Trump Accelerates Psychedelic Research and Reschedules Medical Marijuana

President Donald Trump initiated a significant shift in U.S. drug policy in April 2026 through two major regulatory actions. On April 18, he signed an executive order to accelerate the research and approval of psychedelic drugs, including ibogaine, psilocybin, MDMA, and LSD, to treat severe mental illness, PTSD, and addiction. This move, influenced by podcaster Joe Rogan, directs the Food and Drug Administration to use priority vouchers to speed up drug reviews and allocates $50 million via ARPA-H for state-level research, specifically to aid military veterans.

Following a separate December order, Acting Attorney General Todd Blanche announced on April 23 that the Department of Justice would reclassify state-licensed and FDA-approved medical marijuana from Schedule I to Schedule III. This designation recognizes the drug's medical utility and provides significant tax relief to businesses by removing the Section 280E deduction restriction. However, the order does not federally legalize marijuana for recreational or medical use, nor does it provide clemency for those currently incarcerated for marijuana offenses.

Market reaction was volatile; biotech and cannabis stocks initially surged but some later declined as investors noted the limited scope of the medical-only rescheduling. While industry leaders and some state lawmakers praised the alignment with science, critics including Senator Tom Cotton and criminal justice advocates argued the move ignores public safety risks and fails to address racial disparities in sentencing. The Drug Enforcement Administration has scheduled administrative hearings from June 29 to July 15 to evaluate a broader reclassification of all marijuana products.