Merch
Medical card
With a presidential executive order stalled at the DEA, a $28 billion hemp market facing a November deadline, and a landmark state reform in active dispute, this month marks one of the most complicated moments in cannabis policy in years.
Cannabis policy in 2026 is moving in multiple directions at once, sometimes in the same week. On April 14, Virginia Gov. Abigail Spanberger proposed amendments to her state’s newly passed retail cannabis legislation. The amendments would delay sales until after July 1, 2027, recriminalize certain cannabis possession for people under 21, and raise penalties for public consumption. Del. Paul Krizek and Sen. Adam Ebbin responded with a joint statement calling the proposals “a step backward for Virginia” and said they undermine the equity framework lawmakers had spent years building. The Virginia General Assembly had passed the retail bill just weeks earlier, 64 to 32 in the House and 21 to 18 in the Senate. That sequence captures the state of cannabis policy in April 2026: significant moves forward, contested at the last step.
Federal Cannabis Rescheduling in 2026: Executive Order, Meet Administrative Reality
President Trump signed an executive order in December 2025 directing the Attorney General to complete the Schedule III rulemaking “in the most expeditious manner” permitted by law. Four months later, on April 10, the DEA confirmed it has not taken additional steps, and no briefing schedule exists.
Two structural problems explain the delay. Former DEA Chief Administrative Law Judge John Mulrooney retired in August 2025, leaving the agency without an ALJ to hear the rescheduling case. DEA Administrator Terrance Cole, confirmed in July 2025, published a list of his eight strategic priorities after taking office, and cannabis rescheduling appeared on none of them. Rep. Steve Cohen sent a letter to Attorney General Bondi and Cole on March 27, 99 days after the executive order, asking for a timeline and raising the ALJ vacancy directly.
The Congressional Research Service analysis of what Schedule III would and would not accomplish adds another layer. Moving cannabis from Schedule I to Schedule III, without additional federal legislation, would not bring state-licensed medical or adult-use businesses into compliance with the Controlled Substances Act. Banking access, FDA oversight pathways, and interstate commerce would each require separate Congressional action. Rescheduling is a meaningful step, but not a comprehensive fix for the industry’s federal exposure.
The Ohio State Drug Enforcement and Policy Center’s rescheduling tracker documents the full procedural history, from President Biden’s 2022 directive through the current stall, and remains the most reliable resource for following the process as it develops.
Section 280E and Cannabis Businesses: The Tax Fight Is Already in Court
One concrete consequence of cannabis remaining Schedule I is Section 280E of the federal tax code, which bars businesses that traffic in Schedule I or II controlled substances from deducting ordinary business expenses. Analysis from Foley Hoag published in March 2026 documents how some cannabis companies are now taking “non-280E” positions on current-year federal returns and filing amended returns for prior years, a high-stakes legal posture that the IRS has not accepted. Whitney Economics estimated that only 27.3% of U.S. cannabis operators were profitable in 2024, compared to roughly 65% of small businesses broadly. Relief from 280E depends on rescheduling, which remains stalled.
The Hemp THC Limit Countdown: Seven Months to November 2026
Congress enacted legislation in November 2025 redefining hemp based on total THC concentration rather than delta-9 THC alone. That change takes effect in November 2026. The Congressional Research Service explains that the new federal limit is 0.4mg of total THC per container, not per serving. Industry groups estimate this would remove approximately 95% of available hemp-derived products, including a large portion of full-spectrum CBD offerings.
Several states moved ahead of the federal deadline. Texas banned THCA flower as of March 31. Ohio Senate Bill 56, which bans all intoxicating hemp products including THC and CBD beverages, took effect March 20 after referendum backers failed to gather enough signatures to block it.
A notable contradiction sits at the federal level. The Centers for Medicare and Medicaid Services launched a Medicare pilot program in April covering up to $500 annually in hemp-derived CBD costs for eligible patients, setting a 3mg per serving THC limit. That limit is more than seven times higher than the 0.4mg per container cap the November 2025 spending law imposes beginning this November. The SōRSE Technologies regulatory roundup for April 2026 covers this incoherence alongside the FDA’s missed deadline for publishing a list of lawful hemp-derived cannabinoids.
The Regulatory Oversight legal analysis of the November 2025 law details the “synthesized or manufactured outside the plant” exclusion language and the compliance ambiguities it creates for formulators and retailers deciding how to manage inventory before the deadline.
The 2026 Cannabis Ballot Map: Expansion and Rollback, Side by Side
Voters in up to six states may decide cannabis and psychedelic-related measures this November. Idaho’s constitutional amendment, which would strip voters of the power to legalize currently prohibited substances in the future, has already been certified for the ballot. Measures may also appear in Alaska, Massachusetts, Missouri, Nebraska, and Washington.
The rollback dimension deserves equal attention. Arizona and Massachusetts each face prohibitionist ballot initiatives that would repeal existing adult-use frameworks. Florida’s adult-use campaign failed entirely after the Secretary of State directed local election officials to invalidate nearly 71,000 signatures, and the state Supreme Court declined to intervene.
The Marijuana Policy Project’s 2026 tracker and the Ohio State DEPC ballot initiative database are the most current sources for signature status, certification, and measure language across all active state efforts.
State Cannabis Legalization That Almost Happened in 2026
Several high-profile legislative efforts have already ended this cycle. Wisconsin’s legislature adjourned March 17 without floor votes on either a Republican-backed medical bill or a Democratic-backed adult-use bill. Hawaii’s crossover deadline for a “low-dose” adult-use bill passed March 12 without action. New Hampshire’s Senate voted down a House-passed legalization bill on March 6, along party lines.
Pennsylvania remains the year’s most-watched stall. Gov. Josh Shapiro called for legalization in his annual budget address for the fourth consecutive year. Advocates estimate up to 60% of customers at border-state dispensaries report being Pennsylvania residents, an economic argument that surfaces regularly in legislative testimony but has not yet produced a floor vote. The Spotlight PA analysis from February details the Senate dynamics, including Senate President Pro Tempore Laughlin’s continued resistance and the House-Senate dispute over retail licensing models.
April 2026 is a dense moment, not a tipping point. The DEA ALJ vacancy remains unfilled. Cole’s enforcement priorities lean toward interdiction. Virginia’s outcome depends on whether the legislature accepts or overrides the governor’s amendments. The hemp industry has seven months to work through cannabis regulatory compliance with a federal definition change that would, if enforced as written, end most of the category’s current product lines. Each of these threads in cannabis policy in 2026 resolves on its own timeline, and cannabis industry federal reform at the congressional level remains a prerequisite for several of them.
Frequently Asked Questions
Is cannabis rescheduling happening in 2026?
As of April 2026, the DEA has confirmed no additional steps toward Schedule III rescheduling, and no briefing schedule has been set. DEA Administrator Cole’s published strategic priorities make no mention of the rescheduling process.
What does the 2025 hemp law change mean for consumers?
Starting November 2026, a new federal limit of 0.4mg total THC per container would remove the majority of hemp-derived intoxicating products from the legal market, including many full-spectrum CBD products. Several states have already enacted preemptive bans ahead of the deadline.
Will Virginia have legal cannabis retail in 2026?
Virginia’s General Assembly passed retail legalization for adults 21 and over in March 2026, but Gov. Spanberger’s proposed amendments would delay sales until after July 1, 2027, and recriminalize certain possession for people under 21. The legislature was actively contesting those amendments as of publication.
What is Section 280E and why does it matter for cannabis businesses?
Section 280E bars businesses trafficking in Schedule I or II substances from deducting ordinary business expenses. Because cannabis remains Schedule I, licensed cannabis operators pay effective tax rates far above comparable businesses in other industries. Relief requires rescheduling, which remains stalled at the DEA.
Sign up for bi-weekly updates, packed full of cannabis education, recipes, and tips. Your inbox will love it.
