In a historic move, United States President Donald Trump signed an executive order today calling for, among other things, expediting the process to reschedule cannabis from its current status as a Schedule I substance at the federal level to Schedule III. It is the most significant federal cannabis public policy change in the U.S. since the enactment of the Controlled Substances Act over 50 years ago. The announcement of the executive order came via a press conference held in the Oval Office this morning.

The Controlled Substances Act, which was first implemented in 1971, resulted in cannabis being classified as a Schedule I substance. Schedule I substances are described by the Drug Enforcement Administration (DEA) as “drugs with no currently accepted medical use and a high potential for abuse.”

President Trump’s executive order will expedite the process of moving cannabis to Schedule III, which is described as “drugs with a moderate to low potential for physical and psychological dependence.” While the rescheduling of cannabis at the federal level does not legalize it nationwide, it will have a wide-ranging impact on the emerging cannabis industry in the United States and beyond.

The most immediate impact of cannabis being rescheduled from Schedule I to Schedule III pertains to how many state-level cannabis companies are taxed due to 280E. Section 280E of the Internal Revenue Code prohibits businesses from deducting certain business expenses from gross income associated with the “trafficking” of Schedule I or II substances, as defined by the Controlled Substances Act.

Moving cannabis to Schedule III will result in state-legal cannabis businesses in the U.S. saving billions of dollars annually. Those cannabis industry tax savings can obviously be used for any number of things, including helping companies expand their operations domestically and internationally. Part of the executive order also involves making cannabidiol (CBD) products available to Medicare patients.

Below is an embedded video of today’s press conference which contains further details about the historic executive order:

This is breaking news, and this article will be updated as new information becomes available, including the official text from the executive order.