BY MIRABEL ODETA
The U.S. Department of Justice announced on Thursday that it will immediately begin loosening restrictions on certain marijuana products and accelerate efforts to reclassify the drug as less dangerous, marking one of the most significant shifts in U.S. drug policy in decades.
While the move stops short of fully legalizing marijuana across the United States, it represents a major turning point for an industry that has long operated under conflicting state and federal laws. The cannabis sector, currently valued at around $47 billion, has faced persistent federal barriers despite widespread legalization at the state level for both medical and recreational use.
Under the new policy, state-regulated medical marijuana products will be reclassified from the most restrictive category of controlled substances—previously reserved for drugs considered highly addictive with no accepted medical use, such as heroin—to a less restrictive classification. This new category includes substances with low to moderate potential for abuse, such as certain prescription painkillers, ketamine, and testosterone. Marijuana products approved by the U.S. Food and Drug Administration will also fall under this updated classification.
Acting Attorney General Todd Blanche confirmed that the federal government will also fast-track a broader review process aimed at reclassifying marijuana in all its forms. This broader effort is expected to involve scientific evaluation, expert testimony, and regulatory review.
“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,” Blanche said in an official statement.
The decision follows a December executive order issued by President Donald Trump directing the Justice Department to ease marijuana restrictions. The administration has framed the move as part of a broader effort to align federal policy more closely with scientific research and evolving public opinion.
If fully implemented, the changes could significantly reshape the cannabis industry. Analysts expect reduced regulatory hurdles, expanded access to banking and financing, and fewer tax burdens for businesses. Companies operating in the space—including Canopy Growth, Tilray Brands, and Trulieve Cannabis—stand to benefit from a more favorable federal framework.
Beyond consumer products, many cannabis companies are also investing heavily in research into potential medical applications, including pain management, cancer-related symptoms, anxiety disorders, and other conditions. The reclassification is expected to make such research significantly easier by removing longstanding legal and administrative barriers.
Financial markets initially reacted positively to the announcement. Shares of U.S.-listed cannabis companies rose between 6% and 13% shortly after the news broke. However, those gains were later reversed as investors reassessed the immediate impact of the policy changes, which remain limited in scope for now.
Industry leaders nonetheless welcomed the development. Irwin Simon, CEO of Tilray Brands, described the move as a “pivotal moment,” stating that federal policy is beginning to align with science, medicine, and patient needs.
For years, marijuana’s classification as a Schedule I substance—indicating high potential for abuse and no accepted medical use—has been widely criticized as outdated, especially given the rapid expansion of legal cannabis markets at the state level. Currently, 24 states and the District of Columbia allow recreational use, while 40 states have legalized medical marijuana, with only a small number maintaining full prohibition.
Market projections suggest that legal cannabis sales in the United States could exceed $47 billion by 2026, reflecting growing consumer demand and continued state-level legalization efforts.
The policy shift also builds on earlier actions taken after Trump’s executive order. The Centers for Medicare and Medicaid Services has already begun allowing certain eligible Medicare beneficiaries to use hemp-derived products, including cannabidiol (CBD), under medical supervision.
Still, the president indicated that further legislative action is needed. In a recent social media post, Trump called on Congress to update federal laws to expand access to a broader range of CBD products while maintaining safeguards against potentially harmful substances.
Marijuana remains the most widely used illicit drug in the United States and globally. According to the Centers for Disease Control and Prevention, nearly one in five Americans report using marijuana annually. Despite its widespread use, millions have faced arrest and prosecution for possession, even as legal cannabis businesses continue to grow and operate publicly.
This is not the first attempt at federal reform. The administration of Joe Biden initiated a similar reclassification effort in 2024, but the process was not completed before Trump returned to office. The U.S. Drug Enforcement Administration subsequently halted that earlier initiative.
The Justice Department has now set June 29 as the date to begin formal proceedings, which will include gathering scientific data, expert opinions, and public input to guide the reclassification process.
Despite growing support for reform, the policy shift continues to face opposition. Critics argue that easing marijuana restrictions could lead to increased use among minors, reduced workplace productivity, and heightened risks on the roads.
Among those voicing concern is Tom Cotton, a Republican senator from Arkansas, who warned that modern marijuana is significantly more potent than in previous decades. He argued that reclassification could contribute to mental health issues, antisocial behavior, and traffic-related fatalities.
Even with divided opinions, the Justice Department’s move signals a major evolution in federal drug policy—one that could redefine how marijuana is regulated, researched, and used across the United States in the years ahead.
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