The federal government’s effort to reclassify cannabis is encountering significant resistance as attorneys general from Indiana, Nebraska, and Louisiana have filed a lawsuit seeking to overturn the Department of Justice’s recent cannabis rescheduling order. There is anit-cannabis groups seeking to block the DOJ’s scheduling III marijuana reform effort of DEA hearings.
The legal challenge, filed in the U.S. Court of Appeals for the District of Columbia Circuit, targets the DOJ’s April decision to move state-regulated medical cannabis products from Schedule I to Schedule III under the Controlled Substances Act. The attorneys general argue that Acting Attorney General Todd Blanche violated federal administrative law and exceeded his authority when issuing the order.
According to the filing, the rescheduling action was “improperly promulgated,” procedurally flawed, and inconsistent with existing federal law. The petition ultimately asks the court to declare the action unlawful and vacate the order entirely.
The lawsuit was signed by Indiana Attorney General Todd Rokita, Nebraska Attorney General Mike Hilgers, and Louisiana Attorney General Liz Murrill.
Anti-Cannabis Organizations Join the Fight
The state-led lawsuit has now been consolidated with a separate legal challenge filed earlier this month by prohibitionist advocacy group Smart Approaches to Marijuana (SAM) and the National Drug and Alcohol Screening Association (NDASA).
Both organizations claim the DOJ’s cannabis rescheduling order violates the Administrative Procedure Act and the Controlled Substances Act. They also argue the order is arbitrary, capricious, and potentially harmful to public health and safety.
SAM CEO Kevin Sabet applauded the attorneys general for challenging the federal action, describing the rescheduling order as “dangerous” and pledging continued opposition to cannabis reform efforts.
The legal strategy is notable because SAM previously retained Torridon Law PLLC (a firm connected to former U.S. Attorney General William Barr) specifically to combat federal cannabis rescheduling efforts after President Donald Trump directed agencies to expedite the process earlier this year.
DEA Hearings Could Shape the Future of Cannabis Policy
The lawsuits arrive just weeks before a major DEA administrative hearing scheduled to begin June 29. The hearing is expected to examine broader cannabis rescheduling proposals, including potential changes affecting adult-use marijuana products.
Interested parties recently faced a deadline to petition the DEA for participation in the hearings, which are currently scheduled to continue through mid-July.
The hearings themselves have already become controversial. Earlier proceedings initiated during the Biden administration were abandoned shortly before President Trump’s second inauguration after pro-rescheduling participants accused the DEA of favoring anti-cannabis viewpoints and attempting to preserve cannabis as a Schedule I substance.
Nebraska Attorney General Mike Hilgers is no stranger to the rescheduling debate. During prior hearings in 2024, Nebraska was one of only two state entities granted full standing to participate in the process while simultaneously fighting voter-approved medical marijuana measures within the state.
Federal Cannabis Reform Faces Political Resistance
Beyond the courtroom, cannabis reform continues to face obstacles in Congress and among state leaders.
Earlier this month, a House committee voted to block additional federal action related to cannabis rescheduling, adding further uncertainty to the future of national marijuana policy.
At the same time, Senator Ted Cruz reportedly told hemp industry advocates that efforts to prevent federal restrictions on hemp-derived THC products face a steep uphill battle in the current political climate. According to reports, broader reform opportunities may not emerge until 2027.
Despite political resistance, public opinion continues shifting strongly in favor of legalization. A recent Pew Research Center poll found that a substantial majority of Americans now support legalizing marijuana for either medical or recreational use.
Cannabis Policy Continues Evolving at the State Level
While federal reform remains uncertain, cannabis markets across the country continue to expand and evolve.
In Virginia, Governor Abigail Spanberger recently acknowledged criticism following her veto of legislation that would have legalized adult-use cannabis sales. The governor admitted that she may have overestimated concerns surrounding the proposal.
California’s cannabis industry generated nearly $248 million in tax revenue during the first quarter of the year, demonstrating the continued economic impact of regulated cannabis markets. Meanwhile, New Jersey officials announced that approximately $5 million remains available through the state’s Cannabis Business Development Grant Program, aimed at supporting cannabis entrepreneurs and businesses.
Other states are dealing with ongoing regulatory adjustments. Missouri regulators recently issued a marijuana product recall involving products that failed testing requirements, while lawmakers in Connecticut continue debating THC potency limits for cannabis products.
Global Interest in Cannabis and Psychedelic Reform Grows
Internationally, momentum surrounding cannabis and plant-based therapeutics continues to build.
Germany’s commissioner on narcotic drugs recently expressed openness to potential marijuana sales pilot programs, signaling possible future changes within the European cannabis market.
In Gabon, lawmakers approved regulations governing iboga and its derivatives, reflecting growing international interest in plant-based therapeutic treatments.
The U.S. Department of Veterans Affairs has launched a new study examining MDMA-assisted therapy for veterans, a move that supporters say could help address ongoing mental health challenges among former service members.
What the Cannabis Industry Should Watch Next
The coming months could prove pivotal for the future of federal cannabis reform. The outcome of the lawsuits filed by state attorneys general and anti-cannabis organizations – combined with the DEA’s upcoming administrative hearings – may significantly influence how cannabis is regulated nationwide.
For cannabis businesses, operators, and investors, these developments underscore the importance of remaining adaptable in an industry shaped by rapidly evolving legal and regulatory frameworks.
Canna Business Services helps cannabis operators navigate licensing, compliance, and operational challenges while staying prepared for changes at both the state and federal levels.
