Trump Administration Moves State-Licensed Medical Marijuana to Schedule III
The Trump administration on Thursday moved FDA-approved marijuana products and cannabis products sold under qualifying state medical marijuana licenses from Schedule I to Schedule III under federal law, while also setting a new June 29, 2026 administrative hearing to restart and expedite the broader DEA rescheduling process.
The Justice Department said the immediate action is meant to support medical research and state-regulated medical programs while maintaining “strict federal controls against illicit drug trafficking.”
For now, the change affects only FDA-approved marijuana products and state-legal medical marijuana markets, not adult-use cannabis businesses. That distinction is critical for the broader industry: adult-use operators are not getting immediate 280E tax relief under this order, and the move does not provide any standalone banking relief for adult-use businesses that remain federally illegal.
The administration’s announcement also indicated that the existing rescheduling process started by the DEA under the Biden Administration would be scrapped for a new and expedited process starting with the hearing in June. That broader proceeding is expected to determine whether marijuana more generally will be moved out of Schedule I, a question that remains especially important for adult-use operators still stuck in the federal-state conflict.
“Upon further review, the DEA is withdrawing the prior notice of hearing and terminating those proceedings in order to move more efficiently toward the completion of marijuana’s complete redesignation. This action will accelerate the administrative process, include firm deadlines, and allow DEA to proceed in the most expeditious manner consistent with federal law. DEA will hold a new administrative hearing beginning June 29, 2026, regarding the proposed rescheduling of marijuana.” – via the Justice Department’s announcement
While the change represents the most significant shift in federal cannabis policy in decades, even if cannabis is fully reclassified as a Schedule III substance, people currently serving prison time for cannabis possession will not be directly affected by the change, and businesses on the adult-use side of the industry will still be considered illegal at the federal level.