The president signed an executive order directing a sped-up federal review that could move cannabis from Schedule I toward Schedule III, easing research barriers but not legalizing recreational use. The order calls for more study of CBD and may unlock tax and banking benefits for cannabis businesses, yet it contains no measures to expunge convictions or settle state-federal conflicts. Lasting change—legalization, decriminalization, and reconciliation of state and federal law—would require congressional action.
Trump’s Cannabis Order Is A Partial Step — Why Full Federal Legalization Still Matters
President Donald Trump signed an executive order directing a faster federal review that could move cannabis out of the most restrictive category of drugs — a notable policy shift that stops short of full legalization.
What the Order Does
It expedites a DEA review. The order instructs the Department of Justice and the Drug Enforcement Administration to accelerate a reclassification review that had been initiated previously. The president cannot unilaterally change the Controlled Substances Act schedules; any formal rescheduling requires administrative review by federal agencies and a rulemaking process.
It calls for more research on CBD. The order asks federal health agencies to study the medical potential of cannabidiol (CBD), a non-intoxicating compound in cannabis, and to clarify pathways for scientific study.
What the Order Does Not Do
It does not legalize recreational cannabis. Reclassification toward Schedule III — the federal bracket that includes some prescription drugs — would not automatically legalize adult-use sales or production. Under federal law, cannabis would still be controlled, and many state-legal businesses would remain in tension with federal statutes.
It does not address convictions or the history of enforcement. The order contains no provisions to expunge prior convictions, provide clemency, or reckoning with the long impacts of the war on drugs on communities, particularly communities of color.
Wareham, MA - January 19: A bunch of Cookie and Cream with Delta 9 have just been dried and await curing at Trade Roots, a Wareham-based Cannabis dispensary that grows cannabis plants for making CBD with THC in their greenhouse, and manufactures CBD products for sale in their shop and distribution to buyers. (Photo by John Tlumacki/The Boston Globe via Getty Images)(John Tlumacki / The Boston Globe via Getty Images)
Practical Effects To Watch
Tax and banking relief could follow. One of the clearest near-term benefits from rescheduling would be relief from IRS Section 280E restrictions that now prevent cannabis businesses from deducting ordinary business expenses. Rescheduling might also improve access to banking, allowing more cannabis firms to open accounts and obtain credit.
State-federal conflicts remain unresolved. Cannabis is legal for adult use in 24 states and regulated medically in 40 states. Even with a Schedule III designation, dispensaries operating under state law could still face federal enforcement risk unless Congress changes the statute or provides clear protections.
“This order is a step — not the finish line.” It eases research and may open business pathways but leaves intact deeper legal, social and equity issues tied to decades of prohibition.
Politics and Policy
The move has clear political dimensions. Public support for legalization has risen dramatically over the past two decades, and the White House emphasized polling in the announcement. Independent data show long-term majority support for legalization, which makes cannabis reform a bipartisan issue in practice even if legislative change remains politically complex.
Why Congress Still Matters. Only Congress can fully resolve the state-federal conflict by decriminalizing cannabis, creating federal regulatory guardrails, and funding programs for restorative justice and economic inclusion. The executive order can speed research and change administrative practice, but lasting reform requires legislation.
Bottom line: The executive order is a meaningful administrative step that could improve research and business conditions, but it leaves unresolved the larger legal and social questions that only federal legislation can address.
