WASHINGTON — President Donald Trump signed an executive order this week directing the Department of Justice and the Department of Health and Human Services to accelerate the reclassification of marijuana and establish a new regulatory framework for hemp-derived CBD.
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“Increasing Medical Marijuana and Cannabidiol Research” was signed on Thursday, Dec. 18, and seeks to align federal law with the 40 states currently maintaining regulated medical marijuana programs. It reclassifies marijuana from a Schedule I to a Schedule III.
This does not make medical or recreational marijuana federally legal. The rescheduling classifies marijuana as a controlled substance with a recognized medical use, similar to anabolic steroids or Tylenol with codeine.
The shift to Schedule III allows the Department of Veterans Affairs to conduct large-scale clinical trials on the plant’s effectiveness for treating PTSD and traumatic brain injuries. Additionally, the administration clarified veterans will be protected from losing their current healthcare benefits or disability ratings for using medical marijuana in compliance with state-sanctioned programs.
For seniors, the order authorizes a new Medicare pilot program to reimburse beneficiaries for the cost of qualifying CBD products, providing up to $500 in annual coverage beginning in April 2026.
Trump prioritized seniors and veterans with the order, noting 20% of veterans use medical marijuana to reduce opioid dependence. For seniors — one-third of whom suffer from chronic pain — the order aims to create federal safety guidelines to ensure marijuana does not cause harmful side effects when mixed with prescription drugs.
“These facts compel the federal government to recognize that marijuana can be legitimate in terms of medical applications,” Trump said while signing the order, calling the reclassification “common sense” policy that would have a “tremendously positive impact.”
The order points to data showing marijuana’s current Schedule I status has “impeded research,” leaving doctors without federal guidance on drug interactions and prescribing. Schedule I drugs are difficult to study because the law defines them as having no medical use. This leaves researchers unable to secure federal funding to learn more about the products already in use by six million medical marijuana patients.
The Federal Drug Administration, National Institutes of Health, and Centers for Medicare and Medicaid Services are now tasked with developing new research models using real-world evidence to establish care standards and improve patient access to safe marijuana products.
The order also initiates a pivot on hemp-derived products like Delta-8 and THCA flower. The administration will work with Congress to update the definition of hemp products to protect CBD, while setting federal limits on milligrams of THC per-serving in CBD products. This makes sure commonly used CBD products like gummies and oils with trace amounts of THC aren’t strictly banned.
This effectively corrects policy from November’s budget bill, which established a 0.4mg THC per-container limit. While the budget bill set restrictions per-container, the executive order directs agencies to switch to a per-serving limit instead.
For example, a standard bottle of CBD oil typically contains around 15mg of trace THC, which would exceed the November bill’s limit by nearly 40 times. Under the new order, the same bottle remains legal because the focus shifts to a per-serving limit, ensuring that a single dose stays within non-intoxicating levels.
While the budget bill remains the current law, the order directs federal agencies to change how it is enforced, essentially stalling the 0.4mg ban until a per-serving limit is established by Congress.
Paul Armentano, deputy director of NORML — a non-profit advocacy group campaigning for consumer cannabis access since 1970 — praised the move in a press release as a step forward. However, he maintained federal policy should ultimately deschedule the drug entirely.
“The Administration’s order calling to remove the cannabis plant from its Schedule I classification validates the experiences of tens of millions of Americans, as well as those of tens of thousands of physicians, who have long recognized that cannabis possesses legitimate medical utility,” Armentano stated.
While 40 states have legalized medical marijuana, North Carolina remains an outlier. The Compassionate Care Act, sponsored by local Senators Bill Rabon (R-Brunswick) and Michael Lee (R-New Hanover) in 2023, would have created a regulated system for patients dealing with debilitating conditions to legally use marijuana products. It passed the Senate in a 36-10 vote, but ultimately stalled in the House.
Port City Daily reached out to Lee and Rabon about whether the new order would encourage them to bring the bill back to the state legislature. This will be updated upon response.
However, not all state leaders support the shift. On the federal level, North Carolina Senator Ted Budd (R-N.C.) recently led a group of 21 Senate Republicans in a letter to President Trump, urging him to keep marijuana as a Schedule I drug. Budd contended rescheduling is a “shortsighted” decision that will lead to a massive tax break for marijuana companies, while potentially endangering public safety on the roads and in the workplace.
Under current law, because marijuana is a Schedule I drug, businesses in the industry are treated like illegal traffickers and are blocked from taking standard tax deductions most other companies use — such as rent, employee wages, and utilities. Moving to Schedule III would eliminate the penalty, allowing marijuana companies to deduct those expenses and keep an estimated $2.3 billion in profits that would otherwise go to federal taxes.
While the president’s order sets the policy in motion, the DOJ and DEA must still formally close out the legal review process initiated in 2024 under the Biden Administration. This involves finalizing a series of administrative hearings where the government officially records the evidence for marijuana’s medical use.
Simultaneously, the White House Deputy Chief of Staff for Legislative Affairs will begin working with Congress to establish a permanent, per-serving limit for THC in consumer CBD products.
Have tips or suggestions for Charlie Fossen? Email charlie@localdailymedia.com
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