DOJ reclassifies medical marijuana to Schedule III
Federal reclassification opens medical cannabis to research and tax relief
On April 23, 2026, the Trump Justice Department announced an immediate order reclassifying FDA-approved marijuana products and state-licensed medical marijuana from Schedule I to Schedule III 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 December 18, 2025 executive order on medical marijuana and CBD research.
Key Concepts
Essential concepts and terms to understand this topic
De Minimis Rule
Legal principle that minor violations or values below a certain threshold are too trivial to enforce.
Modern Alcohol Laws
State-controlled liquor regulations established after Prohibition''s repeal
Most Favored Nation Drug Pricing
A drug pricing policy requiring companies to charge U.S. programs no more than their lowest price charged in any other country.
End of National Prohibition
Constitutional repeal of the nationwide alcohol ban
State Alcohol Regulation
State authority to control alcohol sales granted by the 21st Amendment
Twenty-First Amendment
The only amendment to repeal another; it ended the nationwide alcohol ban (18th Amendment) and gave states broad authority to regulate alcohol sales, distribution, and consumption.
Federal Preemption
Federal law supersedes conflicting state or local law under the Supremacy Clause.
Reserved Powers
Powers not explicitly given to the federal government and not forbidden to the states, which remain under state control.
Federalism
Power is divided between the federal government and state governments, each exercising authority in designated areas.
Taxing and Spending Power
Congressional authority to raise revenue and allocate federal funds
Key People
3
Trump Administration
Executive branch directing DEA and DOJ reclassification
Trump issued a December 18, 2025 executive order directing federal agencies to increase medical marijuana and CBD research and consider reclassification. On April 23, 2026, the DOJ announced the immediate Schedule III reclassification of medical marijuana and initiated the expedited hearing process for all marijuana, demonstrating sustained executive direction on this policy shift.
DEA (Drug Enforcement Administration)
Federal agency implementing reclassification and conducting administrative hearing
The DEA executed the April 23 order reclassifying medical marijuana and is conducting the formal rulemaking process for broader reclassification. The June 29, 2026 hearing represents the DEA's key role in shaping the final scope and timing of the reclassification.
TA
Trump Administration (Executive Order Dec 2025)
Initiated marijuana reclassification policy
Trump's December 2025 executive order directed DOJ to begin marijuana reclassification based on treaty obligations. This executive direction set the timeline and methodology, instructing use of the treaty pathway to bypass APA notice-and-comment.
What you can do
Contact your House Representative to push for federal cannabis business tax relief codification
civic action
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.
Contact your Senators about supporting the June 29 DEA hearing on full marijuana reclassification
civic action
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.
Engage with cannabis industry advocacy groups on tax relief implementation and regulatory clarity
civic action
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.