Overview
- The Justice Department, in a final order issued April 22, 2026, moved FDA‑approved cannabis drugs and state‑licensed medical marijuana to Schedule III while keeping recreational use in Schedule I, with a broader rescheduling hearing set for June 29.
- DEA opened registration for state medical operators as manufacturers, distributors, or dispensers, and applications filed by June 29 can keep operating during review under their state licenses, with DEA buying registered growers’ crops and selling them back to satisfy treaty rules.
- Moving medical marijuana to Schedule III may lift the federal tax rule known as Section 280E for many licensees, with Treasury guidance expected to clarify how deductions and credits will apply.
- Schedule III status acknowledges medical use, which undercuts past court rulings and is likely to drive new ADA workplace accommodation claims and FHA challenges to HUD eviction policies.
- Hemp is unchanged by this order, as a separate 2025 law will restrict many hemp‑derived products starting November 12, 2026 unless Congress acts during Farm Bill talks.