The U.S. Justice Department and the Drug Enforcement Administration have reclassified FDA-approved marijuana products, as well as products regulated by a state medical marijuana license, from Schedule I to Schedule III under the Controlled Substances Act.

The rescheduling follows a 2025 executive order from President Donald Trump, which called on the U.S. Attorney General to “take all necessary steps to complete the rulemaking process related to rescheduling marijuana.”

The Justice Department and the DEA are also set to begin an “expedited administrative hearing process” to consider the “broader rescheduling” of marijuana. The hearing process is set to begin on June 29.

“The Department of Justice is delivering on President Trump’s promise to expand Americans’ access to medical treatment options,” said Acting Attorney General Todd Blanche. “This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information.”

This move follows a May 2024 proposed rule from the DEA, which received 43,000 public comments. Steps toward rescheduling began with former President Joe Biden urging the U.S. Department of Health and Human Services (HHS) to review its status in 2022. The agency recommended rescheduling cannabis in August 2023.

Though full rescheduling awaits administrative hearing, the cannabis industry praised the move, pointing toward expanded research potential and a reduced tax burden.

“Rescheduling medical cannabis is a long-overdue step that finally brings federal policy closer to the science,” said Cresco Labs CEO Charlie Bachtell. “For the first time in history, our federal government is classifying cannabis as medicine, validating the experiences of millions of patients who rely on it to help manage serious conditions and live better lives. This decision opens the door to expanded research, better data, more informed care, and broader access for those who need it most. It is a win for all patients nationwide and will usher in a new era of healthcare, where cannabis is treated like any other medicine.”

Tilray Brands CEO Irwin D. Simon agreed, citing consumers’ many uses for medical cannabis.

“This is about people: patients fighting cancer, seniors managing chronic pain, veterans navigating PTSD, and children with epilepsy whose families have long sought safe, effective options. For decades, they have turned to medical cannabis,” Simon said. “Today, the system begins to catch up with them. Rescheduling has the potential to accelerate clinical research, broaden access, and elevate the quality, consistency, and safety standards that establish medical cannabis as a legitimate pillar of modern healthcare.”

GŪD Essence CEO Jasmine Johnson notes rescheduling could ease the cannabis industry’s financial operations, but she also points the long journey toward full legalization.

“Moving cannabis to Schedule III would primarily impact the financial side of the business, particularly by alleviating the burden of IRS 280E, which has historically prevented operators from deducting ordinary business expenses,” Johnson said. “That alone could unlock capital, improve margins and allow companies to reinvest in operations, quality and expansion. However, rescheduling does not legalize cannabis federally, nor does it resolve the core challenges in highly regulated state markets like Florida – where vertical integration, limited licenses and high barriers to entry still shape the competitive landscape.”