Overview
- Acting Attorney General Todd Blanche signed the order Thursday, moving FDA-approved cannabis products and state-licensed medical marijuana from Schedule I to Schedule III.
- Marijuana is not legalized under federal law by this action, and products outside FDA approval or state medical programs remain in Schedule I.
- The Drug Enforcement Administration set a June 29 administrative hearing to consider broader changes to marijuana’s federal status.
- State-licensed operators could gain relief from IRS Code Section 280E, which blocks standard business deductions for Schedule I and II substances, though formal IRS guidance is still expected.
- Smart Approaches to Marijuana said it will challenge the order in court, as the change follows Trump’s December directive to fast-track rescheduling and builds on earlier HHS/FDA reviews.