The US Department of Justice has announced plans to loosen restrictions on some marijuana products and move toward reclassifying the drug as less dangerous, marking one of the biggest shifts in federal drug policy in decades.
The move does not legalise marijuana across the United States. However, it could reshape the country’s $47 billion cannabis industry, which has continued to face federal restrictions despite widespread legalisation at the state level.
Under the new action, state-regulated medical marijuana products would move from the most restrictive drug category, which includes substances such as heroin, to a lower classification for drugs with low to moderate potential for abuse. That category includes some common painkillers, ketamine and testosterone. Marijuana products approved by the US Food and Drug Administration would also move into the same category.
Acting Attorney General Todd Blanche said the government would also fast-track a broader process to reclassify all uses of marijuana as less dangerous. Officials say the shift could reduce barriers to research, ease tax burdens and help cannabis companies access financing more easily.
“This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information,” Blanche said in a statement.
The decision follows a December executive order from President Donald Trump directing the Justice Department to loosen federal marijuana restrictions.
The policy change could benefit cannabis companies, including Canopy Growth, Tilray Brands and Trulieve Cannabis. Several firms sell medical marijuana and consumer cannabis products, while also researching possible pharmaceutical uses for pain management, cancer symptoms, anxiety and other conditions.
US-listed cannabis stocks initially rose between 6% and 13% after the announcement, but later gave back gains as investors assessed the limited scope of the immediate federal action.
Tilray Brands CEO Irwin Simon welcomed the move, calling it a pivotal moment for US cannabis policy. He said federal policy was beginning to align with science, medicine and patient needs.
Marijuana’s status as a Schedule I drug has long drawn criticism from advocates, who argue that the classification no longer reflects the drug’s medical use or legal status in much of the country.
According to the Congressional Research Service, 24 states and the District of Columbia have legalised marijuana for recreational use. Forty states have fully legalised it for medical use, while eight others allow limited medical use. Only Idaho and Kansas do not permit any legal use.
Market researcher BDSA expects legal cannabis sales in the United States to top $47 billion in 2026. Marijuana remains the most widely used illicit drug in the United States and globally. The US Centres for Disease Control and Prevention says nearly one in five US residents uses marijuana in a year.
The Biden administration pursued a similar reclassification effort in 2024, but officials did not finalise it before Trump returned to office, and the Drug Enforcement Administration later scrapped that process.
Read: Trump to Reclassify Marijuana, Ease US Federal Cannabis Restrictions
The Justice Department said it will begin proceedings on June 29 to gather evidence and expert opinion on broader marijuana reclassification.
Opponents of the move argue that looser rules could increase marijuana use among minors, reduce workplace productivity and create traffic safety risks. Senator Tom Cotton, a Republican from Arkansas, criticised the decision and said marijuana remains dangerous.
“Marijuana today is much more potent than just ten or twenty years ago, leading to increased psychosis, anti-social behaviour, and fatal car crashes,” Cotton wrote on social media.
