Acting Attorney General Todd Blanche signed an order on Thursday officially reclassifying state-licensed medical marijuana from a Schedule I to a less-regulated Schedule III drug, following President Donald Trump’s order to do so in December.

The rescheduling move will relax federal regulations on FDA-approved cannabis products, grouping them with substances such as anabolic steroids and ketamine rather than substances like heroin and LSD. Schedule III substances have an accepted medical use, while Schedule I substances, which have the highest abuse rates, do not have an accepted medical use.

“The Department of Justice is delivering on President Trump’s promise to expand Americans’ access to medical treatment options,” Blanche said in a statement. “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.”

Rescheduling certain marijuana products to a Schedule III substance does not legalize them, but instead creates tax benefits for cannabis companies, lessens criminal penalties for certain offenses, and eases regulations on academic marijuana research.

Blanche’s order officially reclassifies marijuana products approved by the FDA and regulated by state medical marijuana licenses. It also gets the ball rolling on a possible broad-sweep cannabis reclassification by scheduling an administrative hearing on June 29 to weigh the broader reclassification of marijuana to a Schedule III substance.

“Under the direction of President Trump and Acting Attorney General Blanche, [Drug Enforcement Administration] is expeditiously moving forward with the administrative hearing process — bringing consistency and oversight to an area that has lacked both,” DEA Administrator Terry Cole said.

In Cole’s statement, he also said that the DEA remains “committed to fighting drug cartels, the fentanyl epidemic, and protecting American lives.”

The move marks a pivotal moment for the marijuana industry, as cannabis advocates celebrate the Trump administration’s decision to embrace the reclassification, signaling a move towards a greater normalization of the substance in medical spaces, research, and society more broadly.

Boris Jordan, Chairman and CEO of Curaleaf, one of the world’s largest cannabis companies, thanked Trump and Blanch for their push on the policy.

“This is the biggest legislative change for cannabis in 55 years, and a clear signal that federal policy is beginning to catch up with science, public opinion, and economic realities,” Jordan said in a statement. “This decision carries meaningful implications for the future of the industry and provides medical patients with the critical access that they need.”

Drug safety advocates are, however, raising alarm bells over the move. Kevin Sabet, of Smart Approaches to Marijuana, railed against the Trump administration as the “most pro-drug administration in our history.” He vowed to take legal action on the rescheduling move.

“Policy is now being dictated by marijuana CEOs, psychedelics investors, and podcasters in active addiction — it is a travesty and injustice to the American people of unprecedented proportions,” Sabet said in a statement to the Washington Examiner.

“Research into these drugs is necessary, but there are many ways to increase our knowledge without giving a tax break to Big Weed and sending a confusing message about marijuana’s harms to the American public. Today’s marijuana is more dangerous than previously thought, not less dangerous,” Sabet said.

The resecheduling move also comes at a complex, contentious time for marijuana’s cousin, hemp, which is also a derivative of the cannabis sativa plant. A 2025 minibus agricultural appropriations bill included an 11th-hour provision effectively banning hemp products in the U.S. starting in Nov. 2026.

But at the same time as this hemp ban approaches, the Centers for Medicare and Medicaid Services has launched a new pilot program for hemp-derived CBD and THC products for symptom control. As the Trump administration looks at rescheduling marijuana, the industry will also be watching closely to see how or if the policy move affects hemp.