Approved Medical Marijuana Products Reclassified from Schedule 1 to 3
On April 23, 2026, the U.S. Department of Justice (DOJ) and the Drug Enforcement Administration (DEA) issued a final order, effective immediately, reclassifying state-licensed medical marijuana and FDA-approved cannabis products from Schedule I to Schedule 3 of the Controlled Substances Act. This action is the most significant development in federal cannabis policy in decades. The reclassification recognizes that regulated medical marijuana has accepted medical use and a lower potential for abuse.
What the Order Does
The reclassification means state-regulated medical marijuana and FDA-approved cannabis products are no longer in the same category as heroin and LSD. The move lowers barriers for medical marijuana research and clinical studies. The change will also mean medical marijuana companies are now exempt from punitive tax treatment, allowing them to deduct ordinary business expenses for the first time. The DEA has established a registration process for existing state-licensed medical marijuana companies.
What the Order Does Not Do
Note that the reclassification applies only to state-licensed medical marijuana and DEA-approved cannabis products. Recreational marijuana and non-state licensed marijuana used for medical purposes remain Schedule 1 drugs. In addition, the order does not allow legal interstate transport of medical cannabis, although it opens the door to that possibility. Finally, the order does not mean that group health plans must (or should) cover medical marijuana. While the change opens the door to medical research on the efficacy of medical marijuana, cannabis, even if legal under state law, is not an FDA-approved prescription medication.
Note that legal challenges to this order are possible. In addition, employers should be aware that they may still maintain policies that prohibit marijuana use and impairment in the workplace—nothing about this change compels an employer to accept marijuana use in the workplace, whether recreational or medical.
