A key congressional panel has raised concerns about the Biden administration’s recommendation to reclassify cannabis under federal law, calling for a formal investigation into the review process that led to the proposed rescheduling. The directive comes from a report tied to the Fiscal Year 2026 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Bill, recently advanced by a subcommittee of the House Appropriations Committee.
According to Marijuana Moment, the committee is directing the Department of Health and Human Services (HHS) Inspector General to produce a report scrutinizing the FDA’s 2023 review that recommended cannabis be moved from Schedule I to Schedule III under the Controlled Substances Act (CSA). The current Schedule I status classifies cannabis as having no accepted medical use and a high potential for abuse—putting it in the same category as heroin. Schedule III includes drugs like Tylenol with codeine and anabolic steroids.
The FDA review was the basis for HHS’s formal recommendation in August 2023, which urged the U.S. Drug Enforcement Administration (DEA) to make the change. However, the rescheduling process has since stalled at the DEA, in part due to an ongoing legal challenge by parties advocating for cannabis reform.
In its report, the Appropriations Committee expressed “concern about deviations from established drug scheduling evaluation standards” during the FDA’s analysis. Lawmakers are questioning whether proper scientific and regulatory procedures were followed in the agency’s recommendation to reclassify marijuana.
The committee’s report underscores a broader political divide over cannabis policy and federal drug classification. While the Biden administration has taken steps toward easing cannabis restrictions—earning praise from reform advocates—some lawmakers are signaling caution, particularly over procedural transparency and scientific rigor.
This development comes as Congress moves forward on 12 annual appropriations bills, including the one containing this directive. The full House Appropriations Committee is expected to take up the spending bill soon, which could lead to further debate on cannabis policy and regulatory oversight.
The investigation could have ripple effects for the cannabis industry, especially multi-state operators (MSOs) like MedMen Enterprises, Curaleaf Holdings, Acreage Holdings, Cresco Labs, Green Thumb Industries, Trulieve Cannabis, Ayr Wellness, TerrAscend, Verano Holdings, and Ascend Wellness. These companies stand to benefit significantly from rescheduling, as a Schedule III designation would reduce tax burdens under IRS Code 280E and potentially ease banking restrictions.
For now, industry stakeholders and policymakers await both the DEA’s final decision and the results of the new congressional probe, both of which could shape the future of federal cannabis regulation.
