Marijuana Law and Rescheduling

Marijuana has been in Schedule I since the Controlled Substances Act passed in 1970, but states have moved the other way. California legalized medical marijuana in 1996, and Colorado and Washington legalized recreational use in 2012. By 2025 about 24 states and D.C. allowed adult recreational use and nearly 40 allowed medical use. Since 2014 Congress has barred the Justice Department from spending money to interfere with state medical marijuana programs, but businesses still face federal tax penalties, limited access to banks, and federal law on paper.

In 2022 President Biden pardoned federal convictions for simple possession and asked for a review of marijuana's schedule. Health and Human Services recommended moving it to Schedule III in 2023, the DEA proposed the change in 2024, and the process stalled in hearings in early 2025. In December 2025 President Trump ordered the process completed quickly. On April 22, 2026, the DEA moved marijuana in FDA-approved drugs and state-licensed medical marijuana to Schedule III and began a new hearing, held in June and July 2026, on rescheduling marijuana more broadly.

Moving to Schedule III would allow more research and end a tax rule that bars marijuana businesses from deducting ordinary expenses, but it would not legalize recreational sales. Supporters of legalization want marijuana removed from the schedules entirely, while opponents warn of stronger products, youth use, impaired driving, and mental health risks. Separately, a 2025 spending law moved to ban most intoxicating hemp-derived THC products, which had spread under a 2018 farm bill exception, starting in November 2026.