US Politics
Donald Trump ‘strongly’ considering cannabis law change
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it’s investigating the financials of Elon Musk’s pro-Trump PAC or producing our latest documentary, ‘The A Word’, which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.
Read more
Donald Trump has indicated he is considering an executive order to reclassify cannabis, a move that could significantly reshape the US cannabis industry, ease criminal penalties, and unlock substantial research funding.
The potential shift would represent one of the most significant federal changes to cannabis policy in decades, reducing oversight to the level of common prescription drugs and potentially opening doors long closed to banks and investors.
“We are looking at that very strongly,” Mr Trump told reporters in the Oval Office, responding to reports of his intention to direct federal health and law enforcement agencies to treat cannabis as a Schedule III drug.
He added: “A lot of people want to see it – the reclassification – because it leads to tremendous amounts of research that can’t be done unless you reclassify.”
Currently, under the US Controlled Substances Act, cannabis is listed as a Schedule I substance, alongside drugs like heroin and ecstasy.
This classification implies a high potential for abuse and no accepted medical use, despite many local authorities permitting its medical or recreational use.
open image in gallery
A shift to Schedule III would place it alongside common prescription drugs such as Tylenol with codeine, ketamine, and testosterone.
Such a reclassification promises to reduce federal oversight, potentially lowering taxes and making it considerably easier for cannabis producers to secure vital funding.
Federal restrictions currently deter most banks and institutional investors, forcing companies to rely on costly loans or alternative lenders.
Initial reports of Mr Trump’s potential move to loosen federal restrictions on the psychoactive drug saw cannabis-related company stocks rise.
However, US-listed cannabis-linked stocks, including Canopy Growth, Organigram Global, SNDL, Aurora Cannabis, Trulieve Cannabis, and Tilray Brands, closed down between 4 per cent and 13 per cent on Monday.
Despite this, their values remain higher than before the reclassification reports first emerged last week.
A spokesperson for Aurora Cannabis told Reuters: “Should the US move to reclassify cannabis – we see this as a meaningful step forward for the global industry and one that must also come with smart regulation.”
Trulieve Cannabis declined to comment, while others did not immediately respond.
A White House official stated on Friday that “no final decisions have been made on the rescheduling of marijuana”.
This development follows the Biden administration’s request last year for the Department of Health and Human Services to review cannabis’s classification, which subsequently recommended a move to Schedule III.
The final decision now rests with the Drug Enforcement Administration (DEA).
