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Cannabis Schedule III Status (Oct 2026): What It Means for DC

The DEA's proposed rescheduling of cannabis from Schedule I to Schedule III is the biggest federal cannabis policy shift in decades. Here's what it means for DC.

By DCWeedHub Editorial · Published · Updated

DEA Cannabis Rescheduling to Schedule III: Where It Stands and What It Means for DC

Short answer: Federal rescheduling is moving on two tracks. Track A is in effect: since April 28, 2026, marijuana under a state medical license, including a District of Columbia license, and FDA-approved marijuana products are in Schedule III (Federal Register, 91 FR 22714). Track B is on hold: the DEA hearing on moving all marijuana to Schedule III has been stayed since Sept. 29, and on Oct. 14 the judge ordered DEA to respond by Oct. 21 to opponents' request to reopen the record (Marijuana Moment). DC's licensed market is medical-only, so it's covered by the track that's already in effect.

Need to buy legally in DC today? Register first: start your ABCA registration.

Update (Oct. 26, 2026): On Oct. 22, Chief Administrative Law Judge Derek Julius admitted the GAO report (GAO-26-108623, Sept. 23) into the record. He denied requests to reopen testimony and discovery, and allowed optional briefs due Oct. 29, with replies due Nov. 5. He'll then certify the record and send a nonbinding recommendation to DEA Administrator Terry Cole. DEA filed its response on Oct. 9 (Government's response, DEA Hearing Docket No. 26-96, dated Oct. 9, 2026; Marijuana Moment; Cannabis Business Times).

How we got here

Date What happened Source
May 21, 2024 DOJ/DEA proposed moving marijuana to Schedule III 89 FR 44597
Apr. 23, 2026 DOJ announced an order placing FDA-approved marijuana products and state-medical-licensed marijuana in Schedule III, plus a new hearing on broader rescheduling DOJ
Apr. 28, 2026 Final rule published and effective 91 FR 22714
Jun. 29–Jul. 15, 2026 Hearing testimony on broader rescheduling Stay order
Sep. 29, 2026 Chief ALJ stayed the hearing over a motion to add a Sept. 23 GAO report Stay order
Oct. 9, 2026 DOJ and challengers to the April order proposed a D.C. Circuit briefing schedule: opening brief Nov. 24, final briefs Feb. 19, 2027 (subject to court approval) Marijuana Moment
Oct. 22, 2026 Judge admitted the GAO report, denied reopening testimony and discovery, and set optional briefs for Oct. 29 with replies Nov. 5 Marijuana Moment

Full detail is in Rescheduling is stuck on two tracks and What federal rescheduling means for DC patients.

Schedule I vs. Schedule III

The Controlled Substances Act sets the criteria. Schedule I covers drugs with a high potential for abuse and no currently accepted medical use in the U.S. Schedule III covers drugs with a potential for abuse less than Schedules I and II and a currently accepted medical use (21 U.S.C. § 812(b)).

What Schedule III does not do

  • It doesn't legalize recreational cannabis federally. Marijuana outside a state medical license or an FDA-approved product stays in Schedule I under the April rule.
  • It doesn't create recreational stores in DC. Congress's DC budget rider still bars the District from funding recreational sales (rider explained).
  • It doesn't change ABCA's rules. You still need an ABCA patient or caregiver registration to buy from a licensed retailer (ABCA).
  • It doesn't expunge convictions.

Taxes: what Section 280E says

Section 280E of the Internal Revenue Code bars deductions and credits for a business that "consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act)" (26 U.S.C. § 280E). Schedule III isn't in that text. The April final rule discusses § 280E but says it isn't a determination of any taxpayer's liability (91 FR 22714). Trade press has also flagged audit risk for businesses that claim relief (MJBizDaily). We don't estimate any business's tax rate, and this isn't tax advice. Licensees should talk to their own tax counsel.

Producers: DEA registration

DEA opened new Form 225 registrations in October for state medical cannabis manufacturers, distributors and testing labs (what it means for DC's growers, makers and labs).

Dates to watch

  • Oct. 29: optional briefs are due.
  • Nov. 5: replies are due.
  • Nov. 24: opening brief in the D.C. Circuit, if the court adopts the proposed schedule.
  • Dec. 11: the current stopgap funding, which carries the DC rider, runs out.

Frequently asked questions

Is marijuana Schedule III now?

Medical marijuana that's FDA-approved or state-licensed has been in Schedule III since April 28, 2026. Broader rescheduling is still in process. See federal rescheduling and DC patients.

What happens next in the DEA hearing?

Optional briefs are due Oct. 29 and replies Nov. 5. Then the judge certifies the record and makes a nonbinding recommendation to the DEA Administrator (Marijuana Moment).

Does rescheduling legalize recreational sales in DC?

No. The congressional rider still applies through at least the Dec. 11, 2026 stopgap. See why Congress blocks recreational sales.

Do DC producers need a DEA registration?

DEA opened Form 225 registrations for state medical cannabis businesses on Oct. 6. See DEA Form 225 for DC producers.

When will a final decision come?

UNKNOWN. No date has been set.

Sources

Last updated: October 16, 2026

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