Schedule III

Definition: Schedule III is a category under the federal Controlled Substances Act for drugs with accepted medical uses and a moderate to low potential for physical and psychological dependence. Examples include ketamine, anabolic steroids, and Tylenol with codeine. In April 2026, the DEA moved FDA-approved cannabis products and state-licensed medical marijuana into Schedule III.

What Do the Drug Schedules Mean?

The Controlled Substances Act sorts drugs into five schedules. Schedule I is reserved for substances considered to have no currently accepted medical use and a high potential for abuse, and marijuana has been there since 1970. Schedule III drugs are recognized as having medical uses and carry lower abuse potential than Schedules I and II. They can be prescribed, with federal controls on manufacturing and distribution.

Is Marijuana Schedule III Now?

Partly. The DEA’s April 2026 action moved FDA-approved cannabis products and state-licensed medical marijuana to Schedule III. A broader proceeding on rescheduling marijuana as a whole held its formal hearing from June 29 to July 15, 2026, and a final decision is still pending. Until then, adult-use, or recreational, marijuana remains Schedule I under federal law, even in states that have legalized it, such as California under Prop 64.

What Does Schedule III Change?

• Section 280E, the federal tax rule that blocks normal business deductions, applies only to Schedule I and II drugs, so Schedule III status takes covered cannabis businesses out of its reach
• Research on Schedule III substances faces fewer federal barriers
• It doesn’t legalize recreational marijuana federally or override state laws

Does Schedule III Affect Hemp?

No. Hemp was removed from the Controlled Substances Act by the 2018 Farm Bill, so it isn’t scheduled at all. Separate federal hemp rules are changing on their own timeline.

Related terms: The Controlled Substances Act (CSA), 2018 Farm Bill, MMJ, The Cole Memo

Sources: DEA: Marijuana Rescheduling Regulatory Actions; DEA: Drug Scheduling.

Last reviewed October 2026. This entry is for general education and isn’t legal advice.