Trump's Rescheduling of Cannabis: What to Expect Next for the Industry

What Comes Next After Trump's Expected Marijuana Rescheduling?

On December 15, 2025, President Donald Trump is anticipated to announce a significant change in the federal classification of cannabis, potentially moving it from a Schedule I to a Schedule III substance under the Controlled Substances Act. This move is expected to have substantial implications for the cannabis industry, which was worth approximately $32 billion in 2025. But what exactly does this change mean for businesses, consumers, and regulators?

Understanding Cannabis Rescheduling: The Impacts

The rescheduling of cannabis to Schedule III would acknowledge its medical value and potentially reduce regulatory burdens for cannabis-related businesses. Currently listed alongside more dangerous substances, such as heroin, cannabis' new classification could alleviate sections of the Internal Revenue Code that restrict business expense deductions under 280E, a regulation that presently affects many cannabis businesses' profitability. With the potential for significant tax relief, companies may find themselves with improved cash flow, allowing for investments in research and development, branding, and more.

However, it is essential to clarify what this rescheduling does not achieve. Even with a Schedule III classification, cannabis will not be federally legal. Fundamental challenges regarding banking, interstate commerce, and investment will persist. As noted by Terry Mendez of Safe Harbor Financial, compliance issues remain intact under federal law, meaning financial institutions will still be cautious about engaging with cannabis businesses.

Beyond Business: Public Safety and Legislative Balancing Acts

As cannabis advocates celebrate the anticipated changes, concerns about public safety have surfaced significantly. Organizations within the drug testing industry, like the National Drug & Alcohol Screening Association (NDASA), have voiced apprehensions. They argue that this rescheduling could jeopardize the safety of the transportation sector, as testing protocols for THC would no longer be mandated for those in safety-sensitive positions. Emilee Avery from NDASA highlights that lifting testing requirements for drivers and pilots could expose the public to unforeseen risks.

Moreover, many congressional members are engaging in deep discussions regarding the implications of rescheduling on the workforce and community safety, indicating this reform will not be without its potential hazards. As lawmakers debate, the balance between evolving cannabis legislation and maintaining public safety will be critical.

Paths Forward: Strategic Planning for the Cannabis Industry

To navigate this new regulatory landscape, stakeholders in the cannabis industry are encouraged to prepare accordingly. Monitoring official communications from the DEA and DOJ will be vital for understanding potential shifts in compliance and business strategy. Engaging with legal and tax advisors can provide clarity on the nuanced impacts of these changes, allowing businesses to adapt their operations to the new realities of the cannabis market.

Final Thoughts: The Ongoing Evolution of Cannabis Legislation

The anticipated executive action by President Trump marks a monumental step in cannabis policy reform, but it also opens up a complex discussion on the intersection of healthcare, commerce, and public safety. For cannabis industry practitioners and advocates alike, this moment demands not only optimism regarding potential benefits but also a vigilant acceptance of the responsibilities that accompany market changes. As stakeholders respond to these impending shifts, the evolving cannabis landscape may embody both challenges and opportunities.