The federal cannabis rescheduling process is entering a critical new phase as advocacy organizations from both sides of the marijuana policy debate prepare to participate in upcoming hearings before the Drug Enforcement Administration (DEA).
Set to begin on June 29, 2026, the hearings will examine whether cannabis should be broadly moved from Schedule I to Schedule III under the Controlled Substances Act (CSA). The proceedings follow years of political pressure, administrative review, and mounting state-level legalization efforts that have reshaped the national cannabis landscape.
Among the groups seeking formal participation is National Organization for the Reform of Marijuana Laws, better known as NORML, which recently filed a Notice of Intention to Participate as an “interested person” in the proceedings.
According to NORML, the hearing record would be incomplete without representation from adult-use cannabis consumers who are legally participating in state-regulated marijuana programs.
Joseph A. Bondy, chair of NORML’s Board of Directors and legal counsel to the organization, stated that while cannabis “cannot lawfully remain in Schedule I,” moving the plant to Schedule III should be viewed only as an interim correction rather than a final solution.
NORML Pushes for Full Federal Descheduling
Although NORML supports removing marijuana from Schedule I, the organization argues that Schedule III still places cannabis within a restrictive medical-only framework that fails to recognize the reality of adult-use legalization across the country.
NORML continues to advocate for complete federal descheduling, which would remove cannabis entirely from the CSA and replace prohibition with a cannabis-specific regulatory system focused on:
- Consumer safety
- Product testing and labeling
- Youth prevention measures
- Responsible commercial conduct
- Public health protections
- Illicit market reduction
The organization emphasized that millions of adults legally consume cannabis under state laws without participating in medical marijuana programs or seeking physician oversight.
“Adult cannabis consumers do not become patients because federal law lacks a better category for them,” Bondy said in NORML’s filing. The group argues that continued federal scheduling leaves adult-use consumers vulnerable to legal uncertainty, despite widespread state legalization.
NORML also plans to present testimony from founder and legal counsel R. Keith Stroup, Deputy Director Paul Armentano, and additional witnesses with expertise in adult-use cannabis systems.
Opposition Groups Also Seek Participation
On the opposing side of the debate, Smart Approaches to Marijuana (SAM), a prohibitionist advocacy organization, has also filed notice to participate in the hearings.
Kevin A. Sabet, the group’s president and CEO, criticized the proposed move to Schedule III, arguing that the reform lacks scientific justification and would financially benefit the cannabis industry.
SAM remains firmly opposed to broader marijuana legalization and is expected to challenge the scientific, medical, and public health arguments supporting rescheduling during the hearings.
How the DEA Hearings Will Work
The hearings stem from an order issued last month by Acting Attorney General Todd Blanche, who directed the DEA to conduct formal proceedings examining whether marijuana should be transferred to Schedule III.
Under the order, all interested participants were required to file notices detailing:
- Their interest in the proceedings
- The objections or issues they wish to address
- Their position on those issues
The hearings are expected to conclude no later than July 15, although the timeline could shift depending on witness participation and procedural developments.
An administrative law judge (ALJ) selected by the Department of Justice will oversee the proceedings and will have authority to:
- Review evidence
- Examine witnesses
- Issue subpoenas
- Rule on procedural disputes
- Manage hearing logistics
This marks the second major hearing process connected to the federal cannabis rescheduling effort originally launched in 2024, and spurred to action by the Trump administration in 2025. Previous hearings scheduled last year ultimately collapsed amid litigation involving allegations of improper communications and witness selection concerns.
Medical Cannabis Rescheduling Is Already Having Major Effects
While the broader rescheduling debate continues, one major change has already taken effect.
Last month, the Justice Department and DEA officially moved state-licensed medical cannabis products and FDA-approved marijuana medications from Schedule I to Schedule III. That reform is already creating significant legal and financial ripple effects across the cannabis industry.
Among the most notable developments:
Federal Tax Relief for Cannabis Businesses
The Internal Revenue Service (IRS) and Treasury Department announced plans to issue updated guidance that would allow eligible cannabis businesses to access standard federal tax deductions currently prohibited under IRS Code 280E.
For many operators, the change could dramatically reduce federal tax burdens and improve profitability.
DEA Registration Opportunities Expand
The DEA has also launched registration pathways for state-legal marijuana businesses seeking to access federal benefits associated with Schedule III status.
This includes certain cultivators, manufacturers, distributors, and testing laboratories operating within state-regulated medical cannabis programs.
Firearm Policy Changes for Medical Cannabis Patients
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has proposed revisions to federal firearm purchase forms acknowledging the federally legal status of medical cannabis under rescheduling.
The updated language specifically distinguishes medical cannabis use from recreational marijuana use under federal law.
Transportation Restrictions Remain in Place
Despite these reforms, the Department of Transportation has clarified that safety-sensitive workers, including truck drivers and pilots, can still face consequences for positive cannabis drug tests, even when using state-legal medical marijuana.
A Defining Moment for Federal Cannabis Policy
The upcoming DEA hearings are expected to become one of the most closely watched cannabis policy events in recent years.
Advocates see the proceedings as an opportunity to further dismantle decades of federal marijuana prohibition, while opponents argue that broader rescheduling could accelerate commercialization and expand cannabis access nationwide.
For cannabis businesses, patients, consumers, regulators, and investors, the outcome could shape the future of federal cannabis policy for years to come.
While moving cannabis to Schedule III would represent a historic shift, organizations like NORML argue the broader conversation is far from over. The central debate now extends beyond whether cannabis belongs in Schedule I – and toward whether federal law can continue to treat adult-use cannabis consumers as participants in a prohibited market while most states move in the opposite direction.
Stay Ahead of Cannabis Regulatory Changes
As federal cannabis regulations continue to evolve, businesses must stay informed and prepared for new compliance, licensing, tax, and operational requirements.
Canna Business Services helps cannabis operators navigate complex regulatory changes, licensing processes, and industry compliance challenges across rapidly shifting state and federal frameworks. Schedule a meeting to learn more or discuss these upcoming changes with us today.
