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DEA Judge Pressed to Allow Livestream of Cannabis Rescheduling Hearing

Advocates push for public access to December administrative hearing on marijuana's Schedule III move.

By Tomas Greer, State Policy ReporterPublished June 24, 20264 min read
Female judge in courtroom setting, sitting at desk with justice scales in background.

Female judge in courtroom setting, sitting at desk with justice scales in background.

The Drug Enforcement Administration administrative law judge overseeing the December 2026 cannabis rescheduling hearing faces mounting pressure from advocates and industry groups to allow livestream access to the proceedings. The hearing will determine whether marijuana moves from Schedule I to Schedule III under the Controlled Substances Act, a decision with multi-billion-dollar implications for operators currently barred from standard tax deductions under 26 U.S.C. § 280E.

Public Access Petition Filed with DEA Administrative Law Judge

A coalition of cannabis trade groups and civil-liberties organizations filed a formal petition with the DEA's Office of Administrative Law Judges on June 23, 2026, requesting livestream access to the December rescheduling hearing. The petition argues that the proceeding is a matter of extraordinary public interest affecting an estimated 15,000 state-licensed cannabis businesses and millions of patients nationwide.

The filing cites precedent from other high-profile administrative hearings where agencies granted remote access to accommodate public interest. Petitioners include the National Cannabis Industry Association, the Drug Policy Alliance, and the American Civil Liberties Union.

DEA administrative law judges have discretion to allow remote observation of hearings under 21 C.F.R. § 1316.47, though the agency has historically limited physical attendance to registered parties and credentialed press.

December Hearing Will Adjudicate Schedule III Proposal

The December 2026 hearing follows the DEA's August 2024 Notice of Proposed Rulemaking to reschedule marijuana from Schedule I to Schedule III. The administrative proceeding allows registered parties to present testimony and cross-examine witnesses on the medical utility, abuse potential, and international treaty implications of rescheduling.

More than 40 parties have registered to participate. That includes state attorneys general, medical associations, cannabis MSOs, and drug-policy research institutes. The hearing is expected to run five to seven days.

The ALJ's recommended decision will be forwarded to the DEA Administrator, who retains final authority to adopt, modify, or reject the Schedule III move.

Livestream Denial Would Echo Decades-Old DEA Practice

The DEA has never livestreamed a rescheduling hearing in the agency's 53-year history. Previous cannabis rescheduling petitions in 1972, 1995, and 2011 were adjudicated in closed proceedings with limited public seating.

Advocates argue that 2026 technology and the scale of the regulated cannabis industry—$33 billion in legal sales projected for 2026—warrant a departure from past practice. The petition notes that the Federal Communications Commission, the National Labor Relations Board, and the Patent Trial and Appeal Board all livestream contested administrative hearings.

280E Tax Relief Hinges on Final Rescheduling Decision

If marijuana is rescheduled to Schedule III, cannabis operators would immediately qualify for standard business expense deductions under the Internal Revenue Code, ending the 26 U.S.C. § 280E prohibition that currently disallows deductions for businesses trafficking in Schedule I or II substances. Industry analysts estimate the tax relief at $1.8 billion to $2.3 billion annually across the sector.

The effective date of any rescheduling rule would determine when operators can begin claiming deductions. The DEA hasn't indicated whether the rule would apply retroactively to prior tax years.

State Attorneys General Split on Rescheduling Merits

Registered hearing participants include attorneys general from 14 states supporting the Schedule III move and seven states opposing it. Supporters argue that rescheduling aligns federal policy with state medical-cannabis programs operating in 38 states. Opponents contend that marijuana's abuse potential and lack of FDA-approved applications justify continued Schedule I classification.

The split mirrors the broader state-federal tension on cannabis policy. Adult-use states are seeking regulatory parity. Prohibition states cite public-health concerns.

Industry Groups Warn of Precedent for Closed Proceedings

The National Cannabis Industry Association's petition argues that denying livestream access would set a troubling precedent for future cannabis rulemakings. The trade group notes that the DEA is likely to face additional rescheduling petitions if the December hearing results in a denial or limited rescheduling.

The petition also cites transparency concerns, noting that closed hearings limit public accountability and make it difficult for stakeholders to assess the evidentiary record in real time.

Decision on Livestream Expected by August 2026

The administrative law judge assigned to the case hasn't yet issued a ruling on the livestream petition. DEA rules require the ALJ to rule on procedural motions within 30 days of filing, suggesting a decision by late July or early August 2026.

If the petition is denied, advocates have indicated they'll seek intervention from the DEA Administrator or pursue judicial review under the Administrative Procedure Act. For full background on the rescheduling timeline and procedural history, see the CannIntel topic hub on DEA rescheduling hearings.

The next procedural milestone is the July 15 deadline for parties to submit pre-hearing briefs outlining their positions on the medical and scientific evidence supporting or opposing Schedule III classification.

Full context

For complete background, history, and our ongoing coverage of this story:

Open the CannIntel topic hub →

Frequently asked questions

What is the DEA cannabis rescheduling hearing?

The December 2026 hearing is an administrative proceeding where registered parties present evidence on whether marijuana should be rescheduled from Schedule I to Schedule III under the Controlled Substances Act. The hearing follows the DEA's August 2024 Notice of Proposed Rulemaking. More than 40 parties have registered to participate, including state attorneys general, medical groups, and cannabis operators.

Why does livestream access matter for the rescheduling hearing?

Advocates argue that public livestream access ensures transparency for a decision affecting 15,000 state-licensed cannabis businesses and millions of patients. The DEA has historically limited attendance to registered parties and credentialed press, but petitioners cite precedent from other federal agencies that livestream high-profile administrative hearings.

What happens if marijuana is rescheduled to Schedule III?

Schedule III rescheduling would end the 26 U.S.C. § 280E tax prohibition, allowing cannabis operators to claim standard business expense deductions. Industry analysts estimate the tax relief at $1.8 billion to $2.3 billion annually. The effective date of any final rule would determine when operators can begin claiming deductions.

When will the DEA decide on the livestream petition?

DEA rules require administrative law judges to rule on procedural motions within 30 days of filing. The petition was filed June 23, 2026, so a decision is expected by late July or early August. If denied, advocates may seek intervention from the DEA Administrator or pursue judicial review.

Who has registered to participate in the rescheduling hearing?

More than 40 parties have registered, including attorneys general from 21 states (14 supporting rescheduling, 7 opposing), medical associations, cannabis MSOs, and drug-policy research institutes. The hearing is expected to run five to seven days, with parties presenting testimony and cross-examining witnesses on marijuana's medical utility and abuse potential.

Sources

DEAReschedulingSchedule III280EAdministrative LawFederal Policy
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