Earlier today, President Trump signed an executive order that directs federal agencies to move forward with the plan to transfer cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA), which could allow for federal funding for medical research and a federal tax deduction under an Internal Revenue Service (IRS) code 280E.

The White House official also stated that the Centers for Medicare and Medicaid Services (CMS), will be announcing “a model that will allow a number of CMS beneficiaries to benefit from receiving CBD under doctor recommendation at no cost.” This would upend the new federal hemp laws that banned minor cannabinoids and would, under federal health insurance plans, give access to full-spectrum CBD, nonpsychoactive compound of cannabis. The new model would reimburse Medicare patients for products made with CBD and provide a pathway for seniors to be reimbursed for the cost of these products by CMS. Seniors would be reimbursed, according to this plan, up to $500 annually, beginning April 1, 2026.

The change in the 280E tax code would allow state-licensed cannabis operators to take federal tax deductions that had been previously disallowed under the IRS. President Trump emphasized that the executive order did not “legalize marijuana in any way, shape or form, and in no way sanctions its use as a recreational drug.”

“We have people begging for me to do this, people that are in great pain for decades,” Trump said. “This action has been requested by American patients suffering from extreme pain, incurable diseases, aggressive cancers, seizure disorders, neurological problems and more—including numerous veterans with service-related injuries and older Americans who live with chronic medical problems that severely degrade their quality of life.”

Illinois cannabis operators were quick to respod to the news. Below are official insights and commentary from leading industry executives with operations in Illinois.

Cresco Labs CEO Charlie Bachtell said, “This action starts bridging the gap between federal law and the will of the American people, with nearly 90 percent of Americans supporting some form of cannabis legalization and 74 percent already living in states with legal cannabis. Rescheduling unlocks opportunities for comprehensive medical research. It validates the work of state leaders who pioneered thoughtful, highly regulated cannabis programs for their constituents. It sends a strong message to our criminal justice system to stop imprisoning people for a plant that’s been used as medicine for more than 5,000 years…It will remove cannabis companies’ unfair tax burden, allowing operators to reinvest in new infrastructure and job growth in the communities we serve. It also lays essential groundwork for progress on banking reform and access to U.S. capital markets, critical steps toward aligning federal policy with the scale and sophistication of this industry.”

Curaleaf Founder, Chairman and CEO Boris Jordan said, “President Trump’s action is the most impactful move taken around the cannabis plant since its prohibition 55 years ago. We applaud the Trump Administration for boldly acknowledging what science, patients, and the industry have known for years: Cannabis has real medical value and never belonged in Schedule I in the first place…Rescheduling will expand research, ensure broad medical access, protect young people and patients from the illicit market, drive investment, and address outdated tax policies that punish legal operators. It’s a win for public health, the economy, and common sense.”

Ascend Wellness Holdings CEO and Director Sam Brill said, “The move to reschedule cannabis from Schedule I to Schedule III marks a critical advancement for society, public safety, and access for patients across the United States. Recognizing the medicinal benefits of cannabis paves the way for expanded research, informed policymaking, and more consistent access to safe, regulated products for those who need them most. We commend the Trump administration for taking this long-overdue, commonsense, and data-driven step forward. We are optimistic that continued progress will support a transparent and regulated framework that protects individual liberties, enhances public health, fosters a well-regulated market, and drives domestic employment and economic growth.”

Verano founder and CEO George Archos said, “Today’s historic announcement reclassifying cannabis to Schedule III marks a pivotal moment that recognizes there are commonly accepted medical uses for cannabis, finally allowing America’s next great homegrown industry to reach its full potential by serving patients, creating jobs, unlocking economic growth, reversing decades or harmful prohibitionist policies. As we turn the page on a new chapter for cannabis in America, we stand ready to work collaboratively with all stakeholders to support the continued growth of a safe, legal, regulated cannabis industry that provides health, wellness, and economic prosperity for millions of Americans every day.”

AYR Wellness CEO Scott Davido said, “This marks a major step towards unlocking further research into the medical efficacy of cannabis and allowing fair tax treatment for the cannabis industry. Our industry is one of the fastest growing sectors of the U.S. economy, employing more than 400,000 Americans. Alongside our peers, we continue to advocate for further cannabis reform federally and at the state level, which we believe will be spurred by today’s historic decision.”

Advocacy groups also responded quickly. “This order finally reflects what patients, clinicians, and states have known for decades: cannabis has medical value,” said Steph Sherer, Founder and Executive Director of Americans for Safe Access. “We commend the President for acknowledging that reality matters. But recognition is not the same as access—and research is not the same as patient protection.”

NORML’s Deputy Director Paul Armentano said, “The Administration’s order calling to remove the cannabis plant from its Schedule I classification validates the experiences of tens of millions of Americans, as well as those of tens of thousands of physicians, who have long recognized that cannabis possesses legitimate medical utility. It wasn’t long ago that federal officials were threatening to seize doctors’ medical licenses just for discussing medical cannabis with their patients. This directive certainly marks a long overdue change in direction.” NORML also created a Fact Sheet, “Cannabis Rescheduling: Myths Versus Reality” to provide additional information.

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