In October 2022, President Biden directed Health and Human Services (HHS) and the Department of Justice (DOJ) to review cannabis’s classification under the Controlled Substances Act (CSA). By early 2024, HHS recommended moving cannabis from Schedule I to Schedule III—alongside codeine and anabolic steroids—recognizing its accepted medical use.
Under the rulemaking process, the DEA must hold hearings and consider public comment before finalizing any reclassification. A preliminary hearing was held December 2, 2024, and 25 witnesses—including agency experts—were tapped to testify in early 2025. However, a legal appeal delayed the evidentiary portion, pushing it beyond January 2025.
Challenges from Stakeholders
Despite procedural momentum, voices of opposition have emerged. A recent DEA national-drug-threat report cautioned that state-legal marijuana might fuel illicit markets and highlighted potency concerns, signaling potential resistance to down-scheduling. Similarly, experts have urged caution, noting that lower scheduling wouldn’t legalize cannabis federally and that scientific and regulatory hurdles remain.
Legislatively, Republican members of the House Appropriations Committee have launched an investigation into the rescheduling recommendation, questioning both the HHS-DEA process and citing mental health risks.
Bipartisan Legislative Moves
Alongside executive processes, Congress has seen incremental reform efforts. In May 2025, Sens. Dina Titus and Ilhan Omar introduced the Evidence-Based Drug Policy Act (EBDPA), which wouldn’t reschedule cannabis directly but would ease research restrictions on Schedule I substances—including cannabis, psilocybin, and MDMA—potentially enabling stronger scientific groundwork for future scheduling decisions.
Meanwhile, the STATES 2.0 Act—reintroduced in April 2025—aims to protect state-level legalization efforts from federal interference.
Industry and Market Outlook
The broader cannabis business community is watching closely. The DEA reclassification timeline may extend into 2026, contributing to investor caution—cannabis stocks fell sharply in 2024 amid state-level defeats and federal uncertainty. A move to Schedule III could reduce tax burdens and normalize banking—yet operators remain “in limbo” awaiting definitive federal action.
What’s Next?
The DEA’s evidentiary hearing remains pending. Legal challenges and political pushback suggest a drawn-out process—estimates suggest it could extend through late 2025 or even 2026. Should the hearing proceed, it will center on scientific evidence, policy precedent, international treaties, and socio-economic impact. Meanwhile, congressional maneuvers—like the EBDPA and STATES reforms—signal bipartisan interest in cannabis policy evolution.
In Summary
Cannabis rescheduling in the U.S. teeters at a pivotal crossroads—not driven by a single event but by administrative hearings, legislative proposals, and industry pressure. Schedule III classification is possible, but far from assured. Stakeholders are preparing for a marathon: one where science, politics, and public health—all with their own timelines—will determine cannabis’s federal future.