Justice Department, DEA move medical marijuana products to Schedule III

Federal regulators moved FDA-approved marijuana products and marijuana products covered by qualifying state medical marijuana licenses into Schedule III, a narrower shift that expands medical flexibility without legalizing marijuana nationwide. The Justice Department and Drug Enforcement Administration issued the final order on April 23, 2026, and set an expedited administrative hearing for June 29, 2026, to weigh whether marijuana should be rescheduled more broadly from Schedule I to Schedule III.

The practical effect is limited but significant. Schedule III drugs are recognized as having accepted medical uses and a lower potential for abuse than Schedule I drugs, the category that still includes heroin and LSD. The order does not change federal prohibitions on recreational marijuana, and it does not erase federal criminal penalties tied to nonmedical use. What it does do is create a lower federal classification for a defined set of medical products already tied to Food and Drug Administration approval or to qualifying state-issued medical marijuana licenses.

Acting Attorney General Todd Blanche signed the order, and DEA Administrator Terry Cole said the agency was moving forward with an administrative hearing process meant to bring more consistency and oversight to an area that has long been marked by conflicting rules. The Justice Department said the change was intended to strengthen medical research, expand access to approved therapies, and support state-regulated medical marijuana programs while keeping federal controls against illicit trafficking.

The move followed President Donald Trump’s December 18, 2025 executive order directing the administration to speed review of marijuana’s federal status and increase medical marijuana and cannabidiol research. The White House said FDA had found scientific support in 2023 for marijuana use in treating anorexia related to a medical condition, nausea and vomiting, and pain. That research backdrop is one reason advocates have pushed for a federal classification that reflects medical use more closely than Schedule I allows.

Analysts said the shift could also have financial consequences. Schedule III status may make clinical research easier, and it could help cannabis companies challenge the long-standing application of Internal Revenue Code Section 280E, which has blocked deductions for ordinary business costs such as rent and payroll. Banking access could also improve if lenders and financial institutions see less federal risk around state-compliant medical products.

Reaction split along familiar lines. Representative Steve Cohen called the decision a small step in the right direction but said it did nothing for recreational marijuana or the harsh federal penalties that still apply outside medical use. Other lawmakers and advocates welcomed the move as overdue, while critics argued that leaving recreational marijuana in Schedule I keeps federal policy out of step with state markets and public expectations.