The cannabis policy landscape in the United States has shifted dramatically in late 2025, with the Trump administration signaling active support for the de-scheduling of cannabis under federal law. This represents one of the most consequential federal cannabis developments in decades, with major implications for state markets, banking access, criminal justice, interstate commerce, and public health policy.
A Historic Pivot: The Trump Administration Embraces Cannabis De-Scheduling
In December 2025, multiple reports confirmed that the Trump administration is advancing efforts to remove cannabis from the Controlled Substances Act (CSA) entirely — a policy known as de-scheduling. Unlike “rescheduling,” which would move cannabis to a lower tier (such as Schedule II or III), de-scheduling removes it from the CSA altogether, treating it more like alcohol or tobacco at the federal level.
According to Reuters reporting on December 12, President Trump is preparing executive action aimed at easing federal restrictions, alongside urging Congress to pass de-scheduling legislation.
Why this matters:
- De-scheduling would completely eliminate federal criminal penalties for cannabis possession, sale, and cultivation.
- The DEA would no longer regulate cannabis.
- States could continue setting their own rules, but federal interference would end.
- Cannabis businesses would finally gain access to normal banking, loans, and tax deductions.
This represents the most sweeping federal cannabis reform proposal in U.S. history.
Key Federal Bills and Legislative Actions in 2025
Several bills and legislative proposals support the administration’s push — some carried over from 2024 sessions and others newly introduced in 2025. Here are the most relevant:
1. Congressional De-Scheduling Bill (2025 Draft Legislation)
In early 2025, congressional allies of the administration drafted a Cannabis De-Scheduling and States’ Rights Act, expected to be formally introduced in the first quarter of 2026.
Bill elements under discussion:
- Remove cannabis from the CSA entirely.
- Maintain state autonomy to regulate or prohibit cannabis.
- Direct federal agencies to establish product safety standards (e.g., labeling, contaminant limits).
- Allow interstate transport of cannabis between legal states.
- Expunge certain federal cannabis convictions.
Although not yet enacted, the Trump administration has publicly supported this legislative path as the preferred long-term solution.
2. Executive Order Initiative on Cannabis Regulation (Expected Late 2025)
Following leaked policy drafts and confirmations cited by Reuters, the administration is preparing an Executive Order on Federal Cannabis Deregulation.
Expected components include:
- Directing the Department of Justice (DOJ) to deprioritize cannabis enforcement nationwide.
- Accelerating the DEA’s administrative review of cannabis scheduling.
- Issuing guidance to federal agencies to treat state-legal cannabis businesses as legitimate entities.
- Creating a federal task force to draft safety and interstate trade guidelines.
This executive order would not fully de-schedule cannabis without congressional action but would dramatically weaken federal prohibition in practice.
3. Support for Administrative Rescheduling to Schedule III
In parallel, the Department of Health and Human Services (HHS) continues its 2023–2024 recommendation to move cannabis to Schedule III, which the DEA has been reviewing. While the Trump administration favors de-scheduling, it has stated it would support Schedule III as an interim step because it:
- Eliminates the IRS 280E tax penalty on cannabis businesses,
- Expands medical research access, and
- Relaxes certain criminal penalties.
A DEA ruling is expected in 2026, but the administration is applying political pressure to speed the process.
Why the Trump Administration Is Supporting De-Scheduling
Several factors explain the sudden federal shift:
1. Public Support Has Reached Record Highs
Polls consistently show that 70–75% of Americans now favor legalizing cannabis nationally — including majorities of Republican voters.
2. Cannabis Banking Pressure
The failure of Congress to pass the SAFER Banking Act created renewed urgency among business owners, bankers, and pro-commerce Republicans who want legal clarity.
3. Economic Momentum
The U.S. cannabis industry represents over $35 billion in annual revenue, with projections to double if interstate commerce opens. De-scheduling would allow national brands, regulated distribution, and broader investment capital.
4. Law Enforcement and Veteran Advocacy
Veterans groups, former federal prosecutors, and police reform advocates have pushed the administration to modernize cannabis law and reduce low-level criminal enforcement.
5. Strategic Election-Year Positioning
Cannabis reform appeals to independents, younger voters, and libertarian-leaning conservatives. Supporting de-scheduling has become a bipartisan way to appear forward-thinking.
What Would Happen If Cannabis Is De-Scheduled?
If fully implemented, cannabis de-scheduling would create the most significant shift in U.S. drug policy since the end of alcohol prohibition.
Immediate Effects:
- No more federal cannabis possession or distribution crimes
- Major tax reform for cannabis businesses
- National banking access
- FDA involvement in product standards
- Potential interstate commerce between legal states
Long-Term Effects:
- Consolidation of national cannabis brands
- Greater pharmaceutical interest
- Increased investment activity
- A more consistent consumer safety framework
States would still choose whether to permit or restrict cannabis — similar to alcohol laws today.
Five Useful Referral Websites
Use these sites to track federal cannabis policy developments and legislation in real time:
- Reuters – Cannabis Policy Coverage: https://www.reuters.com
- Marijuana Moment – Federal Legislation Tracker: https://www.marijuanamoment.net
- NORML – Reform Updates & Legal Analysis: https://norml.org
- Congress.gov – Bill Text & Legislative Actions: https://www.congress.gov
- DEA Diversion Control – Scheduling Announcements: https://www.deadiversion.usdoj.gov
Final Thoughts
With the Trump administration actively encouraging federal cannabis de-scheduling, the U.S. may be on the brink of the largest cannabis policy shift in decades. Whether through executive action, DEA decisions, or congressional legislation, 2025 marks a turning point in the national conversation. While the full process will unfold into 2026 and beyond, momentum is stronger than ever — and the era of federal prohibition may finally be heading toward its conclusion.
