TO:      Cannabis Licensees

FR:      Liquor and Cannabis Board (LCB)

RE:      Federal Rescheduling of Medical Cannabis

On Thursday, April 23, 2026, the acting U.S. Attorney General issued a final order and rule regarding the rescheduling of medical cannabis. The rule is titled “Schedules of Controlled Substances: Rescheduling of Food and Drug Administration Approved Products Containing Marijuana and Products Containing Marijuana Subject to a Qualifying State-issued License from Schedule I to Schedule III; Corresponding Change to Permit Requirements.”

States are Seeking Federal Guidance

Since the issuance of the federal rule, the LCB has been working to pinpoint how rescheduling could impact Washington’s cannabis industry. We’ve spoken with state agency partners as well as other states via the Cannabis Regulators Association (CANNRA) and the National Governors Association. We’ve also heard from industry members expressing their opinions and concerns.

Based on our analysis, federal rescheduling in its current form does not appear to apply to Washington’s cannabis licensees due to the statutory framework predominately regulating recreational cannabis. However, this may not be our final interpretation as information is evolving and the determination may not rest with the state. We expect additional guidance from involved federal agencies, new or updated federal agency processes, and/or other federal proceedings. The Dept. of Justice (DOJ) has not put a timeline on their actions. However, there is an initial rule hearing by the Drug Enforcement Agency (DEA) scheduled for June 29, 2026. Further, there is active litigation challenging the rescheduling order, which could impact the final outcome of rescheduling.

A key element of this rescheduling action is that it applies strictly to “medical marijuana.” The final order also specifically prohibits the sale of “recreational marijuana.” Because of this, Washington’s cannabis licensees do not appear to qualify as “state medical marijuana licensee[s]” and therefore may not be eligible to register under the Final Rule. Washington does not license medical cannabis producers, processors, or retailers. Instead, Washington has a single recreational market and within that market producers/processors may manufacture DOH-compliant products, and certain retailers may sell DOH-compliant products to all adult patients and designated providers.

The LCB recognizes there are many cannabis producers, processors, and retailers that actively engage in the production and sales of medical cannabis in Washington. These businesses may or may not have an opportunity to use the 280e tax deduction and additionally register with the DEA for a schedule III permit. The determination of the applicability of 280e and qualification for DEA schedule III permits is with the federal government and not with the state of Washington. It is possible that the state of Washington will ultimately not have any input into the determination as to whether its licensees meet the criteria for “state medical marijuana licensees,” as DOJ may make that determination unilaterally. DOJ has the authority to reasonably interpret the meaning of the Final Rule, and a determination that Washington cannabis licensees do qualify as “state medical marijuana licensee[s].”

As this analysis has been conducted by the LCB, the interpretation of the final order should not be considered the formal opinion of Washington. Also, the LCB is not taking a position to prevent licensees from applying for federal registration if they choose. If any licensee does apply for federal registration, we would be interested in learning about their experience and any federal determination.

Additional Information and Future Communication

As a member of CANNRA, an international nonpartisan association of government cannabis and cannabinoids regulators, we recommend reviewing its factsheet, Overview of DOJ Final Order on Marijuana Rescheduling (April 27, 2026), as a good source for known details.

As federal policy evolves, the LCB will work to keep you informed. We will work with state and federal partners to determine timing, strategy and whether modifications to state law, licensing structures, or medical cannabis regulations are necessary to preserve or strengthen patient access, maintain regulatory integrity, and maximize opportunities for Washington licensees.

We look forward to gaining more details that will allow us to offer additional clarity to licensees as it relates to both federal changes and Washington’s regulated system.

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