Trump to Reclassify Marijuana as Schedule III Drug
Sunday, December 14, 2025
Executive order expected Monday would shift cannabis to less-regulated drug category, boosting industry investment
President Trump is expected to sign an executive order as soon as Monday reclassifying marijuana from Schedule I to Schedule III, moving it from the same category as heroin to a tier with steroids and Tylenol with codeine.
The reclassification would allow cannabis companies to benefit from different tax regulations and encourage investment, though full legalization would still require Congressional action. Cannabis stocks surged on the news, with Tilray shares jumping over 44% in after-hours trading. Industry experts predict the DEA would finalize the proposed rule by summer 2025, marking what advocates call the beginning of dismantling nearly a century of outdated drug policies.
Key Facts
- Executive order expected as soon as Monday, December 16, 2025
- Marijuana would move from Schedule I (with heroin) to Schedule III (with steroids)
- Tilray stock jumped 44.13% in after-hours trading following the report
- DEA expected to finalize reclassification rule by summer 2025
- Change would allow banks to serve cannabis sector and provide different tax treatment
- Industry advocates call it 'partial victory' as full legalization still requires Congressional action