Acting Attorney General Todd Blanche signed an order under President Trump's direction on Thursday to reclassify state-licensed medical marijuana as a less-dangerous drug -- a major change in U.S. policy.
While the move does not legalize marijuana under federal law, it does impact the way it is regulated in the dozens of states that permit its medical use.
The order also provides a tax break to medical marijuana operators and provides a clearer pathway for those participating in cannabis research.
Here's what to know about this decision:
What is the new classification?
The order directs the U.S. Drug Enforcement Administration (DEA) to shift the classification of medical marijuana from a Schedule I to a Schedule III.
The DEA ranks drugs from 1-5 in terms of their accepted medical use and the potential for abuse.
Schedule I drugs are the most highly regulated and are considered to have "no currently accepted medical use," according to the DEA. Other drugs under this designation include heroin, LSD and ecstasy.
Schedule III drugs, meanwhile, are defined as having "moderate to low potential" for dependence. This regulation level also applies to ketamine, testosterone, anabolic steroids and Tylenol with codeine.
Where will the impact be felt?
Forty states have passed laws allowing people to obtain prescriptions for medical marijuana. Eight additional states permit the medical use of low-THC cannabis or CBD oil.
Twenty-four of the 40 states and Washington, D.C., also allow the use of the drug for recreational purposes. Only Idaho and Kansas explicitly ban the drug.
Under this new classification, licensed medical marijuana dealers can claim tax deductions on expenses associated with their sales.
Additionally, the Thursday order affirms cannabis researchers' right to obtain the drug through these licensed medical marijuana operators.
"These actions will enable more targeted, rigorous research into marijuana's safety and efficacy, expanding patients' access to treatments and empowering doctors to make better-informed healthcare decisions," Blanche wrote in a Thursday social media post.
Why is this happening now?
The Biden administration initiated a review of medical marijuna's reclassification, but this process was interrupted when Trump assumed office.
Trump signaled his interest in continuing his predecessor's proposal, and Trump signed an executive order last December ordering an expedited rescheduling process for the drug. He specifically cited hurdles to cannabis research as the motive behind this order.
"Unless a drug is recommended by a doctor for medical reasons, just don't do it," Trump said during the signing ceremony, warning of possible harms of recreational use.
"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 added.
Blanche's Thursday order sidesteps the review process typically required before reclassification can be finalized, relying on federal law that permits the attorney general to determine the appropriate designation for drugs.
The DEA has scheduled a hearing, which is set to begin on June 29, to consider this proposed regulation change more broadly, Blanche said.
"Under the direction of President Trump and Acting Attorney General Blanche, DEA is expeditiously moving forward with the administrative hearing process -- bringing consistency and oversight to an area that has lacked both," DEA Administrator Terry Cole said in a Thursday statement.