President Trump said Monday his administration is “looking at” reclassifying marijuana as a less dangerous drug. 

Such a move would continue efforts begun by the Biden administration, which started the process to make marijuana a Schedule III drug in 2024 but did not finish it before former President Biden left office. 

A Schedule III designation wouldn’t legalize marijuana, but criminal penalties would be lessened. It would open new research opportunities and allow pharmaceutical companies to get involved in the sale and distribution of marijuana where it is legal. It would also allow for tax breaks for some marijuana companies. 

The Wall Street Journal reported Friday that Trump told donors he was considering reclassifying marijuana, after industry groups paid millions of dollars to Trump’s political groups. 

“We’re looking at reclassification, and we’ll make a determination over, I’d say, the next few weeks,” Trump said during a press conference about the federal government taking control of the District of Columbia’s police force. 

Since 1971, marijuana has been a Schedule I drug, in the same category as heroin, methamphetamines and LSD. Those have no accepted medical use and a high potential for abuse, according to the Drug Enforcement Administration.  

Schedule III drugs include ketamine, anabolic steroids, testosterone and Tylenol with codeine. 

Cannabis industry revenue is projected to reach $34 billion this year, so eliminating the tax burden for businesses would be a boon. 

Under U.S. tax code, no business that deals with a Schedule I or Schedule II substance is permitted to make what would be considered ordinary business deductions or add any credit to their annual federal taxes.