US Department of Justice Announces Immediate Easing of Federal Restrictions on Marijuana Products

The United States Department of Justice announced on Thursday that it will immediately ease restrictions on certain marijuana products and move quickly to reclassify the substance as having lower potential for abuse, marking one of the most notable shifts in American drug policy in recent decades.

The decision stops short of nationwide legalisation but is expected to bring meaningful changes to the $47 billion cannabis industry, which has operated under significant federal constraints even as most states have embraced some form of legal use.

Acting Attorney General Todd Blanche said state-regulated medical marijuana products will shift from Schedule I – the category that includes highly addictive drugs such as heroin – to a less restrictive category that covers substances with low to moderate abuse potential, including certain painkillers, ketamine and testosterone.

Products already approved by the Food and Drug Administration will receive the same treatment. Blanche added that the government will fast-track a broader review aimed at reclassifying all uses of marijuana. He described the step as one that will support further research into the substance’s safety and medical value, ultimately helping patients and doctors make better-informed decisions.

The announcement follows a December executive order from President Donald Trump directing the Justice Department to review and loosen marijuana restrictions. On Thursday, Trump posted on Truth Social urging Congress to update federal law to improve access to a wider range of CBD products while still restricting those that present clear health risks.

Industry reaction was initially positive, with shares of major cannabis companies rising sharply before partially pulling back as investors weighed the immediate impact of the changes. Tilray Brands CEO Irwin Simon called the development a pivotal moment, saying federal policy was beginning to catch up with science, medicine and patient needs. For years, marijuana has remained classified as a Schedule I drug, a designation widely viewed as outdated given its growing acceptance at the state level.

Currently, 24 states and the District of Columbia allow recreational use, while 40 states permit medical marijuana in some form. Only Idaho and Kansas maintain outright prohibition. Legal sales are forecast to exceed $47 billion this year. The move is likely to ease tax burdens on cannabis businesses, improve access to banking and investment, and open new doors for scientific research.

However, marijuana remains illegal under federal law in many contexts, and full legalisation would require action by Congress. Some lawmakers have expressed concern. Senator Tom Cotton, a Republican from Arkansas, warned that modern marijuana is far more potent than in previous decades and argued that easing its classification could lead to increased use among young people, workplace issues and traffic safety risks.

The Justice Department said formal proceedings to gather evidence and expert opinions on the broader reclassification will begin on June 29. A similar effort started under the previous administration but was not completed before the current one took office. The cannabis sector has expanded rapidly in recent years, with companies developing medical treatments as well as consumer products. Many now see the federal policy adjustment as a step toward greater alignment between national rules and the reality on the ground in most states.

While the changes fall short of the full legalisation sought by some advocates, they represent a pragmatic adjustment that acknowledges the scale of state-level markets and the potential medical benefits of the plant. Industry leaders and observers will now watch closely to see how quickly the broader reclassification process advances and whether lawmakers take additional steps to address remaining federal barriers.