DOJ Reclassifies Medical Marijuana as Schedule III Drug. Trump Calls on Congress to Act on CBD the Same Day.

Acting Attorney General Todd Blanche signed an order on April 23 immediately reclassifying state-licensed medical marijuana and FDA-approved marijuana products from Schedule I to Schedule III, marking the most significant federal drug policy shift in more than 50 years, as President Trump separately called on Congress the same day to pass legislation expanding access to full-spectrum CBD products.

Acting Attorney General Todd Blanche signed a final order on April 23 placing FDA-approved marijuana products and all marijuana regulated under a state medical marijuana license immediately into Schedule III of the Controlled Substances Act. The action removes medical marijuana from Schedule I, a classification it has shared with heroin, LSD, and ecstasy since 1970, and places it in the same tier as ketamine, anabolic steroids, and Tylenol with codeine. Trump signed a separate executive order on Saturday directing federal agencies to boost research and relax restrictions on psychedelics including ibogaine.

DOJ Marijuana Rescheduling Splits the Plant Into Two Federal Categories

The order applies a two-track approach. Phase one immediately reclassifies state-licensed medical cannabis and FDA-approved marijuana products under a United Nations treaty compliance pathway that bypasses the standard multi-year rulemaking process. Phase two initiates a new, expedited DEA administrative hearing beginning June 29 to evaluate the broader rescheduling of all marijuana, with a July 15 deadline for conclusion. The order also cancels the Biden-era hearing process that had been stalled since January 2025 following an interlocutory appeal. “The Department of Justice is delivering on President Trump’s promise to expand Americans’ access to medical treatment options,” Blanche said in a statement. The 280E tax provision, which had applied only to Schedule I and II substances, will no longer affect qualifying medical marijuana operators, removing a tax burden that NPR reported had driven effective federal tax rates as high as 70% or more for some cannabis companies. Trulieve CEO Kim Rivers said Trump and Blanche had “delivered” on a campaign promise, calling it a clear signal that federal policy is beginning to catch up with science and public opinion.

Trump Calls on Congress to Act on CBD the Same Day

On the same day as the DOJ order, Trump posted on Truth Social calling on Congress to pass legislation expanding access to full-spectrum CBD products. “I am calling on Congress to update the Law to ensure that Americans can continue to access the full-spectrum CBD products they have come to rely on, and that help them, while preserving Congress’s intent to restrict the sale of products that pose Health risks,” Trump wrote, adding that “we must get this done RIGHT and FAST, especially for those who saw that CBD helps them.” The dual action, one through executive authority and one calling for legislative action, reflects the administration’s parallel strategy of using both the executive and legislative branches to advance drug policy reform. Critics, including the advocacy group Smart Approaches to Marijuana, immediately announced legal action against the rescheduling order, arguing it could encourage recreational use of a harmful drug. Colorado cannabis attorney Rachel Gillette called Thursday’s order a step in the right direction but said it opens more questions than it answers, particularly for businesses that hold both recreational and medical licenses.

What Rescheduling Means for Banking and Financial Access

One of the most consequential practical effects of rescheduling is on banking access. Cannabis businesses have historically operated largely in cash because the Schedule I classification made most banks unwilling to serve them, fearing federal liability exposure. As crypto.news reported, the Federal Reserve has already been moving to open banking infrastructure to regulated industries under the current administration, rescinding guidance that had blocked certain banks from serving non-traditional financial clients. Schedule III classification removes a major federal legal barrier that banks cited when declining cannabis accounts. As crypto.news documented, the FDIC similarly lifted its requirement that banks obtain prior approval before engaging with regulated financial activities, a pattern of institutional deregulation that rescheduling now extends into the cannabis sector. The order does not legalize recreational marijuana under federal law, and any marijuana that is not FDA-approved or state-licensed medically remains on Schedule I, leaving a fragmented two-tier federal framework that analysts say will create significant compliance complexity until the June hearing produces a broader ruling.

The order explicitly states that any form of marijuana outside an FDA-approved drug product or a state medical marijuana license “remains a schedule I controlled substance,” meaning operators with combined recreational and medical licenses face unresolved legal ambiguity until the DEA hearing concludes.