President Donald Trump said Monday he is considering an executive order to reclassify marijuana as a less dangerous drug — a move that could reshape the cannabis industry, ease criminal penalties and free up billions of dollars in funding for research.
The move would represent one of the most significant federal changes to marijuana policy in decades, reducing oversight at the level of common prescription drugs and potentially opening long-closed doors to banks and investors.
“We’re looking at this very closely,” Trump told reporters in the Oval Office, responding to reports that he was exploring the possibility of ordering federal health and law enforcement agencies to treat marijuana as a Schedule 3 drug.
“A LOT OF PEOPLE WANT TO SEE THIS,” TRUMP SAYS
“A lot of people want to see this — reclassification — because it leads to enormous amounts of research that can’t be done without reclassification,” he said.
Under the U.S. Controlled Substances Act, marijuana is listed as a Schedule 1 substance, meaning it has a high potential for abuse and currently has no accepted medical uses. Local authorities generally impose looser regulations on marijuana, allowing its medical or recreational use.
Early reports that Trump may ease federal restrictions on psychoactive drugs sent shares of cannabis-related companies soaring. They will benefit from manufacturing more marijuana products.
The move could reshape the industry by potentially lowering taxes and making it easier to obtain financing.
Financing remains one of the biggest challenges for cannabis producers, as federal restrictions keep most banks and institutional investors out of the sector, forcing marijuana growers to turn to expensive loans or alternative lenders.
A White House official said Friday that “no final decision has been made regarding the postponement of marijuana.”
Last year, the Biden administration asked the Department of Health and Human Services to review the marijuana recommendation, and the agency recommended that it be moved to the Schedule 3 recommendation.
The Drug Enforcement Administration must review the recommendation and will decide on reclassification.
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