DEA Pauses Marijuana Rescheduling: Responses Due Oct. 13

What Happened

According to the U.S. Drug Enforcement Administration (administrative record) on September 29, 2026 in Federal — DEA, the DEA administrative law judge stayed the case, docketed as the proposed rescheduling of marijuana, and ordered a response to a pending motion. Three participants in the DEA marijuana rescheduling hearing filed it on September 28: DUID Victim Voices, Kenneth Finn, M.D., and the National Drug and Alcohol Screening Association, a trade group for the drug testing industry. They oppose the rescheduling move and want the GAO report, published September 23, considered first. They asked the judge to add the GAO report to the record and allow supplemental briefing. Granting the stay requested, Julius said a pause is warranted while he weighs the motion. He has not ruled on admitting the report, as Marijuana Moment reported. The primary source is linked in the Source section below; readers are encouraged to review it directly for full context.

Why This Is Trending Now

The recommended decision was the next expected step in the marijuana rescheduling process after post-hearing briefs closed on August 17. When a DEA judge pauses cannabis rescheduling this close to a recommendation, the DEA Administrator's final decision moves with it. October 13 is a deadline for responses to the motion, not a date for completing the Trump administration's marijuana rescheduling proposal. Separate lawsuits challenging the process are consolidated before a federal appeals court.

Why Businesses Should Pay Attention

The stay is a matter of administrative law procedure, not a ruling on whether to reschedule or on federal marijuana policy. The Government Accountability Office report reviews the federal government's scheduling process as a whole. It found that DEA and FDA lack comprehensive written policies for scheduling evaluations, and it describes the standards for finding a currently accepted medical use, one of the requirements for Schedule III placement. It did not decide whether marijuana should be a Schedule III drug. The proposed rule itself dates to the Biden administration, after the Department of Health and Human Services completed a scientific review and recommended rescheduling. For adult-use operators, including MSOs, the pause is mostly a tax problem. Section 280E applies to Schedule I and Schedule II substances, and until adult-use marijuana leaves Schedule I, those businesses still cannot deduct most ordinary operating expenses. Anyone who built a budget around relief this year should plan for the possibility that it does not arrive. And if the judge allows supplemental briefing, the effort to move marijuana to a Schedule III classification could slip well beyond October.

Practical Considerations

Businesses may want to monitor the October 13 filings and the ruling that follows. Companies may need to evaluate how a longer timeline could interact with tax planning, financing terms, and transaction milestones tied to a Schedule III outcome. Financial institutions may want to confirm that their risk assessments still distinguish between medical and adult-use customers.

Cogent Law Perspective

Cogent Law advises cannabis operators and the financial institutions that serve them on regulatory strategy, corporate structure, and compliance as federal drug policy changes. We help clients model Section 280E scenarios across different timelines, review agreements that assume a rescheduling date, and prepare for a Schedule III transition. The best next step is to speak with counsel about the facts specific to your organization.

Key Takeaways

• Judge Derek Julius stayed the marijuana rescheduling proceeding on September 29, 2026, before issuing any recommendation.
• October 13 is when responses to the motion are due. It is not a decision date, and the effort to move marijuana to Schedule III will not be finished then.
• Nothing in the GAO report says which schedule marijuana belongs in; it criticizes how the agencies document their scheduling procedures.
• Medical cannabis operators with a state license keep their Schedule III status under the April 2026 order.
• Review the primary source from the U.S. Drug Enforcement Administration (administrative record) for the full record before making any decisions.
• Speak with Cogent Law to discuss how this development may affect your business.

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