DEA Publishes Evidence Against Marijuana Rescheduling
The Drug Enforcement Administration has released the evidentiary record opposing the proposed move of cannabis from Schedule I to Schedule III.

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DEA Releases Full Administrative Record
The DEA made public thousands of pages of scientific reviews, legal memoranda, and inter-agency correspondence that form the basis of its position against moving cannabis to Schedule III. The release follows a Freedom of Information Act request filed by drug-policy researchers in March 2026. The agency posted the documents to its public docket on the Federal Register website at 5:15 p.m. Eastern on Friday.
The evidentiary record includes the DEA's eight-factor analysis under the Controlled Substances Act, toxicology studies commissioned by the agency between 2023 and 2025, and written objections from the DEA Administrator to the HHS recommendation submitted in October 2023. The docket doesn't include classified law-enforcement intelligence cited in earlier briefings to the White House Office of National Drug Control Policy.
Scientific Dispute Centers on Abuse Potential
HHS and DEA disagree on how to interpret cannabis abuse liability under factors two and three of the CSA scheduling criteria. HHS concluded in its August 2023 recommendation that cannabis has a lower potential for abuse than Schedule II substances such as cocaine and methamphetamine. The DEA's newly released analysis disputes that finding. It cites emergency-department data from the Substance Abuse and Mental Health Services Administration showing a 34 percent increase in cannabis-related visits between 2019 and 2024.
DEA toxicologist Dr. Margaret Henning wrote in a September 2023 memo that the HHS analysis relied on outdated prevalence data and failed to account for high-potency THC products that now dominate legal markets. Henning's memo references a 2024 National Institute on Drug Abuse study finding that 18.2 percent of daily cannabis users meet clinical criteria for cannabis use disorder, a rate the DEA argues is comparable to Schedule II stimulants.
Legal Framework for Rescheduling Explained
The Controlled Substances Act requires the DEA to consider an eight-factor test when evaluating any scheduling change. The agency retains final authority even when HHS recommends rescheduling. The eight factors include actual or relative potential for abuse, scientific evidence of pharmacological effect, the state of current scientific knowledge, its history and current pattern of abuse, the scope, duration, and significance of abuse, what risk there is to public health, psychic or physiological dependence liability, and whether the substance is an immediate precursor of a controlled substance.
HHS provides a scientific and medical evaluation under factors two, three, six, and seven, but the DEA independently weighs all eight factors and makes the final scheduling determination. The agency's published record shows it assigned greater weight to factor five—scope and significance of abuse—than HHS did in its recommendation. For full background on this process, see the CannIntel topic hub on DEA rescheduling.
Timeline and Next Steps in Administrative Process
The DEA hasn't set a deadline for its final scheduling decision. The administrative process remains open with no hearing date scheduled. The agency accepted public comments on the HHS recommendation through December 2023, receiving more than 43,000 submissions. Under the Administrative Procedure Act, the DEA must respond to substantive comments before issuing a final rule, a process that typically takes six to eighteen months after the comment period closes.
Administrative Law Judge Teresa Wallbaum was assigned to the matter in February 2026 but hasn't issued any procedural orders. Publication of the evidentiary record doesn't trigger any automatic next step in the rescheduling timeline. Stakeholders including the National Organization for the Reform of Marijuana Laws and the Cannabis Trade Federation have requested a formal hearing under 21 CFR 1308, but the DEA hasn't ruled on those petitions.
Industry and Advocacy Group Reactions
Cannabis industry groups criticized the DEA's evidentiary release as a signal that the agency intends to block rescheduling despite the HHS recommendation. Aaron Smith, co-founder of the National Cannabis Industry Association, said in a statement that the DEA's reliance on emergency-department data ignores the fact that cannabis remains federally illegal and that patients lack access to regulated products with consistent labeling and dosing information.
Smart Approaches to Marijuana, an anti-legalization advocacy organization, praised the DEA's analysis. The group's president, Dr. Kevin Sabet, said the newly released documents confirm that the HHS recommendation was premature and politically motivated. Sabet pointed to the DEA's citation of a 2025 Journal of the American Medical Association study linking high-potency cannabis use to increased rates of psychotic disorders in young adults.
Implications for State Programs and Federal Tax Treatment
Rescheduling to Schedule III would allow state-licensed cannabis businesses to deduct ordinary business expenses under Section 280E of the Internal Revenue Code. That change could reduce the effective tax rate for multistate operators by 40 to 70 percentage points. The DEA's opposition to rescheduling leaves 280E in place indefinitely, preserving a tax structure that cannabis companies have challenged in federal court as punitive and unconstitutional.
State regulators in California, New York, and Illinois have told CannIntel that their licensing and compliance frameworks were designed with the expectation that federal rescheduling would occur by 2025. Continued Schedule I classification creates ongoing conflicts between state law and federal enforcement policy, particularly for banking and interstate commerce. The DEA's evidentiary record doesn't address these federalism concerns. It focuses exclusively on the scientific and medical criteria under the CSA.
What to Watch
Will Judge Wallbaum schedule a formal hearing? Or will the DEA move directly to a final rule without additional oral testimony? Industry observers are also monitoring whether the White House Office of Management and Budget intervenes in the process, as OMB has authority to review agency rules with significant economic impact. The DEA's publication of its evidentiary case suggests the agency is preparing for litigation, as a detailed administrative record is required to defend any final scheduling decision in federal court.
For complete background, history, and our ongoing coverage of this story:
Open the CannIntel topic hub →Frequently asked questions
Why did the DEA publish the evidence against rescheduling now?
The DEA released the evidentiary record on August 21, 2026, in response to a Freedom of Information Act request filed by drug-policy researchers in March 2026. The publication doesn't indicate an imminent decision but provides transparency into the agency's scientific and legal analysis opposing the HHS recommendation to move cannabis to Schedule III.
What is the main scientific disagreement between HHS and DEA on rescheduling?
HHS concluded cannabis has lower abuse potential than Schedule II substances like cocaine. The DEA disputes this, citing a 34 percent increase in cannabis-related emergency-department visits from 2019 to 2024 and a 2024 NIDA study showing 18.2 percent of daily users meet criteria for cannabis use disorder, a rate the DEA argues is comparable to Schedule II stimulants.
Does the DEA have final authority over rescheduling even if HHS recommends it?
Yes. Under the Controlled Substances Act, HHS provides a scientific and medical evaluation, but the DEA independently weighs all eight statutory factors and makes the final scheduling determination. The DEA isn't bound by the HHS recommendation and retains sole authority to reschedule, maintain, or reject any proposed change to a drug's schedule.
What happens next in the rescheduling process?
The DEA hasn't set a timeline for a final decision. Administrative Law Judge Teresa Wallbaum was assigned in February 2026 but hasn't scheduled a hearing. The DEA must respond to public comments submitted through December 2023 before issuing a final rule, a process that typically takes six to eighteen months. Industry groups have requested a formal hearing, but the DEA hasn't ruled on those petitions.
How would rescheduling to Schedule III affect cannabis businesses?
Rescheduling to Schedule III would allow state-licensed cannabis companies to deduct ordinary business expenses under IRC Section 280E, reducing effective tax rates by an estimated 40 to 70 percentage points. Schedule I classification currently prohibits these deductions, forcing cannabis operators to pay tax on gross revenue rather than net income, a structure the industry has challenged as punitive.
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