Washington DC - President Donald Trump said Thursday he was signing an executive order reclassifying marijuana as a less dangerous drug, in one of America's biggest shifts in drug policy for years.

The move stops short of full federal legalization for recreational use across the US but is aimed at encouraging medical research on the use of cannabis products.

"Today, I'm pleased to announce that I will be signing an executive order to reschedule marijuana from a Schedule I to a Schedule III controlled substance with legitimate medical uses," Trump said in the Oval Office.

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Marijuana is currently classified as a Schedule I substance – in the same league as drugs like heroin and LSD. The government considers these drugs to have high abuse potential without accepted use for medical treatment.

Schedule III substances, which include ketamine and anabolic steroids, are considered to have medical value and less potential for abuse.

Trump, who was surrounded by white-coated medical experts for the announcement, added that the order "is not the legalization" of marijuana "and no way sanctions its use as a recreational drug."

The teetotal 79-year-old added: "I've always told my children, don't take drugs, no drinking, no smoking, and just stay away from drugs."

Dozens of states already have legal medical marijuana programs, and many also have approved its recreational use.

"A lot of people want to see it, the reclassification, because it leads to tremendous amounts of research that can't be done unless you reclassify, so we are looking at that very strongly," Trump said earlier this week.

Easing federal restrictions could have ripple effects, including lowering barriers to pursue research, as authorizing clinical studies on Schedule I substances can require many layers of approval.

It could also have major tax implications for companies that legally grow and sell cannabis.

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Presidents cannot unilaterally reclassify a drug, but Republican Trump's order directs Attorney General Pam Bondi to expedite the process.

Democrat Joe Biden's administration had previously pursued reclassification, but efforts stalled and were not completed before Trump took office in early 2025.

The US has a patchwork of state-level regulations regarding the commercial distribution, recreational possession, and personal cultivation of cannabis.

In small amounts it is already legal for recreational use in 24 states as well as the capital Washington.