Cannabis remains a Schedule I controlled substance under federal law, and the DEA has not finalized its proposal to move it to Schedule III. The agency published a proposed rule in May 2024 and handed the question to an administrative law judge, who opened hearings in December 2024 and continued them into 2025. Until a final rule appears in the Federal Register, federal cannabis law stays the same.
What is the cannabis rescheduling update right now?
The DEA proposal is pending. Nothing has taken effect, and cannabis is still Schedule I for tax, research, and criminal purposes.
An administrative law judge, John Mulrooney, runs the hearing. He takes testimony from the DEA, the FDA, HHS scientists, and outside parties on both sides. When testimony ends, he writes a recommended decision and passes it to the DEA Administrator.
The Administrator makes the final call. That decision gets published as a final rule, and only then does the schedule change. No legal deadline forces a decision, so the timeline rests with the agency.
How did cannabis rescheduling get to this point?
The process started with a review, not a new law. The White House asked HHS and the DEA to examine how cannabis is scheduled under the Controlled Substances Act.
- October 2022: The White House directs HHS and the DEA to review cannabis scheduling.
- August 2023: HHS recommends Schedule III in a letter to the DEA.
- January 2024: That HHS recommendation becomes public.
- May 2024: The DEA publishes a proposed rescheduling rule in the Federal Register.
- July 2024: The public comment period closes after tens of thousands of comments.
- December 2024: Hearings begin before an administrative law judge.
- 2025: Hearings continue with testimony from federal health officials and outside witnesses.
What would a Schedule III listing change?
Schedule III is a lower tier than Schedule I. The real-world effects are narrower than most headlines suggest.
- Taxes: Section 280E of the tax code blocks deductions and credits for Schedule I and II businesses. Schedule III removes that block for state-legal cannabis companies.
- Federal penalties: Trafficking penalties drop, though cannabis stays illegal under federal law.
- Research: More manufacturers can register with the DEA, which speeds up studies.
- Prescriptions: The FDA could regulate cannabis medicines the way it handles other Schedule III drugs.
What it does not do: legalize cannabis for adults, open interstate sales, or overturn state programs. Rescheduling is not legalization.
Does cannabis rescheduling affect CBD?
For most CBD buyers, no. Hemp-derived CBD with 0.3% THC or less is legal under the 2018 Farm Bill, which sits outside the CSA scheduling system.
Marijuana-derived CBD is a different story. It falls under the same schedule as the plant it comes from, so a Schedule III move would change its federal treatment too.
One gap rescheduling does not close: the FDA still has not approved CBD as a dietary supplement or food ingredient. That rule comes from the FDA, not the DEA, and no scheduling change touches it.
What should CBD shoppers do while this plays out?
Hemp CBD legality does not change today, so your buying checklist stays the same.
- Ask for a batch-specific certificate of analysis (COA) from an accredited lab.
- Confirm the THC result reads at or below 0.3% by dry weight.
- Check the test date. A COA older than a year tells you little about the bottle in your hand.
- Read your state rules on hemp shipping, since they vary.
Why the delay matters
For state-licensed cannabis businesses, 280E is the main cost. Companies that pay effective tax rates above 70% are waiting on Schedule III to change that math. Each month without a final rule keeps those bills in place.
For CBD sellers, the stakes are smaller. Hemp CBD trades in a legal gray zone where the FDA controls health claims and states control retail shelves. Rescheduling does not sort that out.
What it could do is shift the tone. If cannabis lands on Schedule III, federal agencies may take a closer look at THC limits, labeling, and testing. Stores that keep COAs on hand for every batch will handle that scrutiny better than stores that do not.
Common questions about cannabis rescheduling
Will rescheduling make cannabis legal nationwide?
No. Schedule III drugs stay controlled. Medical use still requires a prescription under federal law, and adult-use sales stay a state matter.
When will the DEA make a final decision?
Unknown. The DEA has not set a date, and the Administrator can accept, change, or reject the judge's recommendation.
Does rescheduling change hemp rules?
No. Hemp is regulated through the Farm Bill and USDA programs, not through the CSA schedule for marijuana.
Could the proposal fail?
Yes. The DEA can withdraw a proposed rule, and some hearing participants argue cannabis belongs on Schedule I or II instead.
Watch the Federal Register for the final rule. That publication, not a news headline, marks the moment the schedule changes.