Overview
- The Justice Department, which on Thursday moved FDA‑approved cannabis products and state‑licensed medical marijuana to Schedule III, said the shift recognizes medical use and lowers federal barriers to study.
- The order does not legalize marijuana under federal law, and any cannabis outside FDA‑approved drugs or state medical programs remains a Schedule I substance subject to existing controls.
- DEA will hold an expedited administrative hearing on June 29 to consider broader reclassification, and the rule can face court challenges after Federal Register publication, with opponents already vowing lawsuits.
- Rescheduling is expected to unlock more clinical research and could lift the IRS Section 280E tax burden on state‑legal operators, though businesses await formal IRS guidance and banking changes to take hold.
- The move follows a 2023 HHS/FDA recommendation after a 2022 review and a December 2025 executive order by President Trump to speed action, as most states now allow medical use and many permit adult sales.