The Justice Department said it would immediately ease restrictions on some marijuana products and move more quickly to reclassify the drug, marking a major shift in U.S. drug policy.
The change does not legalize marijuana nationwide, but it could affect the $47 billion U.S. cannabis industry, which has faced federal barriers even as most states allow some legal use.
State-regulated medical marijuana products would move from Schedule I, a category that includes heroin, to a less restrictive category for drugs with low to moderate potential for abuse, including some painkillers, ketamine, and testosterone. Marijuana products approved by the Food and Drug Administration also would move to that category.
Acting Attorney General Todd Blanche said the government would also fast-track a broader effort to reclassify all uses of marijuana. The Justice Department said it will begin proceedings June 29 to gather evidence and expert opinion.
In December, President Donald Trump signed an executive order directing the Justice Department to loosen marijuana restrictions. Dozens of Republicans in Congress objected at the time.
Cannabis company shares listed in the United States rose 6% to 13% after the announcement.
According to the Congressional Research Service, 24 states and Washington, D.C., have legalized marijuana for recreational use. Forty states have fully legalized it for medical use, and another eight allow some medical uses. Idaho and Kansas do not allow any legal use.
Legal sales are expected to top $47 billion in 2026, according to BDSA. Nearly 1 in 5 U.S. residents use marijuana in a year, according to the Centers for Disease Control and Prevention.
The Biden administration began a similar effort in 2024, but it was not finalized before Trump returned to office, and the Drug Enforcement Administration scrapped it. Critics of legalization have argued it could increase youth drug use, reduce workplace productivity, and create traffic safety risks.
