{"id":85881,"date":"2026-04-23T06:49:50","date_gmt":"2026-04-23T14:49:50","guid":{"rendered":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2026\/04\/23\/breaking-cannabis-rescheduling-becomes-federal-reality\/"},"modified":"2026-04-29T19:45:26","modified_gmt":"2026-04-30T03:45:26","slug":"breaking-cannabis-rescheduling-becomes-federal-reality","status":"publish","type":"post","link":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2026\/04\/23\/breaking-cannabis-rescheduling-becomes-federal-reality\/","title":{"rendered":"BREAKING: Cannabis Rescheduling Becomes Federal Reality"},"content":{"rendered":"

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The federal government on Thursday officially reclassified regulated medical marijuana from Schedule I to Schedule III under the Controlled Substances Act, marking the most significant shift in U.S. cannabis policy in more than 50 years.<\/p>\n

The order, first reported by Associated Press<\/a>, was signed under the Trump administration earlier today after months of accelerated pressure inside the Department of Justice. It immediately changes how cannabis is defined under federal law\u2014formally acknowledging its accepted medical use for the first time since 1970, though it stops short of full federal legalization.<\/p>\n

\u201cToday\u2019s rescheduling of cannabis marks a historic turning point for the industry and a long-overdue modernization of federal policy,\u201d said Darren Lampert, Chief Executive Officer of GrowGeneration Corp., a retailer focused on hydroponics, cultivation equipment, nutrients, lighting systems and infrastructure used by both commercial growers and serious home cultivators. \u201cIt recognizes the legitimate medical value of cannabis, supports expanded scientific research, and removes barriers that have constrained responsible businesses and patient access for years.\u201d<\/p>\n

Lampert added that the shift could have immediate ripple effects across the broader cannabis economy.<\/p>\n

\u201cThis decision creates a stronger foundation for investment, innovation and job creation across the supply chain,\u201d he said. \u201cFor companies like GrowGeneration, which support cultivators and operators nationwide, greater regulatory clarity will help accelerate growth and efficiency throughout the market.\u201d<\/p>\n

For the first time since 1970, Washington is no longer officially maintaining that licensed medical cannabis has no accepted medical value. That matters because, for more than 50 years, the federal government placed marijuana in the same category as heroin, despite nearly 40 states building medical programs, millions of patients legally using cannabis, and years of scientific evidence pointing toward therapeutic value.<\/p>\n

The DEA order, obtained exclusively by Cannabis Now<\/em> from the White House<\/a>, formally acknowledges what much of the country has already accepted: Cannabis is no longer being defined by federal law in the same way it was during the height of prohibition.<\/p>\n

\"\"<\/a>
A preview of the DEA order.<\/figcaption><\/figure>\n

\u201cThis is a meaningful step forward\u2014and a long overdue acknowledgment of reality,\u201d said National Hemp Association Chairman Geoff Whaling. \u201cWhile this action does not directly impact hemp\u2014already removed from the Controlled Substances Act under the\u00a0Agriculture Improvement Act of 2018\u2014it is another significant step in normalizing the broader cannabis category. And that matters.\u201d<\/p>\n

A Long Road to Recognition<\/h4>\n

For the cannabis community, today carries emotional weight beyond policy.<\/p>\n

For decades, activists marched, patients testified, families fought for access, and entire communities built legal cannabis markets while people were still being arrested under a framework that insisted marijuana had no medical legitimacy. Today\u2019s announcement does not erase that history\u2014but it changes the federal tone in a way that many believed would take much longer.<\/p>\n

It also immediately raises a deeper justice question: What happens to the thousands of people still incarcerated, or still carrying criminal records, for conduct tied to a plant the federal government now partially recognizes as medically valid?<\/p>\n

\u201cThis is the most significant drug policy change in this country in 50 years,\u201d said Daniel Cook, CEO of True Terpenes. \u201cIt legitimizes medical marijuana programs in 40 states, expands legitimate research, and delivers 280E relief to state-licensed medical operators, who have been carrying effective tax rates as high as 70%.\u201d<\/p>\n

Cook added that while the shift is meaningful, it stops short of where the industry ultimately needs to land.\u201c Cannabis shouldn\u2019t be Schedule III\u2014it belongs in a single-plant regulatory framework alongside hemp. But this is a meaningful step, and the industry should take the win.\u201d<\/p>\n

Schedule III does not automatically free prisoners, vacate prior convictions, or trigger nationwide clemency. Federal criminal penalties tied to non-licensed cannabis activity remain in place. But politically and culturally, the contradiction becomes harder to ignore. If cannabis now holds accepted medical standing, pressure will only increase around sentencing reform, pardons, expungement, and broader social equity demands.<\/p>\n

Even with the change, the broader inconsistencies remain unresolved. \u201cCannabis doesn\u2019t belong on any schedule. Period,\u201d said Jason Harris, renowned glass artist and founder of Jerome Baker Designs. \u201cThe federal government is now acknowledging medical use, while the broader plant and the culture surrounding it remain in a legal gray area. That disconnect is still very real.\u201d<\/p>\n

Immediate Financial Impact<\/h4>\n

For legal operators, the financial effect is immediate because companies may now gain relief from IRS Code 280E, the federal tax rule that has long punished cannabis businesses by blocking ordinary deductions. That rule has been one of the biggest hidden burdens in legal cannabis, often forcing profitable companies into impossible tax structures.<\/p>\n

\u201cReclassification will allow cannabis businesses to be treated more like traditional businesses from a tax perspective, helping to create a more sustainable and equitable operating environment,\u201d said Kevin Pattah, CEO of Mango Cannabis. <\/p>\n

Public markets reacted within hours.<\/p>\n

Among the strongest movers was GrowGeneration (GRWG), one of the sector\u2019s best-known ancillary cannabis companies. Unlike plant-touching operators, GrowGeneration sits in a strategic lane because it supports cultivation without directly selling cannabis itself.<\/p>\n

Today, the stock surged sharply, climbing from an opening level near $1.44 to an intraday high around $1.57, a jump of roughly 18\u201319% at peak trading, with volume accelerating well above recent daily averages. That kind of move reflects investor belief that if cannabis operators suddenly become healthier financially, cultivation infrastructure companies like GrowGeneration may benefit quickly as operators resume expansion, upgrades and facility investment.<\/p>\n

At the same time, several major U.S. cannabis operators moved higher:<\/p>\n