Rescheduling status and what it changes

Current status at a glance

Category	Federal schedule, September 2026	280E applies?
FDA-approved drug products containing marijuana	Schedule III	No
Marijuana subject to a state medical marijuana license	Schedule III	No, for the qualifying medical activity
Adult-use marijuana under a state license	Schedule I	Yes
Unlicensed or bulk marijuana, synthetic THC	Schedule I	Yes
Hemp as defined in 7 U.S.C. 1639o	Not a controlled substance	No

The category list follows the Federal Register order and Foley Hoag’s summary of what stays in Schedule I. This page is educational, not legal or tax advice.

Timeline: how rescheduling got here

Date	Event
6 Oct 2022	President Biden asks HHS and the Attorney General to review marijuana’s schedule
29 Aug 2023	HHS recommends Schedule III to DEA
21 May 2024	DOJ publishes the notice of proposed rulemaking; about 43,000 comments follow
29 Aug 2024	DEA issues a notice of hearing
Jan 2025	The hearing is halted on an interlocutory appeal over alleged ex parte contacts
Aug 2025	The presiding judge retires, leaving DEA without an administrative law judge
18 Dec 2025	Executive order directs the Attorney General to expedite rescheduling
23 Apr 2026	Acting Attorney General Todd Blanche signs the medical and FDA-product order
28 Apr 2026	Order published and effective
May 2026	Three petitions for review filed in the D.C. Circuit; later consolidated
29 Jun 2026	Expedited DEA registration window closes; broader hearing opens
15 Jul 2026	Hearing concludes
Aug 2026	Final briefs filed; 2,533-page transcript released
9 Sep 2026	D.C. Circuit denies a stay of the April order

The 2022 to 2024 dates come from the 2024 proposed rule. The 2024 to 2025 stall is described by Foley Hoag. Litigation dates are from Frantz Ward.

What did the April 2026 order do?

It moved two categories into Schedule III immediately and restarted the process for the rest. The order relies on 21 U.S.C. 811(d)(1), which tells the Attorney General to schedule a drug as needed to meet treaty obligations. Gibson Dunn notes that this treaty route is what allowed the order to take effect without the usual rulemaking steps. The Congressional Research Service reviews the legal basis in LSB11424.

The order also set up expedited DEA registration for state medical licensees. Applications filed within 60 days of publication, by 29 June 2026, qualified for the expedited route and for continued operation during review. State licensure serves as evidence of state authorization, and the state “recommendation” model for patients was kept. DEA has since begun inspecting applicants.

Where the broader rescheduling stands

The hearing is over and the decision is pending. Chief Administrative Law Judge Derek Julius heard 11 days of testimony between 29 June and 15 July 2026. According to Marijuana Moment, the parties filed final briefs in mid-August and DEA’s own counsel argued in favour of Schedule III. The judge issues a recommendation; DEA Administrator Terrance Cole makes the final decision and is not bound by it.

No statute sets a deadline for either step. Any final rule covering adult-use marijuana would almost certainly be challenged in court, as the April order has been.

The court challenge to the April order

The medical Schedule III order is in force but not yet secure. Petitions were filed by Smart Approaches to Marijuana with the National Drug and Alcohol Screening Association, by the attorneys general of Nebraska and Indiana, and by a coalition that includes treatment providers and a cannabinoid drug developer. They argue the order skipped required rulemaking and exceeded the Attorney General’s authority.

On 9 September 2026 a D.C. Circuit panel denied a stay, finding the petitioners had not met the stringent requirements for a stay pending review, and directed the parties to coordinate briefing on the merits. A merits ruling is unlikely before 2027.

What rescheduling changes for a business sale

1. Tax on medical earnings. Treasury said on 23 April 2026 that guidance is expected to treat the change as applying to the full taxable year that includes the effective date, and to cover apportionment for mixed businesses. For a calendar-year medical operator that points to 1 January 2026. Worked scenarios are on the rescheduling tax scenarios page.
2. Valuation of medical and dual operators. After-tax cash flow rises where 280E falls away, which supports higher prices for medical-weighted businesses. See how rescheduling would affect valuation and the rescheduling impact calculator.
3. A new federal registration. DEA registrations are personal to the registrant and need DEA’s written consent to transfer under 21 CFR 1301.52. Buyers of medical operations should diligence the application and plan for it in the closing mechanics.
4. Deal terms. Parties are writing in tax indemnities, price adjustments and refund-sharing clauses to handle the chance that the order is vacated or that adult-use rescheduling arrives after closing.

What rescheduling does not change

• State transfer rules. Every ownership change still needs state, and usually local, approval. See the state license transfer rules overview.
• Adult-use 280E. Adult-use operators are taxed as before.
• Banking. FinCEN’s 2014 guidance still governs, and the SAFE Banking Act of 2026 is only introduced. See cannabis banking status.
• SBA loans and bankruptcy. SBA has not changed its ineligibility rule, and the effect on bankruptcy access is described by Foley Hoag as unclear.
• Interstate commerce. Product still cannot cross state lines.
• Criminal penalties. Marijuana-specific penalties in 21 U.S.C. 841 were not amended.

Should you wait for full rescheduling?

Timing is a business decision, not a legal one, and the answer differs for medical, adult-use and dual operators. The trade-offs, with a decision table, are on selling before or after rescheduling. The wider federal picture is on federal cannabis law and business sales.