DEA marijuana rescheduling process faces administrative delays

The federal process to reschedule marijuana from Schedule I to Schedule III is facing administrative delays. Following an executive order issued by President Donald Trump in December 2025 to expedite the reclassification, the Drug Enforcement Administration (DEA) and the Department of Justice (DOJ) previously announced plans to move FDA-approved and state-licensed medical marijuana to Schedule III.

However, the process has encountered legal hurdles. A temporary stay was issued by the DEA's Chief Administrative Judge, Derek C. Julius, following requests for a briefing on a U.S. Government Accountability Office (GAO) report regarding the rescheduling plan. While the DOJ and DEA have engaged in responses to these requests, final orders from the DEA have not yet been issued, with many analysts expecting a resolution in late 2026 or early 2027.

The delay impacts the cannabis industry, including companies like Canopy Growth. While rescheduling is expected to facilitate increased research and provide tax clarity, Canopy Growth faces additional headwinds in its primary market, Canada, including persistent operating losses.