Trump Weighs Psychedelics Executive Order as Cannabis Rescheduling Stalls Four Months In

President Donald Trump is preparing to issue an executive order aimed at boosting federal research into the psychedelic ibogaine, according to reporting published in the April 17, 2026 Marijuana Moment newsletter. The move comes nearly four months after the president's December 2025 rescheduling directive ordered the Drug Enforcement Administration (DEA) to move marijuana from Schedule I to Schedule III — a directive that remains unfulfilled.

For reform advocates, the juxtaposition is jarring. Cannabis rescheduling would hand multistate operators an estimated $2.3 billion in combined annual tax relief by eliminating the IRS 280E burden, yet federal action on the most widely used Schedule I substance in America has effectively stalled. Psychedelics — a fraction of the market and still mostly restricted to clinical trials — appear to be leapfrogging ahead.

What the New Psychedelics Order Would Do

The reported executive order focuses on ibogaine, a naturally-occurring psychoactive compound derived from the iboga plant that has shown promise in early-stage studies for treating opioid use disorder, treatment-resistant depression, and traumatic brain injury in veterans. Texas lawmakers allocated $50 million to ibogaine research in 2025, and Trump-aligned policy figures including Secretary Robert F. Kennedy Jr. have publicly advocated for accelerated federal study.

The anticipated order would direct agencies — likely including the National Institutes of Health (NIH), the Department of Veterans Affairs (VA), and potentially the DEA — to prioritize ibogaine clinical research, ease investigational drug application hurdles, and coordinate findings on benefits and safety. No date has been confirmed, but the newsletter described the action as possible "this week."

That timing is notable. As of April 17, 2026, the December rescheduling order for cannabis has produced no published DEA rule, no public hearing docket reopening, and no new guidance from the Department of Justice beyond the administrative shakeup that followed Attorney General Pam Bondi's removal earlier this month.

Inside the Rescheduling Delay

When Trump signed the December 2025 rescheduling directive, the cannabis industry treated it as the decisive break from years of bureaucratic stall under the Biden-era Drug Enforcement Administration. Multistate operator stocks rallied, lobbyists began drafting Schedule III compliance plans, and 280E tax-strategy consultants reported a surge in client interest.

Four months later, the operational reality has fallen short of the political signal. Several factors appear to be contributing:

Administrative turbulence at DOJ. The removal of Attorney General Bondi and subsequent reshuffling of senior officials in early April created a leadership vacuum over the agency that oversees the DEA. Rescheduling rules require formal DOJ-DEA coordination, and any transition in political appointees typically resets internal timelines.

DEA institutional resistance. Career staff at the DEA have historically opposed loosening cannabis classification. Although the president's directive is binding, the agency retains procedural discretion over scheduling hearings, administrative law judge review, and interim final rule timing — all of which can extend the calendar by months or years.

Congressional budget distractions. Trump's new budget proposal — notably the first of his second term to retain the state medical cannabis rider protecting state programs from federal interference — has drawn attention away from active executive rulemaking. Lawmakers focused on appropriations are not pushing the DEA publicly for movement.

Psychedelics political coalition. The psychedelics research coalition has unified support across MAGA-aligned veterans groups, harm-reduction advocates, and Silicon Valley donors. That coalition is broader and less politically contentious than the cannabis one, which remains entangled with law-and-order skeptics inside the GOP base.

What Rescheduling Would Actually Unlock

The stakes for cannabis remain concrete. A move to Schedule III would not legalize marijuana federally — it would remain a controlled substance, and state-licensed sales would still technically violate the Controlled Substances Act. But it would fundamentally reshape the industry's economics.

280E elimination. IRS rule 280E currently prevents plant-touching cannabis businesses from deducting ordinary operating expenses such as rent, salaries, and marketing against federal income tax. The rule applies only to Schedule I and II substances. Moving to Schedule III would free multistate operators — including Green Thumb Industries, Curaleaf, Trulieve, and Verano — from a burden that consumes an estimated $2.3 billion annually across the industry.

Research expansion. Federally funded cannabis research currently requires DEA approval, a process researchers have described for decades as slow and politicized. Schedule III status would unblock academic and pharmaceutical work, including FDA-pathway trials for cannabinoid medicines.

Banking and capital markets. While rescheduling alone would not fully resolve the banking issue — that requires separate legislation like the SAFER Banking Act — it would likely reduce reputational risk for publicly traded exchanges and could encourage more institutional investment in cannabis equities.

International treaty alignment. The U.S. currently treats cannabis more strictly than its obligations under the 1961 UN Single Convention require. Schedule III would bring federal classification into line with the 2020 UN Commission on Narcotic Drugs rescheduling and the practice of most European peer nations.

Industry and Advocate Reaction

Cannabis industry groups have publicly maintained cautious optimism while privately expressing growing frustration. The National Cannabis Industry Association (NCIA), the U.S. Cannabis Council, and state-level operator coalitions have continued to emphasize that the president's directive remains binding and that the DEA is obligated to execute it. But behind the scenes, executives have begun dusting off contingency plans built around a slower timeline.

Reform advocacy organizations like NORML, the Marijuana Policy Project, and the Drug Policy Alliance have taken a sharper tone, pointing out that the psychedelics executive order — if issued this week as reported — would mark a second federal drug-policy action taken faster than the completion of the cannabis rescheduling it was meant to accelerate.

Pennsylvania Gov. Josh Shapiro (D) and Virginia legalization sponsors have separately pushed forward with state-level efforts that assume no federal rescheduling relief in 2026, a tacit acknowledgment that the industry cannot wait indefinitely.

What to Watch Next

Several near-term signals will determine whether rescheduling moves in 2026 or slips into 2027:

1. DEA docket activity. Any formal publication in the Federal Register — even a notice of proposed rulemaking or administrative hearing schedule — would indicate the process is alive. Silence through Q2 2026 would suggest the timeline has slipped materially.

2. DOJ leadership confirmation. Whomever the president nominates to replace Bondi will face confirmation questioning on cannabis policy. Senate testimony could reveal whether the new leadership intends to honor the December directive on its original timeline.

3. Psychedelics order scope. If Trump's ibogaine order includes language extending rescheduling review authority to other Schedule I substances, cannabis advocates may have a procedural opening. If the order is narrowly ibogaine-specific, cannabis is left to wait on a separate track.

4. State budget pressure. Pennsylvania, Hawaii, and New Hampshire lawmakers are each weighing cannabis revenue as part of 2026-2027 budget plans. Federal inaction increases pressure on state legalization, which in turn keeps rescheduling politically relevant.

Key Takeaways

• Trump is expected to issue a psychedelics executive order targeting ibogaine research as soon as this week, according to April 17 reporting.
• His December 2025 cannabis rescheduling directive to the DEA remains unfulfilled nearly four months later.
• Rescheduling to Schedule III would deliver an estimated $2.3 billion in annual 280E tax relief to the cannabis industry and unlock expanded research.
• DOJ leadership turbulence, DEA procedural discretion, and political coalition dynamics all appear to be contributing to the cannabis delay.
• The next 60-90 days of DEA docket activity will signal whether rescheduling completes in 2026 or slides into 2027.

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