what is rescheduling?

cannabis rescheduling to schedule iii: what’s happened, what hasn’t, and what comes next (with examples)

last updated: january 7, 2026
education only. not legal advice.

there’s a lot of noise around “rescheduling,” so this post is meant to be a clear, step-by-step roadmap that matches what has actually happened so far, including the dates.

rescheduling is the federal process of moving a substance between schedules under the controlled substances act (csa). the current proposal would move marijuana from schedule i to schedule iii. that would be a major policy shift, but it is not the same thing as legalization.

quick definitions

rescheduling vs legalization vs descheduling

  • rescheduling: moving marijuana to a different schedule under the csa
  • legalization: creating a lawful framework for adult-use or broad federal legality
  • descheduling: removing marijuana from the csa schedules entirely

glossary

  • csa: controlled substances act
  • hhs: department of health and human services
  • fda: food and drug administration
  • dea: drug enforcement administration
  • doj: department of justice
  • nprm: notice of proposed rulemaking
  • alj: administrative law judge
  • 280e: irs tax provision limiting deductions for certain controlled-substance activity

what schedule iii means (and what it doesn’t)

schedule iii substances are still controlled. in simple terms, it signals the government views the substance as having recognized medical use within the csa framework and lower abuse potential than schedule i or ii.

important note: schedule iii status does not automatically convert state cannabis programs into federal pharmacy-style systems. federal drug frameworks typically revolve around fda pathways and prescriptions, and state programs are built differently.

the timeline so far (what has happened, with dates)

1 - the federal review was initiated (october 6, 2022) ✅

president biden publicly directed the secretary of hhs and the attorney general to begin a review of how marijuana is scheduled under federal law.

real-world example:
this is the moment the federal “re-evaluation” officially kicked off and agencies started building the record.

2 - hhs completed its scientific and medical review and recommended schedule iii (august 29, 2023) ✅

hhs sent dea a formal recommendation that marijuana should be placed into schedule iii, based on the required medical and scientific evaluation.

real-world example:
think of this as the “science file” that helps inform the rest of the process.

3 - doj/dea moved the process into formal rulemaking (may 2024) ✅

the justice department submitted a notice of proposed rulemaking (nprm), which is the official rulemaking mechanism that starts the public regulatory process.

key point:
this is still a proposal stage. until a final rule is published, federal scheduling does not change.

real-world example:
this is the stage where you begin seeing the official proposal discussed in terms of the federal register, public comments, and administrative procedure.

4 - public comments were collected and the comment period ended (july 22, 2024) ✅

the comment window closed on july 22, 2024. those comments become part of the official record that dea must consider.

real-world example:
patients, clinicians, advocacy organizations, researchers, and industry groups submit comments describing impacts, concerns, and what they want clarified.

5 - dea announced a hearing process, then the merits hearing was cancelled and the case stayed (january 2025) ✅ / ⏸️

the merits hearing was scheduled to begin january 21, 2025, but the administrative law judge cancelled the hearing and stayed the proceedings due to an interlocutory appeal.

short version: the process hit a procedural roadblock.

6 - the rescheduling matter remained in a stay status (july 23, 2025 notice) ⏸️

in a notice to the parties dated july 23, 2025, the presiding administrative law judge stated the case was still in a stay status pending resolution of the interlocutory appeal.

7 - executive action directed agencies to expedite completion of the process (december 18, 2025) ✅

an executive order directed the attorney general to take steps to complete the rulemaking process related to rescheduling marijuana to schedule iii as expeditiously as allowed by law.

important clarification:
this executive order directs action. it does not, by itself, publish a final rule or flip the schedule overnight.

where things stand right now (as of january 7, 2026)

we are past the “science review” and “proposal” stages, and past the initial comment period.

the biggest open items are:

  • whether and how the stayed proceeding is resolved procedurally (the appeal/stay issue)
  • whether a hearing phase resumes or is otherwise addressed
  • whether dea issues a final rule, modifies the proposal, or withdraws it

as of this update, marijuana is still treated as a schedule i substance federally unless and until a final rule is published and becomes effective.

what has not happened yet

final rule published in the federal register ❌

this is the moment a proposal becomes an actual regulatory change, with an effective date.

implementation phase ❌

after a final rule, agencies, states, and regulated industries have to interpret and operationalize changes. that is where practical impacts become clearer.

post-final court challenges (if any) ❌

lawsuits can follow final agency action and can affect timelines.

what schedule iii could change

research could become easier to run

schedule iii generally has fewer research barriers than schedule i. that does not mean “no red tape,” but it can reduce friction.

example:
a university team studying pain, nausea, or appetite issues may face fewer scheduling hurdles compared to schedule i research protocols.

one of the biggest practical talking points is irs code 280e, which limits deductions for businesses dealing in schedule i or ii substances. moving to schedule iii is widely discussed as changing how 280e applies.

example:
a dispensary may be able to deduct more normal business expenses if 280e no longer applies.

it still does not equal federal legalization

schedule iii would still be a controlled status. state programs do not automatically become federally authorized businesses just because the schedule changes.

example:
you could still see conflicts between federal rules and state-legal operations unless congress passes broader reforms.

myth checks

myth: “schedule iii means dispensaries become pharmacies”

not automatically.

no. it is a classification change, not full legalization.

myth: “everything changes immediately”

no. the legal status does not change until a final rule is published and effective, and implementation takes time even after that.

disclaimer

this post is for education only and does not provide legal, medical, or tax advice. laws and agency guidance can change, and impacts vary by state and by individual circumstances.