State-Licensed Medical Cannabis Ordered to Schedule III
- Apr 29
- 1 min read
April 29th, 2026
Acting Attorney General Todd Blanche has signed an order that would immediately move FDA-approved and state-legal medical cannabis to Schedule III, from the more restrictive Schedule I of the Controlled Substances Act.
So what does this mean?
This means that state licensed medical cannabis businesses will no longer be subject to the deduction disallowance imposed by Section 280E of the Internal Revenue Code. It also opens doors for scientists to conduct clinical trials using state-licensed cannabis products.
However... The policy change does not apply to all recreational cannabis sold in states.
Hearings Set for Broader Rescheduling
Beginning on June 29, there will be a new expedited administrative hearing process to consider the broader rescheduling of marijuana from Schedule I to Schedule III.
The hearing process will conclude no later than July 15, 2026. It would then have to be published in the Federal Register for 30-90 days before it could take effect.
Read more about the rescheduling here:
Stay tuned for details on an upcoming Cannabis Alliance hosted webinar to discuss the impacts of the order to reschedule and how our local community can prepare their businesses.
Comments