April 22, 2026
DOJ reclassifies medical marijuana to Schedule III
Federal reclassification opens medical cannabis to research and tax relief
📋Public Policy🏥Public Health🏛️Government🏢Legislative Process
On , the Trump Justice Department announced an immediate order reclassifying FDA-approved marijuana products and state-licensed medical marijuana from Schedule I to of the Controlled Substances Act. This represents the first federal reclassification of marijuana since its placement in Schedule I by President Nixon in 1970. The action was directed by Trump's on medical marijuana and CBD research.
, which covers drugs like , is defined by the Controlled Substances Act as having accepted medical use and abuse potential lower than Schedules I and II. This new status opens federal research pathways previously blocked by Schedule I restrictions, though marijuana remains a controlled substance subject to federal regulation.
The immediate reclassification removes the on medical cannabis businesses. (enacted 1982) prohibited tax deductions for businesses trafficking in Schedule I/II controlled substances. Under Schedule III, state-licensed medical cannabis businesses can now deduct ordinary business expenses (rent, labor, equipment) for the first time, potentially saving hundreds of millions dollars industry-wide.
The June 29, 2026 DEA hearing will consider broader reclassification of all marijuana from Schedule I to Schedule III, not just medical/FDA-approved products. This hearing uses the full APA administrative process with notice and comment. If DEA votes to reclassify all marijuana, recreational cannabis would no longer be a Schedule I drug. However, the final authority rests with the Attorney General and potentially Congress. The distinction between the April fast-track (medical only) and June broader (all marijuana) shows the Trump administration is moving in stages, with a June decision that could fundamentally reshape federal drug policy.
📋Public Policy🏥Public Health🏛️Government🏢Legislative Process
People, bills, and sources
Trump Administration
Executive branch directing DEA and DOJ reclassification
DEA (Drug Enforcement Administration)
Federal agency implementing reclassification and conducting administrative hearing
Trump Administration (Executive Order Dec 2025)
Initiated marijuana reclassification policy
What you can do
1
civic action
Contact your House Representative to push for federal cannabis business tax relief codification
The removal of Section 280E restrictions is a regulatory change that could be reversed by future administrations. Congress should codify cannabis business tax relief in statute to make it permanent. Call your representative to ask them to support legislation ensuring state-legal cannabis businesses can deduct ordinary business expenses.
Hello, I am [NAME], a constituent from [CITY/STATE]. I am calling about the DOJ's April 23 announcement reclassifying medical marijuana to Schedule III and the Section 280E tax relief for state-licensed cannabis businesses.
Key concerns:
- The reclassification removes IRS Section 280E restrictions, allowing cannabis businesses to deduct ordinary expenses for the first time
- This tax relief could save the cannabis industry hundreds of millions annually, but it's a regulatory change that could be reversed
- Congress should codify this relief in statute to protect state-legal businesses
Specific request: I am asking you to support legislation permanently removing Section 280E restrictions for state-licensed cannabis businesses.
Question: Will you commit to backing a bill that codifies cannabis business tax parity with other industries?
Thank you for your time.
2
civic action
Contact your Senators about supporting the June 29 DEA hearing on full marijuana reclassification
The DEA is holding a formal administrative hearing on June 29, 2026 to consider reclassifying all marijuana (including recreational) from Schedule I to Schedule III. This hearing will shape federal drug policy for years. Contact your senators to urge them to support evidence-based reclassification and public participation in the hearing process.
Hello, I am [NAME], a constituent from [CITY/STATE]. I am calling about the DEA's June 29, 2026 administrative hearing on marijuana reclassification.
Key concerns:
- The DOJ already reclassified medical marijuana to Schedule III on April 23, 2026
- A formal DEA hearing on June 29 will consider moving all marijuana (including recreational) to Schedule III
- This is an opportunity for evidence-based drug policy that aligns with state laws and scientific research
Specific request: I am asking you to support public participation in the June 29 hearing and urge the DEA to base its decision on science and evidence.
Question: Will you commit to ensuring the DEA hearing considers the 38 states that have legalized marijuana?
Thank you for your time.
3
civic action
Engage with cannabis industry advocacy groups on tax relief implementation and regulatory clarity
Cannabis industry groups are working to implement the Section 280E tax relief and ensure IRS guidance reflects the new Schedule III status. Join advocacy efforts to push for clear regulatory guidance from the IRS on deduction procedures, recordkeeping, and compliance timelines.
Hello, I am [NAME], a constituent from [CITY/STATE]. I am reaching out to learn more about implementing the April 23 marijuana reclassification and Section 280E tax relief.
Key concerns:
- The DOJ reclassified medical marijuana to Schedule III, removing Section 280E restrictions
- State-licensed cannabis businesses need clear IRS guidance on deduction procedures and compliance
- I want to support advocacy for full implementation of tax relief
Specific request: I am asking for information on how citizens can advocate for clear IRS guidance on cannabis business tax deductions.
Question: What steps can state-legal cannabis businesses take now to comply with the new Schedule III rules?
Thank you for your time.