In December 2025, President Trump issued an executive order requesting the rescheduling of cannabis. In April 2026, two specific categories of cannabis moved to Schedule III: cannabis in FDA-approved medications, and medical cannabis sold under a state license. All other cannabis — including bulk marijuana, extracts, lab-made THC, and anything sold for recreational use — stays in Schedule I. This is likely to have significant impacts on medical research and the sale and use of medicinal cannabis products.
What happened in the federal cannabis rescheduling?
President Trump issued an executive order in December 2025, which prompted the Department of Justice (DOJ) to begin the process of rewriting rules for the Department of Health and Human Services (HHS) and the Drug Enforcement Administration (DEA) on how cannabis is classified. This process involves extensive review and consultation. [1]
On April 23, 2026, acting Attorney General Todd Blanche issued an order that immediately reclassified FDA-approved and state-licensed medical cannabis as Schedule III of the Controlled Substances Act. This is an important distinction: medical cannabis that isn't sold through a licensed state program is still Schedule I, even though it's used medically. [2]
Blanche also announced that there will be an administrative hearing on June 29, 2026, during which the broader classification of cannabis will be discussed to evaluate the potential for a complete federal rescheduling of cannabis. [2][3]
The current rescheduling applies to any products containing cannabis or medical cannabis that are either approved by the Food and Drug Administration (FDA) or regulated by state medical marijuana licenses. [2]
Why Schedule III matters
Under Schedule I, drugs like heroin and ecstasy are deemed to have no medicinal purpose and a high risk of abuse and harm. Because of this, it is illegal to produce, buy, or possess them. As such, medicinal research is difficult if not impossible, and medicinal use is not permitted.
State laws regarding the medicinal use of cannabis vary widely. This change means the federal government now recognizes that cannabis has a medical use. But it does not make medical cannabis legal everywhere. States without medical programs aren't affected, and because most cannabis products still aren't FDA-approved, doctors generally still can't prescribe them. What the change does is lift certain federal penalties for state-licensed medical operators.
This also eases some of the barriers to studying cannabis, which should make research approvals faster and open the door to a wider range of studies. Researchers still have to get their cannabis through federally approved sources rather than buying it from a dispensary, but the overall process becomes less restrictive. [4][5]
What this does not change
What this does not change is: [2][5][7]
- Most cannabis products are not FDA-approved, although this change will set up a pathway for more product approvals.
- Recreational use of cannabis is still illegal, pending the outcome of the next hearing.
- State laws remain the same, meaning that states with complete legalization continue to experience disparity between state and federal laws.
- Cultivation, manufacturing, and sale of cannabis products outside of approved and regulated frameworks continues to be illegal on a federal level.
- State laws around the permitted locations of dispensaries remain in place.
- Employment laws around cannabis use and drug testing remain, although these might change over time.
The June 29 hearing and what happens next
The goal of the administrative hearing set down for June 29 is to discuss the broader rescheduling of cannabis. This will be overseen by an Administrative Law Judge, and various participants will attend. Approved participants include: [6]
- National Drug and Alcohol Screening Association
- Tennessee Bureau of Investigation
- Smart Approaches to Marijuana
- The States of Nebraska, Idaho, Indiana, and Louisiana
- DUID Victim Voices
- Kenneth Finn, MD
- Phillip A. Drum, PharmD
This list was chosen by the Administrator from all who wrote to give notice of their intent to participate. All participants will present a case against the reclassification of cannabis, while the DEA/DOJ will be the only party defending the proposed rescheduling. This adheres to strict rules that stipulate that participants must be “any interested person...adversely affected or aggrieved by any rule or proposed rule issuable”. [3]
The hearing will commence on June 29, 2026, and will be concluded no later than July 15, 2026.
The procedural rules strictly ensure that each participant is given time to present their case, along with witness testimony and cross-examination, so that ample factual evidence can be gathered. This will inform the Judge’s recommendation to the DEA, who will decide whether to enact a reclassification based on this. [3][6]
What clinicians and researchers should know
Currently, as most cannabis products are not FDA-approved, clinicians still cannot legally prescribe them. However, they can recommend cannabis to patients, such as those with chronic pain, nausea, or appetite loss, without the risk of federal charges. [8]
Patients already using medical cannabis will likely see very little change day to day. Prices may come down over time if the tax relief for licensed operators gets passed along to customers.
Now that cannabis is Schedule III, the process to seek approval for and commence cannabis research will be much easier and faster, as will obtaining the cannabis products required. This will also likely result in a wider range of research and more substantial data, which can inform the evidence-based use of cannabis for physical and mental health conditions. [4][5]
How businesses may be affected
Guidance around operational procedures for medicinal cannabis businesses will be offered, which will include: [5]
- A requirement for these businesses to register with the DEA, along with the process to complete and maintain this.
- Businesses will now be eligible for 280E tax relief, potentially increasing profits. Section 280E prevents tax deductions from businesses involving Schedule I and II substances.
This might be complicated in states that have legalized all cannabis, as there are dispensaries selling both medicinal and recreational cannabis. This means that these businesses will essentially be split into two sides: recreational, state-approved cannabis sales, and a medicinal sale that is federally approved and provides federal tax benefits. [9]
This will require two licenses and careful management of products and accounts to ensure state and federal compliance.
Final thought
The reclassification of medical cannabis is a monumental change in US federal law, following years of political dispute, advocacy for change, and shifting public attitudes. This change can make access to medicinal cannabis easier and safer for patients and researchers, and will likely lead to the approval required for the prescription of medicinal cannabis products.
This change is also unusual, as it means that cannabis is currently classified under two different schedules, which is not typically the case. For example, methamphetamine is a Schedule II substance and is not scheduled separately for medicinal use and recreational use.
It is likely that further changes to cannabis scheduling will take place in the coming months, pending the outcome of the June 29 hearing.
-blog-detail.jpg?v=1722513446)