Joshua S. Bauchner, Chair of the Firm’s Cannabis, Hemp & Psychedelics Group, was among the legal and industry voices NJBIZ turned to for analysis of the federal government’s latest action to ease restrictions on medical cannabis.
On April 23, 2026, Acting U.S. Attorney General Todd Blanche issued an order moving state‑licensed medical cannabis from Schedule I to Schedule III under the Controlled Substances Act. The shift removes medical cannabis from the most restrictive category and formally recognizes its medical use, while placing it alongside drugs with lower abuse potential.
The order legitimizes medical cannabis programs in approximately 40 states, including New Jersey, creates a Drug Enforcement Administration registration framework for state‑licensed producers, allows medical cannabis businesses to deduct ordinary expenses on their federal taxes, and eases restrictions on cannabis research. It does not legalize marijuana at the federal level or resolve issues for adult‑use markets, and additional administrative proceedings are expected later this year.
Commenting on the change, Josh told NJBIZ, “We share in the Administration’s frustration that the federal bureaucracy’s delay in rescheduling is depriving millions of Americans of safe access to medicine, harming small businesses struggling to survive in the face of 280E tax liability and the inability to access traditional banking services, and allowing a thriving black market to sell untested product to children.” He added, “The real answer, of course, is to deschedule and allow the states to continue their own regulatory and licensing schemes absent federal interference.”
Mandelbaum Barrett continues to monitor developments closely as federal agencies, states and industry stakeholders assess the practical impact of Schedule III status, particularly in dual‑use states like New Jersey.
Read the full NJBIZ article here (subscription required).