Historic Federal Cannabis Reform: Trump Signs Executive Order Rescheduling Marijuana to Schedule III
Published: December 18, 2025
In a historic shift in U.S. cannabis policy, President Donald J. Trump has signed an executive order directing the federal government to reclassify cannabis from a Schedule I to a Schedule III controlled substance under the Controlled Substances Act (CSA). This marks the most significant federal change to cannabis regulation in decades and represents a major turning point for medical research, cannabis businesses, and the broader hemp and cannabinoid industry.
What Does Moving Cannabis From Schedule I to Schedule III Mean?
For more than 50 years, marijuana was classified as a Schedule I substance — a category reserved for drugs deemed to have no accepted medical use and a high potential for abuse. This placed cannabis alongside substances like heroin and LSD.
By moving cannabis to Schedule III, the federal government is formally acknowledging that marijuana has accepted medical uses and a lower potential for abuse than previously classified. Schedule III substances include certain prescription medications that are legally prescribed and regulated.
It is important to note that this executive order does not fully legalize cannabis at the federal level. Instead, it significantly reduces regulatory barriers and signals a shift in how cannabis is treated under federal law.
Why This Matters for Medical Cannabis and Research
One of the most impactful outcomes of cannabis rescheduling is expanded access to medical research. Under Schedule I, cannabis research faced extreme limitations, requiring special approvals and limited sourcing options.
With cannabis now classified as Schedule III, universities, hospitals, and research institutions will have greater freedom to study cannabis and cannabinoids. This may accelerate research into medical applications such as pain management, inflammation, neurological disorders, and other therapeutic uses.
Major Tax Relief for Cannabis Businesses
Rescheduling cannabis may also provide substantial financial relief for cannabis businesses. Under Schedule I status, companies were subject to IRS Code Section 280E, which prevents businesses from deducting ordinary operating expenses.
Because Schedule III substances are not subject to 280E, cannabis companies may now be able to deduct expenses like payroll, rent, marketing, and logistics. This change could significantly improve profitability and stability across the industry.
What This Means for Hemp, THCa, and CBD
This executive order further reinforces the federal government’s evolving stance on hemp-derived cannabinoids. Products such as THCa flower and CBD — when compliant with the 2018 Farm Bill — remain federally legal and continue to gain mainstream acceptance.
At ThcaByMail.com, we specialize in high-quality, federally compliant hemp-derived THCa products, offering customers access to premium flower and concentrates that meet legal standards while delivering exceptional quality.
What This Executive Order Does NOT Do
- It does not federally legalize recreational marijuana
- It does not automatically allow interstate cannabis commerce
- It does not expunge past cannabis convictions
- It does not eliminate all banking and regulatory challenges overnight
While rescheduling is a massive step forward, full federal legalization and comprehensive reform will still require Congressional action.
Why This Is a Turning Point for the Cannabis Industry
President Trump’s executive order marks a fundamental shift in federal cannabis policy. By acknowledging medical value and reducing regulatory pressure, this move opens the door for expanded research, improved business operations, and broader acceptance of cannabinoid-based products.
As federal attitudes continue to evolve, hemp-derived products such as THCa are positioned at the forefront of this transition — offering consumers legal access while the broader cannabis framework continues to modernize.
Stay Informed With ThcaByMail.com
We will continue to monitor federal cannabis developments and provide up-to-date insights on legalization, compliance, and product availability. For premium THCa flower, concentrates, and federally legal hemp products, visit:
Frequently Asked Questions
Did Trump legalize cannabis federally?
No. The executive order does not federally legalize cannabis. It reclassifies marijuana from Schedule I to Schedule III, which reduces restrictions but does not create nationwide legalization.
What does Schedule III cannabis mean?
Schedule III means cannabis is recognized as having accepted medical uses and a lower potential for abuse. This allows for expanded research and reduces certain federal penalties.
Does rescheduling cannabis remove 280E taxes?
Yes. Because Schedule III substances are not subject to IRS Code Section 280E, cannabis businesses may be able to deduct normal business expenses such as rent, payroll, and marketing.
Does this affect hemp-derived THCa?
Hemp-derived THCa products that comply with the 2018 Farm Bill remain federally legal. This executive order further supports the federal acknowledgment of cannabinoid-based products.
Can cannabis companies bank now?
Rescheduling alone does not automatically grant full banking access. However, it reduces regulatory risk and may encourage more financial institutions to work with cannabis-related businesses.
Will this lead to full legalization?
Rescheduling is a major step forward, but full federal legalization would still require Congressional action. This executive order signals changing federal attitudes toward cannabis policy.
