Trump Administration Moves to Loosen Federal Restrictions on Psychedelics and Medical Marijuana

In a rare break from its usual hardline stance on controlled substances, the Trump administration has taken bold steps to accelerate support for psychedelic therapies and medical marijuana. On April 18, 2026, the president signed an executive order aimed at fast-tracking research and patient access to psychedelic drugs for serious mental illnesses. Shortly after, the Department of Justice (DOJ) issued a final order rescheduling FDA-approved marijuana products and state-licensed medical marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA).

These developments signal a notable federal shift toward reducing barriers to alternative drug therapies, with wide-ranging implications for pharmaceutical companies, healthcare investors, cannabis operators, and state regulators.

Historically, psychedelics like psilocybin and marijuana have been tightly restricted under Schedule I, a category reserved for substances deemed to have no accepted medical use and a high potential for abuse. This classification has stifled research and medical access despite growing evidence of therapeutic benefits. The FDA’s June 2023 draft guidance on psychedelic research acknowledged their potential but maintained strict controls.

The new executive order directs the FDA to apply the National Priority Voucher program to psychedelic drugs granted Breakthrough Therapy status, potentially speeding their review and approval. It also instructs the FDA and DEA to create pathways under the Right to Try Act for eligible patients to access investigational psychedelics, including ibogaine compounds, by handling necessary Schedule I authorizations for doctors and researchers.

Additionally, the Department of Health and Human Services (HHS) must allocate at least $50 million via the Advanced Research Projects Agency for Health (ARPA-H) to support states advancing psychedelic therapy programs. Collaboration among HHS, FDA, the Department of Veterans Affairs, and private partners is mandated to boost clinical trial participation and data sharing, prioritizing therapies with Breakthrough Therapy designations. The attorney general is tasked with reviewing and rescheduling products containing Schedule I substances that complete Phase 3 trials and gain FDA approval.

On the marijuana front, the DOJ’s final order reclassifies FDA-approved marijuana drugs and state-licensed medical marijuana from Schedule I to Schedule III, easing tax and registration burdens for operators. This move sidestepped the usual notice-and-comment rulemaking, relying instead on expedited authority tied to international treaty obligations.

For medical marijuana businesses, this means relief from the harsh tax restrictions under Section 280E of the Internal Revenue Code, which previously disallowed deductions for Schedule I or II drug traffickers. The order also streamlines federal registration by allowing state licenses to satisfy federal requirements, with the DEA required to grant registrations barring public interest conflicts.

However, recreational marijuana, unlicensed bulk marijuana, and synthetic THC remain Schedule I substances, maintaining federal restrictions on those categories.

Taken together, these orders represent a cautious but important federal acknowledgment of the medical potential in psychedelics and marijuana. They could accelerate the development of new therapies for mental health disorders and ease the regulatory burdens on the medical cannabis industry. Still, the Trump administration’s broader record on civil rights and drug policy raises questions about how these changes will be implemented and who will ultimately benefit.

As the federal government begins to unwind some of the more draconian restrictions on these substances, activists, investors, and patients alike should watch closely. This could mark the start of a new chapter in drug policy, but only if the promises of access and research support translate into real-world change.