SAM and NDASA sue to block federal cannabis rescheduling
Updated
Updated · Marijuana Moment · May 5
SAM and NDASA sue to block federal cannabis rescheduling
6 articles · Updated · Marijuana Moment · May 5
The groups petitioned the US Court of Appeals for the DC Circuit against the DOJ, DEA, Acting Attorney General Todd Blanche and DEA Administrator Terrance Cole.
They seek to overturn last month’s order moving state-licensed medical marijuana and FDA-approved cannabis products from Schedule I to Schedule III, arguing it violated administrative law and exceeded federal authority.
A summer administrative hearing will consider broader rescheduling, including recreational products, while a House appropriations subcommittee has voted to bar further federal steps to implement the change.
With key legal precedents gone, can courts now easily overturn federal marijuana policy?
Will a new lawsuit erase billions in tax relief for the medical cannabis industry?
Federal Rescheduling of Medical Cannabis to Schedule III in 2026 Faces Legal Challenge and Tax Overhaul
Overview
In April 2026, Acting Attorney General Todd Blanche issued a landmark order rescheduling FDA-approved marijuana products and state-licensed medical marijuana from Schedule I to Schedule III, following President Trump's 2025 Executive Order to boost medical cannabis research. This change removed the heavy Section 280E tax burden and created a streamlined DEA registration process for medical cannabis businesses, while leaving recreational cannabis under Schedule I. However, in May 2026, SAM and NDASA filed a lawsuit challenging this rescheduling, causing significant uncertainty about its future. Meanwhile, the DEA scheduled a hearing for June 2026 to consider broader cannabis rescheduling, signaling ongoing federal policy evolution amid active legal and political debates.