President Donald Trump signed an executive order on Thursday, taking steps to reclassify marijuana and ease federal restrictions surrounding the drug. Currently, cannabis is classified as a Schedule I drug, the most restrictive category under federal law, alongside substances like heroin.

The executive order does not legalize marijuana, nor does it remove it from the Schedule I list entirely. Instead, it directs federal agencies to explore the possibility of rescheduling cannabis to a lower classification, potentially Schedule III. This would acknowledge the drug’s potential medicinal applications and could lead to easier research and development within the industry.

Rescheduling would not change state laws regarding marijuana, which vary widely. However, it could have significant implications for businesses and patients. A Schedule III classification would allow cannabis companies to deduct business expenses on their federal taxes, a benefit currently denied to them due to the drug's Schedule I status. It could also make it easier for researchers to study marijuana's potential medical benefits, potentially leading to the development of new treatments.

The move comes amid growing pressure from states that have legalized marijuana for medical or recreational use. While federal law still prohibits marijuana, many states have implemented their own regulations, creating a conflict between state and federal policies. This executive order represents a shift in the Trump administration’s approach to marijuana, although the full impact remains to be seen. The process of rescheduling is complex and could face legal challenges.

The Department of Health and Human Services would be responsible for making the formal rescheduling recommendation, and the decision would ultimately rest with the Drug Enforcement Administration.