The National Cannabis Industry Association (NCIA) applauds the Trump administration and the Department of Justice for finalizing the decision to move medical cannabis to Schedule III under the Controlled Substances Act while urging immediate action to complete rescheduling of cannabis and emphasizing the need for comprehensive reform. This action represents a significant and long-overdue first step in aligning federal policy with science, patient needs, and the realities of today’s regulated cannabis marketplace.

By formally recognizing cannabis’ accepted medical use, this decision helps correct a decades-old policy mismatch. It facilitates research and provides meaningful relief to state-licensed medical operators, particularly through the removal of tax burdens imposed by Section 280E. Rescheduling will allow responsible medical operators to reinvest in their workforce, strengthen compliance, and continue delivering safe, tested products to millions of patients.

NCIA specifically appreciates the Trump administration’s adoption of the retroactive 280E relief for state-licensed operators championed by NCIA and detailed in our 2025 white paper.  Retroactive 280E relief is essential to ensuring a level playing field for small businesses, and NCIA appreciates the Trump administration’s recommendation for state-licensed medical operators and urges that the same position be adopted for all state-licensed cannabis operators. 

The Trump administration must also move forward as quickly as possible to apply rescheduling to the entire industry through the hearings announced for June. By omitting adult-use operators in today’s rescheduling order, businesses selling identical cannabis products could be treated materially differently depending on the type of state license. Moreover, much of the market must continue to operate under an onerous taxation model even as medical operators have the opportunity to write-off common business expenses with the elimination of 280E.

NCIA will continue to support the rescheduling process as the administration continues to engage with stakeholders across the industry.   We view this as an important step toward a more rational and modern federal approach to cannabis.

At the same time, rescheduling is not the finish line. Congress must now build on this progress by establishing a clear federal framework that respects states’ rights, ensures public safety, and supports the long-term stability of the legal cannabis industry. NCIA remains committed to working with policymakers on both sides of the aisle to advance comprehensive reform.

Take Action: Help Turn Momentum Into Meaningful Reform

The decision to move medical cannabis to Schedule III represents a significant and long-overdue first step—but it is not the finish line.

With administrative hearings on broader rescheduling set to begin in June 2026, the path forward is clear: policymakers must ensure that these changes are applied fairly across the entire industry and that Congress builds on this progress by establishing a comprehensive federal framework that respects states’ rights, ensures public safety, and supports long-term industry stability.

That progress will not happen without sustained engagement from industry stakeholders.

Now is the time to show up.

Join NCIA in Washington, D.C. for our upcoming 14th Annual Cannabis Industry Lobby Days next month and help ensure that the voices of responsible cannabis businesses are heard as federal policy continues to evolve. Together, we can push for the comprehensive reform needed to create a more rational and modern approach to cannabis regulation.

For a limited time, register for Lobby Days at 50% off through the end of the weekend using code FLASH50.

Your participation is critical to ensuring that this moment leads to lasting change.