US labels state-licensed marijuana as less dangerous drug

Chris Strohm, Bloomberg News on Apr 23, 2026

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WASHINGTON — The U.S. Justice Department reclassified state-regulated marijuana as a less dangerous drug, a major shift that could dramatically increase legal cannabis sales in the coming years.

The directive signed by acting Attorney General Todd Blanche moved licensed marijuana products from Schedule I — the same federal category as heroin and LSD — to the less strictly controlled Schedule III. The action stops short of fully legalizing the drug for recreational use nationwide, but it meets the demands of many advocates who have long argued for looser restrictions.

Blanche’s order also set a hearing process to begin on June 29 for a broader reclassification of marijuana.

“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.”

The move is likely to bolster support for President Donald Trump from young men who backed his election in 2024, but whose support for the administration has softened amid the Iran war and high consumer prices. However, it’s also likely to rankle more traditional conservatives and might become a fracture for the Republican party in upcoming elections.

Shares of cannabis stocks advanced on Thursday, including Tilray Brands Inc. rising as much as 19%.

Trump in December ordered the department to finish the process of moving cannabis from Schedule I under the Controlled Substances Act to Schedule III, a group that includes less-addictive drugs such as codeine, ketamine and testosterone.

The move could remove burdensome taxes paid by companies that sell pot in states where it’s legal and open the door for more clinical research on the drug. The department under President Joe Biden formally recommended reclassification in 2024, but progress stalled.

Blanche placed products approved by the Federal Drug Administration containing marijuana and medicinal marijuana subject to a state-issued licensing in the Schedule III category under his authority to reschedule drugs, according to the Justice Department.

Separately, the department announced it will revive and expedite a rulemaking process to fully remove marijuana from Schedule I and place it into Schedule III under the Controlled Substances Act, the department said.

DEA Hearing

The Drug Enforcement Administration plans to hold a new administrative hearing on June 29 regarding the proposed rescheduling of marijuana, the department said.

Thursday’s order “is reflective of the Department of Justice’s continued dedication to common-sense policies and the prioritization of the safety and well-being of all Americans,” the department said.

Last week, Trump criticized the lack of movement on rescheduling marijuana while he was signing an executive order to expedite research and access to psychedelics.

“Will you get the rescheduling done, please?” Trump said, pointing to the government officials and civilians assembled behind him. “They’re slow walking me on rescheduling.”

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—With assistance from Redd Brown and Carmen Reinicke.