DOJ formally reclassifies marijuana from Schedule I to Schedule III

The Department of Justice finalizes a rule reclassifying marijuana from Schedule I — the most restricted category under the Controlled Substances Act, alongside heroin and LSD — to Schedule III, in line with a recommendation made by the Department of Health and Human Services in 2023. The Biden administration initiated the reclassification process but did not complete it before leaving office. The change does not legalize marijuana at the federal level or affect state law. Marijuana remains a controlled substance. Under Schedule III, the drug is recognized as having accepted medical uses and lower abuse potential than Schedule I or II substances, placing it alongside drugs such as ketamine and anabolic steroids. The reclassification removes marijuana from the highest criminal enforcement category and may reduce some federal penalties for possession. The action takes effect after years of advocacy from medical researchers and cannabis industry groups who argued that Schedule I classification blocked legitimate scientific study and contradicted the medical consensus on marijuana''s therapeutic uses. Thirty-eight states had already legalized medical marijuana. Several Republican-led states had legalized recreational use. The cannabis industry projected the change could allow marijuana companies to deduct normal business expenses on federal taxes — a financial benefit long denied under tax code provisions tied to Schedule I status.