Trump Publicly Confirms Cannabis Rescheduling Consideration

President Donald Trump has publicly confirmed that his administration is “considering” an executive order to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act. Speaking to reporters on December 15, Trump stated, “We are looking at that very strongly,” according to Cannabis Business Times. This announcement follows last week’s reports of a private Oval Office meeting with cannabis industry executives, Health Secretary Robert F. Kennedy Jr., and Centers for Medicare and Medicaid Services chief Mehmet Oz.

The potential executive order would represent the most significant federal cannabis policy shift in decades, moving cannabis out of the same category as heroin and LSD and into a less restrictive tier alongside drugs like Tylenol with codeine. For cannabis business owners who have navigated state-legal markets while facing federal prohibition, this change could fundamentally alter financial operations, banking access, and growth prospects.

Medicare Pilot Program for Senior CBD Coverage

Alongside rescheduling, the Trump administration is considering a Medicare pilot program that would provide some seniors access to CBD products for conditions like chronic pain and sleep deprivation, as reported by CNBC. The program would specifically target cannabidiol (CBD) products derived from federally legal sources and would require Food and Drug Administration oversight.

This initiative is championed by billionaire Howard Kessler, a longtime Trump ally who founded The Commonwealth Project advocating for senior care through cannabis use. However, the proposal has drawn scrutiny from some Trump allies, including House Speaker Mike Johnson, who has raised concerns about cost and liability. FDA officials also note that reimbursing Americans for non-agency-approved treatments would be unprecedented.

Research Implications and Scientific Debate

Rescheduling cannabis would ease barriers to clinical research that have historically stifled scientific understanding. “Medical research has effectively been under lock and key,” said Ryan Vandrey, a Johns Hopkins University professor who helps run its Cannabis Science Lab. “Schedule I makes large, placebo-controlled trials incredibly difficult. Without that data, policymakers are being asked to make decisions in the dark.”

However, critics warn that a Medicare pilot program could endanger seniors, who often take multiple daily medications. A recent FDA-funded study suggested that prolonged CBD use may cause liver toxicity and interfere with other life-saving medications. Other research has cast doubt on cannabis’ efficacy for many conditions targeted by the proposed pilot.

Market Reaction and Stock Performance

Cannabis stocks continued their rally following Trump’s comments, building on last week’s surge. Shares of major cannabis brands like Tilray Brands and Canopy Growth jumped 44% and 52% respectively on Friday, while the Amplify Seymour Cannabis ETF (CNBS) rallied more than 54% for its best day on record.

Analysts suggest that Schedule III classification could legitimize the sector for institutional investors who have been hesitant to wade in, potentially paving the way for more stocks to be listed on major exchanges like the New York Stock Exchange and Nasdaq. “The Schedule I classification is what has held back a lot of institutional investors,” said Timothy Seymour, founder of Seymour Asset Management and a CNBC contributor.

Business Implications: Taxes, Banking, and Consolidation

For cannabis operators, rescheduling would release businesses from the crippling tax burden of IRS Section 280E, which currently prohibits deductions for ordinary business expenses like payroll, rent, and utilities. It could also encourage traditional banks to serve the cannabis sector more openly, though complementary legislation like the SAFE Banking Act would still be needed for comprehensive banking reform.

If cannabis shifts to a reimbursable prescription drug model under Medicare, distribution could eventually migrate from state-licensed dispensaries to national pharmacy chains like CVS and Walgreens. This could spell trouble for smaller cannabis businesses but might also trigger consolidation activity as larger pharmaceutical companies enter the space.

Why Online Visibility Matters More Than Ever

As federal cannabis policy evolves, businesses with strong online visibility will be best positioned to adapt and grow. When regulations shift, consumers, investors, and partners turn to search engines for answers. Having authoritative content about topics like “Medicare CBD coverage” or “Schedule III tax deductions” can establish your business as an industry leader.

This is where platforms like CannaMapr become essential. A verified listing in our cannabis business directory provides valuable do-follow backlinks that improve your search rankings. When potential customers search for dispensaries, cultivators, or cannabis brands in your area, a complete CannaMapr profile helps you appear in local results. Our platform also connects you with a network of quality providers, making it easier to navigate regulatory changes together.

Key Takeaways and Next Steps

The Trump administration’s consideration of cannabis rescheduling represents a watershed moment for the industry. Key takeaways include:

• President Trump has publicly confirmed he’s “considering” an executive order to reclassify cannabis to Schedule III
• A potential Medicare pilot program could provide CBD coverage for seniors
• Rescheduling would unlock tax deductions under IRS Section 280E and ease banking restrictions
• Cannabis stocks have surged in anticipation of regulatory changes
• Online visibility will be crucial as consumers seek information about new Medicare coverage options

To prepare for these potential shifts, cannabis business owners should review their tax strategies, consult with financial advisors familiar with Section 280E changes, and strengthen their online presence. Listing your business on CannaMapr ensures you’re visible to customers searching for reliable cannabis providers during this period of transition.

CannaMapr is here to help you navigate regulatory changes and grow your online presence. With a trusted network and real-time updates, we make it easier to connect with quality providers and adapt to evolving industry standards.