DEA Marijuana Rescheduling Advances in Federal Policy Update

DEA Rescheduling Proceeding Continues Without Final Rule

The Drug Enforcement Administration hasn't published a final rule on marijuana rescheduling as of May 18, 2026. The agency's notice of proposed rulemaking, published in May 2024, initiated a public comment period that closed in July 2024. DEA Administrator Anne Milgram hasn't announced a timeline for the final rule, which would reclassify cannabis as a Schedule III controlled substance alongside ketamine and anabolic steroids.

Rescheduling wouldn't legalize marijuana federally. Schedule III substances remain controlled under federal law and subject to DEA registration requirements for manufacturers, distributors, and dispensers.

Transportation Industry Monitors Drug-Testing Standards

The Federal Motor Carrier Safety Administration maintains marijuana as a disqualifying substance for commercial driver's license holders regardless of state legalization or potential rescheduling. FMCSA's drug and alcohol clearinghouse, operational since January 2020, recorded 135,000 positive marijuana tests among CDL drivers through December 2025.

Trucking industry representatives told congressional staff that rescheduling wouldn't alter Department of Transportation drug-testing protocols. DOT testing follows a five-panel standard established by the Substance Abuse and Mental Health Services Administration, which includes THC metabolites.

Schedule III Tax Implications for Cannabis Operators

Rescheduling to Schedule III would eliminate Internal Revenue Code Section 280E restrictions for state-licensed cannabis businesses. Section 280E currently prohibits businesses trafficking in Schedule I or II substances from deducting ordinary business expenses on federal tax returns. Multi-state operators reported effective tax rates exceeding 70% in 2025 filings due to 280E limitations.

Treasury hasn't issued guidance on 280E implementation timelines if DEA finalizes the schedule change. Tax practitioners expect the change would take effect in the tax year following final rule publication in the Federal Register.

Congressional Oversight Activity Remains Limited

No congressional hearings on DEA rescheduling have been scheduled for the second quarter of 2026. In March 2026, the House Energy and Commerce Committee's health subcommittee held one oversight hearing on controlled substance scheduling procedures. Ranking Member Frank Pallone (D-N.J.) requested a Government Accountability Office review of DEA's rulemaking timeline, with findings expected in September 2026.

Senate Majority Leader Chuck Schumer (D-N.Y.) hasn't brought standalone cannabis legislation to the floor in the 119th Congress. The Cannabis Administration and Opportunity Act, reintroduced in January 2025, remains in the Senate Finance Committee with 18 cosponsors.

What Operators Are Watching

State-licensed cannabis businesses are monitoring three regulatory developments: DEA's final rule publication date, Treasury guidance on 280E transition mechanics, and potential FDA oversight of Schedule III cannabis products. The Food and Drug Administration hasn't announced whether it would assert jurisdiction over cannabis under its authority to regulate Schedule III substances used in medical treatment.

For full background on this proceeding, see the CannIntel topic hub on DEA marijuana rescheduling. Industry counsel expect DEA to publish a final rule before the end of fiscal year 2026 in September, though the agency hasn't confirmed that timeline.