Story perspectives

Acting AG Moves Medical Marijuana to Schedule III, Cuts 280E Tax

4/23/2026

Summary

Story summary

Acting Attorney General Todd Blanche signed an order moving state-licensed medical marijuana from Schedule I to Schedule III, effective immediately.
The order creates an expedited Drug Enforcement Administration (DEA) registration process and lets producers deduct ordinary expenses, ending the 280E penalty that imposed a 60 % tax rate.
The Drug Enforcement Administration will hold an administrative hearing on broader rescheduling on June 29, which may lead to legal challenges before final approval.

History

Historical Context

The Controlled Substances Act of 1970 classified marijuana as a Schedule I substance, limiting its use and research. This classification imposed significant tax burdens, including a 60% tax rate on cannabis businesses under IRS 280E. The recent decision by Acting Attorney General Todd Blanche to consider marijuana for Schedule III status indicates a shift towards recognizing its medical benefits and economic potential, potentially facilitating broader legalization.

1 of 2

Story summary

Acting Attorney General Todd Blanche signed an order moving state-licensed medical marijuana from Schedule I to Schedule III, effective immediately.
The order creates an expedited Drug Enforcement Administration (DEA) registration process and lets producers deduct ordinary expenses, ending the 280E penalty that imposed a 60 % tax rate.
The Drug Enforcement Administration will hold an administrative hearing on broader rescheduling on June 29, which may lead to legal challenges before final approval.

1 / 2