In a significant policy shift, the Trump administration has reclassified state-licensed medical marijuana from Schedule I to Schedule III, a move that advocates have long sought. This change allows cannabis firms to benefit from tax deductions on business expenses and eases regulations surrounding research. Acting Attorney General Todd Blanche emphasized that this decision aligns with President Trump's commitment to expanding access to medical treatments. Following the announcement, shares of major cannabis companies like Cronos Group, Aurora Cannabis, and Tilray Brands surged between 6% and 13%. The reclassification legitimizes medical marijuana programs in 40 states and sets the stage for broader reclassification discussions. Industry leaders believe this policy change will not only improve patient care but also enhance the quality and consistency of medical cannabis products. Additionally, the decision could facilitate easier access to funding for cannabis firms, which have historically faced barriers due to federal regulations.