Trump Order Sparks Federal Shift on Medical Marijuana Research

By John Pranay (Editor)

A significant shift in the US federal government's stance on medical marijuana and cannabidiol (CBD) research has been announced. On December 18, 2025, President Donald Trump signed an executive order directing the Department of Justice and the Department of Health and Human Services to accelerate the reclassification of marijuana from a Schedule I to a Schedule III controlled substance. This move aims to align federal law with the 40 states currently maintaining regulated medical marijuana programs.

The immediate toll of this decision is the potential for increased research into the medical applications of marijuana, particularly in treating post-traumatic stress disorder (PTSD) and traumatic brain injuries among veterans. The order also authorizes a new Medicare pilot program to reimburse beneficiaries for the cost of qualifying CBD products.

The executive order, titled "Increasing Medical Marijuana and Cannabidiol Research," was signed on Thursday, December 18, 2025. President Trump stated that the reclassification is "common sense" policy that would have a "tremendously positive impact." The order directs the Department of Justice to complete the rulemaking process related to rescheduling marijuana to Schedule III classification under the federal Controlled Substances Act of 1910.

The Department of Veterans Affairs will be able to conduct large-scale clinical trials on the plant's effectiveness for treating PTSD and traumatic brain injuries. Additionally, the administration clarified that veterans will be protected from losing their current healthcare benefits or disability ratings for using medical marijuana in compliance with state-sanctioned programs.

The humanitarian impact of this decision is significant, particularly for veterans who have been using medical marijuana to manage their symptoms. 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.

The international community has taken notice of this development, with some countries considering similar changes to their laws. For example, Canada has already legalized recreational marijuana and has a well-established medical marijuana program.

This executive order is part of a broader trend of increasing acceptance of medical marijuana and CBD products. In recent years, many states have passed laws allowing for the use of medical marijuana, and some countries have legalized recreational marijuana.

The shift in federal policy is also driven by the growing body of evidence on the medical benefits of marijuana. Studies have shown that marijuana can be effective in treating a range of conditions, including chronic pain, epilepsy, and PTSD.

The humanitarian impact of this decision is significant, particularly for veterans who have been using medical marijuana to manage their symptoms. The order also highlights the risks associated with the current Schedule I classification, which has "impeded research" and left doctors without federal guidance on drug interactions and prescribing.

Regulatory risks include the potential for inconsistent enforcement of federal laws, which could lead to confusion and uncertainty among patients and healthcare providers. Financial risks include the potential for increased costs associated with the development of new research models and the implementation of the Medicare pilot program.

The next steps in this process will depend on the actions of the Department of Justice and the Department of Health and Human Services. The order directs the agencies to complete the rulemaking process related to rescheduling marijuana to Schedule III classification, but it is unclear when this will be completed.

A key date to watch is April 2026, when the Medicare pilot program is set to begin. This program will provide up to $500 in annual coverage for qualifying CBD products, which could have a significant impact on the market.

This executive order marks a significant shift in the US federal government's stance on medical marijuana and CBD research. By reclassifying marijuana from a Schedule I to a Schedule III controlled substance, the administration is acknowledging the growing body of evidence on the medical benefits of marijuana.

However, this decision also highlights the complexities of federal policy on marijuana. The current Schedule I classification has "impeded research" and left doctors without federal guidance on drug interactions and prescribing. This has led to a patchwork of state laws and regulations, which can be confusing and inconsistent.

Crucially, this overlooks the potential risks associated with the increased use of marijuana, particularly among young people. As the market for CBD products continues to grow, it is essential that regulators prioritize public health and safety.

This decision also raises questions about the role of the federal government in regulating marijuana. While the executive order directs the Department of Justice to complete the rulemaking process related to rescheduling marijuana, it is unclear what this will mean for the broader marijuana industry.

As the US federal government continues to grapple with the complexities of marijuana policy, it is essential that regulators prioritize evidence-based decision-making and public health and safety. By doing so, they can ensure that the benefits of marijuana are realized while minimizing the risks.

Assessment: Bullish.

1. New Trump order directs DOJ to recognize medical marijuana — https://portcitydaily.com/latest-news/2025/12/19/new-trump-order-directs-doj-to-recognize-medical-marijuana/

2. Prohibition to Prescription: What Trump's Marijuana Executive Order Really Means — https://natlawreview.com/article/prohibition-prescription-what-trumps-marijuana-executive-order-really-means

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.