On December 18, 2025, the federal government took a historic step by directing the rescheduling of cannabis from Schedule I to Schedule III under the Controlled Substances Act. This long-awaited action formally recognizes the accepted medical use of cannabis and marks meaningful progress toward a more rational, regulated national cannabis framework.
At FLUENT, we applaud this milestone. One that validates what patients, healthcare professionals, and responsible operators have known for years: cannabis-based medicine has therapeutic value and belongs in a regulated medical system.
What Schedule III Means for Cannabis
Moving cannabis to Schedule III removes outdated federal barriers that have limited the industry’s ability to operate like other healthcare businesses. Most notably, it opens the door to relief from IRS Code 280E, which has historically prevented cannabis operators from deducting ordinary business expenses.
This shift allows licensed medical cannabis companies to:
- Reinvest more directly into patient care and product innovation
- Improve operational efficiency and access to banking services
- Support sustainable growth in regulated state markets
In short, Schedule III status strengthens the foundation for a safer, more transparent cannabis industry.
This rescheduling also follows recent federal clarification around hemp-derived intoxicants, passed on November 12, 2025, which significantly limits unregulated intoxicating hemp products by November 2026. Together, these actions are expected to reduce unlicensed competition and ease pricing pressures, particularly in key markets like Florida and emerging medical markets such as Texas. For patients, this means greater confidence in regulated products that meet strict quality, safety, and testing standards.
Progress With More Work Ahead
While this moment represents real progress, important work remains. The conflict between state and federal law has not yet been fully resolved, and broader criminal justice reform is still needed to address the lasting impacts of prohibition.
FLUENT remains committed to operating responsibly within the evolving regulatory landscape while advocating for thoughtful policy reforms that benefit patients, communities, and the future of cannabis.
This is a meaningful step forward, and one we’re proud to acknowledge as part of cannabis history.
