White House Releases Long-Overdue 2026 Federal Rulemaking Agenda

Agenda Confirms DEA Schedule III Rule in Final Stage

The DEA's cannabis rescheduling rule appears in the final-rule stage with an anticipated publication date of August 2026. The entry lists the proposed rule to move cannabis from Schedule I to Schedule III under the Controlled Substances Act as "Completed" in the rulemaking phase, indicating the agency has resolved public comments and submitted the final text to the Office of Management and Budget for interagency review.

The August target represents the earliest possible Federal Register publication date on a strict reading of the agenda entry, not a binding deadline. The DEA has missed prior self-imposed timelines on this docket throughout 2025 and early 2026.

Treasury §280E Guidance Remains in Pre-Rule Stage

The IRS entry for cannabis-business expense deductions under IRC §280E is listed in the "prerule" stage with no publication estimate. The agenda classifies this action as "long-term," indicating Treasury hasn't yet drafted proposed regulatory text. Industry operators have sought clarity on cost-of-goods-sold calculations and permissible business-expense deductions since the HHS recommendation to reschedule became public in August 2023.

The absence of a timeline confirms that even if the DEA finalizes Schedule III rescheduling in August 2026, operators will face continued uncertainty on federal tax treatment. Schedule III substances remain subject to §280E prohibitions on ordinary business deductions, though the statutory interpretation differs from Schedule I treatment in several circuit courts.

FDA Hemp-Derived Cannabinoid Rule Pushed to 2027

The FDA's proposed rule to regulate hemp-derived cannabinoids in food and dietary supplements now carries a target date of January 2027. This represents a six-month delay from the agency's prior internal estimate. The agenda entry cites the volume of public comments received during the 2025 comment period and the complexity of establishing THC-concentration thresholds for interstate commerce.

The rule will determine whether products containing CBD, delta-8 THC, or other hemp-derived compounds may be sold as dietary supplements or require premarket approval as food additives. Since 2018, the FDA has maintained that CBD can't be lawfully marketed in food or supplements due to its prior investigation as a drug (Epidiolex), but has exercised enforcement discretion while developing a comprehensive regulatory framework.

USDA Hemp Program Revisions Enter Proposed-Rule Phase

The USDA's revisions to the Domestic Hemp Production Program are listed in the proposed-rule stage with an October 2026 target for publication. The amendments address testing protocols for total THC concentration, disposal requirements for non-compliant crops, and state-plan approval criteria under the 2018 Farm Bill. USDA received over 4,800 comments on its 2021 interim final rule, many from cultivators seeking relaxed testing windows and higher tolerance thresholds for THC variance.

Key issues expected in the October proposal:

• Expansion of the testing window from 15 days pre-harvest to 30 days
• Adjustment of the acceptable total-THC limit from 0.3% to 0.5% on a dry-weight basis
• Revised remediation pathways for crops testing above the limit but below 1.0% THC
• Clarification on state versus tribal regulatory authority in overlapping jurisdictions

Implications for State-Licensed Operators and Tax Planning

The staggered federal timelines create a multi-year window of regulatory misalignment between DEA scheduling, IRS tax treatment, FDA product rules, and USDA agricultural standards. Multi-state operators should model scenarios in which Schedule III rescheduling takes effect in Q3 2026 but Treasury issues no §280E guidance until 2027 or later. That leaves deduction questions to case-by-case IRS examination and Tax Court litigation.

State-licensed cannabis businesses remain subject to §280E regardless of scheduling. Why? The provision applies to any trade or business trafficking in controlled substances under Schedule I or II—or, in some circuit interpretations, any schedule. The Tenth Circuit's Alpenglow Botanicals ruling (2023) held that §280E applies even to state-legal hemp businesses if the IRS determines the product exceeds 0.3% delta-9 THC. Treasury guidance would clarify whether cost-of-goods-sold calculations may include post-harvest labor, packaging, and distribution expenses, or remain limited to direct cultivation inputs.

For comprehensive background on federal cannabis rulemaking timelines and administrative procedure, see the CannIntel topic hub on the Federal Rulemaking Agenda.

What Operators Should Watch Through Q4 2026

Three regulatory milestones will determine the compliance landscape for the next eighteen months. First, DEA publication of the final Schedule III rule and the effective date, which typically follows 30-60 days after Federal Register notice. Second, OMB clearance of any interim Treasury guidance on §280E, even if formal rulemaking remains years away. Third, the October USDA proposal, which will set the testing and THC-tolerance standards for the 2027 and 2028 growing seasons.

The next formal agenda update is due in December 2026.