**Partial rescheduling of certain marijuana categories to Schedule III occurred in April 2026 under an executive action tied to a Trump administration executive order, covering FDA-approved products and state-licensed medical cannabis.** This shifted those items out of Schedule I, with implications for tax treatment under Section 280E and federal registration, but left recreational and other non-covered marijuana in Schedule I. A separate DEA administrative hearing on broader rescheduling to Schedule III ran from June 29 to July 15, 2026. Opponents including Smart Approaches to Marijuana, several states, and medical groups participated and argued against the change on abuse potential and accepted medical use grounds. The DEA defended the proposal, citing widespread state medical programs and practitioner acceptance. The administrative law judge is reviewing transcripts and briefs before issuing a recommendation to the DEA Administrator, whose final decision would trigger any rule change. A September 2026 D.C. Circuit ruling rejected efforts to stay the April order, allowing the partial Schedule III status to remain in effect during litigation. No final action on full rescheduling has occurred as of mid-September 2026. Market-implied probabilities for near-term broader rescheduling remain low, reflecting the multi-step administrative process, active opposition, and unresolved legal challenges. Key upcoming steps include the ALJ recommendation and any subsequent DEA rulemaking timeline.