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ARTICLE · 23 APRIL 2026

Roll With It: Federal Government Reclassifies State-Licensed Marijuana

Dinsmore & Shohl LLP
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DOJ immediately moved state-licensed medical marijuana products to Schedule III and will hold an expedited hearing on broader cannabis rescheduling beginning June 29, 2026.

United StatesCannabis & Hemp
Daniel S. Zinsmaster
Daniel S. Zinsmaster
Hunter A. Graffice
Hunter A. Graffice

Key Takeaways

  • DOJ immediately moved state-licensed medical marijuana products to Schedule III and will hold an expedited hearing on broader cannabis rescheduling beginning June 29, 2026.
  • State-licensed medical marijuana businesses can pursue expedited DEA registration to take advantage of new federal legal protections by demonstrating compliant controls for storage, dispensing, inventory and recordkeeping.
  • Schedule III status provides major tax relief by lifting Internal Revenue Code § 280E limits on deductions for these businesses, with Treasury encouraged to consider retroactive relief.

On April 23, 2026, the Department of Justice (DOJ) issued an order placing medical marijuana and marijuana products “regulated by a state medical marijuana license” in Schedule III of the Controlled Substances Act.1 The DOJ also announced an expedited administrative hearing to consider reclassifying all cannabis products from Schedule I to Schedule III. Schedule I controlled substances are

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