FDA-Approved Marijuana Products and Those Subject to State-Issued Licenses Rescheduled; Marijuana Hearing Calendared; Dispensary Applications Accepted
President Donald Trump signed an Executive Order in December directing the Attorney General to expedite completion of marijuana rescheduling to facilitate medical research begun in October 2022. The President opined that federal officials were “slow-walking” marijuana rescheduling during the signing of an Executive Order expanding the review of psychedelic drugs last week. Then on Thursday, Acting Attorney General Todd Blanche and the Drug Enforcement Administration (“DEA”) issued a final rule rescheduling FDA-approved products containing marijuana and marijuana products regulated by state medical marijuana licenses from schedule I to schedule III of the Controlled Substances Act (“CSA”). Schedules of Controlled Substances: Rescheduling of Food and Drug Administration Approved Products Containing Marijuana From Schedule I to Schedule III; Corresponding Change to Permit Requirements, 91 Fed. Reg. 22,714 (Apr. 28, 2026). DEA also under Blanche’s signature issued a notice withdrawing the May 2024 Notice of Proposed Rulemaking for the prior rescheduling hearing and issued a separate Notice of Hearing for an expedited rescheduling hearing to begin June 29th. Schedules of Controlled Substances: Rescheduling of Marijuana; Withdrawal, 91 Fed. Reg. 22,778 (Apr. 28, 2026); Schedules of Controlled Substances: Rescheduling of Marijuana, 91 Fed. Reg. 22,777 (Apr. 28, 2026).
Rescheduling became effective immediately.
Setting the Stage
In August 2023, the Department of Health and Human Services (“HHS”) recommended rescheduling marijuana to schedule III after conducting an Eight Factor Analysis under the CSA. HHS found that 30,000 licensed healthcare practitioners were authorized to recommend marijuana for medical use to over six million patients to treat pain, anorexia related to certain medical conditions, and nausea and vomiting from chemotherapy. DOJ conducted its own Eight Factor Analysis and concurred with HHS’ recommendation. Then-Attorney General Merrick Garland signed a Notice of Proposed Rulemaking in May 2024 proposing to reschedule marijuana to schedule III that elicited over 43,500 public comments. In January 2025, the presiding Administrative Law Judge stayed the DEA public rescheduling hearing pending an interlocutory appeal by several parties.
Final Rule for Approved/Regulated Marijuana Products
Rescheduling and the Treaties:
The final rule limits rescheduling to FDA-approved drug products containing delta-9-tetrahydrocannabinol (“THC”) that meet the CSA’s definition of marijuana derived from the plant Cannabis sativa L., and marijuana products regulated by state-issued licenses to manufacture, distribute, and/or dispense for medical purposes. The rule notes that forty states have legalized marijuana for medical purposes and have established regimes that incorporate inspections and licensing, recordkeeping and reporting requirements.
The United States, as a signatory to the United Nations Single Convention on Narcotic Drugs, 1961, as amended by the 1972 Protocol, and the Convention on Psychotropic Substances, 1971, is required to comply with obligations imposed by those treaties. Among controls required by the Single Convention for signatories on cannabis, cannabis resin and other Schedule I under the treaty are:
- Limiting the production, manufacture, export, import, distribution of, trade in, use and possession exclusively to medical and scientific purposes;
- Requiring manufacturers and distributors to be licensed;
- Requiring medical prescriptions for dispensing to patients;
- Requiring importers and exporters to be licensed with each import or export requiring a permit;
- Prohibiting possession except under legal authority; and
- Requiring those in the legitimate distribution chain to keep transaction records for two years. Rescheduling of Food and Drug Administration Approved Products at 22,715.
To adhere to the Single Convention’s import/export requirements, the rule amends 21 C.F.R. § 1312.30 to add FDA-approved drug products containing marijuana and state-licensed medical marijuana to the list of nonnarcotic schedule III-V substances requiring import and export permits.
For growing marijuana, the Single Convention requires signatories to:
- Register and regulate growers;
- Limit growing to legitimate domestic scientific, medical, and industrial needs, and for legitimate exports;
- Establish the upper limit of marijuana that each grower may grow in a calendar year and the total amount that can be grown in the U.S. annually for legitimate needs; and
- Purchase all harvested crops of marijuana and monopolize the wholesale trade in harvested marijuana. at 22,716.
To comply with the Single Convention, the rule requires DEA to acquire and resell marijuana crops from registered manufacturers. Registered manufacturers must store crops in a facility that DEA maintains access to until the transaction is completed. DEA can require recordkeeping and reporting to comply with the Single Convention and must take into account Single Convention requirements.
The final rule notes that DOJ’s Office of Legal Counsel’s 2024 opinion concluded that if marijuana were rescheduled to schedule III, the U.S. would continue to meet “most” of the obligations imposed by the Single Convention and the Convention on Psychotropic Substances. The rule also refers to HHS’ August 2023 evaluation and recommendation that DEA reschedule marijuana in schedule III. Specifically, HHS found that marijuana has a potential for abuse less than drugs and substances in schedule I and II, and that its abuse may lead to moderate or low physical dependence or high psychological dependence.
Title 21 of the U.S. Code, § 811(d)(1) requires the Attorney General to issue an order controlling drugs “under the schedule he deems most appropriate” to carry out treaty obligations. Id. at 22,715. The Acting Attorney General states that while he is not required to consider HHS’ rescheduling recommendation “because I believe there are several legally viable scheduling options that would satisfy… obligations under the Single Convention based on OLC’s 2024 opinion… I exercise my discretion in determining the most appropriate schedule by choosing the option that most closely aligns to HHS’s findings and best positions the United States to carry out its obligations under the Single Convention. . . [with respect to] an FDA-approved product or subject to a state medical marijuana license.” Id. at 22,718. Blanche ordered FDA-approved drugs products containing marijuana and marijuana in any form covered by a state medical marijuana license rescheduled to schedule III.
All forms of marijuana other than in FDA-approved drug products or marijuana products subject to state medical licenses continue to be regulated as schedule I controlled substances. The rule does not change the status of bulk marijuana, noting that unlicensed bulk marijuana remaining in schedule I allows the U.S. to meet its obligations under the Single Convention by requiring licensed manufacturers to obtain manufacturing quotas and by DEA buying marijuana crops from registered manufacturers, selling those crops and establishing prices for purchase and sale. The rule does not impact synthetically-derived THC that is outside of the CSA’s definition of marijuana and not subject to HHS’ scientific and medical evaluation. It does not impact hemp. Nor does the rule reschedule any drug product containing marijuana or THC previously rescheduled out of schedule I, which includes Marinol, Syndros and previously scheduled synthetic cannabinoids.
Regulatory Requirements:
Rescheduled FDA-approved drug products containing marijuana and marijuana products subject to a state medical license will require manufacturers, distributors, dispensers and other handlers to comply with federal schedule III regulatory requirements. Requirements include registering with DEA, taking and maintaining initial and biennial inventories, creating and maintaining transaction records, filing theft and significant loss reports, labeling, and maintaining prescribed security. Dispensing marijuana to patients requires prescriptions issued for legitimate medical purposes by a DEA-registered and state licensed practitioner.
The rule expressly notes that state licensees will no longer be subject to the Internal Revenue Code’s Section 280E deduction disallowance for businesses engaged in “trafficking in controlled substances… in a schedule I or II.” Id. at 22,719.
State Regimens:
Noting the robust infrastructure developed by state medical marijuana regulatory systems for preventing diversion, maintaining records and conducting inspections, the final rule found that “incorporating state licensing systems into the federal registration framework represents the most effective and efficient means of achieving the CSA’s objectives with respect to medical marijuana while promoting the medical benefits of marijuana and causing the least disruption for patients and existing state systems.” Id. at 22,720. The order mandates an expedited DEA review process whereby state-licensed medical marijuana entities seeking federal manufacturer, distributor and dispenser registrations may submit state credentials as evidence of state law authorization. The rule requires DEA to issue registrations unless doing so would be inconsistent with the public interest under 21 U.S.C. § 823 or with Single Convention requirements. The rule directs the agency to process registration applications within 60 days of publication of the rule within six months, and allows early applicants to lawfully operate under their state licenses during the pendency of DEA’s review.
To reduce the regulatory burden on “compliant state-licensed entities,” the rule limits reporting, recordkeeping and order form requirements to those necessary to satisfy federal statutory and treaty obligations, with state-required records accepted to the extent possible. “State-authorized medical marijuana certifications or similar documents are sufficient to permit the dispensing of medical marijuana to users, provided they include the user’s name and address, are dated and signed on the day of issuance, and identify the issuing practitioner.” Id. Further, registrants may comply with state labeling, packaging, disposal, and physical security requirements in lieu of the applicable federal requirements, but subject to inclusion of the statutory warning label required by 21 C.F.R. § 825(c).
The Prior Rescheduling Hearing
DEA determined that the most expeditious manner of completing current rescheduling is to terminate the hearing initiated by the August 29, 2024, notice that began and was stayed in January 2025. Withdrawal at 22,778. The agency withdrew the notice of the prior hearing.
A New Hearing
DEA issued a Notice of Hearing on the Proposed Rulemaking for rescheduling marijuana to schedule III to commence June 29 and conclude by July 15th. Rescheduling of Marijuana at 22,777. “[T]he purpose of the hearing,” in accord with 21 U.S.C. §§ 811 and 812, “is to ‘receiv[e] factual evidence and expert opinion regarding’ whether marijuana should be transferred to schedule III.” Id. at 22,778. Comments or objections to the proposed rule will be offered as evidence at the hearing. Interested persons are invited to provide written notice of their desire to participate: mailed requests must be postmarked on or before May 20th, electronic requests must be emailed by 11:59 p.m. on May 24th. The Acting Attorney General will notify those selected to participate in the hearing on June 22nd.
Medical Marijuana Applications
DEA will accept applications for medical marijuana business applications on a dedicated registration portal. The agency began accepting applications for medical marijuana dispensary registrations on Wednesday.