Story perspectives

Medical Cannabis Moved to Schedule III, Gains Tax Deduction

4/23/2026

Summary

Story summary

The Justice Department rule lets state-licensed medical cannabis firms claim a tax deduction.
Acting Attorney General Todd Blanche signed an order on April 23, 2026 moving marijuana and cannabis products from Schedule I to Schedule III.
The order creates a Drug Enforcement Administration (DEA) registration process that includes a June 29 hearing on rescheduling.
President Donald Trump’s December order directed the rescheduling to aid medical research, prompting industry praise and criticism of the tax break.

History

Historical Context

The Controlled Substances Act of 1970, signed by President Richard Nixon, classified marijuana as a Schedule I drug, severely restricting its medical use and research. Recent actions by Acting Attorney General Todd Blanche to reschedule cannabis to Schedule III mark a pivotal shift in federal policy, potentially enhancing research opportunities and reshaping the cannabis industry's financial landscape, significantly impacting state-licensed firms.

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Story summary

The Justice Department rule lets state-licensed medical cannabis firms claim a tax deduction.
Acting Attorney General Todd Blanche signed an order on April 23, 2026 moving marijuana and cannabis products from Schedule I to Schedule III.
The order creates a Drug Enforcement Administration (DEA) registration process that includes a June 29 hearing on rescheduling.
President Donald Trump’s December order directed the rescheduling to aid medical research, prompting industry praise and criticism of the tax break.

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