Story perspectives

Cannabis Reclassified to Schedule III, Tax Deductions Approved

4/24/2026

Summary

Story summary

The Justice Department ordered that state-licensed medical cannabis operators may claim a federal tax deduction for the first time.
Acting Attorney General Todd Blanche reclassified FDA-approved and state-licensed medical marijuana from Schedule I to Schedule III on April 23, 2026.
The reclassification does not legalize marijuana federally but places it with drugs such as codeine and testosterone.
The Drug Enforcement Administration will hold an administrative hearing on June 29, 2026 to consider broader cannabis rescheduling.

History

Historical Context

The Controlled Substances Act of 1970 classified marijuana as Schedule I, reflecting stringent federal restrictions. However, by 2016, 24 states had legalized medical marijuana, indicating a shift in public perception. The recent reclassification by Acting Attorney General Todd Blanche suggests a significant change in federal policy, potentially leading to broader legalization and regulatory frameworks for cannabis in the future.

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Story summary

The Justice Department ordered that state-licensed medical cannabis operators may claim a federal tax deduction for the first time.
Acting Attorney General Todd Blanche reclassified FDA-approved and state-licensed medical marijuana from Schedule I to Schedule III on April 23, 2026.
The reclassification does not legalize marijuana federally but places it with drugs such as codeine and testosterone.
The Drug Enforcement Administration will hold an administrative hearing on June 29, 2026 to consider broader cannabis rescheduling.

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