(NEXSTAR) — Unlike in years past, 2025 was a relatively quiet year when it came to marijuana legalization on the state level, aside from a recent executive order signed by President Trump. Recent reports suggest 2026 could mark a bigger shift in the industry.
There were some new developments this year. Texas expanded its medical marijuana program while Governor Greg Abbott vetoed an all-out ban on THC products in the state. Delaware had its first sale of recreational marijuana in August, two years after it became legal in the state. Kentucky’s first medical cannabis dispensary also opened this year.
Next year, Massachusetts will allow regulated social consumption of marijuana by adults. Alabama appears poised to see its first dispensaries open in 2026, almost half a decade after it legalized medical marijuana.
There are also efforts in Florida to put recreational marijuana on the ballot in 2026, despite voters blocking the measure in 2024.
Among those who reportedly voted in favor of the measure was President Trump. Then a presidential candidate, Trump said in Oct. 2024 that he would vote yes on the amendment to legalize marijuana in Florida, writing in part on Truth Social that “I believe it is time to end needless arrests and incarcerations of adults for small amounts of marijuana for personal use.”
He went on to say he would work on marijuana reform if elected to a second term.
As of early December, Trump was reportedly considering a plan that would reschedule marijuana to a Schedule III drug on the federal level, a move that has been on the horizon for several years. That came to fruition a week before Christmas when Trump signed an executive order to speed up the rescheduling process.
Roughly two years ago, the Department of Health and Human Services recommended the Drug Enforcement Administration reschedule marijuana. The process stalled, however.
Marijuana is a Schedule I drug alongside heroin, LSD, and ecstasy. Rescheduling to Schedule III would put it in a group with ketamine, testosterone, and Tylenol with codeine.
Rescheduling marijuana would not decriminalize it or make it legal for recreational use nationwide. It would remain a controlled substance, subject to federal rules and regulations.
Instead, the change would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation’s most dangerous drugs. Becoming a Schedule III drug would make it easier for research to be done on marijuana and potentially cut the federal taxes that companies pay.
A senior administration official pointed to the research aspect during a press briefing, noting that the order Trump was signing was “focused on increasing medical research for medical marijuana and CBD — cannabidiol.”
Trump further emphasized that the move does not make recreational marijuana legal nationwide.
“Unless a drug is recommended by a doctor for medical reasons, just don’t do it. At the same time, the facts compel the federal government to recognize that marijuana can be legitimate in terms of medical applications when carefully administered,” he said during a press briefing about the executive order.
While Trump’s order calls for the rescheduling process to be expedited, an exact timeline for when marijuana could become a Schedule III drug is unclear.
Meanwhile, the hemp industry could be in for a big blow in 2026.
As part of the budget bill signed in November, a federal loophole that the hemp-derived products industry had benefited from for years was closed. According to the bill’s text, companies would be prevented from having products with a concentration of THC greater than 0.3% and products derived from CBD, like delta-8, would be prohibited.
While some believe this could entirely upend the industry, others say it could keep unregulated marijuana products from being sold in the U.S. The provision does not take effect until November 2026.
More than three dozen states have legalized marijuana use in some form or another. In many cases, that includes products containing low levels of THC and/or CBD.
There’s also a chance that Congress formally makes the legalization of marijuana a state-level issue.
A bill introduced in the House earlier this year, the bipartisan STATES 2.0 Act, would “end the federal prohibition of cannabis and allow states to determine their own cannabis policies.” It was referred to the House Committee on Energy and Commerce in April.
Nexstar’s Alix Martichoux contributed to this report.