Cannabis Stocks Surge as Trump Signals Willingness to Ease Federal Restrictions

Cannabis sector stocks experienced a major rally on Monday following reports that President Donald Trump told high-profile donors he is open to considering a change in federal marijuana policy. According to media outlets, the president expressed a willingness to review marijuana’s classification after receiving significant financial support from the cannabis industry.

Industry Leaders See Immediate Market Gains from Potential Policy Shift

News of Trump’s remarks boosted confidence among investors, sending shares of major marijuana multistate operators soaring. Tallahassee-based Trulieve Cannabis saw a remarkable 27% jump, closing at $6.50 per share. Other publicly traded cannabis companies also recorded double-digit gains in the wake of the announcement.

Rescheduling Could Unlock Major Benefits for Cannabis Businesses

If the federal government were to downgrade cannabis from its current classification, the industry could see profound benefits, including relief from burdensome federal taxes. This would be a pivotal shift for plant-touching companies currently restricted by IRS Code Section 280E, which prohibits standard business deductions.

Political and Financial Ties Between the Cannabis Industry and the White House Grow Stronger

The fundraising event where Trump made his comments reportedly carried a $1 million-per-plate price tag. Industry leaders, including Trulieve CEO Kim Rivers, attended and contributed to the cause. Records show Trulieve alone donated $750,000 to the president’s inaugural committee, while other cannabis-backed organizations made sizable contributions to political action committees supporting the administration.

White House Influence Over DEA’s Marijuana Rescheduling Process Remains Critical

The U.S. Drug Enforcement Administration retains formal control over the marijuana rescheduling process. However, political observers agree the agency will ultimately follow White House direction. Since Trump’s inauguration, key DEA hearings related to cannabis rescheduling have been paused indefinitely, and the agency’s new administrator is considered skeptical of marijuana reform.

Cannabis Lobbyists Push for Immediate Federal Action

Industry lobby groups, including the U.S. Cannabis Roundtable, have intensified their calls for rescheduling. They argue that reclassifying cannabis would expand patient access, advance medical research, and modernize federal policy. Many industry leaders view this moment as a rare political opening for comprehensive reform.

Long-Running Rescheduling Effort Stalled Since January

The federal rescheduling push began under former President Joe Biden in 2022 after health regulators determined cannabis has an accepted medical use. The process to move marijuana to Schedule 3, however, has been on hold since January. Industry analysts believe a successful rescheduling could be a turning point for profitability and long-term stability.

Potential Political Impact as Trump Faces Declining Approval Ratings

Beyond its economic implications, marijuana reform could also carry significant political weight. With Trump’s approval ratings under pressure, policy action on cannabis could appeal to a broad swath of voters ahead of the 2026 midterm elections, providing both political and financial momentum.