As of Dec. 31, 2024, cannabis was still a Schedule I controlled substance under federal law. The DEA had not issued a final rescheduling rule. In 2024 the agency proposed moving cannabis to Schedule III, opened a public comment period, and held an administrative hearing. None of those steps changed federal law by the end of the year.
What the DEA did in 2024
On April 30, 2024, the Drug Enforcement Administration sent a proposed rule to the Office of the Federal Register. The rule ran in the Federal Register on May 21, 2024, at 89 FR 44597, under Docket No. DEA-1362. It proposed moving marijuana from Schedule I to Schedule III of the Controlled Substances Act.
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The notice set a 60-day comment window. That window closed July 22, 2024. The docket drew tens of thousands of comments from medical groups, state regulators, cannabis operators, and law enforcement agencies.
Where the proposal came from
The DEA acted after a review by the Department of Health and Human Services. On Aug. 29, 2023, Assistant Secretary for Health Rachel Levine sent DEA Administrator Anne Milgram a letter recommending Schedule III. HHS based the finding on an FDA review of eight factors, including abuse potential and accepted medical use in the United States.
DEA Cannabis Enforcement Priorities: A Comprehensive Guide
Schedule I means no accepted medical use and a high potential for abuse. Schedule III means moderate to low potential for physical and psychological dependence.
The December 2024 hearing
DEA scheduled an administrative hearing on the proposal. It opened Dec. 2, 2024 at DEA headquarters in Arlington, Virginia, before Administrative Law Judge John J. Mulrooney II. Designated participants gave testimony on both sides. The hearing continued into 2025. A hearing is not a decision, and the DEA administrator holds final authority over scheduling.
What Schedule III would change
- Internal Revenue Code Section 280E would no longer apply. That section blocks deductions and credits for businesses that traffic in Schedule I or II drugs.
- Manufacturers, distributors, and dispensaries would register with DEA under Schedule III rules.
- FDA approval would still be required before a cannabis product could be sold as a prescription drug across state lines.
What rescheduling would not do
- It would not legalize cannabis at the federal level.
- It would not authorize interstate sales of state-legal cannabis.
- It would not replace state licensing systems, testing rules, or possession limits.
Status at the end of 2024
Cannabis remained in Schedule I. The proposed rule stayed open at the administrative hearing stage. A final rule would require DEA publication, and Congress holds a review period after that. As of the end of 2024, no final rule had been published, and no date was set for one.