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ARTICLE · 27 APRIL 2026

Cannabis Rescheduled!

Seyfarth Shaw LLP
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The Drug Enforcement Administration is moving cannabis from Schedule I to Schedule III in a staged process, starting with state-legal medical marijuana and FDA-approved products. This rescheduling will maintain federal illegality while enabling crucial research and allowing state-licensed businesses to claim federal tax deductions previously prohibited under IRC Section 280E.

United StatesCannabis & Hemp
Stanley Jutkowitz
Stanley Jutkowitz
Susan Ryan
Susan Ryan
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Whether it was Roger Stone or Donald Trump who finally lit a fire under the Drug Enforcement Administration (DEA) to move cannabis from Schedule I to Schedule III, it’s finally happening. See the Department of Justice (DOJ) press release here.

The move from I to III will happen in stages. First to go will be state-legal medical marijuana and any cannabis products already approved by the Food and Drug Administration (FDA). A broader rescheduling is set for consideration in late June.

So what does this mean? Several things:

  1. Cannabis will NOT be legal under federal law.
  2. More research will be legal under federal law, which is good news for the sponsors of the Higher Education Marijuana Research Act.
  3. State-licensed cannabis businesses will be allowed to take federal tax deductions currently barred by IRC Section 280E.

Rest assured, there will be lots more news on this topic in the weeks and months ahead.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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