In May 2024, the US government under Joe Biden proposed moving cannabis from Schedule I, the strictest category in US drug law, to the much milder Schedule III. It was historic news, but the process turned out to be far slower than many expected. Since then the case has gone through a cancelled hearing, a change of administration and a presidential order. In April 2026 medical cannabis was moved to Schedule III, while the question of all cannabis is still being decided. Here we look at how it happened, what the change means and why new hemp rules also make 2026 an important year for CBD in the US.
Key facts
- Cannabis has been in Schedule I since the Controlled Substances Act was introduced in 1970, in the same category as heroin and LSD.
- Biden started a review in 2022, and in 2024 the Justice Department proposed moving cannabis to Schedule III.
- In December 2025 Donald Trump signed an executive order to complete the process.
- Since 28 April 2026, FDA-approved drugs and state-licensed medical cannabis have been in Schedule III.
- Recreational cannabis remains in Schedule I, and a hearing on the rest of cannabis was held in summer 2026.
What is the schedule system?
The US federal drug law, the Controlled Substances Act, divides drugs into five categories, Schedule I to V. The classification is based on whether a substance has an accepted medical use and how high the risk of abuse and dependence is considered to be. Schedule I is the strictest and covers substances that, under the law, have no accepted medical use. Further down the scale the rules gradually become milder.
The classification decides much more than penalties. It governs how easy it is to research a substance, how medicines may be manufactured and prescribed, and even how businesses are taxed. The table shows the main differences between the two categories involved.
| Schedule I | Schedule III | |
|---|---|---|
| Medical use | Considered to have no accepted use | Accepted medical use |
| Risk of dependence | High | Moderate to low |
| Examples | Heroin, LSD, ecstasy | Ketamine, anabolic steroids |
| Research | Strict requirements and special licences | Much simpler rules |
| Business taxes | Ordinary expenses cannot be deducted | Ordinary deductions allowed |
Why did cannabis end up in Schedule I?
The story begins long before 1970. In 1930 the Federal Bureau of Narcotics was founded with Harry J. Anslinger as its head, a post he held for more than thirty years. Anslinger ran an intense campaign against cannabis, claiming that the plant led to insanity, crime and death. The campaign helped Congress pass the Marihuana Tax Act in 1937, which in practice made cannabis illegal throughout the US.
The campaign had clear racist elements. After the Mexican Revolution of 1910, Mexican immigrants had brought cannabis use to the southern US, and opponents deliberately used the Spanish word marihuana to link the plant to immigrants and crime. How big a role racism played in the legislation itself is still debated, however. Legal historian George Fisher has shown that many states banned cannabis before Anslinger took over, and that concern for white youth often carried more weight in the debate.
When the Controlled Substances Act was introduced in 1970, cannabis was placed in Schedule I, in the same category as heroin and LSD. Two years later the so-called Shafer Commission, appointed by President Richard Nixon himself, recommended decriminalising possession of small amounts. Nixon dismissed the report, and cannabis stayed in the strictest category for more than fifty years.
Biden sets the process in motion
On 6 October 2022, President Joe Biden announced that he was pardoning everyone convicted of simple possession of cannabis under federal law. At the same time he asked the Department of Health and Human Services and the Justice Department to review how cannabis was classified. In his statement he wrote that no one should be in jail just for using or possessing marijuana.
In August 2023 the Department of Health and Human Services recommended moving cannabis to Schedule III, as it has an accepted medical use and a lower risk of abuse than substances in Schedules I and II. On 21 May 2024 the Justice Department published a formal proposal to reschedule. The proposal was opened for public comment, and a hearing was planned for January 2025. It was cancelled just days before it was due to start, however, after an appeal from some of the parties. When Biden left the White House, the question was still unresolved.
Trump takes over and speeds things up
The case stalled during 2025, until on 18 December 2025 Donald Trump signed Executive Order 14370, titled Increasing Medical Marijuana and Cannabidiol Research. The order instructed the Attorney General to complete the rescheduling to Schedule III as quickly as possible. It also included a part that directly concerns CBD: a Medicare pilot programme under which older people, on a doctor’s recommendation, can be reimbursed for hemp-derived CBD products. Congress was also urged to review the federal definition of hemp-derived cannabinoids.
April 2026: medical cannabis moves to Schedule III
On 28 April 2026 the first concrete decision took effect. Acting Attorney General Todd Blanche moved two categories of cannabis to Schedule III: cannabis in medicines approved by the FDA, and cannabis covered by a state medical cannabis licence. The decision was based on US obligations under the 1961 UN Single Convention on Narcotic Drugs, which allowed it to take effect immediately without the usual public comment process.
At the same time a faster registration procedure with the Drug Enforcement Administration (DEA) was introduced for businesses holding state medical cannabis licences. All other cannabis, including cannabis sold on recreational state markets, remains in Schedule I.
The hearing on the rest of cannabis
On the same day, the DEA called an expedited hearing on whether all cannabis should be moved to Schedule III. It was held from 29 June to 15 July 2026 before DEA Chief Administrative Law Judge Derek C. Julius. The participants included several states and organisations critical of rescheduling. By September 2026 the parties had filed their final briefs, but the judge’s recommendation and the DEA’s final decision were still pending.
This is how the process has unfolded so far:
| Date | Event |
|---|---|
| 6 October 2022 | Biden pardons those convicted of simple possession and orders a review |
| August 2023 | The Department of Health and Human Services recommends Schedule III |
| 21 May 2024 | The Justice Department proposes rescheduling |
| January 2025 | The planned hearing is cancelled after an appeal |
| 18 December 2025 | Trump signs Executive Order 14370 |
| 28 April 2026 | Medical cannabis and FDA-approved drugs move to Schedule III |
| 29 June–15 July 2026 | Hearing on moving all cannabis to Schedule III |
What does Schedule III mean in practice?
The biggest direct effect concerns taxes. Under Section 280E of the US tax code, businesses that sell drugs in Schedule I or II cannot deduct ordinary expenses such as rent and wages. For many cannabis businesses this has meant a tax rate far above other industries. With Schedule III, that rule no longer applies to the medical operators covered.
Research also benefits. Substances in Schedule III are subject to much simpler rules, making it easier for universities and pharmaceutical companies to study cannabis and develop new medicines.
It is important, however, to understand what rescheduling does not mean. It does not legalise cannabis at federal level. Manufacturing, selling and possessing cannabis outside the approved frameworks is still illegal under federal law, and the recreational markets in states such as California and New York continue to operate in a legal grey zone.
New rules for hemp and CBD in the US
Alongside rescheduling, the rules for hemp have been tightened. In November 2025 Congress passed a budget law that changes the federal definition of hemp. Instead of measuring only delta-9 THC, the total THC content, including THCA, now counts. Synthetically produced cannabinoids, such as delta-8 THC made from CBD, fall outside the definition, and a finished product may contain no more than 0.4 milligrams of THC per container.
The changes were due to take effect on 12 November 2026, but in September 2026 most of them were postponed to 11 December 2026. The rules are aimed mainly at intoxicating hemp products, but they also affect full-spectrum CBD products, as even small amounts of THC quickly exceed the per-container limit. Several bills to delay, amend or repeal the rules have been introduced, but none had progressed by September 2026.
These rules apply in the US. Different rules apply to industrial hemp in the EU, and developments in Europe are partly heading in another direction. We have written about two of the most interesting examples:
What happens next?
The next step is for the judge to issue a recommendation and for the DEA to make a final decision on all cannabis. If the answer is yes, recreational cannabis will also move to Schedule III, but it will still not be legal at federal level. Real federal legalisation requires a decision by Congress. Whatever the outcome, it is clear that American attitudes to cannabis have changed dramatically since Anslinger’s day, and that the gap between medical and recreational cannabis in federal law is now wider than ever.
Is cannabis Schedule III in the US?
Partly. Since 28 April 2026, FDA-approved drugs and cannabis covered by a state medical cannabis licence have been in Schedule III. All other cannabis, including recreational cannabis, remains in Schedule I.
Does Schedule III make cannabis legal in the US?
No. Schedule III means cannabis is still a controlled substance under federal law. Research becomes easier and tax rules for medical operators improve, but sales outside the approved frameworks remain illegal.
Who started the rescheduling of cannabis?
Joe Biden started the review in October 2022, and the Justice Department put forward a formal proposal in May 2024. In December 2025 Donald Trump ordered the process to be completed.
What is happening to hemp and CBD in the US?
A law from November 2025 changes the definition of hemp so that total THC counts and a product may contain no more than 0.4 milligrams of THC per container. The rules take effect on 11 December 2026.
Sources
- The White House (2022). Statement from President Biden on Marijuana Reform.
- Federal Register (2024). Schedules of Controlled Substances: Rescheduling of Marijuana. Proposed rule, 21 May 2024.
- U.S. Department of Justice (2024). Justice Department Submits Proposed Regulation to Reschedule Marijuana.
- DEA (2025). Hearing on the Proposed Rescheduling of Marijuana Postponed.
- Brownstein (2025). President Trump Accelerates Marijuana Rescheduling and Expands Access to CBD.
- Federal Register (2026). Rescheduling of Food and Drug Administration Approved Products Containing Marijuana From Schedule I to Schedule III. Final rule, 28 April 2026.
- Federal Register (2026). Schedules of Controlled Substances: Rescheduling of Marijuana. Notice of hearing, 28 April 2026.
- DEA. Marijuana Rescheduling Regulatory Actions.
- Morgan Lewis (2026). High Time for a Change? Post-DEA Hearing, Broader Marijuana Rescheduling Questions Remain.
- Moritz College of Law, Ohio State University. Federal Marijuana Rescheduling: Process and Impact.
- Hemp Law Group (2026). Federal Hemp Ban 2026: Where Things Stand.
- Congressional Research Service. Changes to the Statutory Definition of Hemp and Implications for Agricultural Policy.
- KQED (2018). Reefer Madness! The Twisted History of America’s Marijuana Laws.
- Fisher, G. (2021). Racial Myths of the Cannabis War. Boston University Law Review, 101, 933.
