Cannabis Rescheduling Could Happen Today. Don’t Call It Legalization.

The Trump administration is preparing to move cannabis from Schedule I to Schedule III of the Controlled Substances Act as soon as today, according to reporting from Axios. This would mark the most significant federal cannabis policy shift in decades. It is not legalization. Here’s what you need to know right now.

As of publication, cannabis rescheduling has not been officially announced. No final rule had been publicly issued. This story will be updated as developments occur.

The Trump administration is prepared to move forward with cannabis rescheduling, Axios reported Wednesday, citing an administration official familiar with the matter. MJBizDaily confirmed the reporting through two sources close to the process. “Today’s the day,” one source told the outlet, while adding that “some process” still remains ahead.

The move follows a December 18 executive order in which President Trump directed the attorney general to complete the rescheduling process “in the most expeditious manner possible.” Trump himself complained just days ago, during a Saturday signing ceremony for a separate psychedelics order, that federal agencies were “slow-walking” him on cannabis. “You’re going to get the rescheduling done, right, please?” he said, apparently addressing a DOJ or White House official in the Oval Office.

The rescheduling process has a longer history. The Biden administration launched a formal review in 2022. In 2023, Health and Human Services concluded that cannabis has accepted medical use and recommended Schedule III. The DEA process stalled. Hearings were delayed. Nothing was finalized before Trump took office for his second term.

What Schedule III actually means

Cannabis is currently classified as Schedule I, the same category as heroin, LSD and ecstasy — defined as having no accepted medical use. Schedule III drugs, such as ketamine and anabolic steroids, are recognized as having medical value but remain controlled. The reclassification would move cannabis into that category. State-legal markets would likely continue operating much as they do now, though legal tensions with federal law would remain. Federal prohibition would remain in place.

The 280E question — the real immediate stakes

For cannabis businesses, the most concrete near-term impact is the potential end of IRS code 280E. Because cannabis remains Schedule I or II, plant-touching businesses currently cannot deduct ordinary business expenses — rent, payroll, utilities — from their federal taxes. That has been devastating for independent operators. If finalized, rescheduling to Schedule III would remove that restriction and could provide major tax relief across the industry.

What comes next

The rescheduling process is not a single signature. The Drug Enforcement Administration still has to complete the rulemaking process, which could include a new administrative hearing. Legal challenges from opponents of cannabis reform are expected. Two Republican senators filed an amendment in January to block rescheduling, though it was not adopted. A Congressional Research Service report has noted that the DOJ could, in theory, reject or delay the president’s directive by restarting the scientific review process.

The process is being overseen by Acting Attorney General Todd Blanche, who said during his confirmation process that he would “give the matter careful consideration after conferring with all relevant stakeholders.”

Rescheduling is movement. It is not freedom.

High Times, December 2025

High Times has covered the rescheduling debate extensively. We called this moment before it arrived, and our position has not changed. Schedule III is a meaningful step for the industry, particularly on taxes. It is not the end of federal prohibition, it does not repair the damage done by the war on drugs, and it does not free a single person still incarcerated for cannabis. The fight for full descheduling and legalization continues.

For deeper context, read our full coverage: Cannabis Rescheduling Questions Answered | What the Executive Order Doesn’t Do | Why Schedule III Could Be a Trap | Rescheduling Is Just the Opening Move

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