The U.S. Department of Justice issued an Order on April 22, 2026 immediately placing all FDA-approved marijuana products and marijuana products regulated by a state medical marijuana license in Schedule III of the Controlled Substances Act (CSA).

A second order also signed by Acting Attorney General Todd Blanche sets a June 29, 2026 hearing to consider the broader rescheduling of marijuana from Schedule I to Schedule III.

Under the federal CSA, the Drug Enforcement Administration (DEA) classifies drugs into five distinct categories, or schedules, depending on the drug’s acceptable medical use and its potential for abuse or dependence. As the drug schedule changes, so does the abuse potential. Schedule I drugs are defined as having no currently accepted medical use and a high potential for abuse. Schedule V represents drugs with the least potential for abuse.

The DEA has classified marijuana as a Schedule I drug since the inception of the CSA in 1970. In May 2024, the DOJ issued a proposed rule to reschedule marijuana to Schedule III. Schedule III drugs are defined as drugs with a moderate to low potential for physical and psychological dependence. Some examples of Schedule III drugs are Tylenol with codeine, ketamine, buprenorphine, and anabolic steroids. The CSA requires that such a change be made through formal rulemaking on the record after an opportunity for a hearing.

The DEA announced on April 23, 2026, that it will hold a hearing on the proposed rescheduling of marijuana on June 29, 2026. The hearing will conclude no later than July 15, 2026. The purpose of the hearing is to “receiv[e] factual evidence and expert opinion regarding” whether marijuana should be transferred to Schedule III of the CSA. Any “interested person” (defined as “any person adversely affected or aggrieved by any rule or proposed rule issuable” under 21 U.S.C. 811) who wishes to participate in the hearing must file a written notice of intention to participate by May 24, 2026.

At the same time, DOJ issued a final order dated April 22, 2026, that places marijuana products approved by the FDA as well as marijuana products that are subject to state-issued medical marijuana licenses in Schedule III of the CSA. The FDA-approved marijuana products are Epidiolex, Marinol, Syndros, and Cesamet, all available by prescription. The final order also establishes an expedited registration process for entities holding state medical marijuana licenses, enabling them to engage in the manufacture, distribution, or dispensing of marijuana for medical purposes under federal law.

Unlicensed marijuana crops, bulk marijuana, and any marijuana or marijuana extract that has not been incorporated into an FDA-approved product (or state-licensed marijuana that does not satisfy the requirements relating to purchase and sale of marijuana by DEA) will remain in Schedule I of the CSA. The final order does not apply to synthetic THC or hemp.

Impact on Employers

Employers should view any employee’s use of state-issued medical marijuana or FDA-approved marijuana like other prescription medications. This includes engaging in the interactive process and the “direct threat” analysis for safety-sensitive positions under the Americans with Disabilities Act and comparable state laws.

Employers regulated by Department of Transportation (DOT) regulations should monitor revisions to DOT’s drug and alcohol testing regulations. Those regulations only permit drug testing for Schedule I and II drugs. DOT-regulated employers should continue testing for marijuana until DOT announces otherwise.

Finally, making marijuana a Schedule III drug still leaves a conflict with state recreational marijuana laws (adult-use laws) that permit use of marijuana without a medical prescription. For employers who conduct drug testing, many different state and local laws continue to regulate marijuana drug testing.

Please contact a Jackson Lewis attorney with any questions.