President Donald Trump has signed a historic executive order directing federal agencies to remove cannabis from the most restrictive category of controlled substances in the United States, marking the most significant shift in American cannabis policy in more than half a century.

The order instructs the federal government to reclassify marijuana from Schedule One, where it has been listed alongside heroin and lysergic acid diethylamide, to Schedule Three, a category reserved for substances with recognized medical use and a lower potential for addiction.

Once the reclassification process is completed by the Drug Enforcement Administration, cannabis will be treated under a markedly different regulatory framework.

While the move does not legalize recreational marijuana at the federal level, it removes decades-old barriers that have constrained research, finance, and lawful business activity.

Companies operating in the cannabis sector will be able to function under revised tax rules, allowing them for the first time to deduct standard operating expenses such as rent and wages.

Industry analysts describe the change as a financial lifeline for cannabis businesses, which have long struggled under punitive tax treatment and limited access to banking and institutional capital.

The shift is expected to encourage new investment and stabilize an industry that has operated in legal uncertainty despite widespread state-level legalization.

The policy change also carries implications for healthcare.

Federal health authorities are preparing a pilot program under Medicare that would allow some insured seniors to receive cannabidiol products at no cost, subject to physician recommendation and strict quality and safety standards.

Products would be required to originate from legal sources and undergo third-party testing for purity and contamination.

While cannabidiol has grown rapidly in popularity across consumer and wellness markets, federal regulators have until now offered only limited approval.

To date, a single cannabidiol-based medication has been authorized for the treatment of rare forms of epilepsy.

Officials and industry experts say the reclassification of cannabis could pave the way for broader scientific research into its medical applications, including the therapeutic potential of cannabidiol.

The executive order signals a decisive change in federal posture, aligning policy more closely with medical evidence, economic reality, and evolving public attitudes, while maintaining regulatory oversight as the reclassification process moves forward.