{"id":98959,"date":"2025-12-22T12:24:27","date_gmt":"2025-12-22T17:24:27","guid":{"rendered":"https:\/\/www.mcguirewoods.com\/?post_type=insight&p=98959"},"modified":"2025-12-22T12:24:32","modified_gmt":"2025-12-22T17:24:32","slug":"what-trumps-executive-order-to-reschedule-marijuana-and-cbd-means-for-the-cannabis-industry","status":"publish","type":"insight","link":"https:\/\/www.mcguirewoods.com\/client-resources\/alerts\/2025\/12\/what-trumps-executive-order-to-reschedule-marijuana-and-cbd-means-for-the-cannabis-industry\/","title":{"rendered":"What Trump\u2019s Executive Order to Reschedule Marijuana and CBD Means for the Cannabis Industry"},"content":{"rendered":"\n

President Donald Trump\u2019s Dec. 18, 2025, executive order \u201c<\/a>Increasing Medical Marijuana and Cannabidiol Research<\/a>\u201d directs the Attorney General to \u201ctake all necessary steps\u201d to move marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA), with the aim of removing research barriers and aligning federal policy with evidence of medical use and state practice. The order cites the HHS\u2019s 2023 recommendation to reschedule<\/a>; the FDA\u2019s determination of credible scientific support for cannabis in treating pain, anorexia related to certain conditions and chemotherapy-induced nausea; and extensive state-authorized medical use involving millions of patients and tens of thousands of clinicians. The White House emphasized that rescheduling does not legalize cannabis federally but would improve research and allow state-legal operators to access standard federal tax deductions previously barred by the Internal Revenue Code. <\/p>\n\n\n\n

The order also addresses hemp-derived cannabinoids, tasking senior White House staff to work with Congress to update the statutory definition of \u201cfinal hemp-derived cannabinoid products\u201d to preserve access to \u201cappropriate full-spectrum CBD\u201d while restricting unsafe products. It notes that hemp-derived cannabinoids are not controlled substances but exist in a fragmented regulatory landscape. It highlights that some full-spectrum CBD products will again become controlled \u201cmarijuana\u201d when a recent law passed as part of the budget bill (section 781 of Public Law 119-37) takes effect due to per-container THC thresholds. Under the order, the HHS, FDA, CMS and NIH are also directed to develop real world evidence research models for legal CBD access and standards of care.<\/p>\n\n\n\n

The order is at odds with recent congressional action on marijuana. Congress\u2019s recent budget bill, which Trump signed, established a strict federal cap of a total-THC limit of 0.4 milligrams per container, which would effectively ban most consumable hemp products popular in today\u2019s market. The order indicates that the administration will likely urge Congress to revisit the definition to keep certain full-spectrum CBD available through a narrow legislative fix that preserves medically oriented CBD while restricting products posing health risks to the public.<\/a> However, Congress has not yet defined the criteria by which a public health risk is defined.<\/p>\n\n\n\n

<\/a>Critically, the order does not itself reschedule marijuana; it accelerates the ongoing DEA process that began with the 2024 proposed rule following the HHS recommendation. Under the CSA, rescheduling generally requires notice-and-comment rulemaking, compilation of an administrative record, potential administrative hearings and publication of a final rule, subject to Office of Management and Budget (OMB) review. Further, any final rule will not legalize recreational use, automatically create FDA\u2011approved products nor instantly harmonize state and federal systems. <\/a>The most immediate industry effects would likely include tax relief for state\u2011licensed operators and improved research access. Broader reforms such as banking, interstate commerce and comprehensive FDA frameworks would still require further agency action and\/or legislation.<\/a><\/p>\n\n\n\n

Steps before marijuana can be rescheduled include drafting of a final rule by the Attorney General and DEA (including any administrative hearings), inter-agency review coordinated by OMB potentially resulting in revisions, publication of a final rule in the Federal Register and implementation on the effective date. It is also reasonable to expect legal challenges to a final rescheduling rule, which may or may not delay implementation. Until the DEA final rule is issued and effective, marijuana remains a Schedule I substance under federal law<\/a> and tensions with state laws remain.<\/p>\n\n\n\n

Practical Implications for Stakeholders<\/strong><\/p>\n\n\n\n

Organizations engaged in cannabinoid research or commercial product development should evaluate existing research pipelines, quality systems and product portfolios against a backdrop of forthcoming federal guidance.<\/p>\n\n\n\n

    \n
  1. Research sponsors and academic centers should implement and refine real world evidence methodologies, enhance data governance for long\u2011term safety tracking and align outcome measures with anticipated HHS\/NIH\/FDA frameworks focused on dosing and patient\u2011relevant endpoints. Real world data should be collected and evaluated for specific patient populations and conditions, with particular attention paid to vulnerable patient populations including adolescents and young adults.<\/li>\n\n\n\n
  2. Manufacturers of hemp\u2011derived CBD products should inventory formulations for THC\/CBD ratios and potency, evaluate quality controls and labeling practices, and consider potential adjustments to comply with expected federal definitions and product limits. Manufacturers intending to supply product to support clinical research should become familiar with the FDA\u2019s 2023 guidance document, Cannabis and Cannabis-Derived Compounds: Quality Considerations for Clinical Research.<\/a><\/li>\n\n\n\n
  3. Clinician groups and healthcare organizations should integrate evolving clinical evidence into research protocols and patient counseling, especially for pain, nausea and related conditions where the order acknowledges existing clinical support yet calls for more rigorous, standardized data.<\/li>\n<\/ol>\n\n\n\n

    Stakeholders should expect interagency activity to define research standards, real world evidence approaches and parameters for product composition and potency. While the order does not itself change the legal status of marijuana or finalize product standards for CBD, it sets in motion processes that could shape clinical practice and the cannabinoid marketplace by elevating evidence quality and standardizing definitions and limits.<\/p>\n\n\n\n

    McGuireWoods is closely monitoring federal implementation of the executive order and related agency actions by the HHS, NIH and FDA, as well as Congressional engagement on statutory definitions and product parameters for hemp-derived cannabinoids. To learn more about the executive order, how to participate in the EO 12866 regulatory review process and how these updates may impact your existing cannabis business, contact one of the authors of this alert or a member of the Healthcare & Life Sciences Industry Team<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

    President Donald Trump\u2019s Dec. 18, 2025, executive order \u201cIncreasing Medical Marijuana and Cannabidiol Research\u201d directs the Attorney General to \u201ctake all necessary steps\u201d to move marijuana from Schedule I to…<\/p>\n","protected":false},"author":20,"featured_media":0,"template":"","tags":[3705],"industry_tax":[58,55,44,34],"insight_type":[2331],"international_tax":[],"location_tax":[],"media_role":[],"people_tax":[4176,3738,3540,3296,1845],"practice_tax":[214,4124,185,177,148,136],"publication_type":[],"site_tax":[2],"class_list":["post-98959","insight","type-insight","status-publish","hentry","tag-trump","insight_type-alerts","practice_tax-healthcare-litigation","practice_tax-private-equity-transactions","practice_tax-healthcare-transactions","practice_tax-product-liability-mass-tort","practice_tax-healthcare-compliance","practice_tax-cannabis-hemp-cbd"],"acf":[],"links_out":[],"links_in":[],"yoast_head":"\nWhat Trump\u2019s Executive Order to Reschedule 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