The Justice Department will expedite the hearing on marijuana evaluation, which is expected to boost the cannabis industry by reducing taxes and easing access to funding. Previously, marijuana was classified alongside drugs like heroin, but it is not yet fully legal in the United States. The department will relax restrictions on marijuana-based products and quickly reclassify the drug as less dangerous, marking a significant change in U.S. drug policy. While this decision does not legalize marijuana nationwide, it is likely to reshape the $47 billion industry, which has faced federal hurdles despite legalization for medical or recreational use in most states.
Medical marijuana products regulated by states will now be moved from a highly addictive group to a less restrictive category with low abuse potential, including common painkillers, ketamine, and testosterone. FDA-approved marijuana-based products will also fall into this category. Acting Attorney General Todd Blanche stated that the government will also make broader efforts to reclassify all uses of the psychoactive plant as less dangerous, aiming to reduce research barriers, ease tax burdens, and facilitate easier fund access for businesses.
Following President Trump’s decree in December, which urged the Justice Department to relax marijuana restrictions, the decision is expected to benefit the growing U.S. cannabis industry, including companies like Canopy Growth, Tilray Brands, and Trulieve Cannabis. Apart from medical marijuana sales and cannabis-based consumer products, these companies are also conducting research on pharmaceutical uses of cannabis for pain management, cancer symptoms, anxiety, and other disorders.
Stocks of U.S.-listed cannabis companies surged 6% to 13% post the decision but later retracted as investors responded to the limited scope of immediate government actions. Irwin Simon, CEO of marijuana company Tilray Brands, recognized the reclassification as a pivotal moment aligning federal policy with science, medicine, and patient needs.
Marijuana is the most widely consumed illicit drug in the U.S. and globally, with nearly one in five Americans using it annually. While possession of marijuana has led to arrests, publicly traded cultivation companies selling cannabis-related products. The Biden administration had initiated a similar process in 2024, but it was not finalized before Trump returned to power, leading the Drug Enforcement Administration to abandon the initiative.
The Justice Department will begin a procedure on June 29 to gather evidence and expert opinions on drug reclassification. Critics argue that legalization may increase drug use among minors, decrease workplace productivity, and raise road safety risks. In December, many Republicans in Congress opposed Trump’s directive to ease regulations. Thursday’s reactions were more subdued, with Senator Tom Cotton suggesting that these measures would make it easier for Americans to consume what he described as a still dangerous drug.
Trump called on Congress to update laws to allow access to a “full range” of CBD products while preserving restrictions on products posing health risks.
