Blanche Moves State-Licensed Medical Marijuana to Schedule III, Leaving Adult-Use in Schedule I
Updated
Updated · The National Law Review · May 11
Blanche Moves State-Licensed Medical Marijuana to Schedule III, Leaving Adult-Use in Schedule I
6 articles · Updated · The National Law Review · May 11
An April 22 final order from Acting Attorney General Todd Blanche immediately placed FDA-approved and state-regulated medical marijuana products in Schedule III, while recreational marijuana remains in Schedule I pending a June 29 hearing.
Schedule III status gives medical marijuana federal recognition of accepted medical use and ties state licensing to the federal framework, opening a new DEA registration path and easing 280E tax pressure for licensed medical operators.
ADA and Fair Housing Act disputes are now more likely because employers, hospitals and federally subsidized housing providers can no longer rely as easily on marijuana's former Schedule I status to deny accommodations or justify blanket bans.
Federal contractors are not being told to change drug-testing or workplace policies yet because the order did not create a federal prescription pathway for state medical marijuana, leaving Drug-Free Workplace Act analysis largely intact for now.
Litigation is expected to challenge the order's treaty-based fast-track process, and agencies including DOT, HUD and DOJ could still shape how far the new Schedule III status changes workplace and housing rules.
Medical marijuana is now recognized by federal law, but can you still be fired or evicted for using it?
Will the upcoming June hearing also reschedule recreational cannabis, creating a unified legal market?
2026 Federal Cannabis Reform: Medical Marijuana Rescheduled to Schedule III, Tax Relief, and Regulatory Uncertainty
Overview
In April 2026, the Department of Justice and DEA made a major change by moving medical marijuana to Schedule III, following President Trump's directive to ease restrictions and boost medical research. This shift is designed to improve patient care and help doctors by making research easier, but it does not decriminalize marijuana at the federal level. The DEA will hold new administrative hearings starting June 29, 2026, to finalize the process. Medical cannabis businesses now face a new federal registration requirement, and those who do not comply risk losing their state licenses, highlighting the government's intent to more closely regulate the industry.