Cannabis Rescheduling: What Moving From Schedule I to Schedule III Really Means

Cannabis has been wrongfully classified as a Schedule I substance under federal law since 1970. This category is reserved for drugs with no accepted medical use, lack of safety, and a high potential for abuse. This classification has long conflicted with patient experiences, state medical programs, and a growing body of scientific evidence demonstrating that cannabinoids are safe and effective medicinal compounds, especially when used under medical guidance.

Now, the federal government is in the process of rescheduling cannabis to Schedule III. While this represents a significant shift, it has also created confusion about what actually changes, what does not, and why progress has taken so long.

What does rescheduling mean?

Rescheduling cannabis from Schedule I to Schedule III acknowledges that cannabis has accepted medical use and a lower abuse potential than Schedule I substances. However, rescheduling does not make cannabis federally legal, nor does it override state laws. Instead, it changes how cannabis is viewed and regulated at the federal level, particularly in relation to research, taxation, and medical legitimacy.

How this affects patients

For patients, rescheduling has the potential to bring meaningful long-term benefits, but it does not create immediate changes in access.

Some potential impacts include: 1) greater opportunity for high-quality clinical research; 2) improved acceptance of cannabis within mainstream medical settings; and 3) increased willingness among healthcare providers to engage in cannabis education and patient care.

However, patient eligibility, product availability, and program rules will continue to be governed by state medical cannabis laws. Rescheduling alone does not expand who qualifies for medical cannabis or where it can be obtained.

How this affects healthcare providers

One of the most significant impacts of rescheduling may be cultural rather than legal. Moving cannabis out of Schedule I reduces the stigma that has discouraged clinicians from learning about or recommending it as part of patient care. Over time, this may allow cannabis to be better integrated into evidence-based medical practice, particularly for patients with chronic conditions who are seeking alternatives or adjuncts to traditional therapies.

Education remains critical. Providers must understand both the science and the regulatory environment to guide patients safely and appropriately.

How this affects cannabis companies

For companies operating in the cannabis industry, rescheduling may ease certain federal restrictions, particularly related to taxation. Currently, cannabis businesses are subject to federal tax rules that prevent them from deducting many ordinary business expenses, placing them at a significant financial disadvantage. Moving to Schedule III may allow relief from these restrictions. Additionally, rescheduling is expected to improve access to banking. Likely we will see the introduction of new federal regulatory standards alongside existing state rules. 

Importantly, state laws will continue to control licensing, production, and sales. Companies must still comply with state-specific regulations.

What about state laws?

Rescheduling does not override state cannabis laws. States with medical or adult-use programs will continue to regulate cannabis independently. States without such programs are not required to change their laws as a result of federal rescheduling. In other words, cannabis policy will remain a patchwork of state-level systems, even as federal policy evolves.

Why did this take so long?

The rescheduling process is administrative and highly procedural. After the Department of Health and Human Services (HHS) issued its recommendation to move cannabis to Schedule III in 2023, the Drug Enforcement Administration (DEA) began its formal review process. Key administrative steps, including hearings and rulemaking procedures, were expected to move forward in early 2025. However, the new administration canceled the scheduled hearings, delaying progress and extending an already lengthy process. Recent movement has brought renewed attention to the issue, but rescheduling remains a process, not a single event.

Why education and medical guidance matter

As cannabis policy evolves, patients are often left navigating complex systems without clear medical guidance. Rescheduling alone does not solve this problem.

At Goldstein Wellness, we focus on:
1) Educating licensed healthcare practitioners in evidence-based medical cannabis
2) Helping patients connect with knowledgeable providers
3) Supporting patients through medical discounts 

Cannabis policy may be changing, but patient safety, medical integrity, and informed decision-making must remain the priority. If you are curious about cannabis medicine or looking for medical guidance, click here to register for free.