Key Takeaways
- Acting Attorney General Todd Blanche signed an order immediately placing FDA-approved and state-licensed medical marijuana products in Schedule III of the Controlled Substances Act.
- The action stems from President Trump's December 18, 2025, Executive Order on Increasing Medical Marijuana and Cannabidiol Research.
- A new DEA administrative hearing on broader marijuana rescheduling will begin June 29, 2026, replacing proceedings initiated under the previous administration.
- Village Farms International (NASDAQ: VFF) said it intends to activate U.S. cultivation assets once regulations permit, citing its standing as one of the world's largest cannabinoid product cultivators.
- Federal enforcement against illicit drug trafficking remains in place under the new framework.
The U.S. Justice Department and the Drug Enforcement Administration (DEA) have taken immediate steps to reclassify medical marijuana under Schedule III of the Controlled Substances Act — the most consequential shift in federal cannabis classification in decades. Acting Attorney General Todd Blanche signed the order on April 24, 2026, acting in accordance with President Trump's December 18, 2025, Executive Order on Increasing Medical Marijuana and Cannabidiol Research.
DOJ and DEA Issue Immediate Rescheduling Order for Medical Marijuana
The order covers two categories of marijuana products: FDA-approved drug products containing marijuana, and medicinal marijuana products operating under a qualifying state-issued license. Acting Attorney General Blanche invoked his statutory authority to reschedule controlled substances in order to fulfill U.S. obligations under the Single Convention on Narcotic Drugs — the international treaty framework that governs federal drug classifications. The action formally acknowledges the longstanding role of state governments in regulating medical marijuana programs.
“The Department of Justice is delivering on President Trump's promise to expand Americans' access to medical treatment options,” said Acting Attorney General Todd Blanche. “This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information.”
DEA Administrator Terry Cole framed the marijuana Schedule III move as a step toward bringing federal consistency to an area that has operated across a fragmented federal-state divide.
“Under the direction of President Trump and Acting Attorney General Blanche, DEA is expeditiously moving forward with the administrative hearing process — bringing consistency and oversight to an area that has lacked both,” said DEA Administrator Terry Cole. “Our men and women in law enforcement remain committed to fighting drug cartels, the fentanyl epidemic, and protecting American lives.”
New DEA Hearing Scheduled for June 2026 to Resolve Broader Marijuana Rescheduling
Alongside the immediate reclassification order, the DOJ announced procedural changes aimed at accelerating the full rulemaking process for moving marijuana from Schedule I to Schedule III across the board. The DEA is withdrawing the notice of hearing published on August 29, 2024, under the prior administration and terminating those proceedings. An original notice of proposed rulemaking had been published in the Federal Register on May 21, 2024.
A new administrative hearing will begin June 29, 2026, governed by updated procedural rules with firm deadlines and a stated mandate to reach a timely resolution consistent with federal law. A new notice of hearing is being published in the Federal Register to govern those proceedings. The DOJ stated that together, the immediate order and the upcoming hearing are intended to provide clarity for researchers, patients, and healthcare providers while preserving strict federal controls against illicit drug trafficking.
Village Farms International Applauds the Marijuana Schedule III Designation
Village Farms International, Inc. (NASDAQ: VFF), one of the world's largest cultivators and distributors of cannabinoid products, described the federal rescheduling as a generational turning point for the U.S. cannabis sector. The company said it plans to activate its U.S. cultivation assets once all regulatory authorizations are in place, positioning itself to supply a properly regulated domestic medicinal market.
“The rescheduling of medical cannabis represents a monumental change for our industry, and we applaud the Trump administration for keeping its campaign promises and its commitment to unlocking the medicinal benefits of cannabis for millions of Americans,” said Michael A. DeGiglio, retired U.S. Navy captain and Founder, President and Chief Executive Officer of Village Farms. “We look forward to the opportunity to activate our U.S. cultivation assets when regulations permit, and are proud that our efforts to defend our industry and ensure a transparent administrative process last year have been successful.”
The marijuana Schedule III classification removes a central legal barrier that has historically constrained clinical research on cannabis, complicated access to banking and tax treatment for cannabis businesses, and created friction between state-licensed medical programs and federal drug law. The June 2026 hearing will determine whether that designation is extended to marijuana more broadly under federal statute.
