The Drug Enforcement Administration concluded its administrative hearing on marijuana rescheduling on July 15, 2026, and the parties have filed their final briefs. The proceeding could determine whether recreational marijuana moves from Schedule I to Schedule III of the Controlled Substances Act.
In its final brief, the DEA argued that marijuana no longer qualifies for Schedule I because it has a currently accepted medical use in the United States and can be used safely under medical supervision. The agency itself is now supporting the move to Schedule III.
The rescheduling effort dates to 2023, when the Department of Health and Human Services recommended moving marijuana to Schedule III after a scientific and medical review. The Department of Justice proposed the change in May 2024, but the process stalled.
President Trump revived the effort in December 2025, when he directed the attorney general to expedite rescheduling. The administration then took a two-part approach in April 2026.
On April 23, 2026, DOJ placed FDA-approved marijuana products and marijuana products subject to qualifying state medical licenses into Schedule III. At the same time, it restarted the administrative process that could move all of marijuana into Schedule III.
DEA held hearings from June 29 through July 15. Chief Administrative Law Judge Derek Julius is expected to review the hearing record and issue a recommended decision.
That recommendation is important, but it is not the final say. The case then goes to DEA Administrator Terry Cole, who will determine how the agency proceeds.
DEA could issue a final rule moving marijuana to Schedule III, keep it in Schedule I, or take another approach supported by the administrative record. There is no firm deadline for Julius to issue his recommendation or for DEA to publish a final rule.
Even a final Schedule III rule may not end the fight. Opponents have raised procedural and legal challenges throughout the proceeding, making federal litigation a real possibility.
The testimony is finished, the final briefs are in, and the DEA is now supporting the move to Schedule III.
The decision matters for the hemp beverage industry, which faces new federal restrictions. Congress is deciding whether to delay, revise, or replace the hemp restrictions scheduled to take effect later this year.
A key question is whether Schedule III could provide another path for THC beverages if Congress moves forward with its new restrictions on hemp. The answer is more complicated than it might appear.
On one side is the DEA, where the administrative law judge must issue his recommendation. On the other is Congress, weighing the fate of the pending hemp restrictions.
Neither outcome is settled.
For now, the industry is watching two separate federal processes that could reshape how THC beverages reach consumers.
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