President Donald Trump confirmed this week that his administration is actively reviewing the possibility of reclassifying marijuana as a less dangerous drug. This move would follow through on a proposal made under the Biden administration, which began the process of shifting cannabis from Schedule I to Schedule III in 2024. However, that process was not completed before President Biden left office.
During a press conference on Monday related to federal oversight of Washington, D.C.’s police force, Trump told reporters that the administration is currently evaluating reclassification and plans to make a determination in the coming weeks.
New details from a report by The Wall Street Journal suggest that this policy shift is not only under review publicly but also being discussed privately with major players in the cannabis industry.
Cannabis Industry Leaders Lobbied Trump at Private Fundraiser
According to the Wall Street Journal, President Trump spoke about the idea of reclassifying marijuana during a high-profile fundraiser held at his New Jersey golf club earlier this month. The event cost $1 million per plate and attracted some of the most influential figures in the cannabis space.
Among the attendees was Kim Rivers, the chief executive of Trulieve, which is one of the largest marijuana companies in the United States. Rivers reportedly encouraged President Trump to consider reclassification and to support expanded medical marijuana research. Sources familiar with the private event said that Trump expressed genuine interest in the issue during those conversations, though the individuals asked not to be named in the report.
This new layer of lobbying highlights the increasing role the cannabis industry is playing in shaping federal policy, especially as business leaders seek regulatory relief and financial parity with other legal industries.
What Reclassifying Marijuana as a Schedule III Drug Would Mean
If marijuana is reclassified from Schedule I to Schedule III, it would not become federally legal in the same way alcohol or tobacco is. However, the change would bring significant policy and financial implications.
Reclassification would reduce the criminal penalties associated with marijuana possession and distribution at the federal level. It would also allow for broader medical research into cannabis and create opportunities for pharmaceutical companies to become more involved in producing cannabis-based treatments. The legal cannabis industry would be allowed to take advantage of standard business tax deductions, which are currently denied under the U.S. tax code because marijuana remains a Schedule I substance.
At present, Schedule I drugs are considered by the Drug Enforcement Administration to have no accepted medical use and a high potential for abuse. This category includes substances like heroin, LSD, and methamphetamine. Moving marijuana to Schedule III would align it with substances such as ketamine, testosterone, and Tylenol with codeine, all of which are recognized to have medical applications and a lower risk of abuse.
The Financial Stakes Are High for the Cannabis Industry
The U.S. cannabis industry is projected to generate $34 billion in revenue this year. Despite this growth, businesses operating in the marijuana space are currently blocked from taking ordinary tax deductions because of marijuana’s classification under Schedule I. Reclassification would remove this tax barrier and could significantly increase profitability across the industry.
Investors and executives in the cannabis space have long argued that reform is needed to level the playing field and attract greater investment. Opening the door to traditional banking, tax relief, and medical research could unlock new economic potential and accelerate the pace of innovation within the sector.
Trump’s Past Marijuana Stance and Industry Ties
Although President Trump is now signaling openness to rescheduling marijuana, his views have evolved over time. During his first term in office, Trump met with two Republican donors, Lev Parnas and Igor Fruman, at a private dinner in 2018. At the time, the two Soviet-born businessmen were seeking to launch a marijuana business in states where recreational cannabis was legal.
In a secretly recorded conversation, Trump expressed skepticism about cannabis, claiming that its use might lead to lower intelligence. He said marijuana “does cause an IQ problem” and suggested that users “lose IQ points.” That same conversation also included a recommendation from Parnas to remove the U.S. ambassador to Ukraine, Marie Yovanovitch, a move that would later play a role in Trump’s first impeachment inquiry.
Parnas and Fruman were later convicted of campaign finance violations after being found guilty of secretly using money from a Russian oligarch to make large political donations, including to Trump-aligned political committees. Their goal was to gain influence and favors for their marijuana venture.
Despite the controversies of his first term, Trump’s current tone on cannabis reform appears more pragmatic, especially as the political and financial landscape surrounding the issue has shifted.
What to Expect Next in 2025
The Biden administration began the process of marijuana rescheduling in 2024, but did not complete it before leaving office. President Trump now has the authority to continue or halt that process. His recent statements suggest that a decision could come before the end of 2025, depending on the outcome of the review currently underway.
If rescheduling moves forward, it would mark the most significant shift in federal cannabis policy in more than 50 years. Such a decision could reshape the legal landscape for businesses, expand access to medical cannabis, and serve as a cornerstone of Trump’s legacy on domestic policy.
All eyes are now on the Department of Justice and the Drug Enforcement Administration, which would be responsible for formally carrying out any reclassification. Until then, the cannabis industry, legalization advocates, and policymakers will be closely watching for further signals from the White House.
Conclusion
President Trump’s renewed focus on marijuana rescheduling comes at a pivotal moment for cannabis reform in the United States. While the move would not legalize cannabis outright, it could ease legal burdens, open new avenues for research, and provide long-sought financial relief for cannabis businesses.
With political support growing across party lines and industry pressure mounting, federal marijuana policy may be on the verge of its biggest change in decades. Whether driven by economic interests, political strategy, or shifting public opinion, the Trump administration’s next steps will be critical in shaping the future of cannabis in America.
For more information, reach out to Joshua S. Bauchner at jbauchner@mblawfirm.com or to Natalie C. Diaz at ndiaz@mblawfirm.com.