President Trump eases marijuana regulations. What does that mean for Texas?
President Donald Trump on Thursday signed an executive order relaxing federal marijuana regulations, recognizing that there are “legitimate medical uses” for the drug.
The order directs the U.S. attorney general to reclassify marijuana to a Schedule III drug. It’s considered a Schedule I drug, a designation reserved for substances with higher risk for abuse and without medical benefit.
Trump, a Republican, said he hopes the move will help patients with various medical conditions to “live a far better life.”
“For decades this action has been requested by American patients suffering from extreme pain, incurable diseases, aggressive cancer, seizure disorders, neurological problems and more, including numerous veterans with service related injures and older Americans who live with chronic medical problems that severely degrade their quality of life,” Trump said during a news conference.
Thursday’s executive order had been expected in recent days. Trump told reporters on Monday he was “very strongly” considering reclassification, a move that loosens restrictions but doesn’t go as far as legalizing marijuana.
People involved in Texas’ cannabis industry praised the order while acknowledging that its impact on the state is limited.
“The most significant aspect of this is the federal government finally recognizing that there is, in fact, medicinal value to cannabis and that there is not as significant of harm associated as they, for so long, said that there was,” said Heather Fazio, the director of the Texas Cannabis Policy Center, an advocacy group.
What are drug schedules?
There are five schedules of drugs, which are categorized based on the medical use and the potential for abuse or dependency.
Schedule I drugs are defined as “drugs with no currently accepted medical use and a high potential for abuse,” according to the U.S. Drug Enforcement Administration. Examples include heroin, LSD and ecstasy.
Schedule III drugs are “drugs with a moderate to low potential for physical and psychological dependence,” such as ketamine or Tylenol with codeine in it.
In Trump’s executive order, he said the attorney general should “take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the” Controlled Substances Act “in the most expeditious manner in accordance with Federal law.”
Congress and federal officials should also “update the statutory definition of final hemp-derived cannabinoid products to allow Americans to benefit from access to appropriate full-spectrum CBD products while preserving the Congress’s intent to restrict the sale of products that pose serious health risks,” the order states.
What does rescheduling marijuana mean for Texas?
Making marijuana a Schedule III drug impacts Texas in two main ways: ease of cannabis research and better tax benefits for medical providers, said Fazio, with the Texas Cannabis Policy Center.
Recreational use of marijuana remains illegal in Texas and federally, but Texas does have limited access to medical marijuana through its Compassionate Use Program. The program allows for the prescription of low-THC cannabis for certain medical conditions and was expanded when lawmakers met earlier this year.
It’s “absurd” that marijuana has long been scheduled alongside heroin, Fazio said.
“But now, we’re finally moving forward with policy that makes more sense,” she said. “It’s more in line with what we all know to be true. It’s more in line with science and the facts of the cannabis safety profile. So we are grateful to see that the federal government is finally making this positive change, while recognizing that it actually does very little for Texas.”
According to the Cannabis Regulators Association, the reclassification lets marijuana business deduct “all standard business expenses, even if the Schedule III marijuana product is not a U.S. Food and Drug Administration (FDA) approved drug,” whereas before they were subject to a federal tax rule that applied to marijuana-related businesses.
“Allowing cannabis businesses to take those standard deductions should make them more profitable and should bring down costs for consumers, and so that’s a very, very encouraging thing,” said Jervonne Singletary, the vice president of compliance and government regulations for Goodblend Texas’ parent company, Parallel.
Fazio said Texas’ licensed medical marijuana dispensers, like Goodblend, will benefit from that change.
Singletary also noted the research opportunities that come with rescheduling marijuana.
“The big thing for this is that it opens up research opportunities, so places like the University of Texas at Austin can do really, really deep dive research into the efficacy of cannabis and the benefits of cannabis therapies, which we’re tremendously excited about,” she said, noting that the research allows for a shift away from some of the anecdotal evidence that businesses have had to rely on because of research-related restrictions.
Nico Richardson, CEO of Texas Original, one of the states other licensed dispensing organizations, said in a statement that the reclassification “marks an important step in recognizing the medicinal uses of cannabis and reinforces our commitment to delivering the highest-quality medicine to patients and families across Texas.
“While immediate impacts in Texas are limited by state law, this shift supports patients and has the potential to reduce operational barriers for dispensaries, enable health insurance reimbursement, improve banking and financial services, and increase awareness of the Texas Compassionate Use Program across the state,” Richardson said.
Singletary said the order stops short of full legalization and enacting changes related to banking for cannabis businesses. She stressed that marijuana possession without a prescription is still illegal in Texas.
Trump’s executive order has the support of Texas Gov. Greg Abbott.
“Governor Abbott supports President Trump’s executive order that allows common-sense medical research into cannabis while maintaining strong safeguards against abuse,” spokesperson Andrew Mahaleris said in a Thursday evening statement.
A spokesperson for the Texas Department of Public Safety said “the department will be reviewing the executive order to determine operational impact” in a Friday email.
A spokesperson for the Texas Department of State Health Services was not available for an interview Thursday.
This story was originally published December 18, 2025 at 3:33 PM.
