. drug policy since 1971, when marijuana landed in Schedule I alongside drugs like heroin.

The president called it a matter of “common sense.” He noted that many respected people urged him to act, highlighting how it could help those in severe pain.

Industry insiders buzzed about the news. Pot stocks jumped right after rumors leaked, showing Wall Street’s excitement.

One paragraph here to keep it snappy: Trump’s words echoed the pleas from patients and advocates who’ve long pushed for change.

What Rescheduling Really Changes

Moving cannabis to Schedule III puts it in the same group as drugs like Tylenol with codeine. This doesn’t make recreational use legal federally, but it does unlock big perks for medical purposes.

Businesses in the cannabis world get a break from harsh tax rules under Section 280E, which blocked deductions for Schedule I substances. Now, they can claim normal expenses, potentially saving millions.

Research gets a boost too. Scientists have struggled with red tape to study marijuana’s benefits. With this change, federal funding and approvals could flow easier, leading to new treatments for pain, anxiety, and more.

Here’s a quick look at key differences:

• Schedule I: No accepted medical use, high abuse potential (e.g., heroin).
• Schedule III: Accepted medical use, moderate abuse potential (e.g., certain steroids).
• Impact: Easier banking, Medicare access possible, but interstate transport still illegal.

Patients might see cannabis covered by insurance down the line, though that’s not immediate.

Trump stressed the human side: “It can make people feel much better that are living through tremendous pain and problems.”

Industry Reactions and Market Shifts

Cannabis executives cheered the order. One source close to the talks said it felt like a turning point after years of stalled progress under previous administrations.

Stocks for companies like those in the MSOS ETF surged up to 20% in the days leading up to the signing. Analysts predict the U.S. legal cannabis market, already at $31 billion in 2024, could hit $35 billion by year’s end, per data from industry trackers like BDSA.

But not everyone’s thrilled. Critics worry it doesn’t go far enough, leaving recreational users in legal limbo in states where it’s allowed.

A recent poll by Gallup in 2025 showed 70% of Americans support full legalization, up from 50% a decade ago. Trump’s move aligns with that shift but stops short.

Advocates point out how this could reduce arrests for minor possession, which hit over 500,000 in 2024 according to FBI stats.

Broader Implications and State Battles

While Trump’s order focuses on federal rules, states are forging their own paths. In Massachusetts, a ballot campaign to end the adult-use cannabis market gained steam this month, aiming for a 2026 vote. Backers argue it would curb black market sales and protect kids.

This push contrasts with Trump’s pro-medical stance, highlighting the patchwork of laws across the U.S. Over 20 states have full legalization, but federal hurdles have kept the industry in flux.

Experts say rescheduling could pave the way for more reforms. It might even lead to Medicare reimbursing cannabis for seniors, as discussed in the Oval Office meeting.

Looking ahead, the order instructs agencies to expand research on cannabidiol (CBD) too, potentially benefiting products already on shelves.

One key fact: The change won’t happen overnight. The DEA must finalize rules, with public input expected soon.

This federal step could inspire other countries to rethink their policies, given America’s influence on global drug laws.

Trump’s decision ripples through lives in powerful ways, offering hope to millions suffering from chronic conditions who turn to cannabis for relief. It sparks a fresh debate on balancing medical access with safety concerns, proving that common-sense changes can bridge divides.