Historic Executive Order Accelerates Cannabis Rescheduling

President Donald Trump signed an executive order on December 18, 2025, directing the Attorney General to expedite the rulemaking process to reschedule cannabis from Schedule I to Schedule III under the Controlled Substances Act.

The order, titled “Increasing Medical Marijuana and Cannabidiol Research,” represents the most significant federal cannabis policy shift in decades and follows weeks of speculation about the administration’s intentions.

According to legal analysis from Dentons, the order also instructs the Department of Health and Human Services to develop models improving Medicare access to hemp-derived cannabinoid products. This dual approach, rescheduling cannabis while expanding access to cannabinoid therapies, signals a comprehensive shift in federal drug policy that could reshape the cannabis industry landscape.

Medicare Pilot Program for Senior CBD Coverage

During the signing ceremony, CMS Administrator Dr. Mehmet Oz provided crucial details about how the administration plans to implement the executive order’s healthcare provisions. According to Dentons’ analysis, the Center for Medicare & Medicaid Innovation is planning a model that will allow

“… Millions of Americans on Medicare to be eligible to receive CBD as early as April [2026]. And at no charge if their doctors recommend them.”

The pilot program would provide eligible seniors up to $500 annually for hemp-derived cannabinoid products that meet state quality and safety standards. Products must come from legitimate sources and abide by state regulations regarding content and dosage limits. This initiative represents the first government-led testing of cannabinoid product outcomes for patients across different conditions.

Implications for Cannabis Businesses and Research

Rescheduling cannabis from Schedule I to Schedule III carries substantial implications for cannabis operators. Most significantly, it would release cannabis businesses from the crippling tax burden of IRS Section 280E, which currently prohibits deductions for ordinary business expenses like payroll, rent, and utilities. As The New York Times reports, the change

“would allow for more widespread use by patients and permit cannabis producers to take advantage of standard business tax breaks.”

The reclassification also opens doors for expanded clinical research that has been historically restricted under Schedule I classification.

“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.”

Market Reaction and Political Landscape

Cannabis stocks surged following the announcement, continuing the rally that began when rescheduling rumors first emerged last week. Major cannabis brands like Tilray Brands and Canopy Growth saw significant gains, reflecting investor optimism about improved financial conditions for cannabis businesses.

However, the move faces opposition from some Republican lawmakers. According to Marijuana Moment, GOP lawmakers are mounting anti-marijuana efforts even as the executive order moves forward. The National Association of Convenience Stores (NACS) noted that while rescheduling could help alleviate some federal barriers, “it would not change the status quo for the convenience industry” and might slow progress on federal legislation allowing states to make their own cannabis decisions.

Why Online Visibility Matters More Than Ever

As federal cannabis policy undergoes its most significant transformation in decades, 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 “Schedule III tax deductions” or “Medicare CBD coverage” 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 executive order represents a watershed moment for the cannabis industry. Key takeaways include:

• President Trump has signed an executive order directing expedited rescheduling of cannabis to Schedule III
• A Medicare pilot program could provide CBD coverage for seniors starting April 2026
• 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 changes, 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.