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Acting AG Schedules Medical Cannabis, Removes 280E Tax

4/27/2026

Summary

Blanche Reclassifies Cannabis

Acting Attorney General Todd Blanche signed an order on April 24, 2026 placing FDA-approved cannabis and state-licensed medical marijuana into Schedule III, removing the Section 280E tax disallowance for qualifying operators.
The Department of Justice (DOJ) cancelled the Aug 29, 2024 notice and set a new hearing for June 29, 2026, to end by July 15, 2026.
Participants must file electronic notices by 11:59 p.m. ET on May 24, 2026 and Blanche will notify them on June 22, 2026.

Summary

Manufacturers Set Prices

Manufacturers must set a nominal price for DEA purchase of cannabis crops under the Single Convention.
Crops must stay in DEA-accessible storage until the purchase-and-resale transaction is completed.
Registration fees of $3,699 for manufacturers, $1,850 for distributors, and $888 for a dispenser license include a requirement that operators add the statutory warning label required by 21 U.S.C. § 825(c).
Applications filed by June 22 2026 will be processed within six months, allowing continued state-license operation.

History

Historical Context

President Richard Nixon’s 1970 Controlled Substances Act placed marijuana in Schedule I, creating the DEA with a $1.5 billion budget. Decades of failed rescheduling petitions—starting with NORML in 1972 and the 1999 reclassification of synthetic THC (Marinol) to Schedule III—culminated in Acting Attorney General Todd Blanche’s April 2026 order moving FDA-approved cannabis to Schedule III, aligning federal law with medical use in 40 states.

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Blanche Reclassifies Cannabis

Acting Attorney General Todd Blanche signed an order on April 24, 2026 placing FDA-approved cannabis and state-licensed medical marijuana into Schedule III, removing the Section 280E tax disallowance for qualifying operators.
The Department of Justice (DOJ) cancelled the Aug 29, 2024 notice and set a new hearing for June 29, 2026, to end by July 15, 2026.
Participants must file electronic notices by 11:59 p.m. ET on May 24, 2026 and Blanche will notify them on June 22, 2026.

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