DEA Postpones Cannabis Rescheduling Hearings to 2025

LOS ANGELES-The U.S. Drug Enforcement Administration (DEA) has postponed its hearings on the proposed rescheduling of cannabis under the Controlled Substances Act (CSA) to early 2025. The delay follows a preliminary order from Chief Administrative Law Judge John Mulrooney II, who identified deficiencies in the information provided about the 25 designated participants selected by DEA Administrator Anne Milgram.

Initially scheduled to commence on December 2, 2024, the hearings aim to evaluate the potential reclassification of cannabis from Schedule I to Schedule III. This reclassification would acknowledge accepted medical uses and a lower potential for abuse compared to substances like heroin and LSD, which are also listed under Schedule I.

The DEA’s proposed rulemaking has garnered significant public interest, with approximately 43,000 comments submitted during the designated period. The rescheduling of cannabis could have substantial implications for the industry, including easing research restrictions and allowing cannabis businesses to claim federal tax deductions under IRS Section 280E.

Despite the postponement, the DEA conducted a preliminary session on December 2, 2024, to address procedural matters. Judge Mulrooney indicated that merit-based proceedings would begin in mid-January 2025, with hearings held “Tuesday through Thursday … for as long as it takes.”

The rescheduling process involves multiple federal agencies, including the Department of Health and Human Services (HHS), which conducted a scientific review informing the DEA’s proposal. The outcome of these hearings could lead to significant changes in federal cannabis policy, impacting both regulatory controls and criminal prohibitions related to cannabis.

As the proceedings advance, stakeholders across the cannabis industry and advocacy groups are closely monitoring developments, recognizing the potential for transformative effects on the legal and financial landscape of cannabis in the United States.