A360
Key Takeaways✦ Atlas AI
01
Marijuana reclassified to Schedule III.
02
Boosts cannabis industry funding.
03
Facilitates research on marijuana.
Atlas AI
The U.S. Department of Justice said it has moved FDA-approved and state-licensed marijuana to a lower federal drug category, shifting it from Schedule I to Schedule III under the Controlled Substances Act. The announcement was made on Thursday, April 23, 2026, and was delivered by Acting Attorney General Todd Blanche. Officials described the step as a major change in federal drug policy, while emphasizing it does not create nationwide federal legalization of marijuana.
According to the Justice Department, the reclassification is designed to accelerate an expedited hearing process tied to broader marijuana rescheduling. Officials also said the change is intended to make it easier to conduct research into marijuana’s safety and efficacy. The department framed the move as a policy adjustment within existing federal law rather than a blanket change to the legal status of marijuana across the country.
The decision follows a December executive order from President Donald Trump directing the Justice Department to loosen marijuana restrictions. Officials linked the current action to that directive. The announcement also comes after a similar effort during the Biden administration in 2024 that was not finalized, according to the information provided.
Market reaction was immediate in publicly traded cannabis names. After the announcement, shares of Cronos Group, Aurora Cannabis, Canopy Growth, and Tilray Brands rose, with gains reported in a range of 6% to 13%. The move was described as supportive for the cannabis industry, with expectations cited that it could reduce tax burdens and improve access to funding for companies operating in the sector.
While the Justice Department highlighted research and process changes, officials also underscored a key limitation: the reclassification does not amount to federal legalization across the United States. The scope described in the announcement focuses on FDA-approved and state-licensed marijuana, and the department’s next steps are tied to the expedited hearing process for broader rescheduling.
