Earlier today, the United States Department of Justice (DOJ) announced that it has officially issued an order moving cannabis from its current status as a Schedule I substance to Schedule III in some instances. The announcement marked a major change in United States federal cannabis policy.

“In accordance with President Trump’s December 18, 2025, Executive Order on Increasing Medical Marijuana and Cannabidiol Research, the Justice Department and the Drug Enforcement Administration (DEA) today announced the issuance of an order immediately placing both FDA-approved products containing marijuana and marijuana products regulated by a state medical marijuana license in Schedule III of the Controlled Substances Act, as well as the initiation of an expedited administrative hearing process to consider the broader rescheduling of marijuana from Schedule I to Schedule III.” U.S. DOJ wrote in a news release.

“The new hearing, beginning June 29, 2026, will provide a timely and legally compliant pathway to evaluate broader changes to marijuana’s status under federal law. Together, these actions provide immediate and long-term clarity to researchers, patients, and providers alike while still maintaining strict federal controls against illicit drug trafficking.” the agency added.

“The Department of Justice is delivering on President Trump’s promise to expand Americans’ access to medical treatment options,” said Acting Attorney General Todd Blanche. “This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information.”

“Under the direction of President Trump and Acting Attorney General Blanche, DEA is expeditiously moving forward with the administrative hearing process — bringing consistency and oversight to an area that has lacked both,” said DEA Administrator Terry Cole.  “Our men and women in law enforcement remain committed to fighting drug cartels, the fentanyl epidemic, and protecting American lives.”

Today’s historic policy change is the result of decades of tireless work by cannabis advocates in the United States. California became the first state to adopt medical cannabis legalization in 1996, and since that time, a total of 40 states have adopted medical cannabis legalization measures. Washington D.C. has also adopted medical cannabis legalization.

However, cannabis remained a Schedule I substance in the United States the whole time, and today’s announcement finally brings the nation’s federal cannabis policies into closer alignment with dozens of other countries around the world that permit medical cannabis at a national level.

“Today’s order marks a historical reversal in federal cannabis policy. It validates the experiences of tens of millions of Americans, as well as those of tens of thousands of physicians, who have long recognized that cannabis possesses legitimate medical utility, as well as the legitimacy of the longstanding medical cannabis access programs available in the majority of US states.” stated NORML’s Deputy Director Paul Armentano.

“It wasn’t long ago that federal officials were denying that cannabis possessed any legitimate medical utility, threatening to seize doctors’ medical licenses for discussing medical cannabis with their patients, and shutting down state-licensed marijuana dispensaries. Now the government is seeking to integrate these programs into the existing federal and international framework for regulating substances with accepted medical value.” Armentano also stated.

For state-level medical cannabis businesses that meet the qualifying criteria, arguably the most notable benefit of today’s announcement is that they will no longer be subject to 280E. Many state-legal medical cannabis businesses in the U.S. pay a considerably higher tax rate compared to businesses in other industries due to the 280E provision in the federal tax code, with cannabis businesses paying as much as a 70% higher rate in some cases.

Section 280E of the Internal Revenue Code prohibits businesses from deducting certain business expenses from gross income associated with the “trafficking” of Schedule I or II substances, as defined by the Controlled Substances Act. Whitney Economics estimates that in 2025 alone, state legal cannabis businesses paid a combined $2.24 billion in excess cannabis-related federal taxes due to 280E.

“This change levels the playing field and lowers these entities’ costs of doing business,” Paul Armentano said. “This change also likely benefits patients by resulting in lower overall prices for state-licensed retail medical products.”

The likely impact of today’s order is not limited to the domestic United States medical cannabis industry. Qualifying state medical cannabis businesses now have a path to enter the international import/export sector, which has become increasingly lucrative in recent years, particularly in Europe.

“As I have argued along with colleagues, this move to schedule III will also require amending DEA’s regulations to account for US obligations under the Single Convention with marijuana being moved into Schedule III. In DOJ’s final order, it acknowledged the same, stating that “DEA must simultaneously amend the regulations to require a permit to import or export such products.”” Attorney Jason Adelstone, of Harris Sliwoski, wrote for the firm’s Canna Law Blog.

“This order specifically states that “this order amends the DEA regulations (21 CFR 1312.30) to add FDA-approved drug products containing marijuana and state-licensed medical marijuana to the list of nonnarcotic schedule III through V controlled substances that are subject to the import and export permit requirement.” Registering with the DEA will allow state licenses to potentially access the international market, as DEA registrants can apply for and receive import and export licenses.” Adelstone added.

Only time will tell how many U.S. cannabis companies successfully navigate the process to obtain import/export licenses. However, it is a safe bet that some will, and that is sure to shake up the emerging international cannabis industry.